How Economic Interest Groupings work in Spain

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1. The Economic Interest Grouping (Agrupación de Interés Económico) is a legal entity with commercial character that helps its members develop or improve their economic activity. It has no profit motive of its own, and its purpose must be an activity auxiliary to that of its members.
2. Only individuals or companies carrying on business, farming or craft activities, nonprofit research entities, and liberal professionals can form one. Members are personally and jointly liable for its debts, though their liability is secondary to that of the Grouping.
3. The Grouping must be registered in the Commercial Registry (Registro Mercantil), and its name must include the words «Agrupación de Interés Económico» or the initials A. I. E. The founding deed must state, among other things, the members, capital, name, purpose, and a domicile in Spain.
4. Decisions require unanimity unless the deed allows other quorums; some key matters always require unanimity. The Grouping is managed by one or more administrators, who represent it and must act with the diligence of a diligent businessperson.
5. The Grouping is dissolved for reasons such as unanimous agreement, expiry of its term, bankruptcy, or a single remaining member. It can transform into another type of company or merge, and profits and losses are shared among members as set out in the deed or equally.
6. Corporate income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. applies a fiscal transparency regime: results are attributed to the members. Formation, contributions, dissolution, and transformation operations are exempt from the Transfer Tax, and European Economic Interest Groupings domiciled in Spain receive similar treatment.

Who it affects

• Businesses, farmers, craftspeople, and liberal professionals who want to cooperate: They can form an Economic Interest Grouping and are liable for its debts with their own assets.
• Administrators of the Grouping: They must act diligently and loyally, represent the Grouping, and are jointly liable for damages.
• Existing Agrupaciones de Empresas and Sociedades de Empresas: They must adapt to the new law, transform into Uniones Temporales de Empresas, or dissolve within one year.
• Members not resident in Spain: Their tax obligations are covered by the administrators as jointly liable parties.

Words worth knowing

Personalidad jurídica (legal personality)

The ability of an organization to have its own rights and obligations, as if it were a person.

Responsabilidad solidaria y subsidiaria (joint and secondary liability)

Joint: any member may have to pay the whole debt. Secondary: a member is pursued only if the Grouping cannot pay.

Registro Mercantil (Commercial Registry)

The official registry where companies and their details are recorded and made public.

Transparencia fiscal (fiscal transparency)

A regime where the Grouping's results are not taxed in the Grouping itself but are attributed directly to each member in their own tax return.

Quórum (quorum)

The number of members or votes needed for a meeting to make valid decisions.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries