The cost of the wrong director in Spain

That friendly local hire? If you name them director of your Spanish company, they could become personally liable for unpaid taxes...and you might not be able to remove them when it matters most.

This isn’t theoretical. 

I’ve had to step in more than once when directors, often well-meaning local ops managers, were put into a legal position they didn’t understand, without training or backup. They didn’t realise they were liable for unpaid VAT. 

They didn’t know they could be named in legal action. And by the time the head office realised, it was a notary-level mess to unwind.

In Spain, a company director is more than a formality. They’re the omnipotent authority in the eyes of the system, irrespective of their internal standing. 

That creates both risk and exposure, especially if your company has cross-border obligations or group reporting to manage.

So, what’s the alternative?

• A Power of Attorney-based structure: you retain operational control and legal separation.

• A trained admin model: roles and responsibilities are clearly defined, and compliance is built in.

• And crucially, directors are appointed strategically, not just for convenience.

Before you sign the paperwork, ask yourself:

1. Does this person understand the legal duties of a director in Spain?

2. Is this appointment giving them control without accountability?

3. What structure would let us stay compliant and in control?

Don’t let a practical hire become a compliance liability. If you’re unsure, let’s talk it through.