Running a trade business in Spain: the REA, the subcontracting cap and site paperwork

Spain regulates construction through registries and site paperwork rather than trade licences: who may be on site, how deep the subcontracting chain may go, and whether contributions and training are in order. Here is the 2026 picture.

Getting established

Sole traders register as autónomo with the tax agency and RETA social security; companies incorporate normally. There is no general contractor licence, but two site-entry requirements do the gatekeeping. First, the REA: any company acting as contractor or subcontractor on construction sites must be enrolled in the Registro de Empresas Acreditadas of its region, proving its risk-prevention organisation and training, with renewal every three years. Second, workers commonly need the TPC construction skills card evidencing the sector's mandatory H&S training, which GCs check at the gate.

The subcontracting cap

The Ley de Subcontratación limits the chain to three levels of subcontracting below the head contractor, with narrow exceptions, and self-employed workers and labour-only subs face further restrictions on subcontracting onwards. Every site keeps a libro de subcontratación recording the chain. Structure specialist involvement early so nobody ends up at an illegal fourth tier, because the penalties land on the companies above as well.

Installers and permits

Electrical, gas and thermal installation work requires authorised installer status with the regional industry authority, and installations end with certificates (boletines) filed for the utility connection. Projects themselves need municipal works licences (licencia de obras), with the mayor's office controlling timing more than any trade regulator.

Money: VAT, reverse charge and contributions

Standard VAT is 21%, with 10% available for qualifying renovation of dwellings, and the inversión del sujeto pasivo reverse charge applying widely in construction subcontracting, so many sub invoices carry no VAT and the customer accounts for it. Seguridad Social contribution compliance is checked through the chain, and construction collective agreements set minimum labour terms. There is no lien system; staged payments and the late payment interest regime are the practical protections.

FAQs for Spain trade businesses

What is the REA and who must be in it?

The Registro de Empresas Acreditadas is mandatory for every company acting as contractor or subcontractor on Spanish construction sites. It certifies your risk-prevention organisation and training, is filed with the labour authority of your region, and must be renewed every three years.

How does the subcontracting law limit my chain?

The Ley de Subcontratación caps the chain at three levels of subcontracting (with narrow exceptions), and every site keeps a libro de subcontratación recording who is working for whom. Plan project structures so a needed specialist does not sit at an illegal fourth level.

Which VAT rate applies to renovation work?

21% standard, but 10% applies to qualifying renovations of dwellings (conditions on the age of the dwelling and materials share), and subcontracting chains often trigger the reverse charge where the customer accounts for VAT. Confirm treatment per contract.

This guide is general information, not legal advice. Licensing thresholds, payment statutes, insurance and tax rules change; always confirm current requirements with the regulator, a lawyer or your accountant before relying on them.