Doing Business 2018 Spain Economy Pro le of Spain Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Spain Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Spain Income Category High income 28 Population 46,443,959 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 27,520 0 100 77.02 City Covered Madrid DB 2018 Distance to Frontier (DTF) 0 100 79.00: Germany (Rank: 20) 77.46: Regional Average (OECD high income) 77.02: Spain (Rank: 28) 76.84: Portugal (Rank: 29) 75.92: Switzerland (Rank: 33) Page 3   72.70: Italy (Rank: 46) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Spain Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Spain Income Category High income 28 Population 46,443,959 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 27,520 0 100 77.02 City Covered Madrid DB 2018 Distance to Frontier (DTF) 0 100 79.00: Germany (Rank: 20) 77.46: Regional Average (OECD high income) 77.02: Spain (Rank: 28) 76.84: Portugal (Rank: 29) 75.92: Switzerland (Rank: 33) 72.70: Italy (Rank: 46) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Spain 1 1 19 24 26 28 34 42 53 55 68 86 82 Rank 109 123 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Spain 100.00 100 86.65 84.44 82.99 78.74 80 73.88 70.00 69.97 63.50 60.00 60 DTF 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:0.00 Change:0.00 Investors Change:+0.29 Borders Change:+0.49 Change:-0.88 Change:+0.04 Permits Change:0.00 Change:0.00 Change:+0.05 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:0.00 Change:0.00 Investors Change:+0.29 Borders Change:+0.49 Change:-0.88 Change:+0.04 Permits Change:0.00 Change:0.00 Doing Business 2018 Spain Change:+0.05 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Spain Standardized Company Legal form Sociedad de responsabilidad limitada (SRL) -Limited Liability Company Paid-in minimum capital requirement EUR 3,000 City Covered Madrid OECD high OECD high Indicator Spain income income Overall Best Performer Procedure – Men (number) 7 4.9 4.9 1.00 (New Zealand) Time – Men (days) 13 8.5 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 4.8 3.1 3.1 0.00 (United Kingdom) Procedure – Women (number) 7 4.9 4.9 1.00 (New Zealand) Time – Women (days) 13 8.5 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 4.8 3.1 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 12.5 8.7 8.7 0.00 (113 Economies) Figure – Starting a Business in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 91.35: Regional Average (OECD high income) 91.26: Portugal (Rank: 48) 89.42: Italy (Rank: 66) 88.38: Switzerland (Rank: 73) 86.65: Spain (Rank: 86) 83.46: Germany (Rank: 113) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Spain – Procedure, Time and Cost Time Cost 3.5 12 3 ost (% of income per capita) 10 2.5 8 Time (days) 2 6 1.5 4 Page 6   1 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Spain Figure – Starting a Business in Spain – Procedure, Time and Cost Time Cost 3.5 12 3 Cost (% of income per capita) 10 2.5 8 Time (days) 2 6 1.5 4 1 2 0.5 0 0 1 2 3 4 5 6 *7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Spain – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a certi cate of availability for the proposed company name 2 days EUR 13.52 (excluding (certi cación negativa de la denominación social) VAT) Agency : Mercantile Registry The certi cate of availability of the company name is typically requested through the website of the Central Commercial Registry. If the certi cate is not requested online, the nal document can be obtained by (i) certi ed mail, (ii) through a notary with the notarial platform SIGNO; (iii) visiting the Central Commercial Registry; or (iv) courier. In all cases, the certi cate is issued by the following day. Once the Registry issues the certi cate, the requested corporate name will be reserved for a maximum of 6 months from the certi cate's date of issuance. Each certi cate is valid for 3 months from its date of issuance. Furthermore, once the certi cate's validity has expired (3 months), the certi cate can only be renewed once, after which a new certi cate must be requested. 2 Open a company bank account, deposit capital and obtain a deposit 1 day no charge certi cate Agency : Bank In most cases, the entrepreneur deposits the amount of the contributions directly in the bank. Once this is done, the bank issues the relevant certi cate evidencing the deposit has been done. However, the contributions can also be directly given to the notary public at the time of granting the deed of incorporation. In this scenario, the notary can deposit them in the Page 7   company's bank account. (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Spain Details – Starting a Business in Spain – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a certi cate of availability for the proposed company name 2 days EUR 13.52 (excluding (certi cación negativa de la denominación social) VAT) Agency : Mercantile Registry The certi cate of availability of the company name is typically requested through the website of the Central Commercial Registry. If the certi cate is not requested online, the nal document can be obtained by (i) certi ed mail, (ii) through a notary with the notarial platform SIGNO; (iii) visiting the Central Commercial Registry; or (iv) courier. In all cases, the certi cate is issued by the following day. Once the Registry issues the certi cate, the requested corporate name will be reserved for a maximum of 6 months from the certi cate's date of issuance. Each certi cate is valid for 3 months from its date of issuance. Furthermore, once the certi cate's validity has expired (3 months), the certi cate can only be renewed once, after which a new certi cate must be requested. 2 Open a company bank account, deposit capital and obtain a deposit 1 day no charge certi cate Agency : Bank In most cases, the entrepreneur deposits the amount of the contributions directly in the bank. Once this is done, the bank issues the relevant certi cate evidencing the deposit has been done. However, the contributions can also be directly given to the notary public at the time of granting the deed of incorporation. In this scenario, the notary can deposit them in the company's bank account. 3 File the Single Electronic Document (Documento Único Electrónico - DUE) 1 day no charge and make an appointment with a notary Agency : Help Desk for Entrepreneurs (PAE) Limited liability companies can be incorporated through CIRCE, the electronic platform of the Ministry of Industry, Energy and Tourism. Through CIRCE, the entrepreneur completes a single registration form called DUE that is then sent to the notary's o ce, the commercial registry, the tax agency and the social security agency (for registration of the company and of its employees, if it has them). The single registration form can be led at any Help Desk for Entrepreneurs (Puntos de Atención al Emprendedor - PAE) or online by the entrepreneur, in which case a digital signature is required. Once the DUE is sent, an appointment request is generated by the SIGNO system with the notary chosen for the preparation of the public deed of incorporation. 