EMI license in
Spain 2024
Spain, as a rising financial hub within the European Economic Area (EEA), presents a strategic opportunity for businesses looking to expand their electronic money services across Europe. By obtaining an Electronic Money Institution (EMI) license in Spain, companies can offer a wide array of e-money services across the EEA, ensuring seamless entry into the broader EU market.
Spain’s regulatory environment, combined with its forward-thinking approach to financial oversight, makes it an attractive destination for fintech companies. Through the EMI license, Spain provides a gateway for businesses to issue electronic money, facilitate secure digital transactions, and offer payment solutions that align with European regulatory standards.
Moreover, Spain’s business-friendly infrastructure, along with access to a skilled workforce, further enhances its appeal for financial ventures aiming to establish or expand their operations across the European Union.
Regulations for EMI license in Spain
Bank of Spain (In Spanish Banco de España) serves as the main regulatory authority overseeing the Electronic Money Institutions (EMIs) within Spain. Operating under the Spanish Law 21/2011 on electronic money and additional relevant regulations, the bank ensures a robust and compliant financial environment. The core objectives of supervision body are:
- Strengthen Spain’s reputation as a competitive fintech hub within the European Economic Area (EEA), ensuring a secure and reliable financial sector.
- Regulate the issuance and supervision of EMI licenses in compliance with European and Spanish regulatory standards, promoting transparency, consumer protection, and operational stability.
- Oversee the operations of EMIs and Payment Institutions (PIs) to ensure full compliance with regulatory frameworks and address any potential risks to market integrity, including revocation of licenses when necessary.
- Safeguard the interests of consumers by ensuring that EMI operators adhere to stringent regulatory practices, enhancing the security and efficiency of the electronic money sector in Spain.
Obtaining an EMI license in Spain requires adherence to a comprehensive regulatory framework designed to protect consumers and ensure the integrity of the financial ecosystem.
Key regulations include:
- Applicants must ensure a minimum initial capital of EUR 350,000. This capital requirement ensures the institution has sufficient financial strength to operate effectively and absorb any potential operational risks or financial losses that might occur.
- Corporate Structure and Governance: The management team and board members are required to meet the fit and proper criteria. This includes demonstrating relevant qualifications, industry experience, and a clean legal record. Additionally, businesses must have a well-defined organizational structure with clear responsibilities.
- Suitability of Partners and Shareholders : All partners and shareholders of the company must demonstrate integrity and transparency. This includes assessing their ability to fulfill financial obligations and their overall financial stability.
- AML and CTF Compliance: Electronic Money Institutions must adhere to Spain’s robust AML and CTF frameworks, including regular customer due diligence, transaction monitoring, and reporting suspicious activities to relevant authorities, in line with Spanish Law 10/2010 on the Prevention of Money Laundering and Terrorist Financing.
- Operational Requirements: Licensed institutions must establish robust internal IT systems and risk management procedures to ensure operational efficiency and security. These procedures should safeguard client funds and maintain detailed transaction records, in compliance with Royal Decree-Law 19/2018 on payment services and other urgent financial measures.
- Consumer Protection: E-money entities are required to comply with local consumer protection laws, ensuring transparency in service fees, clear communication of terms, and addressing consumer complaints effectively. This aligns with the European PSD2 directive and Spanish regulatory frameworks.
- Reporting and Auditing: Financial institutions must submit regular financial statements and compliance reports to the Bank of Spain. The institution must undergo periodic audits to ensure adherence to regulatory requirements, including capital adequacy and risk management measures.
- Passporting Rights: Upon obtaining an EMI license in Spain, entity can leverage EU passporting rights, allowing them to operate across the EEA without needing additional licenses in individual member states.
- Application Process: The application process involves submitting detailed documentation, including a business plan, risk management procedures, and financial statements, to the Bank of Spain. Spanish regulators review the applications thoroughly, ensuring all criteria are met before granting the license.
- Cryptocurrency and Blockchain Compliance: Companies working with cryptocurrencies must follow strict AML guidelines and comply with evolving Spanish and European regulations to ensure secure operations.
