Documentation requirements inter-group transactions in Spain

By: Transfer Business Administration Services Spain

Transfer pricing refers to the pricing of contributions that are transferred across administrations run by the same group of shareholders or directors. This also includes transactions between between companies owned by the same group of shareholders, directors or relatives.

In line with the European Code of Conduct for transfer pricing, Spain has introduced new documentation requirements for both large companies and SMEs on February 19, 2009. Companies who conduct inter-group transactions below market value will face heavy sanctions imposed by the Spanish government. Both Spanish and international companies with headquarters in Spain should therefore no longer carry out transactions between various entities without verifying its accordance with given market prices.

Transfer BASE assists companies in fulfilling these obligations and avoiding unnecessary risks leading to heavy penalties. Transfer BASE offers a complete package of services such as tax advice and assistance with tax returns in Spain, and assists you in dealing with multiple Spanish authorities. Interested in our services we offer? Please feel free to contact us!