Expanding your business into Spain can be a game-changer, and one effective route for this growth is through an Intra Company Transfer (ICT) VISA. In 2023-24, Spain saw a 25% increase in foreign corporate presence, highlighting the country’s appeal for international firms looking to enter the European market. An ICT VISA is especially valuable for companies planning to transfer employees with specialized skills or executive experience to a Spanish branch. Establishing a representative office in Spain not only facilitates this visa process but also positions your business within one of the EU’s most dynamic economies. Through this article, you’ll learn about the strategic advantages of setting up a representative office, key requirements, and the necessary steps to obtain an ICT VISA, giving your business seamless access to Spanish and European markets.
How to open a representative office in Spain?
The process to open a representative office in Spain includes:
1. Legal structure and purpose: A representative office is a non-commercial extension, meaning it cannot conduct direct sales or generate revenue in Spain. It serves primarily for market research, networking, and business representation.
2. Obtain a NIF (Tax Identification Number): First, apply for a NIF for foreign entities from the Spanish Tax Agency. This identification number is crucial for all legal and tax-related matters in Spain.
3. Appoint a legal representative: Appoint a representative to act on behalf of the office in Spain. This individual must have residency status in Spain or the EU, and they will manage compliance with local laws and administrative processes.
4. Register the Office with the Commercial Registry: Although a representative office isn’t fully operational, you’ll need to register it with the Spanish Commercial Registry, submitting documentation of your parent company, the legal representative’s details, and the office’s intended purpose.
5. Open a Corporate Bank Account: Open a local bank account in Spain to facilitate any operational expenses for the representative office. This is also necessary for tax and administrative purposes.
6. Submit a Declaration of Economic Activity: File a declaration of economic activity with the Tax Agency, detailing the planned activities of the representative office.
How to apply for ICT VISA after setting up a representative office in Spain?
Applying for an Intra-Company Transfer (ICT) VISA in Spain after setting up a representative office requires navigating several steps to ensure your employees are authorized to work in the country. Here’s the process and requirements to follow:
1. Check Employee Eligibility
Confirm that the employee has been with the parent company for at least three months and possesses specialized knowledge, executive skills, or meets managerial requirements.
Ensure that the employee’s transfer is essential for company operations in Spain.
2. Prepare Documentation
Gather the necessary documents, including:
- Employment contract with the parent company, specifying roles, responsibilities, and duration.
- Proof of qualifications and professional experience.
- Letter of assignment from the parent company, detailing the purpose and expected length of transfer.
- Representative office registration certificate and tax identification in Spain (NIF).
- Some documentation may need to be translated into Spanish and certified.
3. Apply for Residence Authorization
Submit the application for ICT Residence Authorization through the Unidad de Grandes Empresas y Colectivos Estratégicos (UGE-CE) (Large Companies and Strategic Collectives Unit) in Spain.
This process generally takes 20 business days for a decision. Once approved, the UGE-CE will issue an authorization permit for the employee’s entry and residence.
4. Employee Applies for the ICT VISA at the Spanish Consulate
With residence authorization approval, the employee can apply for the ICT VISA at the Spanish Consulate in their home country.
Required documents for this step typically include the passport, employment contract, residence authorization, health insurance, and proof of sufficient funds.
5. Arrive in Spain and Register with Local Authorities
Upon arrival, the employee must register with the Spanish Social Security system and obtain a Foreigner Identity Card (TIE) within 30 days, which serves as their official residence permit during the stay.
Following these steps and ensuring compliance with each requirement allows the employee to legally work in Spain under an ICT VISA, enabling a seamless transition and strengthening your business presence in Spain.
What are the benefits for obtaining a residency after ICT VISA?
The following benefits you can avail for obtaining a residency after ICT VISA are:
- Long-term stability and residency rights: An ICT VISA enables employees to work and live in Spain for the duration of their assignment. The residency can typically be renewed, providing stability for long-term projects. After five years of continuous residency, employees may qualify for permanent residency.
- Family reunification: With ICT residency, family members (spouse, children, and dependent relatives) can also apply for residency permits, allowing the employee to bring their family to Spain and supporting a better work-life balance.
- Enhanced Work Opportunities: ICT residency holders may, in some cases, transition into other employment sectors or roles in Spain, broadening professional opportunities and allowing them to contribute to other areas of the Spanish economy.
- Access to European Union Mobility: ICT residency provides holders with intra-EU mobility rights, allowing short-term business travel to other EU countries without needing a separate visa. This makes it easier for companies with operations across Europe to mobilize talent effectively.
- Social Benefits and Healthcare Access: Residents in Spain have access to the country’s public healthcare system and social security benefits. This coverage ensures quality healthcare and social support, which can be critical for expats and their families.
- Pathway to Spanish Citizenship: After ten years of continuous residency, ICT VISA holders may apply for Spanish citizenship, enjoying all the rights and privileges of a Spanish citizen, including unrestricted EU access, voting rights, and greater professional and economic opportunities.
What are the documents required to obtain an ICT VISA after Rep Office setup?
- Employment Contract: A valid employment contract from the parent company, showing the duration, job role, and responsibilities.
- Letter of Assignment: An official letter from the parent company outlining the purpose and necessity of the transfer, including the start and end dates.
- Representative Office Registration Certificate: Confirmation of the representative office’s legal registration in Spain.
- UGE-CE Authorization Approval: A formal residence authorization issued by the Large Companies and Strategic Collectives Unit (UGE-CE), allowing the employee to enter Spain for work.
- Spanish Tax Identification Number (NIF): Proof of the representative office’s tax registration in Spain, essential for legal compliance.
- Educational and Professional Certifications: Documentation proving the employee’s expertise, skills, or specialized knowledge relevant to the role.
- Valid Passport: A passport valid for at least six months beyond the intended stay, with blank pages for visa stamps.
- Passport-Sized Photos: Recent photos meeting Spain’s visa photo requirements.
- Proof of Work Experience: Records of the employee’s tenure (generally a minimum of three months) with the parent company, demonstrating continuity.
- Proof of Financial Stability: Evidence that the employee has sufficient funds or that the company will support their expenses during the stay.
Conclusion
Setting up a representative office in Spain to secure an ICT VISA can be a powerful move, both for expanding your business footprint and for streamlining employee transfers. With Spain ranking among the top 10 European countries for foreign investment, a representative office offers your company a legal, strategic, and operational advantage in this thriving market. In fact, in 2023 alone, over 17% of foreign firms in Spain were able to expedite employee relocation through representative offices and ICT VISAs. By following the outlined steps—securing necessary documentation, meeting eligibility requirements, and ensuring proper registration—you’re not just navigating regulations but strategically positioning your business for success in Spain’s competitive market. This approach brings you one step closer to unlocking Spain’s potential, fueling growth, and achieving lasting international expansion.
You can contact On Demand International’s Spanish incorporation expert, if you are planning to set up a representative office in Spain and obtain a ICT VISA.
