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Branch Office
Many overseas companies prefer to register their own company in Spain rather than form a new company, particularly if the Branch Office is very cash consuming. The process is not too arduous and will involve the foreign entity registering with the Spanish Tax authorities in order to obtain a CIF number and it will need to have a permanent address in Spain (a corporate address can be provided).
With the Branch Office the foreign entity can then employee people and also issue/receive Spanish invoices to include Spanish VAT.