Family office in SpainOverview
Spanish law does not define a family office, so the regulatory question is simply whether the office provides investment services to third parties. Investment services and activities are reserved to authorised entities under Ley 6/2023 de los Mercados de Valores y de los Servicios de Inversión and Real Decreto 813/2023 on investment firms, supervised by the Comisión Nacional del Mercado de Valores (CNMV). Following MiFID II, a company that provides services only to its own group, or that invests its own assets, falls outside that reservation. A single-family office organised as the family's holding company, with its own employees managing the group's assets, therefore needs no CNMV licence. A multi-family office that gives personalised investment advice or manages portfolios for unrelated families must be authorised, most often as an empresa de asesoramiento financiero (EAF) or a sociedad gestora de carteras, and managing a SICAV or fund for the family requires a management company (SGIIC) or an authorised manager of venture capital entities.
The typical architecture is a family holding company, usually a sociedad limitada, that owns the operating business and a separate investment portfolio. Where the holding owns at least 5% of a company for a year, Article 21 of the Corporate Tax Law (Ley 27/2014) exempts 95% of dividends and capital gains, which at the 25% general rate leaves an effective charge of about 1.25%. Holdings of foreign subsidiaries can be organised under the ETVE regime of Articles 107–108, which also exempts dividends distributed onwards to non-resident shareholders, provided the ETVE has the people and resources to direct its holdings. For private equity and co-investment, families use a sociedad de capital-riesgo (SCR), registered with the CNMV, which enjoys a special tax regime; the SICAV remains available for liquid portfolios, but since the 2022 reform only investors holding at least EUR 2,500 (EUR 12,500 for umbrella SICAVs) count towards its 100-shareholder minimum.
The most valuable incentives are personal rather than corporate. Spain levies an annual wealth tax (Ley 19/1991), regionally administered, and the Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF, Ley 38/2022) on net wealth above EUR 3 million, extended without an end date by Real Decreto-ley 8/2023. Shares in a family business are exempt from both if the entity carries on a real economic activity and is not a patrimonial (asset-holding) company, the family group owns at least 20% (or the individual 5%), and a family member performs management functions that provide more than half of their earned income. The same business qualifies for a 95% reduction in state inheritance and gift tax (Ley 29/1987) if held for ten years. Designing the holding so that passive investments do not taint the operating group is therefore the central structuring task.
Spain has no domestic trust and has not ratified the Hague Trust Convention; Spanish foundations under Ley 50/2002 must pursue general-interest purposes and are not family-benefit vehicles. Succession planning therefore relies on the holding, shareholder agreements, a family protocol that can be published in the Commercial Register under Real Decreto 171/2007, wills that respect forced heirship, and, for international families, foreign trusts or foundations placed above the Spanish holding. Since 3 April 2025 Ley Orgánica 1/2025 has removed the investor residence visa in all its forms, so relocation now runs through non-investment routes such as the entrepreneur, highly qualified professional or non-lucrative residence permits, combined where possible with the Beckham regime in Article 93 of the Personal Income Tax Law.
