Should you set up a new business branch in Spain?

When a branch isn’t a shortcut, it’s a liability. A branch can save time.It can also create risk for your entire group.

When international businesses expand into Spain, setting up a new business branch often feels like the easy route… but is it?

Fewer formation steps, faster to market, lower upfront costs… yes. But also:

A new business branch in Spain doesn’t create a firewall. If things go wrong in Spain (tax dispute, employment litigation, supplier issue), the parent company is directly exposed.
A branch also limits your ability to expand. You’ll often end up converting it into a full-blown subsidiary later anyway, usually after problems start stacking up.

That means your head office is on the hook for Spanish liabilities, and may be stuck reworking the structure down the line.

A subsidiary, though slower to form, often saves pain later. It protects the parent, limits liability, and gives you cleaner financial reporting.

Before you pick a structure, understand the real exposure, not just the admin checklist.

Thinking of launching in Spain?

Let’s talk about the structure that actually protects you.

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