By complying with these regulations, EMIs in Spain benefit from a robust regulatory framework, fostering innovation and growth within the financial technology sector.
Types of EMI licensing in Spain
The licensing of Electronic Money Institutions is structured to cater to different business models and operational scopes. Here are the primary types of EMI licenses available in Spain:
| License type | Description |
|---|---|
| Full EMI License | This is the most comprehensive type of license. It allows institutions to issue electronic money and provide a broad range of payment services such as issuing and managing electronic money, executing payments, and transferring funds across the European Economic Area. |
| Small EMI License | Intended for institutions with smaller operations. It has simplified regulatory requirements and limits in terms of transaction volumes and geographical scope. This license is particularly beneficial for startups and companies that want a lower regulatory burden while entering the market. |
| Payment Institution (PI) License | While not classified strictly as an EMI license, this license allows entities to offer payment services such as executing payment transactions and money remittance. However, it does not allow the institution to issue electronic money. |
| Small Payment Institution (Small PI) License | Offers basic payment services such as executing payment transactions, issuing and/or acquiring payment instruments, and executing credit transfers, with a primary focus on direct dealings with customers’ payment accounts. |
Key Differences Between Full and Small EMI Licenses
Capital Requirements
- Full EMI License: Requires a minimum initial capital of EUR 350,000, ensuring the institution has the financial strength to operate effectively.
- Small EMI License: Has a significantly lower capital requirement, aligned with the reduced scale and scope of the institution’s operations.
Scope of Services
- Full EMI License: Enables the institution to provide a wide range of electronic money services and payment solutions across the European Economic Area (EEA).
- Small EMI License: Limited to issuing electronic money and providing payment services under specific operational thresholds.
Operational Restrictions
- Full EMI License: No imposed restrictions on the volume of electronic money issued or the value of transactions conducted by the institution.
- Small EMI License: Subject to limits on the total volume of electronic money issued and the overall volume of transactions.
Regulatory Oversight
Both types of EMI licenses in Spain are regulated by the Banco de España. The regulatory framework aligns with European directives, including the Second Electronic Money Directive (EMD2) and the Payment Services Directive (PSD2). These regulations aim to ensure stability and security within the financial system while promoting competition and innovation in the fintech sector.
By selecting the appropriate type of fintech license, companies can strategically align their business operations with their regulatory obligations, ensuring they effectively serve their target markets.
With EMI license in Spain you can provide following services:
- Facilitate placing cash into payment accounts, alongside managing all related account operations. Additionally, allow for cash withdrawals from payment accounts, ensuring smooth operational processes for account management.
- Process and execute various payment transactions, including transfers of funds on a payment account. This can be conducted with the payer’s payment service provider or with another payment service provider. The range of services includes executing direct debits, credit transfers, standing orders, and payments through payment cards or similar devices.
- Handle transactions involving funds covered by a credit line, including direct debits, one-off direct debits, or credit transfers through payment cards and other similar payment instruments.
- Issue and acquire payment instruments such as cards and manage the processing of payments made using these instruments.
- Provide money remittance services, enabling the transfer of funds without the need to set up a payment account for the payer or payee.
- Execute payment transactions where the consent of the payer is given through telecommunication, IT devices, or digital means, acting as an intermediary between the supplier of goods/services and the payment service user.
- Offer services that aggregate information from multiple payment accounts to provide a comprehensive financial overview for account holders.
- Account information services
- Issue electronic money, allowing customers to use it for various payments and transactions.
Overview of requirements to obtain EMI license in Spain
- Establish the company under the Spanish Commercial Code with no restrictions regarding the citizenship of the shareholders or directors.
- Appoint a minimum of two local directors to comply with minimal requirements.
- Ensure the board and key personnel have the necessary qualifications, experience, and a clean regulatory history.
- Secure sufficient financial resources, including the required initial capital, to meet the ongoing operational needs.
- Maintain a registered office and business presence within Spain.
