Setting up in Spain? Getting your activity code wrong could cost you.

The €250K tax trap hiding in your CNAE code… seriously. In Spain, the activity code isn’t just admin… and it’s a story I’ve seen more than once.

An international business is setting up in Spain.

Their lawyers register them under a broad “consulting” activity code.

But their actual operations… SaaS platform, eCommerce fulfilment, or service subscriptions… tell a very different story.

Fast forward 12 months, and suddenly:

-No VAT refund.

-Red flags in audit.

-€250K+ clawback.

-Corporate tax treatment now in question.

All because the CNAE code didn’t match the business model.

In Spain, the activity code isn’t just admin. It affects:

-Whether you can reclaim VAT

-Whether your tax position aligns with your business structure

- Whether the authorities see you as compliant… or confused.

Once the mismatch is flagged, they’ll look deeper.

Every filing.

Every return.

If your company has evolved but your CNAE hasn’t, it’s worth reviewing, before someone else does.

Get in touch for more details.