International Practice

# India-Spain Cross-Border
Legal Advisory

Spain

## India-Spain Cross-Border Legal Advisory

India and Spain share a deepening economic relationship anchored in renewable energy, infrastructure development, information technology, pharmaceuticals, and tourism. Spain is one of Europe's most dynamic economies and a natural gateway for Indian businesses seeking access to Spanish-speaking markets worldwide. Bilateral trade between the two nations has grown steadily, with Indian enterprises increasingly investing in Spain's renewable energy sector, real estate market, and technology landscape. Meanwhile, Spanish companies continue to explore India's vast consumer market and manufacturing capabilities.

ESB Global Law Advisory, based in Mumbai, provides comprehensive cross-border legal counsel to Indian businesses expanding into Spain and Spanish enterprises investing in India. Our advisory practice covers the full spectrum of commercial, regulatory, and transactional requirements that arise in India-Spain cross-border operations.

### Corporate Formation & Governance

Establishing a corporate presence in Spain requires careful navigation of the Spanish Companies Act (Ley de Sociedades de Capital). Indian companies typically choose between two principal entity types: the Sociedad Limitada (SL), a limited liability company suited for small and mid-sized ventures with a minimum capital of EUR 3,000, and the Sociedad Anonima (SA), a public limited company requiring EUR 60,000 in share capital and designed for larger enterprises or those seeking capital market access. The incorporation process involves securing a Numero de Identificacion de Extranjeros (NIE), reserving the company name at the Central Commercial Registry, drafting articles of association, executing the deed of incorporation before a Spanish notary, and registering with the local Mercantile Registry. We guide Indian promoters through each stage, ensuring full compliance with corporate governance norms, annual reporting obligations, and beneficial ownership disclosure requirements under Spanish law.

### Renewable Energy & Infrastructure

Spain ranks among Europe's foremost renewable energy markets, driven by abundant solar irradiation, strong Atlantic wind resources, and an ambitious National Energy and Climate Plan (PNIEC) targeting 74 percent renewable electricity generation by 2030. Indian companies in the energy sector are well positioned to participate in Spain's solar photovoltaic installations, onshore and offshore wind farms, green hydrogen production, and grid modernisation programmes. Legal considerations for Indian investors include regulatory approvals under Royal Decree 413/2014, grid connection permits from Red Electrica de Espana, environmental impact assessments, Power Purchase Agreement (PPA) structuring, and project finance documentation. Additionally, Spain actively pursues public-private partnership (PPP) models for transportation, water management, and urban infrastructure, offering Indian construction and engineering firms opportunities to bid on large-scale concession contracts. ESB Global provides legal advisory across the full project lifecycle, from tender submission and regulatory licensing to financing, construction contracts, and operational compliance.

### Real Estate Investment & Golden Visa

Spain's real estate market offers attractive opportunities for Indian investors across residential, commercial, and hospitality segments. The Spanish Golden Visa programme permits non-EU investors who acquire real estate valued at EUR 500,000 or above to obtain residency for themselves and their family members. This residency entitles holders to live and work in Spain, travel freely within the Schengen Area, and maintain the visa without minimum stay requirements. Beyond the Golden Visa, we advise on property due diligence, title verification at the Land Registry, urban planning compliance, tax structuring for property acquisitions, and lease documentation under Spanish tenancy law. Our team ensures Indian investors understand the stamp duty, capital gains, and non-resident income tax implications of Spanish property transactions.

### Employment & Immigration

Spanish employment law, governed primarily by the Workers' Statute (Estatuto de los Trabajadores), establishes robust protections for employees. Indian businesses hiring in Spain must comply with regulations covering maximum working hours of 40 per week, minimum annual leave of 30 calendar days, social security registration and contributions, sector-specific collective bargaining agreements (convenios colectivos), and strict rules on dismissal and severance pay. For Indian companies deploying personnel to Spain, immigration pathways include the Intra-Corporate Transfer Directive permit, the Entrepreneur visa for founders establishing innovative businesses, and the Highly Qualified Professional visa. We advise on structuring employment contracts, navigating unfair dismissal claims, managing collective redundancies, and securing the appropriate work authorisation for Indian nationals.