- Submit a detailed business plan outlining the company’s objectives, structure, and financial projections.
Estimated time frames
Company formation
1-2 weeks
Documents preparation
4-12 weeks
PI / EMI license obtainment from BoS*
~12 months
*The timeline also depends on the workload of BoS and any clarifications and queries that BoS may request in relation to the application.
Legal services for obtaining EMI license in Spain
Basic Package
30,000 EUR initial set up
- Turnkey company formation
- Legal address for 1 year
- Corporate documents
- Due diligence for shareholders and key directors
- Overview of the business plan
- Overview of financial forecasts
- Overview of an organizational structure
- Analysis of the internal documents
- Applying for the license
Registration of the EMI / PI licensed company under the minimum regulatory requirements
Additional services on request
- Preparation of individual business plan
- Preparation of required documents for the licensing
- Accounting services
- Assistance in opening bank account, including segregated and safeguard accounts
- Connection with SEPA system
- Connection with SWIFT
- Connection with card issuance programme
- Apostilled corporate documents
- Introduction to confirmed software provider
- Legal support
Ready-Made solution
available on request
- Registered company
- Legal address for 1 year
- No debts, no liabilities – clean company
- Active license
- Corporate documents
- Assistance with transfer of ownership
Edgar Mironov
Head of FinTech Projects
Detailed Requirements for EMI licensing in Spain
List of required documents
- Application Form
- Description: Completion and submission of the official licensing application form to the Bank of Spain.
- Purpose: This form serves as the official request to begin the licensing process, providing essential details about the applicant.
- CVs and Professional Qualifications
- Description: Detailed resumes for key personnel, including shareholders, board members, and senior management.
- Purpose: These documents demonstrate the relevant qualifications, experience, and expertise of key individuals. The Bank of Spain may also conduct interviews to further assess these credentials.
- Operational and Organizational Structure
- Description: Comprehensive documentation detailing the company’s organizational framework and key operational procedures, including internal governance and managerial oversight.
- Purpose: Ensures that the institution has a sound operational structure and an effective management system.
- Business Plan
- Description: A thorough plan covering the institution’s service offerings, financial projections for the first three years, marketing strategies, and key market segments.
- Purpose: The business plan provides a clear roadmap for the company’s operations and financial health.
- Risk Management and Internal Controls
- Description: Policies and procedures detailing how the institution plans to manage risk, including contingency measures, compliance with AML/CTF laws, and cybersecurity protocols.
- Purpose: Demonstrates that the institution has robust measures in place to manage risk and safeguard client funds.
- Internal Policies and Manuals
- Description: Includes risk management policies, business continuity plans, and measures to ensure the security of electronic money funds.
- Purpose: Guarantees that the company has implemented robust internal controls to mitigate risk and protect client funds.
- Capital and Financial Standing
- Description:Documentation demonstrating that the entity meets the minimum capital requirement and complies with the capital adequacy ratio.
- Purpose: Ensures the institution is financially sound and capable of handling operational risks.
- Description of Services
- Description: A detailed report of the electronic money services the institution intends to provide, outlining the specific operations and processes.
- Purpose: To give the Bank of Spain a clear understanding of the scope of services the entity will offer.
- Governance and Internal Control Mechanisms
- Description: A description of the internal control processes, including how the institution will handle user complaints, secure sensitive data, and manage regulatory compliance.
- Purpose: Ensures the entity has adequate governance systems in place to oversee operations and manage risks effectively.
- Operational Risk Assessment
- Description: A detailed assessment of operational risks, including questionnaires designed to evaluate the institution’s risk management capabilities.
- Purpose: Allows regulators to evaluate how effectively the company manages and mitigates operational risks.
- Information Technology and Security Risk Management
- Description: Questionnaires and reports addressing IT security risks and data management strategies.
- Purpose: Ensures that the institution has appropriate measures in place to manage IT-related risks and data protection.
- External Audit Agreement
- Description: Documentation of engagement with an accredited external auditor to ensure ongoing compliance with financial and regulatory requirements.
