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Choose Spain For Your NGO

Why Spain is the Right is the Place For Your NGO

Spain has an attractive setup for Non-Governmental Organisations (NGO). As social initiative or humanitarian-focused mission, you can establish your operations under two different legal structures: a foundation or an association.

A foundation is an organisation that receives assets and funding from third parties with the agenda to assign them to wide variety for non-profit purposes.

An association is an organisation that’s created on a non-profit basis by three or more people for a general interest. 

While these entities have similarities such as being independent of public administration and not commercially profitable, they set up in different ways.

A foundation requires an initial endowment of €30.000 and must be created in the presence of a Notary in the form of a Public Deed.

An association, however, does not require an initial donation or the services of a notary. Typically, n association requires a document known as “Founding Act”, which must be must be registered with  the National Registry for Associations. Sometimes they need to be registered regionally, depending on where the entity is.

Each has different benefits. Firstly, foundations have tax advantages as they are exempt from Transfer Taxes and Stamp Duty. They may also be exempt from Business Activity Taxes, Real Estate Taxes, Wealth Tax, Inheritance Tax and other taxes. Foundations also are eligible for grants and subsidies, and, if they are related to a company, their image and positioning benefits.

Associations are simpler to create because there’s no initial donation and they are considered to be economically independent, so they can rely on a wider variety of funding sources.

Both foundations and associations can develop their own economic activities and generate income but these must be considered surpluses – not profit – to be reinvested into the entity to fulfil its purpose.

What is the process to establish an NGO?

Foundations need to follow the steps below:

  1. Create bylaws.
  2. Apply for the negative certification of the denomination.
  3. Request a provisional CIF.
  4. Plan a budget and financial report.
  5. Deposit a minimum of €30,000 into a bank account.
  6. Sign the public deed of incorporation in a notary present.
  7. Go to the Protectorate to check that the foundation complies with the legal requirements. The Protectorate will issue a mandatory and binding report on the suitability of the foundation’s aims and endowment.
  8. File with the Register of Foundations and regional and municipal registers, if necessary.
  9. Receive certified documentation from the Protectorate and the Register of Foundations to commence operations.

Association follow these simpler steps:

  1. Host a founding meeting of the association to draft the Articles of Association and approve the Founding Charter.
  2. Identify the correct Register to file with, whether it’s national or otherwise. Prepare and submit the necessary the documentation for the corresponding register of associations.
  3. After submitting all the documentation to the register, keep a copy of the application as proof of submission. The registry will reply within three months and, if they don’t reply within this period, the application for registration is deemed to have been accepted.

How can a lawyer help me?

The right lawyer will guide and advise you on the best approach for your NGO.

Lexidy will draft documents, like bylaws or the Founding Act, as they be very long and complex. Our lawyers will also give you a comprehensive overview of the legal requirements covering the taxation of donations, the treatment of personal data of members and volunteers.

Incorporating an NGO without a lawyer can lead to costly mistakes , particularly during its creation as unforseen issues can emerge. You need to focus on the objectives that you want to develop and challenges you want to solve.

¨We will be with you each step of your journey.¨


Lexidy is a modern, dynamic, and innovative law firm. We always put customers at the center of our work and do our best to give an exceptional experience. Our expertise in Spain and Portugal allows us to solve complex problems thoroughly and cut all the risks before they may happen.
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What are the requirements?

The requirements of having a foundation are: 

  • Have a social purpose. The entity must seek to benefit a generic group of beneficiaries, and cannot have as its purpose the benefit of the private interests of its members.
  • It must be non-profit making. The positive result of the economic resources must not be distributed among the members of the body but reinvested to be used for the fulfilment of the aims of the foundation. The fact of being non-profit-making should not be confused with the fact of not needing economic resources, as these are fundamental for organizations to be able to fulfil their aims.
  • To have a minimum financial endowment of €30,000 (if it is less, a viability report must be drawn up).
  • Must be set up in front of a notary in the form of a public deed.

As far as the requirements for associations are concerned, there are not as many as for foundations. Thus, the main requirements are: 

  • It must have a Foundation Act, with specific information such as the identification of the promoters, and Statutes, which will dictate how the association will operate. 
  • As a second requirement, it must be registered in the corresponding registry, either at the regional or national level.
  • Lastly, the Founding Members of the Association must be residents in Spain.