### Tax & Double Taxation Avoidance

The India-Spain Double Taxation Avoidance Agreement (DTAA) provides a framework for eliminating double taxation on income earned across both jurisdictions, covering dividends, interest, royalties, and capital gains. Spain's corporate tax rate stands at 25 percent for resident companies, with special regimes available for holding companies (ETVE regime), research and development activities, and newly established enterprises. We advise on permanent establishment risk, transfer pricing compliance, VAT obligations, and withholding tax optimisation for Indian businesses operating through Spanish entities or contracting with Spanish counterparties.

### Dispute Resolution

Commercial disputes arising from India-Spain transactions can be resolved through Spanish court litigation under the Ley de Enjuiciamiento Civil, international commercial arbitration, or mediation under Spain's Mediation Act (Ley 5/2012). The Madrid Court of Arbitration and the International Chamber of Commerce (ICC) are preferred arbitral institutions for India-Spain disputes. Spain's status as a signatory to the New York Convention ensures that arbitral awards rendered in Spain are enforceable in India and vice versa. ESB Global represents Indian clients in cross-border dispute resolution proceedings, enforcement of foreign judgments, and negotiated settlements with Spanish counterparties.

### Our India-Spain Legal Services Include

- SL and SA company incorporation and corporate governance
- Renewable energy project advisory and PPA structuring
- Infrastructure PPP and concession contract support
- Real estate acquisition and Golden Visa applications
- Commercial contract drafting under Spanish law
- Employment law compliance and work permit applications
- DTAA-optimised tax structuring for cross-border operations
- Dispute resolution, arbitration, and litigation support
- Intellectual property registration and protection in Spain
- Regulatory licensing and sector-specific compliance

FAQs

## Frequently Asked Questions

How can an Indian company incorporate a business in Spain?

Indian companies can establish a Sociedad Limitada (SL) with a minimum capital of EUR 3,000 or a Sociedad Anonima (SA) requiring EUR 60,000. The process involves obtaining a NIE (tax identification number), registering the company name at the Central Commercial Registry, executing a deed of incorporation before a Spanish notary, and registering with the Mercantile Registry. ESB Global assists with every stage of the incorporation process, ensuring full compliance with the Spanish Companies Act.

What is the Spanish Golden Visa and how can Indian investors qualify?

The Spanish Golden Visa grants residency to non-EU nationals making qualifying investments in Spain. The most common route is purchasing real estate worth at least EUR 500,000. Other options include investing EUR 1 million in company shares or bank deposits, or EUR 2 million in government bonds. The visa covers the investor and family members, permits Schengen Area travel, and has no minimum stay requirement. Our team advises Indian investors on structuring qualifying investments and managing the application process.

What are the renewable energy regulations for Indian investors in Spain?

Spain's renewable energy sector is governed by the National Energy and Climate Plan (PNIEC) and regulated by the CNMC. Indian investors must comply with Royal Decree 413/2014, secure grid connection permits from Red Electrica, obtain environmental impact assessments, and structure Power Purchase Agreements. ESB Global provides end-to-end legal support for Indian companies investing in Spanish solar, wind, and green hydrogen projects.

What employment law requirements apply to Indian businesses hiring in Spain?

Spanish employment law under the Workers' Statute mandates a 40-hour work week, 30 calendar days of annual leave, social security registration, and compliance with sector-specific collective bargaining agreements. Strict unfair dismissal protections apply. For transferring Indian employees, options include Intra-Corporate Transfer permits, Entrepreneur visas, and Highly Qualified Professional visas. We advise on employment contracts, dismissal procedures, and immigration compliance.

How can India-Spain commercial disputes be resolved?

Disputes can be resolved through Spanish court litigation under the Civil Procedure Act, arbitration at the Madrid Court of Arbitration or the ICC, or mediation under Spain's Mediation Act. Spain is a New York Convention signatory, so arbitral awards are enforceable in India and vice versa. ESB Global represents Indian clients in all forms of cross-border dispute resolution with Spanish counterparties.

International Practice

## Other International Jurisdictions

ESB Global provides cross-border legal advisory services across major European markets. Explore our country-specific practice areas:

- United Kingdom — India-UK Cross-Border Legal Services
- Germany — India-Germany Cross-Border Legal Services
- France — India-France Cross-Border Legal Services
- Netherlands — India-Netherlands Cross-Border Legal Services
- Switzerland — India-Switzerland Cross-Border Legal Services
- Italy — India-Italy Cross-Border Legal Services
- Ireland — India-Ireland Cross-Border Legal Services

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## Expert India-Spain
Legal Counsel

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