4 Obtain the registered public deed of incorporation and the scal 7 days EUR 475 for the identi cation number (Código de identi cación scal - CIF) before a notary and EUR 252 public notary for registration costs Agency : Public Notary Within a week approximately, the public deed is granted by the notary, and the company is registered with the commercial registry and the tax Page 8   appointment request is generated by the SIGNO system with the notary Doing chosen for the Business Spainof the public deed of incorporation. preparation 2018 4 Obtain the registered public deed of incorporation and the scal 7 days EUR 475 for the identi cation number (Código de identi cación scal - CIF) before a notary and EUR 252 public notary for registration costs Agency : Public Notary Within a week approximately, the public deed is granted by the notary, and the company is registered with the commercial registry and the tax authorities. Besides the granting of the deed that requires the physical presence of the founders, the rest of the procedures are completed electronically through CIRCE or SIGNO. Additionally, the CIRCE platform o ers other services such as registration of personal data with the Spanish Data Protection Agency and request of the trade name of the company with the Spanish Patent and Trademark O ce. Alternatively, on SIGNO (the online platform for notaries), the notary can complete other procedures such as obtaining the scal identi cation number, the registered public deed, and the nal company name. 5 Payment of the municipal tax for urban services (tasa por prestación de 1 day EUR 414 servicios urbanísticos) Agency : Bank Payment of the municipal tax ("tasa por prestación de servicios urbanísticos") is required before submitting the noti cation of start of operations ("declaración responsable"). The bank issues a receipt of payment. 6 Submit a noti cation of start of operations (declaración responsable) to Less than one day included in the Town Council (online procedure) Procedure 5 Agency : Town Council The responsible declaration procedure is to be prepared in accordance with an o cial model, which will include the following circumstances: (i) identi cation of the owner of the activity; (ii) identi cation of the o ce's surface; (iii) identi cation of the activity declared; (iv) a representation granting that the activity is not undertaken in a building protected due to its cultural interest; and (v) that the activity does not imply the private use or occupation of public domain spaces and goods. This declaration will entitle the applicant to undertake the activity declared, subject to further control by physical inspection of the o ce by the local authorities or by the technical services of the private agencies authorized by the municipality, depending on to which of those entities the declaration has been led with. This declaration can be led with the Municipality in person, by mail or online through the CIRCE platform. 7 Notify the Ministry of Labor and Industry of the start of operations Less than one day no charge Agency : Ministry of Labor and Industry (Dirección General Trabajo) (online procedure, simultaneous with The corresponding autonomous community must be noti ed within the rst previous 30 days of the start of activities and the opening of the workplace. Every procedure) autonomous community has its own form. Some require that work injury and safety documentation (corresponding to the speci c business or workplace in question) be led along with the forms. Other forms and documents might be needed depending on the workplace activities. Business founders can notify the Ministry of Labor and Industry online through the CIRCE platform. Applies to women only. Page 9   been led with. This declaration can be led with the Municipality in person, Doing by 2018through mail or online Business the CIRCE platform. Spain 7 Notify the Ministry of Labor and Industry of the start of operations Less than one day no charge Agency : Ministry of Labor and Industry (Dirección General Trabajo) (online procedure, simultaneous with The corresponding autonomous community must be noti ed within the rst previous 30 days of the start of activities and the opening of the workplace. Every procedure) autonomous community has its own form. Some require that work injury and safety documentation (corresponding to the speci c business or workplace in question) be led along with the forms. Other forms and documents might be needed depending on the workplace activities. Business founders can notify the Ministry of Labor and Industry online through the CIRCE platform. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Page 10   Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Spain Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Spain Standardized Warehouse Estimated value of warehouse EUR 1,200,217.80 City Covered Madrid OECD high OECD high Indicator Spain income income Overall Best Performer Procedures (number) 15 12.5 12.5 7.00 (Denmark) Time (days) 208 154.6 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 5.4 1.6 1.6 0.10 (5 Economies) Building quality control index (0-15) 11.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 78.16: Germany (Rank: 24) 76.52: Portugal (Rank: 32) 75.14: Regional Average (OECD high income) 71.73: Switzerland (Rank: 62) 67.26: Italy (Rank: 96) 63.50: Spain (Rank: 123) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Spain – Procedure, Time and Cost Time Cost 4.5 200 4 Cost (% of warehouse value) 3.5 150 3 Time (days) 2.5 100 2 1.5 50 1 0.5 0 0 1 *2 *3 4 *5 6 7 8 9 10 11 12 13 * 14 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 12   component indicators. Doing Business 2018 Spain Figure – Dealing with Construction Permits in Spain – Procedure, Time and Cost Time Cost 4.5 200 4 Cost (% of warehouse value) 3.5 150 3 Time (days) 2.5 100 2 1.5 50 1 0.5 0 0 1 *2 *3 4 *5 6 7 8 9 10 11 12 13 * 14 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Spain and comparator economies – Measure of Quality 14 12 11.0 11.0 11.0 11.4 9.5 10 9.0 Index score 8 6 4 2 0 Spain Germany Italy Portugal Switzerland OECD high income Details – Dealing with Construction Permits in Spain – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain results of geotechnical study / soil test 17 days EUR 1,875 Agency : Private licensed company A soil study is a requirement before construction speci ed in the Building Code (Ley 38/1999-Art. 3 & 7) and the Technical Building Code (Real Decreto 314/2006-Annex I-Section 2.1). Contractors ask for a soil test to ensure that the foundation of the building is solid. The engineer must understand the suitability of the soil for the proposed construction work. It allows to build a solid foundation and avoid structures to be damaged, collapsed or leaned. 2 Request and obtain the o cial alignment (alineamiento o cial) 14 days EUR 186 Page 13   Agency : Municipality of Madrid Spain Germany Italy Portugal Switzerland OECD high income Doing Business 2018 Spain Details – Dealing with Construction Permits in Spain – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain results of geotechnical study / soil test 17 days EUR 1,875 Agency : Private licensed company A soil study is a requirement before construction speci ed in the Building Code (Ley 38/1999-Art. 3 & 7) and the Technical Building Code (Real Decreto 314/2006-Annex I-Section 2.1). Contractors ask for a soil test to ensure that the foundation of the building is solid. The engineer must understand the suitability of the soil for the proposed construction work. It allows to build a solid foundation and avoid structures to be damaged, collapsed or leaned. 2 Request and obtain the o cial alignment (alineamiento o cial) 14 days EUR 186 Agency : Municipality of Madrid The certi cate of alignment is issued by the Municipality of Madrid which provides the exact limit of the private property with respect to public roads. The cost is established by "Ordenanza scales y precios públicos Tasa por Prestación de Servicios Urbanísticos" under article 9. The o cial cost is €62.15 per 10 linear meters in the front of the building. In the Doing Business case study, the front of the building is assumed to be 30 meters, so the total cost would be €186.45. 