Power of Attorney in Spain: 5 things you need to get right.

When a business sets up in Spain, especially as a subsidiary of an international parent company, it’s common to issue a Power of Attorney (POA).

Power of attourney in Spain

Why? So someone on the ground can act on the company’s behalf. That might include signing contracts, submitting filings, or simply making sure payroll goes out on time.

Done right, a POA unlocks everything.

Done wrong, it can quietly tie your hands.

I’ve seen bank accounts frozen, payroll delayed and whole operations stalled, all because the POA wasn’t fit for purpose.

Here are 5 common mistakes to avoid:

1. Know the two types.

There are essentially two types of POA in Spain:

-Registered POA (visible at the Registro Mercantil, widely accepted—especially by banks)

-Unregistered POA (valid but needs to be physically produced… and banks almost always reject it)

If your team needs to operate in Spain, not just represent, get it registered.

...And if a registered POA becomes outdated, say an employee leaves or an advisor changes, it must be actively cancelled. If not, that authority still stands on public record.

2. Scope it properly.

A narrow POA might look neat but will fall apart operationally.

Make sure it covers the authority to:

-Sign contracts

-Open and operate bank accounts

-File taxes and social security

-Approve and run payroll

3. Get the signatories right.

This trips people up constantly. The POA must be granted by the right legal entity with the right corporate approvals. Otherwise: rejected.

4. Check for expiry.

Some POAs have built-in expiry dates, or become void when directors change. A great POA issued 3 years ago might quietly become useless if no one’s watching.

5. Test before you rely on it.

We always do a dry run.

It’s not enough that the POA looks correct.

Will the bank accept it? Will the registry? Will it hold up under pressure?

If you haven’t reviewed your POA setup in the last 12 months, do it now.

Not after your first payment fails.

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Need help making sure yours is valid, strategic and watertight?

This is one of the first things we check for new clients, because too many have learned the hard way.