Your local partner in Spain for companies from the United Arab Emirates
Last updated 2 November 2026
The short answer
Spain does not require a company from the United Arab Emirates to have a Spanish shareholder: your subsidiary can be wholly owned by you, with directors in the UAE. What it does require is a presence, with three particular features: the parent company's documents are legalised through consular channels, without an apostille; if a government controls your group, acquiring 10% or control of a Spanish company requires prior authorisation in any sector; and the tax treaty reduces withholding on interest and royalties to zero. Managora, a law firm and gestoría (administrative services firm), files and signs on your behalf.
The United Arab Emirates and Spain in figures
| Item | Figure | Source |
|---|---|---|
| Productive investment from the UAE (ultimate investor) | €361.3 million in 2023, €227.1 million in 2024, €180.1 million in 2025 and €20.0 million in the first half of 2026 | DataInvex, query of 2 November 2026, provisional data |
| Subsidiaries of Emirati groups (2024) | 54 companies employing 11,934 people | National Statistics Institute (Instituto Nacional de Estadística, INE), FILINT 2024, query of 2 November 2026 |
| Leading sovereign investor in Spain | Mubadala, since 2009, with more than €15 billion in Spanish assets | ICEX and IE University, Sovereign Wealth Funds 2026, query of 2 November 2026 |
What Spain requires of a company from the UAE
Of the ten obligations set out on our general page, these apply to you (documents and staff, further below):
| Obligation | When it applies | How it is met |
|---|---|---|
| Prior authorisation of the investment | On acquiring 10% or control of a Spanish company: in any sector if a government controls your group, even if it invests from the EU, or if your company has already invested or operated in sensitive sectors of another EU Member State; otherwise, in sensitive sectors such as energy, data or critical infrastructure and technologies, unless an exemption applies. | The decision is taken by the Directorate General for Trade Policy and Economic Security (Dirección General de Política Comercial y Seguridad Económica) or, above €5 million, by the Council of Ministers (Consejo de Ministros), within three months at most; silence means refusal and, without authorisation, the transaction has no validity. |
| Investment Register (Registro de Inversiones) | On incorporating the subsidiary or acquiring 10%, on opening or funding a branch, and with group loans of more than €1 million for a term of more than one year. | Form D-1A within the following month (if a Spanish notary is involved, the notary files it); no prior declaration is required, because the UAE is not on the Spanish list of non-cooperative jurisdictions. D-4 annual report above €3 million of capital or net equity. |
| Spanish NIF (tax identification number) | Always. | The parent company, beginning with N; the branch, with W; whoever signs or acts as director, their NIE or a NIF beginning with M. |
| Tax representative | With a branch, or if the tax authorities require one. | Resident in Spain; jointly and severally liable for the branch's debt under Non-Resident Income Tax (Impuesto sobre la Renta de no Residentes, IRNR). |
| VAT (IVA) representative | If the parent company files VAT returns in Spain without being established here. | The UAE is not exempt, unless your company uses the OSS or IOSS one-stop shops. |
| Beneficial owner | Always. | Whoever ultimately holds more than 25% or control; if no one does, the directors. It is declared when the annual accounts are filed; changes, within ten days. |
What changes because you come from the UAE
- No apostille: the UAE is not a party to the convention that governs it. Each document is certified by its issuer or by the notary; it is then legalised by the UAE Ministry of Foreign Affairs and by the Embassy of Spain in Abu Dhabi. Only originals or authentic copies bearing a handwritten signature can be legalised; then comes the sworn translation. We coordinate the consular legalisation for you.
- Mainland or free zone: the trade licence and the registration of a mainland company are issued by the economic department of its emirate; the certificate of incorporation (or certificate of registration, depending on the zone) and the licence of a free zone company, by the zone authority. They must show that the company exists and who manages it.
- Sovereign wealth funds and state-owned companies: authorisation does not depend on the sector or on the size of the company acquired. A vehicle for public funds with an independent investment policy, aimed solely at financial return, as established by its manager and its articles, may fall outside it. A prior consultation settles the point within 30 working days and is binding.
- Tax treaty in force since 2 April 2007. It covers the State and its public entities, companies incorporated and managed in the UAE and, among individuals, only UAE nationals domiciled there, not an executive of another nationality living in Dubai.
- Investment protection: there is no bilateral agreement in force (its signature was authorised in April 2024, but it has not been published in the Official State Gazette, the Boletín Oficial del Estado or BOE). Your investment is protected by Spanish and European law and, as regards a Spanish partner, by the shareholders' agreement.
- Visa depending on the passport: UAE nationals do not need one for stays of up to 90 days in any 180-day period; an executive holding an Indian, Pakistani or Filipino passport does, even if they live in Dubai. Once ETIAS is operational, those who are exempt will first have to obtain a travel authorisation.
- Social Security: there is no agreement with the UAE, so anyone working in Spain pays contributions here, even if posted by the parent company.
- Personal data: the UAE does not have an EU adequacy decision; to send customer or employee data to the parent company, the subsidiary needs safeguards such as standard contractual clauses.
From the UAE to your operating subsidiary in Spain, step by step
- 1
Assessment and fixed quote
Subsidiary or branch, timetable and whether the investment requires prior authorisation, which is obtained before signing.
- 2
Documents in the UAE
Certificate from the authority that registered the parent company, licence, board or shareholders' resolution and notarial power of attorney for whoever signs in Spain (for a branch, also the articles of association), legalised and with a sworn translation.
- 3
NIF and NIE
The parent company's NIF and the NIE or NIF of whoever signs or acts as director.
- 4
Incorporation or branch
Incorporation of the SL before a Spanish notary, with a negative name certificate (certificación negativa de denominación), or registration of the branch. No bank certificate for the capital is needed if the parent company assumes liability in the deed for the reality of its contribution.
- 5
Investment Register
Form D-1A within the following month.
- 6
Tax registration
Form 036 and a power of representation to receive its notifications, which must be electronic.
- 7
Bank account
The bank opens it subject to its own requirements, which may include the presence of the signatory.
- 8
Team
Registration with the Social Security system, registration of employees and authorisations.
- 9
Ongoing compliance
VAT, Corporate Income Tax (Impuesto sobre Sociedades), withholdings, annual accounts with the beneficial owner declaration and corporate books.
Your team in Spain, whatever their passport
What counts is nationality, not residence in the UAE: except for those with freedom of movement in the EU, everyone needs a residence and work authorisation. Through these routes, it is processed by the Large Companies Unit (Unidad de Grandes Empresas) and decided within 20 days (if there is no reply, it is deemed granted), and the visa within 10 working days:
- Intra-corporate transfer: managers, specialists and trainees of the group, with a higher education degree or three years' experience and three months' prior service in the group; up to three years (one for trainees).
- Highly qualified professional or its European variant, the EU Blue Card: a highly qualified position in the subsidiary; the application may be made by the company or by the professional.
Anyone who has lived in the UAE for the last two years provides their UAE criminal record certificate, with the same legalisation. Family members may apply for their authorisation together with the holder or afterwards (family reunification). Anyone arriving with an employment contract or as a director, who has not been resident in Spain in the previous five years, may opt for the special regime for relocated workers (régimen de impatriados).
Taxes: the treaty with the UAE and what you pay in Spain
| Income of the parent company | Maximum in Spain | Condition |
|---|---|---|
| Dividends | 5% | Direct holding of at least 10% of the capital |
| Other dividends | 15% | All other cases |
| Dividends received by public entities | 0% | The State, its political subdivisions and local authorities, its Central Bank, the Abu Dhabi Investment Authority and public entities recognised by mutual agreement, such as Mubadala and its wholly owned subsidiaries |
| Interest and royalties | 0% | Except any amount in excess of market value between related parties |
| Gain on the sale of the subsidiary | 0% | Unless more than 50% of its assets consist of real estate in Spain |
Since 2023, the treaty denies these benefits if obtaining them is one of the principal purposes of the transaction. To apply them, the subsidiary keeps the parent company's certificate of tax residence for treaty purposes (valid for one year), which the Federal Tax Authority issues only to companies that have been in existence for at least twelve months. Without the treaty, withholding would be 19% on dividends and interest and 24% on royalties; it is paid using Form 216.
The subsidiary pays Corporate Income Tax at the general rate of 25% and values its transactions with the parent company at market price, declaring them on Form 232 above certain amounts. The branch is taxed in the same way under Non-Resident Income Tax, without the 19% supplementary tax on the amounts it transfers abroad, which is not charged because the treaty does not provide for it, provided there is reciprocity.
What we do for your company
We file and sign on your behalf, remotely, before the Tax Agency (Agencia Tributaria), the Social Security system, the immigration authorities (MERCURIO platform) and the Registries; notary, official fees, legalisations and sworn translation are separate and payable by your company.
- The set-up, with the subsidiary's powers of attorney and your managing director's contract.
- Tax representation, where the case allows it: with a branch, the law would make us liable for its debt; we tell you beforehand and agree the guarantees.
- Your team's authorisations, Social Security, taxes and the subsidiary's accounts, and the European Union trade mark.
By law, we identify each client's beneficial owner before starting work. We do not provide a registered office or an address for notifications, nor do we act as directors, company secretaries or shareholders of your company (nominee or otherwise), customs representative, IOSS intermediary or the responsible person for your products in the EU; nor do we legalise documents or sign sworn translations (we coordinate them), or handle the parent company's Spanish trade mark.
Frequently asked questions
Does my company need a Spanish shareholder or director?
No. The subsidiary can be wholly owned by the parent company and its directors can live in the UAE, with a Spanish NIE or NIF; a branch also needs a tax representative resident in Spain.
Our shareholder is a sovereign wealth fund. Do we need authorisation?
Yes, to acquire 10% or control of a Spanish company in any sector. A vehicle with an independent investment policy, aimed solely at financial return, may fall outside it; a prior consultation settles the point within 30 working days.
Our company is in a free zone. Does anything change?
The certificates are issued by the zone authority and follow the same consular legalisation. For the tax treaty, the company must be incorporated and managed in the UAE.
How much does Spain withhold on what the subsidiary pays the parent company?
Dividends: 5% with a direct holding of 10% of the capital and 15% otherwise; nothing if they are received by a recognised public entity, such as Mubadala. Interest and royalties: nothing. Always with the UAE certificate of tax residence.
In which languages do you work?
In Spanish and in English, in writing and remotely. We are available at any time, including UAE business hours.
This guide explains the general framework and does not replace a review of your own case: what applies to you depends on your transaction, your sector and your structure.