Key benefits
- Clear perimeter: a single-family office managing only group or family assets needs no CNMV authorisation
- Effective tax of about 1.25% on qualifying dividends and gains received by a holding under Article 21 of the Corporate Tax Law
- ETVE regime for families using Spain as the hub for foreign subsidiaries, with onward dividends to non-resident shareholders exempt
- Family business exemptions that can remove operating shares from wealth tax and ITSGF and reduce inheritance and gift tax by 95%
- Beckham regime for incoming family members and executives: 24% on employment income up to EUR 600,000 and wealth tax only on Spanish assets
- CNMV-registered SCR vehicle for private equity and co-investments, with a dedicated tax regime
- Family protocol that can be published in the Commercial Register, giving governance rules a formal footing
- Deep private banking, private equity and real estate markets, and a wide treaty network for operating groups
Requirements
- Confirm whether the office will serve one family and its group only, or third parties: investment advice, portfolio management or reception and transmission of orders for others requires CNMV authorisation under Ley 6/2023 and Real Decreto 813/2023
- Choose and incorporate the holding (SL from EUR 1 of share capital, SA from EUR 60,000) by notarial deed, register with the Commercial Register and obtain a tax identification number; non-resident shareholders and directors need an NIE
- Meet the Article 21 participation-exemption conditions: at least 5% held for one year and, for foreign subsidiaries, a nominal corporate tax of at least 10% in the subsidiary's jurisdiction
- For the ETVE regime, notify the tax authority, hold shares through registered securities and maintain the human and material resources needed to direct and manage the holdings
- For wealth-tax and ITSGF exemption, keep the holding non-patrimonial, hold at least 5% individually or 20% as a family group, and ensure a family member performs remunerated management functions providing more than 50% of their earned income
- Identify and file beneficial owners with the Registro Central de Titularidades Reales (Real Decreto 609/2023) and in the annual accounts filed with the Commercial Register
- Apply AML/CFT rules under Ley 10/2010: the office itself is not normally an obliged entity, but banks, notaries and any regulated subsidiary will apply full due diligence to the family and source of wealth
- Classify each entity for CRS and FATCA, file Spanish information returns and, for resident individuals, form 720 on foreign assets above EUR 50,000 per category
- Plan for Spanish controlled foreign company rules and the exit tax for individuals leaving Spain with substantial shareholdings (Article 95 bis of the Personal Income Tax Law)
Structure designs
Family holding SL with an embedded single-family office
Share capital from EUR 1
The standard model: one holding owns the operating group and employs the family office team, keeping the structure outside CNMV licensing. Works best when passive investments are kept within limits, or in a sister company, so the family business exemptions are preserved.
ETVE for international holdings
A Spanish holding company electing the ETVE regime to own foreign subsidiaries. Qualifying foreign dividends and gains are exempt and can be passed on to non-resident family shareholders without Spanish withholding, provided the ETVE has real management resources in Spain.
SCR for private equity and co-investments
Subscribed capital EUR 1.2 million
A sociedad de capital-riesgo registered with the CNMV, either self-managed or with an external manager, for direct private equity, venture capital and club deals. Suits families wanting a regulated-standard wrapper for illiquid investments and partners from outside the family.
SICAV for a liquid portfolio
A collective investment company managed by an authorised SGIIC, taxed at 1% on its profits. After the 2022 reform it needs 100 genuine shareholders each holding at least EUR 2,500 (EUR 12,500 for umbrella SICAVs), so it suits larger, broadly held family groups rather than one household.
CNMV-authorised multi-family office
An EAF or sociedad gestora de carteras for an office that will advise or manage portfolios for several unrelated families. Requires CNMV authorisation, fit-and-proper management, minimum capital under the investment firm prudential rules, conduct of business and full AML procedures.
Foreign trust or foundation above a Spanish holding
For international families: a trust, Liechtenstein foundation or Luxembourg holding owns the Spanish holding, providing succession governance that Spanish law lacks. Requires careful analysis of Spanish forced heirship, inheritance tax, beneficial ownership reporting and the tax treatment of distributions to Spanish residents.
Step-by-step process
- 1
Family, residence and asset review
Map family members, tax residences, regional exposure (Madrid, Catalonia, the Basque Country and Navarre differ materially), the operating business and the investment portfolio, and decide whether the office will serve one family or several.
- 2
Structure and tax design
Choose the holding model, ETVE election, SCR or SICAV, and the succession layer; test the wealth-tax and inheritance-tax exemptions, CFC rules, exit tax and treaty positions for each family member.
- 3
Governance
Draft the bylaws, shareholder agreement and family protocol, define the investment committee and board composition, and align wills and marriage regimes with the structure and forced heirship rules.
- 4
Incorporation and KYC
Obtain NIEs, complete bank and notarial due diligence, execute the deed, register with the Commercial Register, obtain the tax number and file beneficial owners with the Registro Central de Titularidades Reales.