Find you Corporate Lawyer

Héctor Lopez Vazquez

Héctor Lopez Vazquez

Head of Corporate Department
Madeleine Cadwell

Madeleine Cadwell

Lawyer
Francesca Coluccio

Francesca Coluccio

Trainee
Luisa Rivera

Luisa Rivera

Trainee

Frequently Asked Questions

NGOs are private, not for profit organizations that arise from civil and initiatives. They are usually linked to social, cultural, development or other projects.

An IGO is an agreement between the partners where several persons jointly pool money, property and other assets to achieve a common purpose, which must be profitable for all and in accordance with the contribution of each party.

They provide public services without replacing the State. They involve different members of a community without receiving any financial gain. Everything they receive is for the welfare of the communities where they carry out their projects.

Both the association and foundation entities can develop economic activities as long as they are related to their main purpose. Any income that’s generated must be reinvested in actions that are related to objective of the organisation.

For an association, the General Assembly controls the organization. They elect a Board of Directors, which must have the structure determined in the statutes and generally includes a president, secretary, a treasurer and members. 

Conversely a foundation’s Board of Trustees has all administrative and governance powers. It’s composed of people, natural or legal, who were initially designated by the founder(s). Any renewal of the Board must follow the rules established by the founder(s) in the statutes.

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Jonathan Elron
Jonathan Elron
07:37 13 Aug 23
A great law firm that covers anything an expat might need. I needed help with real estate initially, and they also helped me with immigration, taxes, and corporate legal matters. Fantastic people to work with. Alejandro from their real estate and immigration department is my main contact and he is an absolute pleasure to work with. Highly recommended!
Juan B Colombo
Juan B Colombo
15:25 04 Jul 23
I had an issue with an incorporation and I had to request a refund for my order. It took a little longer to get the refund but the CEO took personal care of my case and issued the refund as soon as it heard about the case. Very serious and responsible company.
pawel grochola
pawel grochola
10:55 18 May 23
I used Lexidy services to apply for SETR status.I did it after contacting a number of providers, but Lexidy were the only ones that consistently kept regular communication, promptly answered e-mails, kept all the appointments. Something that is a normal expectation but rarely met in Spain :).In addition they were very competent, provided clear and accurate advice. They also flexible and accommodating and Sara Rinaldi that i dealt with is a very pleasant person to deal with.It seems it is a business that have a clear business model of providing good quality service and as such I think it deserves to be promoted.
Harald Malm
Harald Malm
11:35 09 Apr 23
Lexidy's first submission on my behalf cost 400+VAT. For up to two years, I thought everything was fine. Until I received a notice from the Spanish tax authorities asking for official receipts and translations which were quoted at over 4000 euros. The submission was rejected and my tax liability was re-calculated making me owe thousands..During the process, there was no personal consultation, I had to edit and make several corrections, documents for the wrong year were submitted, the draft cover letter addressed me as a female.A attention to detail and quality control does not exist. I was moved from one advisor to the next and eventually left on my own with Spanish Tax Authorities.Had they given me proper tax advice like I paid them for, I would have been informed as to exactly what documents I should gather and translate for this process. Lack of clarity and communication is evident in the pathetic email chain with this company.They called with an urgent request for an additional 800+VAT and stated that if I did not immediately pay they would not support me any further when the issues has not been brought to resolution at all. How am I to trust this company and pay them another penny when I have been provided with a lack of competence and accountability.I am still waiting to hear back. Not a phone call nor email, even after following up via their website. No reply 🙁
Bob Tricarico
Bob Tricarico
12:34 15 Mar 23
Lexidy Law Boutique supported us on our recent home purchase in Portugal. It was a long process, but our lawyer, Pedro Saldahna was with us every step of the way. He guided us through the process and even helped with our builder, our estate agent and our mortgage company. The entire Lexidy team has been super supportive throughout the whole process. Highly recommend!
Bella F.
Bella F.
19:09 11 Jan 23
