- Four routes in: a Korean importer, a liaison office, a branch (sucursal) of the Spanish company under Article 614 of the Commercial Act, or a Korean subsidiary — a Jusik Hoesa or, for family businesses, a Yuhan Hoesa.
- Spanish documents — escritura and estatutos, nota simple or certificación del Registro Mercantil, the board resolution and an escritura de poder — are apostilled by the Colegio Notarial, the Tribunal Superior de Justicia or the Ministerio de Justicia.
- Spanish goods enter Korea largely duty-free under the EU–Korea FTA with a statement on origin; above EUR 6,000 per consignment the exporter must be an exportador autorizado.
- The Spain–Korea treaty caps Korean withholding at 10% on dividends to a company holding 25%+ (15% otherwise), 10% on interest and 10% on royalties.
- In Spain, 95% of a Korean dividend is exempt under article 21 LIS for qualifying holdings, so Korean withholding is close to a final cost; individuals get a foreign tax credit instead.
Spanish companies come to Korea along well-worn paths. A food exporter from Andalusia wants control of its brand after years with a Seoul importer; a renewable-energy developer follows Korea’s offshore wind programme; a fashion group from Galicia or Catalonia wants its own stores and e-commerce; an engineering firm bids for Korean infrastructure; a Barcelona tech start-up finds Korean customers before Korean competitors find it. Each faces the same question: how much presence in Korea, and in what legal form.
This guide sets out the options, the Korean statutes behind each, the Spanish documents a Korean registry and bank will ask for — with their Spanish names — the trade agreement, the tax treaty, Spanish tax on Korean profits, visas and staff. Spanish terms appear in italics; Korean terms in Hangul with romanisation.
The Spain–Korea framework
Trade runs on the EU–Korea Free Trade Agreement (한-EU 자유무역협정, han-EU jayu muyeok hyeopjeong), applied since 1 July 2011, which removed duty on almost all industrial goods and most agricultural products and protects European geographical indications in Korea — among them Spanish wine names such as Rioja, Cava and Jerez. Tax relations are governed by the Spain–Korea double taxation convention (Convenio para evitar la doble imposición España–Corea), signed in 1994, which limits Korean withholding on income paid to Spanish residents and the reverse. Both countries are parties to the Hague Apostille Convention, and Spain’s export-support system — ICEX, COFIDES and CESCE — is active in Korea, with an Oficina Económica y Comercial in Seoul.
Four ways in
1. A Korean importer or distributor
The usual first step for food, wine and consumer goods. No Korean entity and no Korean tax return for the Spanish company; the importer holds the licences and the customer relationship. An agent in Korea who habitually concludes contracts for the Spanish company can create a permanent establishment (국내사업장, gungnae saeopjang) — establecimiento permanente (establecimiento permanente) — under Article 94 of the Corporate Tax Act and the treaty. Register your trademark in Korea before signing; see our guide to trademark registration in Korea.
2. A liaison office
A liaison office (연락사무소, yeollak samuso) — the Korean equivalent of an oficina de representación (oficina de representación) — lets the Spanish company place staff in Korea for research, promotion and support, reported to a foreign exchange bank under the Foreign Exchange Transactions Act, with no Korean income. See liaison offices.
3. A branch
A branch (sucursal) is the Spanish company itself registered in Korea under Article 614 of the Commercial Act. It trades and employs; the Spanish parent is liable for everything; and every change recorded in the Registro Mercantil (Registro Mercantil) must be mirrored in Seoul with apostilled documents.
4. A Korean subsidiary
Most Spanish businesses that intend to stay form a Jusik Hoesa (주식회사, jusik hoesa) — in form an S.A., in practice as light to run as an S.L. with one shareholder and one director. Family businesses that will never take outside investors sometimes prefer the Yuhan Hoesa (유한회사, yuhan hoesa), whose quota-based structure is the Korean relative of the S.L. With capital of at least KRW 100 million the company is registered as a foreign investment under the Foreign Investment Promotion Act, opening the D-8 visa for the investor-director — though no minimum capital is required otherwise; see do you need KRW 100 million?.
