What you need to know about doing business in Spain
- Sandra Visser-Meijer
- The basis
- Edited 12 March 2024
- 8 min
- Managing and growing
- International
The Dutch love the Spanish sun and Spanish hospitality, which makes doing business in Spain a pleasant prospect. The economy runs mainly on the tourism and hospitality sectors, followed by manufacturing. The corona crisis accelerated the growth of sectors such as the cycling industry, digital security, automation, sustainability, and health care.
The size of the market, the strong financial sector, and the fact that Spain is the fourth largest economy in the Eurozone mean that many Dutch entrepreneurs are already active in the Spanish market. This article goes into all the business opportunities that Spain has to offer, as well as the rules you will encounter when importing or exporting goods or services.
- Bilateral trade
- Promising sectors
- Market entrance
- Business culture
- Exporting goods
- Importing goods
- Services
Bilateral trade
The Netherlands and Spain are important trading partners. The main economic sectors in Spain are tourism, hospitality, and finance. Spain is the EU's second-largest producer of cars after Germany.
According to   (in Dutch) from Statistics Netherlands (CBS), Dutch entrepreneurs exported goods worth more than €28.6 billion to Spanish buyers in 2023. In 2022, Dutch exports amounted to just over €28 billion. The main exports going from the Netherlands to Spain are petroleum products, various manufactured goods, and electrical appliances.
Figures from   (in Dutch) show that Dutch imports from Spain totalled just over €15 billion in 2023, compared to €15.3 billion in 2022. Spain’s biggest exports to the Netherlands are  fruit and vegetables, crude oil, and petroleum products.
In the CBS   database, you can track exactly which products are imported and exported into and from the Netherlands. You can even filter imports and exports by country. Use these trade figures in your  market research  to discover new business opportunities in Spain.Â
Promising sectors
With over 47 million inhabitants, Spain is the fourth largest economy in the EU. Although Covid did lead to significant financial pain, the pandemic also accelerated developments that were already underway in fields such as digital security, automation, and sustainability.
In the coming years, Spain will invest heavily in these sectors using money from the European Recovery Fund. This presents opportunities for technology and software suppliers.
The Spanish market is also promising for Dutch companies in the cycling sector and businesses with innovative solutions for e-mobility and water treatment. RVO has a special page with market  (in Dutch) on these and other promising sectors.
Market entrance
In Spain, companies are listed in the  Registros . You can request information from  Colegio de for a fee. This will help you tell whether the person you are speaking with is authorised to make decisions.
You might find it easier to land new business if you hire Spanish staff. Other options include bringing in a Spanish commercial agent or distributor, selling goods on a shopping site or opening your  own  (in Dutch). Commercial agents are protected in Spain. They have to be registered with the Association of Spanish Commercial Agents in their place of residence. They must also join a professional association and register in the trade register.Â
Opening a branch
In Spain, businesses can contact the  Puntos de Atención al Emprendedor  for support. These offices offer online support and can help you digitally register your company, for instance. Decide what type of business you want to set up, such as an eenmanszaak (sole proprietorship) or branch office. Make sure to map out all legal and tax rules for your chosen business, such as  VAT rules and local . Depending on your legal form and business activity, you will have to go through  several (in Dutch) to start a company.
Finding partners
It is customary in Spain to get to know business partners personally before doing business. Visiting and taking part in trade fairs is a good way to gain insight into the Spanish market. They are a great place to meet new people and build a network.  Tradeshows  and  Auma have detailed lists of local (digital) fairs and exhibitions.
Support
There are various organisations that can help you find suitable partners, some of which provide their services for free and some of which charge a fee.
- The  Enterprise Europe Network  provides access to a professional network of 600 organisations in 70 countries, including Spain. EEN’s  digital  contains profiles of Spanish companies looking for partners to cooperate with.
- RVO can help you find reliable Spanish business partners by tapping into its overseas network, which includes embassies and Netherlands Business Support Offices (NBSOs) abroad. RVO will create an overview of business for you tailored to your needs and wishes. They can also introduce you to potential business partners in person.
Business culture
Food is important in Spain and Spanish people often do business over lunch or dinner. In summer, companies often start early and no work is done in the afternoon. Many businesses close on Friday afternoons and some stay closed throughout August.
There are some regional cultural differences in Spain. People in the north tend to be more serious, while people in the south are more easy-going. In the workplace, you see a certain respect for hierarchy reflected in the way employees treat each other. In the Netherlands, you speak your mind, even to your boss. Spanish people are less likely to do this.
If you do not speak Spanish, bring an interpreter with you to business meetings. Mostly only younger Spanish people speak English. Have your quotation, website, texts, and brochures translated into Spanish to come across as a serious and professional business. For more  do’s and (in Dutch), visit the RVO Spain page.
Laying down agreements
First, prepare a  quotation for your potential Spanish customer. A quotation is a proposal to deliver products. Your potential customer can accept, reject, or renegotiate your quotation. If you reach a deal, lay down all agreements in writing in a  , including agreements about the price, the  payment , and disputes procedures. Also agree on an  Incoterms® rule. This way, both of you will know who is responsible for arranging transportation and who bears the risk of damage to, or loss of, the goods in transit.
The ICC, the International Chamber of Commerce, has several  model . Have contracts reviewed by a lawyer who knows the Spanish legal system before you sign them.
Exporting goods
There are no physical borders  within the EU and there is free movement of goods. You do not have to submit an export declaration and your customer does not have to pay import duties on your products. If you and your customer both have a valid  VAT identification number, you can usually charge 0% VAT. Your Spanish customer will then charge Spanish  VAT and remit it to Spanish authorities. If your Spanish customer does not have a VAT ID, you will have to charge them Dutch VAT.
If you export  excise goods, your Spanish customer has to pay  excise (in Dutch). If you are selling to a private individual however, you are responsible for paying  excise duty in . There are different rules on VAT on excise goods. You can find more information about excise products in Spain on the website of the  Spanish customs .
Product rules and regulations
The Netherlands and Spain both belong to the EU, so laws and regulations for products are largely the same. However, member states can also impose national rules.
- To find out more about Spanish product requirements, contact the  Product Contact  in Spain.
- When exporting  plants, vegetables, fruits, or plant and animals or animal , check whether you have to meet additional requirements in Spain.
- If you want to import medications into Spain, you may need an export certificate from   (in Dutch).
- The Spanish packaging has rules for foreign companies selling packaged products in Spain.Â
Importing goods
Goods you buy from businesses from other  EU countries are usually subject to Dutch VAT. You do not need an import declaration and will not have to pay import duties. In most cases, your Spanish supplier will send you an invoice with  0% VAT. Calculate how much VAT is due on your purchase and report it in your VAT return.
If you import  beer or wine from Spain, you will have to pay Dutch excise duty. These are not the  that are subject to excise duty. In the Netherlands, you also have to pay  consumption tax  on soft drinks, fruit and vegetable juices, and mineral water imported from Spain.
When importing a  passenger car, motorcycle, or van from Spain, you pay BPM tax and  (in Dutch). The Dutch tax authorities have a dedicated page on paying VAT on  specific imported (in Dutch) from other EU countries and in special situations.
European laws and regulations
 authorised in Spain may also be sold in the Dutch market. The Dutch government is only allowed to ban products if they jeopardise consumer safety or the environment. If you want to sell products in the Netherlands, make sure that you are familiar with the  Commodities . This deals with consumer products and safety. In the Netherlands, foodstuffs have to be labelled in Dutch. Check out our article on  'Import restrictions and import regulations' to find out which products are subject to additional rules.
It is important to keep  product  in mind. Within the EEA, or European Economic Area, producers are responsible for damage or injury caused by faulty products. This also applies if you purchase products from another EEA country and you attach your own label or brand name to them. You are also liable if you sell imported products from outside the EEA within the EU.
Services
Dutch service providers are allowed to offer their services in Spain. They do not need a work permit or local branch. Services are subject to certain rules.
Mandatory licence
As in the Netherlands, in Spain you are not allowed to practice any profession you want without the necessary qualifications. What you need to arrange depends on how often and for how long you will be performing services in Spain. For certain occupations and activities, such as construction work, you will have to demonstrate your professional competence. Check whether the same goes for . With an EU  issued by KVK, you can demonstrate that your Dutch qualifications and your professional competence correspond to the requirements in Spain.
Every EU member state, including Spain, has a  Point of Single . You can contact them with questions about local rules for temporary services. The Point of Single Contact also provides information on the recognition of professional qualifications and regulated professions and on starting a local business.
Posting
When an employee is posted in another country, they temporarily work for the same employer and under the same employment contract but in a different country. Employees working in another EU country, such as Spain, are called  posted ' and are subject to posting . Under these rules, you have to   local authorities of your activities in advance and appoint a local representative. The Spanish Ministry of Employment and Social Security has a special information page on the  Spanish rules for .
Posted employees typically have the same  terms of  and rights as other local employees. Your employees are covered by Spanish terms of employment, if these are more favourable than Dutch terms.
Social security
An  A1 certificate of  is proof that you have social insurance coverage in the Netherlands. You can request this certificate from the Social Insurance Bank (SVB). With this certificate, you will not have to pay social security contributions in Spain.
Taxes
Whether you have to charge VAT to your Spanish customer depends on the type of customer to whom you provide the service. When providing services to consumers, you usually charge Dutch VAT. If your customer is a business, do not charge VAT and reverse charge it to your customer instead. Your Spanish customer will calculate the  VAT and report it locally. Some services are subject to  different VAT (in Dutch).
If your employee spends more than 183 days working from a Spanish branch in any twelve-month period, you have to pay Spanish  income , calculated from the first day. This is laid down in the  183-day .
