ETVE – Foreign securities holding entities in Spain: A useful tool for multinational investments
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ETVE – Foreign securities holding entities in Spain: A useful tool for multinational investments

2 min.

For investors looking for an efficient tool to invest in other countries through a holding company, the Spanish foreign securities holding entities (ETVEs) are very interesting. Many companies use Spain as a gateway to South and Central America because of the economic links and cultural and linguistic similarities. ETVEs were created by the government to maximise investors’ benefits.

What are ETVEs?

ETVEs are Spanish companies primarily designed for foreign securities investment. They are an interesting tool because of their advantageous tax regime which provides substantial benefits over other business structures. They are normally incorporated as limited liability companies.

Tax benefits of ETVEs

ETVEs enjoy an exemption from capital gains tax when selling foreign investments. This means they pay no tax on profits from the sale of foreign assets, making them highly attractive for investors seeking to maximise returns while minimising tax obligations. Additionally, dividends and interest from foreign investments may be tax-exempt in Spain, depending on double taxation treaties. It is also interesting to note that Spain is among those countries worldwide with the most double taxation agreements, as the Ecovis experts know.

Are you interested in ETVE? We would be happy to create an investment plan for you and include the Ecovis partners in the LATAM region.
Christian Koch, Lawyer, Partner, ECOVIS Legal Spain, Madrid, Spain

Scope of ETVEs

ETVEs are not tailor made for specific investments. They can be used in all kinds of investments and may be used by both companies and individuals.

Establishing an ETVE

Setting up an ETVE involves some formalities but is not especially complex: It requires maintaining minimum share capital and adhering to general corporate requirements. They must have the resources necessary to manage the foreign assets, so that they are not mere shell companies subcontracting management. This is the only real restriction for ETVEs compared to other holding structures. Also, they must in most cases hold more than 5% of the target companies.


ETVEs are an attractive option for managing global investments and maximising returns, as well as centralising shares in various countries. Ecovis Legal Spain is best equipped to answer any questions concerning this setup and to prepare an investment plan for foreign countries. Especially in the LATAM region, the global Ecovis Network is able to assist with comprehensive advice relating to almost all countries in the region.

For further information please contact:

Christian Koch, Lawyer, Partner, ECOVIS Legal Spain, Madrid, Spain

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Christian Koch
c/ José Abascal, 49, dupl. 4ª planta
28003 Madrid
Phone: +34 91 411 17 04