I have heard that it is now cheaper to form a Spanish company, is that true?

29 Aug I have heard that it is now cheaper to form a Spanish company, is that true?

From December 3rd, 2010 as a general rule for any kind of companies the following operations shall be exempt of tax (such tax was formerly a 1% of the operation’s value):

1)      Formation of companies

2)      Increase of company’s capital

3)      Contribution from shareholders not resulting in increase of company’s capital

4)      Transfer to Spanish territory of the business’ headquarters or company’s domicile when they were previously located in a non EU country member.

Consequently the company operations still being taxed are: decrease of company’s capital and company’s winding up.