I'm so over this crowd. Paid a huge deposit 2 YEARS AGO just to be passed from pillar to post. I'm now on lawyer number 5 - all the others left the company - go figure. I'm moving on to a different firm and will be requesting a refund. Don't waste your time and money like I did. I agree with other reviews that the positives are probably sponsored
Ryan Rich
Ryan Rich
12:47 17 Aug 22
Lexidy has helped us so much in both the business and immigration side. We continue to use them for all legal needs and recommend them highly.
Ali Delshad
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11:49 26 Jul 22
First of all, I would like to appreciate all the team members of Lexidy for helping me to get my residency card.I had a great experience especially on the SEF appointment day with their kind and helpful Brazilian expert which made my experience smooth and without stress.When you decide to work with this law company you should notice that you don’t just pay for lawyers but also for the quality, respect and safety.I’m totally happy with the processes and quality of their job.
Foysal Miah
Foysal Miah
20:47 25 Jul 22
It’s been more than two years now, I have known Lexidy and their amazing team. This company peoples are so active and helpful especially Karla. She is very kind and patience. Really appreciate your job and helping us to get a better future.
RICHARD BRITTON
RICHARD BRITTON
21:46 29 Jun 22
We contacted Lexidy Law boutique when we recently moved from Cyprus to open a new chapter in our lives to move into a house in Brittany that we had bought 12 years previously. We had underestimated the twists and turns involved in obtaining residency in France - so we contacted Lexidy Law Boutique and were assigned Eleonore, an immigration lawyer well acquainted with French immigration laws. From the very beginning we realised she was determined that we should have a successful outcome and she guided us expertly to avoid all the pitfalls in the process of applying for residency. She even accompanied us to the prefecture and ensured that everything went smoothly - without her presence we might well have not succeeded.We thank and highly recommend Eleonore and Lexidy Law Boutique.
Declan Ryan
Declan Ryan
20:48 01 Jun 22
The Lexidy team is uniquely positioned to provide pan-European business and tax advisory services; what would be complex or impossible for a country-specific advisor is straightforward for Lexidy. They answered in days what would take weeks for other firms.
Rick Kleinhans
Rick Kleinhans
13:03 27 Apr 22
Lexidy has been a lifesaver. The entire team has helped us so much on different matters both personal and corporate. Isabel in correcting an error by a previous accountant that was costing us an extra €1000 every month in social security payments! Jose with various matters and tax advice. Diego in helping us get documents notarized in Valencia even though he is based in Madrid. I cannot recommend them enough!
Aleksandar Vorinski
Aleksandar Vorinski
08:12 25 Apr 22
I recently purchased apartment, got NIE and opened bank account with their help. I m satisfied with their service, they are accurate and responsible.
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17:31 24 Apr 22
I’ve dealt with hundreds of solicitors through business over the years but I must say Cristina and Lexidy Law are really something special. Responsiveness, proactiveness, knowledge and professionalism is, quite frankly, outstanding.M.
Jonas Hendrickx
Jonas Hendrickx
15:50 03 Dec 21
The labour law advice I was looking for. Delivered the answer quoting the law texts in Spanish as requested to make sure I was actually getting the correct answer for my question!These people are worth your money.
Kristen Wilkinson
Kristen Wilkinson
14:53 20 Oct 21
Update: While all of the initial responses were pretty quick, they started getting busy, so I had to constantly follow up. We have since sought assistance elsewhere.My husband and I plan to move from the USA to Porto, Portugal in the spring/early summer of 2023. We didn't know where to start or what to expect. I searched online and found Lexidy Law Boutique. Their website is intuitive, informative and inviting. I emailed the office and Lidiane responded within a few hours. Based on the information in my email, she emailed us appropriate information on our situation. She was very professional and offered to set up a web call if we wanted to. We ended up having our web call today and will be starting our journey of becoming Portuguese citizens. She informed us of the first steps, all of the documentation we need and what the law firm can do for us. Right after our call, she emailed us detailed information regarding pricing and what is entailed in that pricing. So far, the beginning of our journey is a positive one.
Parisa Fardad
Parisa Fardad
05:20 21 Sep 21
I have started to work with this company which was my friend recommendation. My first experiences have been very good. They are responsive, friendly and cares about their costumers.
Thijs van de Laak
Thijs van de Laak
05:16 15 Sep 21
I experienced good, constructive and accurate service by Lexidy in composing my SHA. Thanks Hector and Samual
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