Who should and who can be an administrator in a Spanish company

The opening of a company in Spain is steeped in some secrets . One of the most common beliefs is that only a Spaniard can be an administrator (general director) or, in extreme cases, a resident with the right to work. ⠀

In fact, any foreigner can open a company in Spain and be an administrator in it, even in the absence of a local residence and work permit, because he is not obliged to receive wages (Art.217 Ley de sociedades de Capital) and is not obliged to register with Social Insurance authorities as the administrator of the company, if it operates outside Spain (Judgment of the Court of October 28, 1999, Article 7 of the Social Insurance Law).

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It is important to know that the Tax Service, at its discretion, can still “advise” to appoint a representative of a tax resident in Spain (Article 47 of the General Tax Law), and in this case we recommend that the advice be taken as binding …

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Also, the situation changes somewhat when the company starts to conduct commercial activities. Then you need to appoint a trustee of a resident of Spain. But it can be your first employed worker.
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For example, you opened a flower shop and you are an administrator (CEO with the appropriate authority) who does not receive a salary. Then for the first seller you hire, you will pay social security contributions as a director, regardless of his salary. Even if your salesperson receives 1000 € / month, the contributions to the pension fund are as if he receives, as a director, 1500 € / month. All subsequent employees receive salary and deductions in accordance with their category.
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This way you avoid unnecessary expenses, the need to appoint an “outsider” as an administrator who will have access to everything in your company, accounting, bank accounts, assets and can dispose of it at his own discretion.