Spain: New Residence Requirement for Company Signatories

Effectively immediately, signatories of employment contracts submitted with Residence Permit for Highly Qualified Professionals category applications under the Entrepreneurs Act must now be legal residents in Spain. Pending applications may require employers to submit a new power of attorney and execute a new employment contract in accordance with the new regulation.

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Feb 23, 2017
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Effectively immediately, signatories of employment contracts submitted with Residence Permit for Highly Qualified Professionals category applications under the Entrepreneurs Act must now be legal residents in Spain.

Signatories must demonstrate their legal residence by presenting the following documents:

• Spanish Identity card;
• Residence Card for third-country nationals;
• NIE Card ( Número de Identificación de Extranjero, the national identification card); or
• EU registration certificate and a valid passport for EU nationals.

Some employers with pending applications may need to submit a new power of attorney and execute a new employment contract in accordance with the new regulation.

Background

Previously, employers were required to submit the company legal representative's power of attorney, notarized and registered in the commercial registry and confirm that the representative was appointed to act on behalf of the company.

The Large Companies Unit in Spain has not yet fully implemented this new regulation into practice; however, some sections are already requesting documents in accordance with this regulation.

What This Means for Employers and Foreign Nationals

Employers should identify representatives residing in Spain to serve as signatories of employment contracts related to Residence Permit for Highly Qualified Professionals under the Entrepreneurs Act applications.

Applicants with pending applications may be required to provide a new power of attorney reflecting a legal Spanish resident as the company legal representative. This may also require the execution of a new employment contract.

Fragomen will provide additional guidance as developments occur.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to emea@fragomen.com.

© 2017 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

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