3 Obtain results of topographical study 7 days EUR 800 Agency : Private licensed company A topographical study is conducted prior to construction to measure the levels on the speci c terrain. It is a general technical requirement when building a structure of this class. This procedure is required by Codigo Tecnico de Edi cacion (March 2006) as part of the Basic Project to be presented. 4 Request and obtain a certi cate of compliance (certi cado de 60 days EUR 5,902 conformidad) Agency : Entidades Colaboradoras Urbanisticas - ECU Upon reception of alignment certi cate, BuildCo must obtain a compliance certi cate. This certi cate is the provisional license which can be obtained from two agencies - Municipality or Entidades Colaboradoras Urbanisticas - ECU. According to the new Local Ordinance of the City Council of Madrid ("Ordenanza para la apertura de actividades economicas en la ciudad de Madrid"). The ECU has 2 months to examine the documentation and grant the compliance certi cate. Once the compliance certi cate has been granted, it must be attached to the building permit application. The nal construction permit is issued by the Municipality. Once the building license is issued by the Municipality of Madrid, BuildCo can proceed with the construction. For that reason this procedure cannot be simultaneous with the previous one. 5 Obtain approval of draft project proposal and implementation plan 3 days EUR 1,155 (Visado del proyecto básico y proyecto de ejecución) from College of Architects of Madrid Page 14   construction. For that reason this procedure cannot be simultaneous with Doing the one. previous2018 Business Spain 5 Obtain approval of draft project proposal and implementation plan 3 days EUR 1,155 (Visado del proyecto básico y proyecto de ejecución) from College of Architects of Madrid Agency : College of Architects of Madrid The College of Architects of Madrid must approves BuildCo’s draft project proposal and implementation plan. In particular, the College of Architects of Madrid veri es the professional quali cations of the individual in charge of the construction work and validates the correctness and completeness of the documentation provided for the project with respect to regulations. The following documentation must be provided: -report on the project -implementation plan -administrative and technical conditions’ statement -measurements -budget -health and safety study The procedure is legislated in "Real Decreto 1000/2010, de 5 de agosto, sobre visado colegial obligatorio". The basis of the cost is in "Precios del Visado de los Trabajos profesionales". The formula used is the following: Cost of approval = Módulo x C x S x Qv x F / 6000. For a warehouse such as the Doing Business case study: M = 497.43; C = 9.00; S = 1300.6; Qv = 1.40; F = 0.85. Therefore, cost of approval is 497.43 *9*1300.6*1,40*0.85/6000 = 1,154.82 EUR 6 Request and obtain a building permit (licencia de obras) 45 days EUR 48,009 Agency : Municipality of Madrid The documents required to obtain the license are the following: • A standardized application form and sheet containing the characteristics of the construction properly completed • Proof of payment of tax • Declaration by one or more technical authors (architect and project design specialists) that the project conforms to the appropriate town planning regulations, and certi cate of the structural feasibility, if necessary • Declaration of the promoter that a signboard has been posted at the site to inform the public that a building license has been applied for and to provide information about the proposed operations and activities • Three copies of the technical project designs signed by quali ed technician(s) and countersigned by the appropriate o cial institute (or in this case, by the project’s administrative supervision o ce, accompanied by the application sheets of the appropriate professional association) • Con rmation of the deposit of a guarantee • Authorization program for independent parts of the construction or approval of partial projects, if requested by the promoter • In cases of renovation/expansion of buildings included in the general catalog of protected elements in historic city centers or historic centers of peripheral districts and historic colonies, a color photographic description of the existing building that permits, during enlargement operations, con rmation of the correct alignment of the enlargement plans with the historic city zoning restrictions • License of parceling, if the new construction needs previous parceling • O cial alignment, if required Page 15   • Project design of installation of telecommunications infrastructure Real *9*1300.6*1,40*0.85/6000 = 1,154.82 EUR Doing Business 2018 Spain 6 Request and obtain a building permit (licencia de obras) 45 days EUR 48,009 Agency : Municipality of Madrid The documents required to obtain the license are the following: • A standardized application form and sheet containing the characteristics of the construction properly completed • Proof of payment of tax • Declaration by one or more technical authors (architect and project design specialists) that the project conforms to the appropriate town planning regulations, and certi cate of the structural feasibility, if necessary • Declaration of the promoter that a signboard has been posted at the site to inform the public that a building license has been applied for and to provide information about the proposed operations and activities • Three copies of the technical project designs signed by quali ed technician(s) and countersigned by the appropriate o cial institute (or in this case, by the project’s administrative supervision o ce, accompanied by the application sheets of the appropriate professional association) • Con rmation of the deposit of a guarantee • Authorization program for independent parts of the construction or approval of partial projects, if requested by the promoter • In cases of renovation/expansion of buildings included in the general catalog of protected elements in historic city centers or historic centers of peripheral districts and historic colonies, a color photographic description of the existing building that permits, during enlargement operations, con rmation of the correct alignment of the enlargement plans with the historic city zoning restrictions • License of parceling, if the new construction needs previous parceling • O cial alignment, if required • Project design of installation of telecommunications infrastructure Real Decreto 346/2011 • Project design of the use of solar energy for heating (either as an independent project design or as part of the general project design), signed by a quali ed technician and countersigned by the appropriate o cial institute, if required by the Regulation Concerning the Harnessing of Solar Energy for Thermal Use • Reglamento de seguridad contra incendios en los establecimientos industriales RD 2267/2004, de 3 de diciembre, modi cado en parte por el RD 560/2010 de 7 de mayo • Security and health certi cation or a basic certi cation regarding RD 1627/1997 de 24 de octubre • Certify the destination of all the construction waste and demolition (RCD) according to the Law 5/2003 and amendments by Law 9/2010 (regarding abandoned and discharged wastes) This procedure is regulated by the Ordenanza Fiscal Municipal Reguladora del Impuesto sobre Construcciones, Instalaciones y Obras (ICIO), dated October 9, 2001 (in accordance with the amendments approved by Plenary Council dated September 25, 2013). Since the end of 2012, the time to obtain a building permit was reduced to approximately 45 days. 7 Notify labor authority of the start of construction (apertura del centro 1 day no charge de trabajo) at the Ministry of Employment, Tourism and Culture Agency : Ministry of Employment and Social Security Upon authorization from the College of Architects of Madrid, and in line with “Orden TIN/1071/2010, de 27 de abril” BuildCo must notify the Ministry of Employment, Tourism and Culture of the start of construction. 