The Spanish branch, once incorporated must obtain a CIF (Fiscal Identification Number) in Spain and should be inscribed in the Mercantile Registry. In addition it is necessary to open a bank account in the name of the Spanish branch and register with the Spanish Tax system. Registration with the Spanish tax system is a requirement for any legal entity before it may begin trading in Spain.
At the same time, it is necessary to register locally for the Economic Activity Tax, at least 10 days before beginning economic activity, though it should be stressed that for tax purposes the branch will be considered as non resident . The fiscal rules that apply to the Spanish branch will depend on the Double Taxation Agreements applicable in the specific circumstances, and if there are none, Company Tax shall apply.
Among other duties the Branch must keep it’s own accounts and the parent company must submit the annual accounts to the Spanish mercantile registry.