Company documents from Spain
| Document | Spanish | Korean | Treatment |
|---|---|---|---|
| Registry extract showing directors and, where recorded, sole shareholder | Nota simple informativa / certificación del Registro Mercantil | 법인등기부에 해당하는 서류 | Certificación preferred; apostille |
| Deed of incorporation and articles | Escritura de constitución y estatutos sociales | 정관 | Copia autorizada or legitimated copy; apostille |
| Board or shareholders’ resolution approving the Korean investment | Certificación del acuerdo del consejo de administración / de la junta general | 이사회 / 주주총회 의사록 | Signatures legitimated by notary; apostille |
| Power of attorney to the Korean agent | Escritura de poder especial | 위임장 | Notarial deed; apostille |
| Identity of the signatory | DNI / pasaporte | 여권 사본 | Certified copy; apostille |
| Beneficial owners | Titular real | 실제소유자 확인 자료 | For the bank’s AML checks |
Typical documents for a Spanish corporate shareholder.
The nota simple (nota simple) is quick and cheap but is an informative extract; Korean registries and banks are on firmer ground with a certificación (certificación) signed by the Registrador, which can be apostilled without further steps. Either should be recent — Korean bodies generally expect certificates issued within the last three months. Spanish notaries are used to drafting powers for foreign use; ask for a bilingual Spanish–English escritura de poder (escritura de poder) that lists each Korean act: the foreign investment notification, subscription for shares, court and tax registration, bank accounts and the company seal.
Who signs depends on the Spanish company’s governance: an administrador único (administrador único), administradores solidarios o mancomunados (administradores solidarios o mancomunados), or a consejero delegado (consejero delegado) acting on a board resolution. The Korean agent’s authority must trace back to someone whose powers appear in the Registro Mercantil.
Personal documents from Spain
| Document | Spanish | Used for | Treatment |
|---|---|---|---|
| Passport | Pasaporte | Registry, bank, visa | Certified copy; apostille. Original shown in Korea |
| Criminal record certificate | Certificado de antecedentes penales (Ministerio de Justicia) | D-8 and other long-term visas | Apostille |
| Marriage and birth certificates | Certificado literal de matrimonio / de nacimiento (Registro Civil) | Dependants’ visas | Apostille |
| Director’s acceptance and signature | Aceptación del cargo / legitimación de firma | Korean registry, in place of a seal certificate | Notarised; apostille |
| Tax residence certificate | Certificado de residencia fiscal (AEAT) | Treaty rates on Korean income | Issued electronically by the AEAT |
Typical personal documents for a shareholder-director moving to Korea.
Korean directors file a seal certificate (인감증명서, ingam jeungmyeongseo); a Spanish director instead provides a signature legitimated by a notario, which once apostilled serves the same purpose. Korean registries want paper originals; Spanish electronic copies and certificates with a CSV verification code are usually not enough for the registry, though banks may accept them for supporting checks.
The apostille in Spain
Spain splits apostille competence by type of document, and getting the authority right saves time. The Colegios Notariales (Colegio Notarial) apostille notarial documents — the escritura de poder, legitimated signatures, certified copies. The Tribunales Superiores de Justicia (TSJ) apostille judicial documents and documents signed by registrars, including Registro Mercantil certifications in many cases. The Ministerio de Justicia (Ministerio de Justicia) apostilles administrative documents such as criminal record and civil registry certificates and runs an electronic apostille system for many public documents. Spanish notaries can often arrange the apostille for their own deeds.
Most apostilles are issued within days. Documents arrive in Korea in Spanish; Korean authorities need Korean translations, which we arrange in Seoul. Our guide to apostilles for Korea covers the general rules.
Notario’s papers to the Colegio, court and registry papers to the TSJ, certificates to the Ministerio. Three doors, one apostille.
Voixa Korea
Setting up the Korean company
On the Korean side the process is the one every foreign investor follows. The investment is notified to a Korean foreign exchange bank under Article 5 of the Foreign Investment Promotion Act; the capital is wired in euros from the Spanish company’s own account and the bank certifies receipt. Spain does not require prior authorisation for outbound investment, though the investment is declared to the Registro de Inversiones of the Ministry of Economy on the forms and within the deadlines that apply to Spanish investment abroad. The Korean company is registered with the court and obtains its business registration number (사업자등록번호, saeopja deungnok beonho) from the tax office. With documents ready, the Korean part takes two to four weeks.
Korean directors serve terms of up to three years under Article 383 of the Commercial Act, renewed by registration — a contrast with the indefinite administrador (administrador) of an S.L. — and the company registers a corporate seal (법인인감, beobin ingam). Our guide to annual compliance sets out the recurring obligations.