8 Receive initial inspection 1 day EUR 375 Page 16   Council dated September 25, 2013). Since the end of 2012, the time to obtain Doing a 2018wasSpain building permit Business reduced to approximately 45 days. 7 Notify labor authority of the start of construction (apertura del centro 1 day no charge de trabajo) at the Ministry of Employment, Tourism and Culture Agency : Ministry of Employment and Social Security Upon authorization from the College of Architects of Madrid, and in line with “Orden TIN/1071/2010, de 27 de abril” BuildCo must notify the Ministry of Employment, Tourism and Culture of the start of construction. 8 Receive initial inspection 1 day EUR 375 Agency : Entidades Colaboradoras Urbanisticas - ECU According to the building license, one on-site inspection must be carried out during construction and one at the end of the process. If, during the inspections, the committee detects any possible infringements of the building regulations or criminal law, a proposal on sanctions must be made, and a copy of the written record is given to the public prosecutor. At minimum, administrative proceedings are initiated. In each inspection report, a record is included that provides information on every person involved and their roles, as well as on the facts, circumstances, dates, and results of the inspection. The record is regarded as a public administrative deed. The record must be signed by the inspector(s) and by the person to whom the construction works have been attributed at the time of the inspection. The inspection can only be conducted once the construction has started, for that reason this procedure cannot be simultaneous with the previous one. 9 Obtain completion certi cate (visado del certi cado nal de obra -CFO) 3 days EUR 204 from College of Architects of Madrid Agency : College of Architects of Madrid Once construction works have been completed, the architect and surveyor must sign o a document certifying that the construction has followed the approved plans. Therefore, both individuals are responsible for the construction performed. This completion certi cate must be approved by the College of Architects of Madrid. This procedure is legislated in "Real Decreto 1000/2010, de 5 de agosto, sobre visado colegial obligatorio". This procedure can only be done when the consturciton is nalized, for that reason this procedure cannot be simultaneous with the previous one. The basis of the cost is in "Precios del Visado de los Trabajos profesionales". The formula used is the following: Cost of approval = Módulo x C x S x Qv x F / 6000. For a warehouse such as the Doing Business case study: M = 497.43; C = 9.00; S = 1300.6; Qv = 1.40; F = 0.15. Therefore, cost of approval is 497.43 *9*1300.6*1.40*0.15/6000 =203.79 EUR" 10 Request nal inspection in connection with the occupancy permit 1 day EUR 3,601 (licencia de primera ocupacion y funcionamiento) Agency : Entidades Colaboradoras Urbanisticas - ECU Private collaborating entities (ECU) carry out the inspection and issue the declaration of conformity at the end of the construction works. BuildCo must pay a fee to the collaborating entities. Page 17   The cost details to request and receive nal inspection is provided on the = 9.00; S = 1300.6; Qv = 1.40; F = 0.15. Therefore, cost of approval is 497.43 Doing *9*1300.6*1.40*0.15/6000 Business 2018 Spain =203.79 EUR" 10 Request nal inspection in connection with the occupancy permit 1 day EUR 3,601 (licencia de primera ocupacion y funcionamiento) Agency : Entidades Colaboradoras Urbanisticas - ECU Private collaborating entities (ECU) carry out the inspection and issue the declaration of conformity at the end of the construction works. BuildCo must pay a fee to the collaborating entities. The cost details to request and receive nal inspection is provided on the o cial website of the Municipality of Madrid, (www.munimadrid.es). The legal basis is Agreement of the Local Government Board of the City Council of Madrid, dated September 26, 2013, setting the maximum price for services of the private collaborating entities for 2014 (O cial Gazette of the City Council of Madrid N. 7015 (09/30/2013)). 11 Receive nal inspection 1 day no charge Agency : Entidades Colaboradoras Urbanisticas - ECU BuildCo. can receive a nal inspection once the construction is nalized. For that reason this procedure cannot be simultaneous with the previous one. 12 Obtain occupancy permit (licencia de primera ocupación y 60 days no charge funcionamiento) Agency : Municipality of Madrid As soon as construction is nished, in order to receive the rst operating license (licencia de primera ocupación), the builder must submit the following documents to the ECU: • Final certi cate of terminated construction (declaration of conformity), which must be signed by the technical director of the work. This certi cate must declare that the constructed building is in accordance with the issued license. For modi cations that do not need approval of the City Council (23.2 of the Ordenanza Municipal de Tramitación de Licencias Urbanísticas de 23 de diciembre de 2004), the builder has to detail these modi cations. • If urbanization works have been carried out simultaneously with construction, and this urbanization was completed by the builder, the builder must present the nal certi cation of these works. • Certi cado nal de obra visado por el Colegio Profesional y Plan de Autoprotección (Ordenanza Municipal de Tramitación de Licencias Urbanísticas de 23 de diciembre de 2004 - BOCM de 7 de enero de 2005) The purpose of the operating license is to verify that the construction and activities have been executed according to the project and the conditions under which the license had been granted, and that the construction has been completed and is adequate for urban determinations, the atmosphere and the security of its speci c destination. 