- Purpose: Provides transparency in the company’s financial health and ensures adherence to regulatory standards.
- Financial Statements
- Description: Financial reports that demonstrate the company’s current financial standing, especially if the business is already operational
- Purpose: Provides transparency in the company’s financial health and ensures adherence to regulatory standards.
- Data Protection and GDPR Compliance
- Description: Documentation on how the company ensures compliance with EU data protection laws, particularly GDPR.
- Purpose: Confirms that the institution is in line with European data privacy regulations, ensuring client data is handled securely.
- Directors’ Integrity Declaration
- Description: Statements confirming the good character and integrity of key management, including background checks.
- Purpose: Ensures that the institution’s leadership meets regulatory requirements for honesty and professional conduct.
- Professional Liability Insurance: Mandatory if the institution is providing account information or payment initiation services, but not for all types of EMI services
- Description of Outsourcing Arrangements: Only required if the institution plans to outsource any critical functions.
Share Capital and Government Fees
- Minimum Share Capital:
- For obtaining a PI license in Spain, the minimum share capital required is €125,000.
- For a full EMI license, the minimum share capital is €350,000.
- Additionally, financial institutions must maintain a capital adequacy ratio, generally around 8%, to ensure financial stability.
- Government Fees: There is no government fee for license application.
Bank account requirements
- Safeguarding Account: Institutions must open an EU-based safeguarding account to keep client funds separate from company funds, following EU and PSD2 regulations.
- Operational Bank Accounts: A dedicated account for daily expenses, such as salaries and office costs, ensuring separation of client and company finances.
- Current Account: Used for handling and processing payments, including fund transfers and remittances, related to services offered.
Personnel Requirements
- Management Board: Spain requires at least two directors, and one must be a resident of Spain. This is essential for local management and regulatory compliance.
- Local AML and Compliance Officers: Responsible for compliance with regulatory standards and AML regulations.
- Local Executive Director: Fluent in Lithuanian, responsible for operational management in Lithuania.
- IT Security Officer: This role can be outsourced but must ensure robust IT infrastructure management, including cybersecurity measures that meet the standards of the Spanish Data Protection Law and the GDPR.
- Internal Audit Officer: Can be outsourced; ensures ongoing internal compliance and operational audits.
- Local Data Protection Officer (DPO): As per GDPR, if your EMI business processes large volumes of personal data, a DPO is mandatory to ensure compliance with EU data privacy laws (as Regulation (EU) 2016/679).
Not sure about the number of staff you need to employ for your PI/EMI project? Contact Legalaes experts to define the right personnel structure for your business model.
Business premises requirements
- To obtain an EMI license in Spain companies must have a physical office in Spain for operational purposes. This office must be used for storing documentation, managing compliance, and serving as the official address for communication with the Banco de España and other Spanish authorities.
- A registered operational presence is required to handle daily activities, including customer support and compliance management.
By meeting the requirements and submitting the necessary documents, applicants demonstrate their readiness and adherence to regulatory standards, thereby streamlining the approval process for obtaining an EMI license in Spain.
Roadmap of obtainment Payment license in Spain
For a more detailed overview of the process, our team of Fintech experts is ready to guide you through every step of obtaining your E-money or Payment License in Spain. From documentation preparation to license approval and operational launch, we ensure full compliance with Banco de España regulations and seamless communication with local authorities.
Get in touch with us today for more information on licensing procedures and regulatory compliance in Spain.
Edgar Mironov
Head of FinTech Projects
Documentation Preparation
Gathering and preparing necessary documents, such as business plans, IT security measures, financial projections, and risk management strategies. Ensuring that each participant involved in the process meets the compliance and regulatory standards required by Spanish authorities.
Company Incorporation
Registering the company in Spain, including the necessary filings with the Spanish Mercantile Registry and the preparation of the company’s structure and shareholding agreements.
Application Preparation
Compiling all required documents into a comprehensive application pack. Ensuring the documents are complete and adhere to the regulatory standards of the Banco de España, including the company’s governance structure and risk management framework.
Local Team HR Services
Establishing the local management team, ensuring the appointment of directors and compliance officers who meet regulatory standards. Setting up HR services to support the company’s presence in Spain.
Application Submission
Submitting the complete application pack to the Banco de España to officially initiate the licensing process.
Bank Account and Safeguarding Setup
Opening necessary bank accounts and setting up a safeguarding account to meet the requirements for protecting client funds under Spanish regulations.
Regulatory Follow-Up
Ongoing communication with the Banco de España, responding to any requests for additional documentation or clarification. This ensures the application progresses without unnecessary delays.
License Approval
Once all reviews and compliance checks are completed, receiving final approval for the EMI license from the Banco de España.
Finalizing Bank and Safeguarding Accounts
Completing the setup of financial systems, including bank accounts, safeguarding arrangements, and payment infrastructure, in preparation for full operation.
Operational Launch and Additional Services
With the EMI license in hand, launching full operations in Spain. Additional services such as card issuing and payment processing can be integrated into the business as needed.
Detailed Time Frames to Obtain a EMI License in Spain
The process to acquire an Electronic Money Institution (EMI) license in Spain involves several stages, each depending on the accuracy of the application and the level of detail provided. Timelines may vary depending on the regulator’s workload and the complexity of the application. Below is a general outline of the process:
1. Preparation Stage
Time Frame: 4-12 weeks
- Documentation: Gather and prepare critical documents, including the business plan, IT security measures, internal control procedures, financial projections, and risk management strategies. Ensure that the organization has a proper administrative and accounting structure that aligns with regulatory requirements.
- Corporate Structure and Governance: Ensure that the company’s structure, along with the board of directors, aligns with regulatory requirements. This includes the suitability of partners and shareholders, with evaluations of their integrity and financial obligations.
- Capital Requirements: Secure the required initial capital for a full EMI license, which is set at EUR 350,000. Institutions must also demonstrate that they meet minimum own funds requirements and safeguard user funds according to Bank of Spain guidelines.
2. Submission of Application
Once all documentation is complete, submit the application to the Bank of Spain for review. Ensure that the application package includes the necessary forms and supplementary documentation, including the company’s bylaws, detailed business plan, and descriptions of the entity’s services.
3. Regulatory Review Phase
Time Frame: up to 3 months
- Initial Review: Banco de España will conduct an initial review to confirm that all documents are in order and the application is complete.
- Detailed Review: A comprehensive assessment follows, covering areas such as financial soundness, anti-money laundering (AML) measures, and IT security controls. The regulator will also assess the company’s ability to ensure continuity of services, risk management, and compliance with the necessary financial obligations.
4. Follow-Up Queries (Varies)
During the assessment, regulatory body may request additional information. Prompt responses to these queries will help avoid delays.
5. Decision-Making Stage
Time Frame: up to 3 months
- Approval or Denial: The regulator will make a decision based on the thorough review of the submitted documents and responses to queries. If conditions are met, the license is granted. After receiving approval the company will be also listed in the Special Registry of Electronic Money Institutions in Spain.
- Notification: Once a decision is reached, it is communicated to the applicant, and the issuance of the EMI license is made public.
Total Estimated Time
- Best Case Scenario: Around 10 months, provided all documents are accurate and responses are timely.
- Standard Timeline: Typically, the process takes 12-18 months, allowing for additional regulatory queries and adjustments.
Factors Influencing the Time Frame
- Completeness of Application: Accurate, well-organized submissions lead to quicker decisions.
- Response to Regulatory Queries: Timely and detailed answers expedite the review process.
- Business Complexity: The complexity of the applicant’s business model may extend the review time.
- Regulatory Backlog: The processing speed can vary depending on the current workload of the Banco de España.
By submitting a thoroughly prepared application and maintaining proactive communication with Spanish regulators, businesses can significantly streamline the process of acquiring an EMI license in Spain. This approach helps minimize delays, ensuring a smoother path toward compliance and operational readiness within the Spanish financial market.
Advantages of the EMI license in Spain
Obtaining an Electronic Money Institution (EMI) license in Lithuania offers several strategic and operational advantages for fintech companies. Here are the key benefits:
01
Access to the European Market
EU Passporting: With an EMI license from Spain, your company can seamlessly operate across the European Economic Area (EEA) without needing additional licenses, providing access to over 500 million consumers.
02
Favorable Regulatory Environment
Business-Friendly Approach: Spain has a dynamic regulatory framework that supports fintech innovation.
Modernized Regulation: The Bank of Spain embraces technological advancements, facilitating smoother operations for fintech companies.
03
Efficient Licensing Process
Transparent Application Process: Spain offers a clear and structured process for obtaining an EMI license, allowing companies to begin operations more swiftly.
Experienced Oversight: The Bank of Spain has extensive experience in managing and regulating electronic money institutions.
04
Cost and Tax Benefits
Operational Savings: Spain provides competitive office space and labor costs.
Attractive Tax Rates: Corporate tax is set at 25%, with incentives for new companies to benefit from a reduced rate of 15% during the initial years.
05
Skilled Workforce
Top Talent Pool: Spain is home to highly educated professionals, especially in IT and finance, ensuring companies have access to skilled workers.
Multilingual Advantage: The workforce is multilingual, supporting global communication and diverse business needs.
06
Robust Digital Infrastructure
Advanced Tech Ecosystem: Spain boasts excellent digital infrastructure, providing strong cybersecurity measures for fintech operations.
07
Supportive Fintech Environment
Government Backing: The Spanish government actively supports the fintech ecosystem through various initiatives and partnerships.
Collaborative Ecosystem: Numerous hubs and networking opportunities help foster collaboration within the fintech sector.
08
Consumer Trust and Compliance
High-Quality Consumer Protection: Spain upholds strong consumer protection laws, building trust through transparent and fair financial practices.
Compliant with EU Standards: Spain adheres to the PSD2 directive, ensuring robust consumer protection and security.
09
SEPA Integration
Seamless integration into the Single Euro Payments Area (SEPA), facilitating EUR transactions across 36 countries, along with SWIFT access and the ability to issue Visa and MasterCard for international operations.
By leveraging these advantages, fintech companies in Spain can effectively establish and expand their operations across Europe, offering innovative financial services while benefiting from Spain’s dynamic and supportive business environment.
Links for legislation related to EMI business in Spain
I. Law 21/2011
Governs the issuance and operation of electronic money institutions (EMIs) in Spain.
Establishes the framework for payment services and electronic money operations, aligning with EU regulations like PSD2.
Implements regulations that govern the functioning and supervision of electronic money institutions in Spain.
Sets EU-wide standards for payment services and electronic money operations, enhancing consumer protection and competition.
V. Law 10/2010
Key legislation for AML compliance for all financial institutions, including EMIs in Spain.
Sets out additional provisions for regulating financial institutions in Spain, including EMI operations.
Governs the submission and review process for financial market authorisations, specifically for electronic money institutions.
Provides access to Banco de España’s portal for financial institutions, covering authorization, registration, and regulatory compliance processes for EMI and other entities.
Outlines the standards and best practices for corporate governance within financial institutions in Spain, focusing on transparency, accountability, and effective management.
Ensures data protection measures for handling personal data within EMI businesses, especially for customer transactions.
These descriptions offer a concise overview of each regulation’s core purpose and its relevance within the legal framework for acquiring an EMI license in Spain.
Taxation of EMI Companies in Spain
The taxation of E-money companies in Spain is governed by a set of tax regulations that are designed to create a favorable business environment while ensuring compliance with national and EU tax laws. Here are the key aspects of taxation for EMI institutes:
- Corporate Tax : The standard corporate tax rate is 25%. This rate applies to the profits generated by legal entity operating within and outside the jurisdiction. In some cases, newly incorporated companies may benefit from a reduced tax rate of 15% during their first two years of profit-making, provided they meet the eligibility criteria set by the Spanish tax authorities.
- Value-Added Tax (VAT): Many financial services, including electronic money operations, are exempt from VAT. However, this exemption may not apply to certain ancillary services provided by EMI companies, which could be subject to the standard VAT rate of 21%. Even if VAT-exempt, businesses must maintain detailed records and submit regular VAT declarations to the Spanish tax authorities to ensure compliance.
- Dividend and Withholding Tax: Dividends distributed to non-resident shareholders are generally subject to a 19% withholding tax. However, reduced rates may apply under Spain’s double tax treaties or the EU Parent-Subsidiary Directive, which can reduce or eliminate withholding taxes in specific situations. Payments of interest and royalties to non-residents are also subject to a 19% withholding tax, with potential reductions under applicable tax treaties.
- Social Security Contributions: Social security contributions apply to employers in Spain, and the rate for employer contributions is approximately 29.9% of gross salary. Employee contributions are around 6.35% to 6.4%, depending on the earnings bracket.
- Personal Income Tax (PIT): Personal income tax rates for local individual residents follow a progressive system, ranging from 19% to 47% based on the income bracket. Non-residents working in Spain for local companies are generally taxed at a flat rate of 24% on their Spanish-sourced income.
- Tax Incentives and R&D Credits: Spain offers tax incentives and deductions, particularly for research and development (R&D) activities. Businesses engaged in R&D or innovation may benefit from deductions of up to 25% for certain qualifying expenses
- Transfer Pricing: legal entities that are part of an international group must follow transfer pricing regulations to ensure transactions between related parties are at market value. Proper documentation and reporting are mandatory to avoid penalties.
- Reporting and Compliance: Businesses must submit their annual financial statements and tax returns to the Spanish tax authorities, adhering to strict compliance deadlines. Local tax authorities frequently audit companies operating in the financial sector, so maintaining accurate records and compliance with reporting obligations is crucial.
By understanding and adhering to these taxation principles, EMI companies in Spain can effectively manage their tax obligations while benefiting from the country’s favorable business environment.
FAQ about EMI license in Spain
1. Why choose Spain for a PI/EMI license?
2. Who can apply for a PI/EMI license in Spain?
In Spain, companies with a solid business plan and financial backing can apply for a PI/EMI license. While prior experience with similar licenses in other jurisdictions is an advantage, new entrants are also welcome, provided they meet all regulatory requirements. These include having the necessary certifications, qualified staff, and a clear operational strategy that aligns with the expectations of the Bank of Spain.
3. How long does the licensing process take?
The process for obtaining a Payment Institution (PI) license in Spain usually takes around 5 to 8 months, depending on the completeness of your application and your dedication to the requirements. On the other hand, securing an Electronic Money Institution (EMI) license involves a more in-depth review, typically requiring 8 to 14 months for approval by the Bank of Spain, as the process includes additional regulatory checks and thorough compliance assessments.
4. Can I operate across the EU with a Spanish EMI license?
Yes, through EU passporting, you can offer services across the European Economic Area without additional licenses.
5. Do I need to have an office in Spain?
Yes, a registered office is required for managing compliance and communication with the Bank of Spain
6. What is the capital requirement?
The minimum initial capital for an EMI license in Spain is €350,000. For obtaining a PI license in Spain, the minimum share capital required is €125,000
7. What taxes apply to EMI companies in Spain?
EMI companies in Spain are subject to a corporate tax rate of 25%, with potential VAT exemptions depending on the services offered.
8. What is the difference between a PI and an EMI license in Spain?
A Payment Institution (PI) license allows companies to offer payment services, such as money transfers and issuing payment cards, without providing electronic money. In contrast, an Electronic Money Institution (EMI) license enables the issuance of electronic money, in addition to offering payment services. Both licenses are regulated by the Bank of Spain and require different levels of capital and regulatory compliance
Each of our projects receives unique and tailored solutions in accordance with the initial objectives and vision of the shareholders.
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