How to Incorporate a Company in Hong Kong from Spain in 2026

Spanish founders usually choose Hong Kong for supplier access, a simple tax system and international banking. These are the main reasons:

• Access to Chinese suppliers: Hong Kong borders the manufacturing hubs of southern China, and many suppliers already invoice Hong Kong companies.
• A low, territorial tax system: Profits tax is charged at 8.25% or 16.5%, and there is no VAT, sales tax or withholding tax on dividends.
• Multi-currency banking: Business accounts commonly hold Hong Kong dollars (HKD), US dollars (USD), euros and Chinese yuan, and the HKD is pegged to the USD.
• A tax treaty with Spain: The double taxation agreement between Spain and Hong Kong has been in force since April 2012. It limits withholding tax on dividends, interest and royalties paid between the two.

A Hong Kong private limited company needs four things in place before it can be registered. None of them requires you to live in Hong Kong:

1. A director: At least one individual aged 18 or over, of any nationality. You can be the sole director while living in Spain.
2. A shareholder: At least one individual or company. The director and the shareholder can be the same person.
3. A company secretary: A Hong Kong resident individual or a Hong Kong company, usually a licensed corporate service provider.
4. A registered address: A physical address in Hong Kong for official mail. A PO box is not accepted.

To complete identity checks from Spain, you will need your passport, a recent proof of residential address and your foreigner identity number (NIE) or national identity document (DNI). There is no minimum share capital.

Most remote applications are completed in five to seven working days once your documents are ready. The process has six steps:

1. Check the name: Search the Companies Registry e-Search and choose an English name, a Chinese name or both.
2. Complete identity checks: Your corporate service provider runs know your customer (KYC) checks by video, and you sign the documents electronically.
3. File the incorporation form: Form NNC1 and the Articles of Association are submitted to the Companies Registry under the Hong Kong Companies Ordinance.
4. Receive your certificates: The Certificate of Incorporation and the Business Registration Certificate are issued together through the one-stop service.
5. Set up statutory registers: These include the register of members and the Significant Controllers Register, kept at the registered address.
6. Open a business bank account: Once the account is active, the company can start trading.

Setting up a Hong Kong company involves one-off fees paid at registration and yearly costs to keep the company compliant. Government fees are low, so professional services make up most of the total. Euro amounts are approximate, at about HK$ 9 to €1.

Initial incorporation costs

Government fees to incorporate a Hong Kong company total HK$ 3,895 in 2026, or about €430. This covers the Companies Registry incorporation fee and the first year’s Business Registration fee and levy, both paid at registration. Most founders also use a corporate service provider for identity checks, filings and the company secretary role. The table below shows the main set-up costs.

Company secretary and registered address services also renew each year. For a fuller breakdown of every item, see our guide to the cost to incorporate a company in Hong Kong.

Two tax systems apply to the same company. Hong Kong taxes profits sourced in Hong Kong, while Spain looks at where the company is really managed and at the income you draw from it as a Spanish tax resident. Planning both before you register avoids surprises in either country.

Hong Kong profits tax

Hong Kong charges profits tax at 8.25% on the first HK$ 2 million of assessable profits and 16.5% on the remainder. Only profits arising in or derived from Hong Kong are taxable, so a company that trades entirely outside Hong Kong can apply for an offshore tax exemption and pay 0%.

The Inland Revenue Department (IRD) reviews these claims closely. It expects evidence of where contracts were negotiated, where orders were processed and how goods moved. Every company must also have its accounts audited each year, whether or not it claims offshore status.

Spanish corporate tax and effective management

Under Spanish corporate tax law, a company whose place of effective management (sede de dirección efectiva) is in Spain is treated as a Spanish tax resident. If you run the Hong Kong company day-to-day from your home in Spain, the Spanish Tax Agency (Agencia Tributaria) can tax its worldwide profits.

Spain's controlled foreign company (CFC) rules, known as transparencia fiscal internacional, may also apply. They cover foreign companies that are at least 50% controlled by Spanish residents and pay less than 75% of the tax Spain would charge. The income these rules capture depends on the business, so speak to a Spanish tax adviser before you trade.

Your personal tax in Spain

As a Spanish tax resident, you pay personal income tax (IRPF) on what you take from the company. A salary is taxed as employment income. Dividends are taxed as savings income at progressive rates, from 19% up to 30% on amounts above €300,000, following the change made by Law 7/2024 from January 2025.

Dividends paid by the Hong Kong company carry no withholding tax in Hong Kong, so there is usually no Hong Kong tax to credit in Spain. You must also declare foreign assets on Modelo 720 when a category exceeds €50,000. This includes your shares in the company and, if you are an authorised signatory, its bank accounts.

Once the company is trading, Hong Kong requires a short list of filings each year, even if you manage everything from Spain:

• Annual return (NAR1): Filed with the Companies Registry within 42 days of each incorporation anniversary.
• Business Registration renewal: Paid every year, or every three years with the longer certificate.
• Audited financial statements: Prepared each year by a Hong Kong certified public accountant.
• Profits tax return: The first return is usually issued about 18 months after incorporation, then once a year.
• Statutory registers: Members, directors and significant controllers, kept up to date at the registered address.

In Spain, add your IRPF return and, where it applies, Modelo 720 to the same calendar. Our guide to profit tax in Hong Kong explains how the return is assessed and filed.