13 Register the new building 18 days EUR 1,238 Agency : Property Registry With the occupancy permit BuildCo. can register the newly built warehouse. Registration fees cannot exceed EUR 2,181.00 according to "Real Decreto 1427/1989, de 17 de noviembre, por el que se aprueba el arancel de los registradores de la Propiedad" Notary and registration fees depend on the value of the building. This can only be requested upon reception of the occupancy permit. Page 18   and the security of its speci c destination. Doing Business 2018 Spain 13 Register the new building 18 days EUR 1,238 Agency : Property Registry With the occupancy permit BuildCo. can register the newly built warehouse. Registration fees cannot exceed EUR 2,181.00 according to "Real Decreto 1427/1989, de 17 de noviembre, por el que se aprueba el arancel de los registradores de la Propiedad" Notary and registration fees depend on the value of the building. This can only be requested upon reception of the occupancy permit. Request and obtain water connection 10 days EUR 1,200 14 Agency : Canal de Isabel II In parallel with registering the building. BuildCo. can request the water services. If the ow of water is less than 6 liters per second or if fewer than 25 counters are needed in one hall, only the following documents must be submitted: • Technical report (Memoria técnica), not required if the ow of water is less than 3 liters per second • Form 2.1.4 • Con rmation of fee payment (EUR 12.28 must be paid at the counter) • Two copies of Form 2.1.3 (Impreso de Final de Obra) If the required ow of water is more than 6 liters per second or if more than 25 counters are needed in one hall, the following additional documents must be led: • Project design from an engineer specialized in planning water facilities • Fee (in this case, a certain percentage of the budget) Since this procedure can be applied to another organization, it can be simultaneous with the previous one. 15 Register the new building at the Cadastre 1 day no charge Agency : Cadastre Once the services are installed, BuildCo. must register the building with the cadastre. Documents to be submitted are the following: -Application forms together with the declaration form 902-N; -Photocopy of deed of new construction; -Construction completion certi cate; -Photography of the front of the building (“fachada”) (size 10 x 15 cm); -Scale maps: of site, solar and nal oor of each level; -Materials and quality description; -Material cost of execution of the works; Once the construction is registered it is discharged in the property tax (MOD. 902N). This procedure is legislated in “Ley del Catastro Inmobiliario aprobado por Real Decreto Legislativo 1/2004, de 5 de marzo” Takes place simultaneously with previous procedure. Page 19   This procedure is legislated in “Ley del Catastro Inmobiliario aprobado por Real Decreto Legislativo 1/2004, de 5 de marzo” Doing Business 2018 Spain Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Spain – Measure of Quality Answer Score Building quality control index (0-15) 11.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer; Private rm. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Unscheduled inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 Page 20   Takes place simultaneously with previous procedure. Doing Business 2018 Spain Details – Dealing with Construction Permits in Spain – Measure of Quality Answer Score Building quality control index (0-15) 11.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer; Private rm. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Unscheduled inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in Page 21   charge of the Liability Doing 2018 regimes and insurance Business Spainindex (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company; Owner or investor. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the University 1.0 construction on the ground? (0-2) degree in engineering, construction or construction management; Being a registered architect or engineer. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst Page 22   time. architect or engineer. Doing Business 2018 Spain Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 23   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Spain Standardized Connection Price of electricity (US cents per kWh) 19.1 Name of utility Iberdrola City Covered Madrid OECD high OECD high Indicator Spain income income Overall Best Performer Procedures (number) 5 4.7 4.7 2 (United Arab Emirates) Time (days) 95 79.1 79.1 10 (United Arab Emirates) Cost (% of income per capita) 100.1 63.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 8 7.4 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 98.79: Germany (Rank: 5) 94.41: Switzerland (Rank: 7) 85.27: Italy (Rank: 28) 84.44: Regional Average (OECD high income) 82.99: Spain (Rank: 42) 80.18: Portugal (Rank: 58) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Spain – Procedure, Time and Cost Time Cost 90 90 80 80 Cost (% of income per capita) 70 70 60 60 Time (days) 50 50 40 40 30 30 20 20 10 Page 24   10 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Spain Figure – Getting Electricity in Spain – Procedure, Time and Cost Time Cost 90 90 80 80 Cost (% of income per capita) 70 70 60 60 Time (days) 50 50 40 40 30 30 20 20 10 10 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Spain and comparator economies – Measure of Quality 8.2 8 8 8 8 7.8 7.6 Index score 7.4 7.4 7.2 7 7 7 6.8 6.6 6.4 Spain Germany Italy Portugal Switzerland OECD high income Details – Getting Electricity in Spain – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Iberdrola and await estimate 20 calendar days EUR 0 Agency : Iberdrola Customers must submit an application for a new connection with the utility. Iberdrola Distribución Eléctrica will prepare an estimate and inform the customer with a letter about the estimated costs of the project and the technical characteristics of the project. The payment is made at the bank. A receipt of this payment has to be submitted to Iberdrola at the time when the customer signs the supply contract. 2 Obtain license for external works from City Council 25 calendar days EUR 956.6 Agency : City Council Page 25   Spain Germany Italy Portugal Switzerland OECD high income Doing Business 2018 Spain Details – Getting Electricity in Spain – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Iberdrola and await estimate 20 calendar days EUR 0 Agency : Iberdrola Customers must submit an application for a new connection with the utility. Iberdrola Distribución Eléctrica will prepare an estimate and inform the customer with a letter about the estimated costs of the project and the technical characteristics of the project. The payment is made at the bank. A receipt of this payment has to be submitted to Iberdrola at the time when the customer signs the supply contract. 2 Obtain license for external works from City Council 25 calendar days EUR 956.6 Agency : City Council Customers need to obtain a license for the external works from the municipality. The tax for this license is charged as 4% of the cost of the works, plus a fee for provision of urban services (‘Tasa por prestación de servicios urbanísticos’), and a fee for private use of public spaces (‘Tasa por Utilización Privativa o Aprovechamiento Especial del Dominio Público Local’). . 3 Await completion of connection works by Iberdrola or private rm 30 calendar days EUR 20,500 Agency : Iberdrola Customers have two choices: The external connection works can be done by Iberdrola or the customer can hire a private licensed electrical constructor. In most cases, for a connection with a capacity of 140 kVA, customers hire a private company to carry out the works. For such a capacity, the connection is considered in most cases as low voltage. This cost includes materials and labor. 