Duty-free trade under the EU–Korea FTA
Spanish goods qualify for preferential duty in Korea if they meet the agreement’s rules of origin and the invoice carries a statement on origin. For consignments above EUR 6,000, only an approved exporter (exportador autorizado) may make the statement; the status is granted by the AEAT’s customs department. The Korean importer claims the preferential rate under the FTA Customs Act and must be able to support origin in a later verification.
Food and wine face Korean product rules on top: foreign food plants must be registered with the Ministry of Food and Drug Safety under the Special Act on Imported Food Safety Control, labels must be in Korean, and alcohol is imported under a liquor import licence. See import-export companies in Korea.
Korean tax and the Spain–Korea treaty
The Korean subsidiary pays corporate tax at 10% to 25% plus local income tax of one-tenth under Article 55 of the Corporate Tax Act — 11% on the first KRW 200 million — and charges 10% VAT. Payments to the Spanish parent bear Korean withholding, reduced by the treaty:
| Payment from Korea to Spain | Korean domestic rate | Treaty rate | Condition |
|---|---|---|---|
| Dividends | 22% | 10% | Spanish company holding at least 25% of the capital |
| Dividends — other | 22% | 15% | Smaller holdings and individuals |
| Interest | 22% | 10% | 0% for governments, central banks and similar bodies |
| Royalties | 22% | 10% | |
| Service fees | Usually none | Business profits article | No Korean tax without a permanent establishment |
Domestic rates include Korean local income tax. Source: PwC Worldwide Tax Summaries, Korea, January 2026.
To claim the treaty rate, the Spanish recipient files a limited tax rate application (제한세율 적용신청서, jehan seyul jeogyong sincheongseo) with the Korean payer before payment under Article 98-6 of the Corporate Tax Act, with a certificate of tax residence (certificado de residencia fiscal) from the AEAT, obtainable online for the purposes of the treaty. Without it, 22% is withheld and a refund claim follows. Our guide to dividend withholding covers the procedure.
Spanish tax on Korean profits
A Spanish company receiving a dividend from its Korean subsidiary can apply the participation exemption of article 21 of the Corporate Income Tax Law (art. 21 LIS) if it holds at least 5% for at least a year and the Korean company is subject to a foreign tax identical or analogous to Spanish corporate tax at a nominal rate of at least 10% — a condition presumed to be met for residents of treaty countries with an exchange-of-information clause, as Korea is. Since 2021 the exemption covers 95% of the dividend, leaving an effective Spanish tax of about 1.25%. Korean withholding on an exempt dividend cannot be credited, so the 10% treaty rate is close to a final cost — and missing the forms, which leaves 22%, is expensive.
Spain’s international tax transparency rules in article 100 LIS (art. 100 LIS) can attribute a foreign subsidiary’s income to the Spanish parent where the foreign tax is less than 75% of the Spanish tax that would have been due and the income is of a passive kind. A trading or service subsidiary with a real business in Korea is normally outside them, but a small, profitable Korean company paying 11% should check the comparison with its Spanish adviser. Gains on selling the Korean subsidiary can likewise be 95% exempt under article 21 LIS — and may be taxable in Korea, under the treaty’s rule on substantial shareholdings, so plan the exit.
Individuals are treated differently from Italian ones. A Spanish-resident individual who holds Korean shares directly includes the dividend in the savings base (base del ahorro) of IRPF at 19% to 30% and deducts the Korean withholding as a foreign tax credit under article 80 LIRPF (art. 80 LIRPF), within the treaty rate. He or she must also report Korean shares and accounts above the thresholds on Modelo 720 (Modelo 720) and crypto-assets held abroad on Modelo 721.
Staff and visas
Spanish citizens can visit Korea for business meetings for up to 90 days without a visa, subject to Korea’s electronic travel authorisation rules at the time of travel. Working in Korea requires a visa under the Immigration Act. A Spanish shareholder-director investing at least KRW 100 million and managing the company applies for the D-8 corporate investment visa (기업투자 비자, gieop tuja bija) with the certificado de antecedentes penales (certificado de antecedentes penales) and family certificates; see D-8 requirements. Employees transferred from Spain come on a D-7 or E-7 visa.
Spain and Korea have a social security agreement coordinating contributions for seconded workers, so an employee posted from Spain for a limited period can remain in the Spanish Seguridad Social with a certificate of coverage. Korean health insurance still applies. Local staff are employed under the Labour Standards Act, with written terms, the national minimum wage, four social insurances and severance after one year — Korea’s answer to the indemnización (indemnización), paid on any departure. See hiring in Korea.
Spanish support for the move
- ICEX España Exportación e Inversiones runs the Oficina Económica y Comercial in Seoul, trade missions and market studies.
