The remuneration of directors of a Spanish company is deductible from the corporate income tax. However, the company’s bylaws must expressly contemplate the remunerated character of the post, and the remuneration scheme used to pay the director must be determined with certainty.
The Royal Decree-law 24/2020 of 26 June provides for specific labour measures to mitigate the impact of the new pandemic outbreaks on the activity of companies in Spain: ERTEs on the grounds of force majeure and ERTE due “to resurgence” of COVID-19.
The Workers’ Statute grants workers’ representatives priority to remain in the company or the workplace over other workers. Recent judgments in Spain limit this prerogative in the COVID-19 ERTE.
Entering the Spanish market offers several strategic alternatives, including setting up a local branch, creating a joint venture, or acquiring a local business. Each option presents unique benefits, such as market penetration, reduced costs, or access to local expertise. It’s important for foreign businesses to assess legal and regulatory factors before choosing the best approach.
The basis to claim an undue payment appears in articles 1895 and 1901 of the Spanish Civil Code and resides in the legal obligation between a person who receives what he/she is not entitled to and the entity that makes the payment by mistake.
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