4 Obtain clearance of electrical installation 15 calendar days EUR 0 Agency : General Directorate for Industry, Energy and Mining (‘DGIEM’) The customer obtains a clearance of the electrical installation (‘acta de puesta en servicio’) from the General Directorate for Industry, Energy and Mining to certify that it is in compliance with its requirements. The documents to be presented are: - Contract of maintenance of proof of own capacity of maintenance of transformers - Certi cate of conclusion of works - Initial certi cate of inspection by the OCA - Declaration of responsibility 5 Sign supply contract with Iberdrola and await meter installation and 5 calendar days EUR 2,575.1 electricity ow Agency : Iberdrola Irrespective of who executes the actual works of the connection (installation of the transformer, excavation for cables etc.), Iberdrola is always in charge of installing the meter and the nal energization of the project. The meter can be rented or bought by the customer. Most clients prefer to rent it at an approximate cost of EUR 12 per month. According to Article 79 of the Real Decreto 1955/2000, the utility can levy a security deposit in the amount of Page 26   one month of future consumption (corresponding to 50 hours supply of the - Initial certi cate of inspection by the OCA Declaration Doing -Business of responsibility 2018 Spain 5 Sign supply contract with Iberdrola and await meter installation and 5 calendar days EUR 2,575.1 electricity ow Agency : Iberdrola Irrespective of who executes the actual works of the connection (installation of the transformer, excavation for cables etc.), Iberdrola is always in charge of installing the meter and the nal energization of the project. The meter can be rented or bought by the customer. Most clients prefer to rent it at an approximate cost of EUR 12 per month. According to Article 79 of the Real Decreto 1955/2000, the utility can levy a security deposit in the amount of one month of future consumption (corresponding to 50 hours supply of the contracted load). Additional fees for the access to electricity (cuotas de acceso) and for the nal connection (derechos de enganche) also apply. Takes place simultaneously with previous procedure. Details – Getting Electricity in Spain – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.7 System average interruption frequency index (SAIFI) 0.9 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.controla stuenergia.gob.es/fa ctura- electrica/factura/Pag inas/conceptos- factura.aspx Page 27   Takes place simultaneously with previous procedure. Doing Business 2018 Spain Details – Getting Electricity in Spain – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.7 System average interruption frequency index (SAIFI) 0.9 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.controla stuenergia.gob.es/fa ctura- electrica/factura/Pag inas/conceptos- factura.aspx Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The Page 28   most recent round of data collection for the project was completed in June 2017. See the methodology for more information. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Spain Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value EUR 1,200,217.80 City Covered Madrid Page 29   OECD high OECD high Doing Business 2018 Spain Standard Property Transfer Property value EUR 1,200,217.80 City Covered Madrid OECD high OECD high Indicator Spain income income Overall Best Performer Procedures (number) 5 4.6 4.6 1.00 (4 Economies) Time (days) 12.5 22.3 22.3 1.00 (3 Economies) Cost (% of property value) 6.1 4.2 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 22.5 22.7 22.7 29.00 (Singapore) Figure – Registering Property in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 86.12: Switzerland (Rank: 16) 81.70: Italy (Rank: 23) 80.26: Portugal (Rank: 28) 76.81: Regional Average (OECD high income) 73.88: Spain (Rank: 53) 65.71: Germany (Rank: 77) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Spain – Procedure, Time and Cost Time Cost 7 12 6 10 Cost (% of property value) 5 8 Time (days) 4 6 3 4 2 2 1 0 0 1 *2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 30   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Spain Figure – Registering Property in Spain – Procedure, Time and Cost Time Cost 7 12 6 10 Cost (% of property value) 5 8 Time (days) 4 6 3 4 2 2 1 0 0 1 *2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Spain and comparator economies – Measure of Quality 30 26.5 25 22.5 23.5 22.7 22.0 21.0 20 Index score 15 10 5 0 Spain Germany Italy Portugal Switzerland OECD high income Details – Registering Property in Spain – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Notary requests property information from the Property Registry Less than a day EUR 9.02 Agency : Property Registry (online procedure, simultaneous with According to the law (Art. 175 of the Decree dated on June 2, 1944), the procedure 2) notary is obliged to duly inform the parties, be aware of the ownership and encumbrances on the property, and consult the Property Registry books before executing the deed. The consultations can be done on-line at www.registradores.org and the printout from the internet is valid. This document is an “Informative Land Registry Extract” containing the same information as an Ownership and encumbrances Certi cate, and bearing the same responsibility of the Registrar in case of mistake as a formal certi cate Page 31   would provide. This is an information product speci cally foreseen by the Spain Germany Italy Portugal Switzerland OECD high income Doing Business 2018 Spain Details – Registering Property in Spain – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Notary requests property information from the Property Registry Less than a day EUR 9.02 Agency : Property Registry (online procedure, simultaneous with According to the law (Art. 175 of the Decree dated on June 2, 1944), the procedure 2) notary is obliged to duly inform the parties, be aware of the ownership and encumbrances on the property, and consult the Property Registry books before executing the deed. The consultations can be done on-line at www.registradores.org and the printout from the internet is valid. This document is an “Informative Land Registry Extract” containing the same information as an Ownership and encumbrances Certi cate, and bearing the same responsibility of the Registrar in case of mistake as a formal certi cate would provide. This is an information product speci cally foreseen by the Mortgage Law to answer the Notary's requests of Information related to registrable acts and contracts. The Notary submits an electronic request and receives the information also by electronic means. From that moment and for the next ten days, the Registrar must inform the Notary about any Document submitted to the Land Registry related to the same property, within the maximum term of 24 hours since such document was submitted to the Land Registry O ce. This procedure is aimed at preventing any surprises or unexpected situations while the contract is being formalized. 2 Notary obtains cadastral description Less than a day no cost if obtained Agency : Cadastre (online procedure) electronically The Notary would search the land parcel corresponding to the property object of the transaction to identify the area of the land whether there are any buildings in the property and the cadastral value for tax purposes (for property transfer tax/value added tax, for municipal capital gains tax and for real estate tax). The Notary has special access to the Cadaster database. If parties check this information by themselves, they still can verify boundaries, size and buildings, but they cannot obtain information on ownership and cadastral value. In order to obtain this information, they have to request an extract for a fee. 3 Execution and delivery of the public deed of purchase of the property 2 days Notary’s fees Agency : Notary (decreasing scale): EUR 730 for a Property transfers are valid with a private contract between the parties, plus property of this the handing over of the possession of the property to the buyer (ie. the value (minus 5% "traditio" through, for example, the handing over of the keys to the property discount) For to the buyer). However, in order to make the property transfer opposable to property values not good faith third parties, it has to be registered at the Land Registry, and in exceeding EUR Page 32   value. In order to obtain this information, they have to request an extract for Doing a fee. Business 2018 Spain 3 Execution and delivery of the public deed of purchase of the property 2 days Notary’s fees Agency : Notary (decreasing scale): EUR 730 for a Property transfers are valid with a private contract between the parties, plus property of this the handing over of the possession of the property to the buyer (ie. the value (minus 5% "traditio" through, for example, the handing over of the keys to the property discount) For to the buyer). However, in order to make the property transfer opposable to property values not good faith third parties, it has to be registered at the Land Registry, and in order to be registered, the contract between the parties has to be notarized. exceeding EUR Additionally, if the buyer acquired the property in good faith, his title over 6.010,12: EUR the property would be indefeasible after registration. 