Foreign investors who are seeking to open a foundation in Spain
are advised to know the legislation applicable in this field. According to the Spanish legislation
, a foundation
can be set up for general purposes
, under the Art.34 of the Constitution. If you want to open a foundation
, you may request for assistance from our company formation agents in Spain
, who can provide you with information related to legal and fiscal obligations that must be met for this type of legal entity
Main purposes of a foundation in Spain
Foundations are defined under the Act 50/2002 as non-profit organizations set up to serve a “general interest purpose”. The Act also covers the legislation under which foreign foundations can function in Spain; the investors must prove that the foundations are incorporated under the law of the origin country. Foreign foundations fall under the supervision of the local authorities by respecting the same legal procedures applicable to Spanish foundations.
The assets of the foundation will be allocated in such way that will serve to the purpose for which the entity has been incorporated.
According to the Spanish legislation, the general purposes for which a foundation can function are related to any public benefits, such as:
• social issues;
• cooperation for development;
• scientific work;
• volunteer work.
Incorporation – legal aspects
If you want to set up a foundation here, the Spanish legislation requires that at least 70% of the income obtained throughout year by the foundation has to be used for the purpose stated in the statutory documents. When opening a foundation in Spain, an investor is required to invest EUR 30,000; the foundation can establish economic activities related to the field of interest for which the entity was set up.
Foundations in Spain can be set up by individuals or by companies and, according to the Art. 10 of the Foundation Act, the founding document must contain the name and the address of the founder, as well as the purpose of the foundation and the board members.