- COFIDES co-finances Spanish companies’ foreign subsidiaries through equity and loans, including through the FIEM and FONPYME instruments.
- CESCE insures export credit and guarantees financing for foreign expansion.
- Spanish chambers and business associations in Korea connect Spanish companies with each other and with Korean partners.
Protect the brand
Korea is a first-to-file (선출원주의, seonchurwonjuui) trademark system under Article 35 of the Trademark Act. Spanish brands that exhibit at Korean fairs or appoint a distributor before filing sometimes find their name registered by someone else. Extend your Spanish or EU mark to Korea through the Madrid system or file directly with KIPO, and consider a Hangul version; geographical indications protect product names, not brands. See trademark registration in Korea.
A worked example
Aceites del Sur, S.L., an olive-oil producer from Jaén, has sold to Korea through an importer for years. It forms a Seoul Jusik Hoesa with KRW 200 million of capital, notified as a foreign investment. Its certificación del Registro Mercantil (certificación del Registro Mercantil) is apostilled by the TSJ de Andalucía, the board resolution and escritura de poder (escritura de poder) by the Colegio Notarial; the Korean importer’s food registrations are moved to the new company, and the brand is registered with KIPO in Latin letters and Hangul. A Spanish export manager moves to Seoul on a D-8 visa as representative director.
Oil is imported duty-free under the FTA with statements on origin from Aceites del Sur as an approved exporter. In year three the Korean company makes KRW 300 million of profit, pays KRW 44 million of Korean corporate tax including local tax, and pays a dividend with 10% treaty withholding. In Jaén, 95% of the dividend is exempt under article 21 LIS.
Mistakes we see
- A nota simple sent where a certificación was needed, or an extract more than three months old.
- Apostilles from the wrong authority — notarial deeds to the TSJ, registry certificates to the Colegio.
- A poder signed by someone whose powers are not in the Registro Mercantil.
- No certificado de residencia fiscal before the first dividend or royalty.
- Founders holding personally without comparing the S.L. route.
- Statements on origin without approved exporter status on consignments above EUR 6,000.
- Announcing Korea before filing the trademark.
Korean terms you will meet
Spanish terms you will meet
Questions readers ask
Can a Spanish company set up a subsidiary in South Korea?
Yes. A Spanish S.L. or S.A. can own 100% of a Korean Jusik Hoesa or Yuhan Hoesa in most sectors. With at least KRW 100 million of capital it is registered as a foreign investment.
Which Spanish documents are needed?
Usually a certificación del Registro Mercantil, escritura and estatutos, a certified board or shareholders’ resolution, a notarial escritura de poder and the signatory’s passport, all apostilled.
Who issues apostilles in Spain?
The Colegios Notariales for notarial documents, the Tribunales Superiores de Justicia for judicial and registry documents, and the Ministerio de Justicia for administrative documents.
What is the dividend withholding rate from Korea to Spain?
10% for a Spanish company holding at least 25% of the capital, otherwise 15%, if the treaty forms are filed before payment. Without them, 22%.
Are Korean dividends taxed in Spain?
For a qualifying Spanish company, 95% is exempt under article 21 LIS. Individuals include them in the IRPF savings base with a credit for Korean withholding.
Do Spanish goods enter Korea duty-free?
Most do under the EU–Korea FTA, with a statement on origin; above EUR 6,000 per consignment the exporter must be an approved exporter.
Can a Spanish director live in Korea?
Yes, on a D-8 investor visa after investing at least KRW 100 million, or on a D-7 or E-7 visa as a transferred or professional employee.
- PwC Worldwide Tax Summaries — Korea, withholding taxes (Spain row)
- European Commission — EU–South Korea trade agreement
- Agencia Tributaria — certificados tributarios
- Ministerio de Justicia — apostilla
- Commercial Act (상법)
- Corporate Tax Act (법인세법)
- Foreign Investment Promotion Act (외국인투자 촉진법)
- Korea Legislation Research Institute — English translations
Alexander Baranov
Founder of the BCA Group · cross-border corporate and tax adviser since 2008
Alexander advises foreign founders and groups on company formation, tax structuring and corporate law in more than 40 jurisdictions across Europe, the Gulf, Asia and Latin America. He is the author of nine books on international business and tax and writes regularly for professional finance and tax journals. He works in English, German, Spanish and Russian.
This guide is based on the Korean statutes cited in the text and on our own filings. It is reviewed when the law or official rates change.