90,151816. for the excess amount Notary fees are set according to a cumulative scale: between EUR 6.010,13 and • Property value up to EUR 6,010.12: EUR 90.151816; 30.050,61: 0,45%. for the excess amount • For the excess amount between EUR 6,010.13 and EUR 30,050.61: 4.5 per between EUR 1,000; 30.050,62 and 60.101,21: 0,15%. for • For the excess amount between EUR 30,050.62 and EUR 60,101.21: 1,50 per the excess amount 1,000; between EUR 60.101,22 and • For the excess amount between EUR 60,101.22 and EUR 150,253.03: 1 per 150.253,03: 0,1%. for 1,000; the excess amount between EUR • For the excess amount between EUR 150,253.04 and EUR 601,012.10: 0.5 150.253,04 and per 1,000; 601.012,10: 0,05%. for the excess • For the excess amount between EUR 601,012.11 and EUR 6,010,121.04: 0.3 amount over EUR per 1,000; 601.012,10 until 6.010.121,04: 0,03%. • For the excess amount above EUR 6,010,121.04 the fees are determined by agreement between the notary and client. The Real Decreto Ley 8/2010, of May 20 2010, modi es the Real Decreto 1426/1989, of November 17th 1989, establishing notary fees. The 2010 decree establishes a 5% discount for notary fees. According to Royal Decree 45/2007, the notary must issue an authorized copy of the deed on the same or next day and send it to the Registry electronically, unless otherwise requested by the interested party. The documentation shall include: • Power of attorney granted by the seller and ID of the person in favor of whom the power was granted. • Power of attorney granted by the buyer and ID of the person in favor of whom the power was granted. • The public deed that transferred the property, which shall indicate the following information: (i) Company tax identi cation and registration numbers; (ii) Means of payment used in the transaction; and (iii) Cadastral reference. 4 Payment of the Transfer Tax (ITP) and obtain the con rmation of 1 day 6% of purchase price payment at tax authority (ITP) Agency : Autonomous Community of Madrid's Tax O ce Page 33   First transfers of property or transfers made between entrepreneurs are numbers; (ii) Means of payment used in the transaction; and (iii) Cadastral Doing reference. Business 2018 Spain 4 Payment of the Transfer Tax (ITP) and obtain the con rmation of 1 day 6% of purchase price payment at tax authority (ITP) Agency : Autonomous Community of Madrid's Tax O ce First transfers of property or transfers made between entrepreneurs are subject to VAT and Stamp Duty. Second and subsequent property transfers are not subject to VAT, but to the Transfer Tax ("Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados", ITP). For the Doing Business case study, as it is assumed that the buyer is a company and the property is in Madrid and has been transferred at least once in the past, the applicable tax should be the Transfer Tax (ITP). The ITP is paid at the relevant tax o ce within 30 working days after the date of granting of the notarial deed of transfer (a copy of the transfer deed is to be attached to the transfer tax liquidation form). In some autonomias, like Madrid, Catalunya, and Andalucia, the tax may be paid online, although the buyer needs to obtain a stamp from the tax authority con rming the payment for ITP and capital gains tax. However, it has to be noted that under certain circumstances (e.g., that the acquisition of the property is within the scope of the usual activities of the acquiring company), the acquiring company can choose to make the transaction subject to transfer tax or VAT. The VAT paid would become a credit that the company would deduct from subsequent transactions, such as those related to the normal business of the company. 5 The public deed is registered at the Land and Property Registry 8 days According to decree Agency : Property Registry 1427, the cost is calculated as follows: The notary submits the public deed to the Land Registry. The Land Registry will review and register the transfer within the legal time limit of 15 business a) property value up days. If the Procedure takes more than 15 business days, the fees will be to 6010.12 euros, reduced by 30%, unless there is an objective reason for the delay. 24.040484 euros. With the introduction of technology and online Procedures due to Law 24/2005 of November 18, in particular section II on electronic registration, b) 0.175% of the the time to register is in the process of being reduced. The average property registration time is currently at 8 calendar days. valuebetween 6.010,13 and The documentation to be presented to the Land Registry shall include: (i) 30050.61 euros,. Public deed; (ii) Proof of VAT or ITP payment (attached to the sale purchase agreement); (iii) Proof of stamp duty payment (in the case that VAT applied c) 0.125% of the and not ITP); and (iv) proof of payment of the municipal capital gains tax. value between 30050.62 and 60101.21 . d) 0.075% of the property value between 60101.22 and 150253.03 euros. e) 0.03% of the property value between 150.253,04 and 601.012,10 euros Page 34   f) 0.02% for values credit that the company would deduct from subsequent transactions, such Doing as those related Business 2018to the normal business of the company. Spain 5 The public deed is registered at the Land and Property Registry 8 days According to decree Agency : Property Registry 1427, the cost is calculated as follows: The notary submits the public deed to the Land Registry. The Land Registry will review and register the transfer within the legal time limit of 15 business a) property value up days. If the Procedure takes more than 15 business days, the fees will be to 6010.12 euros, reduced by 30%, unless there is an objective reason for the delay. 