- 5
Authorisations and elections
Notify the ETVE election, register an SCR with the CNMV or, for a multi-family office, file the investment firm application with the programme of activities, governance, capital and AML manual.
- 6
Substance and operations
Lease premises, hire the team and family managers, open bank and custody accounts, and set up accounting, CRS/FATCA classification and the reporting calendar; file Beckham elections (form 149) within six months of arrival where relevant.
- 7
Annual compliance
Corporate tax and information returns, audit where thresholds are met, wealth-tax and ITSGF returns for the family, beneficial ownership updates and a periodic review of exemption conditions.
Typical documents
- Passports and proof of address for shareholders, directors and beneficial owners, plus NIE numbers
- Source-of-wealth and source-of-funds evidence for the family and each contributed asset
- Family tree and description of the family's tax residences and marriage regimes
- Certificate of name availability from the Central Commercial Register and draft bylaws
- Bank certificate of share capital deposit or valuation report for contributions in kind
- Shareholder agreement, family protocol and investment policy
- Beneficial ownership declaration and structure chart showing any trusts or foundations
- For an SCR or investment firm: programme of activities, business plan, fit-and-proper files for managers and AML procedures
- Employment or management contracts supporting Beckham and wealth-tax exemption conditions
How Legal Wealth helps
Legal Wealth helps families decide whether Spain should host their operating holding, their family office team, their residence, or all three, and then builds the structure with Spanish tax and corporate counsel. We start with the family's residences and succession goals, test the wealth-tax and inheritance-tax exemptions against the actual asset mix, coordinate notaries, banks and the CNMV where a licence or registration is needed, and keep governance, beneficial ownership and reporting aligned as the family and Spanish rules change. Our approach is compliance-first and discreet, and every recommendation is documented and reviewed.
Enquire with Legal WealthFrequently asked questions
Does a single-family office in Spain need a CNMV licence?
Not if it only manages the assets of its own group or family holding through its own staff. A licence is required once the office gives personalised investment advice, manages portfolios or handles orders for third parties, including unrelated families, or manages a collective investment vehicle.
How is a family holding taxed on dividends from its subsidiaries?
Under Article 21 of Ley 27/2014, 95% of dividends and gains from holdings of at least 5% held for a year are exempt; the remaining 5% is taxed at the 25% general rate, an effective charge of about 1.25%. For foreign subsidiaries, the subsidiary must be subject to a nominal tax of at least 10%.
Can the holding protect the family from wealth tax?
Shares in a family business are exempt from wealth tax and the ITSGF if the entity carries on a genuine economic activity and is not mainly an asset-holding company, the family holds at least 20% (or the individual 5%), and a family member performs management functions that provide more than half of their earned income. Large passive portfolios in the same holding can reduce or remove the exemption.
What does the Beckham regime offer an incoming family?
Individuals not resident in Spain in the previous five years who move for employment, to become a director (holding less than 25% if the company is an asset-holding entity) or for qualifying entrepreneurial activity can be taxed as non-residents for the year of arrival and five more years: 24% on employment income up to EUR 600,000, 47% above, and wealth tax only on Spanish assets. Spouses and children under 25 can also qualify.
Is the Spanish golden visa still available?
No. Ley Orgánica 1/2025 removed the investor visa and residence permit, covering property, financial and business investment, with effect from 3 April 2025. Permits already granted continue under transitional rules. New arrivals use other routes such as the entrepreneur, highly qualified professional or non-lucrative residence permits.
Can a trust be used with a Spanish family office?
Spain has no trust law and does not recognise trusts as a separate legal relationship, but foreign trusts are used above Spanish holdings. Spanish residents involved as settlors or beneficiaries face specific inheritance tax and reporting consequences, and trusts must be disclosed to the beneficial ownership register, so the structure needs advice before it is put in place.
Last reviewed: 2026-10. Requirements, fees and timelines change. Information is general, reviewed on the date shown, and is not legal or tax advice.
