Filing annual accounts in Spain is a legal obligation for most companies. Beyond being a mere accounting procedure, it is a key tool for providing transparency, building trust with partners, investors, and public administrations, and avoiding penalties.
This article will explain what annual accounts are, who is required to file them, what documents they consist of, how they are filed, and the deadlines established by law.
What are Annual Accounts?
Annual accounts are a set of documents that show a company’s financial, economic, and asset status at the end of a fiscal year. Their purpose is to provide a true and fair view of the company’s activity and allow third parties—such as creditors, clients, suppliers, or the administration—to know its real financial health.
Companies Required to File Annual Accounts in Spain
In Spain, all commercial companies registered in the Mercantile Registry must file their annual accounts, including:
- Public Limited Companies (Sociedades Anónimas – S.A.)
- Private Limited Companies (Sociedades de Responsabilidad Limitada – S.L.)
- Limited Partnerships by Shares
- Branches of foreign companies
Even inactive companies are required to file this report, even if it shows they have had no activity.
Documents That Make Up the Annual Accounts
The content varies depending on the company’s size, but generally includes:
- Profit and Loss Account: Shows income, expenses, and the result of the fiscal year.
- Balance Sheet: Reflects assets, liabilities, and net equity.
- Statement of Changes in Net Equity: Mandatory for companies that cannot file the abridged model.
- Statement of Cash Flows: Only for large companies.
- Notes to the Financial Statements (Memoria): Explains and supplements the information in the financial statements.
Deadlines for Filing
The law sets out very clear deadlines for how to file annual accounts:
- Formulation: The board of directors must prepare the accounts within a maximum of three months from the end of the fiscal year (typically before March 31 if the fiscal year ends on December 31).
- Approval: The general meeting of partners must approve them within six months after the end of the fiscal year (usually before June 30).
- Deposit in the Mercantile Registry: This must be done within one month of their approval (until July 30 for fiscal years ending on December 31).
How to File Annual Accounts in Spain
Currently, the accounts are deposited electronically through the official website of the Association of Registrars, although it is also possible to do so in person at the corresponding Mercantile Registry.
Basic steps:
- Prepare the documents using the official software from the Registry or compatible programs.
- Digitally sign the documents with the company’s or administrator’s electronic certificate.
- Send the generated ZIP file and pay the registration fees.
Penalties for Not Filing Annual Accounts
Failing to comply with this obligation can have serious consequences, including:
- Fines ranging from €1,200 to €60,000 (and up to €300,000 for companies with annual turnover exceeding €6 million).
- Registry Closure: Inability to register deeds and documents with the Mercantile Registry.
Frequently Asked Questions (FAQs)
Can an inactive company file blank accounts?
Yes, it is legally required to do so, even if it has had no activity.
Is an audit mandatory?
Only if the company exceeds certain limits for turnover, assets, or employees, or if it is established in the bylaws or requested by a minority shareholder.
Can I file late?
Yes, but you could receive a fine and face a registry closure until you regularise the situation.
In summary, filing your annual accounts in Spain correctly and on time is not only a legal requirement but also a sign of good business management and transparency. Complying with this obligation avoids penalties and provides security for partners and third parties.
If you need personalized assistance, at Entre Trámites we offer management and tax advisory services for freelancers and SMEs. You can contact us through this contact form for us to call you, or if you prefer, you can schedule a free consultation or write to us on WhatsApp.