24.040484 euros. With the introduction of technology and online Procedures due to Law 24/2005 of November 18, in particular section II on electronic registration, b) 0.175% of the the time to register is in the process of being reduced. The average property registration time is currently at 8 calendar days. valuebetween 6.010,13 and The documentation to be presented to the Land Registry shall include: (i) 30050.61 euros,. Public deed; (ii) Proof of VAT or ITP payment (attached to the sale purchase agreement); (iii) Proof of stamp duty payment (in the case that VAT applied c) 0.125% of the and not ITP); and (iv) proof of payment of the municipal capital gains tax. value between 30050.62 and 60101.21 . d) 0.075% of the property value between 60101.22 and 150253.03 euros. e) 0.03% of the property value between 150.253,04 and 601.012,10 euros f) 0.02% for values above 601.012,10 euros. A 5% discount is applicable to the cost. Also, an administrative fee of EUR 9.02 is added to the cost. Takes place simultaneously with previous procedure. Details – Registering Property in Spain – Measure of Quality Answer Score Quality of the land administration index (0-30) 22.5 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? Registros de la Propiedad de Madrid In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 Page 35   —in a paper format or in a computerized format (scanned or fully digital)? digital Takes place simultaneously with previous procedure. Doing Business 2018 Spain Details – Registering Property in Spain – Measure of Quality Answer Score Quality of the land administration index (0-30) 22.5 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? Registros de la Propiedad de Madrid In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 —in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Dirección General del Catastro In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 3.0 Who is able to obtain information on land ownership at the agency in charge of Only 0.0 immovable property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://www.regist radores.org/wp- content/revista/c omocompraruna vivienda/ Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: http://www.regist radores.org/nota _simple.jsp Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 Page 36   immovable property registration in the largest business city made publicly available– and if Doing so, how? 2018 Business Spain Link for online access: http://www.regist radores.org/nota _simple.jsp Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: There is a deadline set by law of 15 days. http://www.mjust icia.gob.es/cs/Sat ellite/Portal/es/a reas- tematicas/registr os/registro- propiedad#id_12 15198094252 Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Number of property transfers in the largest business city in 2015: 58752.0 Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available No cost 0.5 —and if so, how? Link for online access: https://www.sed ecatastro.gob.es / Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 6.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? Yes 2.0 Page 37   Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable Doing property Business 2018 registry? Spain Are all privately held land plots in the economy mapped? Yes 2.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 6.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Notary. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a First Instance property worth 50 times gross national income (GNI) per capita and located in the Judge of Madrid largest business city, what court would be in charge of the case in the rst instance? (Juzgados de Primera Instancia) How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal Page 38   rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Spain Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. OECD high OECD high Indicator Spain income income Overall Best Performer Strength of legal rights index (0-12) 5 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.6 6.6 8.00 (34 Economies) Page 39   Credit registry coverage (% of adults) 79.3 18.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Spain OECD high OECD high Indicator Spain income income Overall Best Performer Strength of legal rights index (0-12) 5 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.6 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 79.3 18.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 15.9 63.7 63.7 100.00 (23 Economies) Figure – Getting Credit in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.00: Germany (Rank: 42) 63.03: Regional Average (OECD high income) 60.00: Switzerland (Rank: 68) 60.00: Spain (Rank: 68) 45.00: Italy (Rank: 105) 45.00: Portugal (Rank: 105) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Spain and comparator economies 7 6 6 6.0 6 5 5 Index score 4 3 2 2 2 1 0 Spain Germany Italy Portugal Switzerland OECD high income Details – Legal Rights in Spain Strength of legal rights index (0-12) 5 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 40   Spain Germany Italy Portugal Switzerland OECD high income Doing Business 2018 Spain Details – Legal Rights in Spain Strength of legal rights index (0-12) 5 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised Yes reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law No allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Spain and comparator economies 10 8 8 7 7 7 6.6 Index score 6 6 4 2 0 Spain Germany Italy Portugal Switzerland OECD high income Details – Credit Information in Spain Page 41   0 Spain Doing Business 2018 Spain Germany Italy Portugal Switzerland OECD high income Details – Credit Information in Spain Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes Yes 1 Are both positive and negative credit data distributed? No Yes 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes Yes 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes Yes 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 4,526,000 22,957,465 Number of firms 366,000 1,403,846 Total 4,892,000 24,361,311 Percentage of adult population 15.9 79.3 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 42   transactions; Available legal remedies (damages, Percentage of adult population 15.9 79.3 Doing Business 2018 Spain Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. OECD high OECD high Indicator Spain income income Overall Best Performer Extent of conflict of interest regulation index (0- 6.3 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7.7 6.4 6.4 Page 43   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Spain OECD high OECD high Indicator Spain income income Overall Best Performer Extent of conflict of interest regulation index (0- 6.3 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7.7 6.4 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.00: Spain (Rank: 24) 63.93: Regional Average (OECD high income) 60.00: Portugal (Rank: 57) 58.33: Germany (Rank: 62) 58.33: Italy (Rank: 62) 50.00: Switzerland (Rank: 108) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Spain and comparator economies – Measure of Quality Spain 9 6 7 5 9 6 Germany 7 5 5 6 7 5 Italy 8 4 7 4 6 6 Portugal 8 5 6 6 4 7 Switzerland 7 5 0 5 8 5 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Spain – Measure of Quality Answer Score Page 44   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Spain Details – Protecting Minority Investors in Spain – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 6.3 Extent of disclosure index (0-10) 7 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 1.0 2) the transaction only Extent of director liability index (0-10) 6 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by Yes 1.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 6 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Page 45   Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction Doing 2018 (0-1) documents? Business Spain Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 7.7 Extent of shareholder rights index (0-10) 9 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 5 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Page 46   Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Doing Business 2018 Spain Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 9 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with Page 47   post ling processes. Information is also compiled on frequency of ling Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Spain Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. OECD high OECD high Indicator Spain income income Overall Best Performer Payments (number per year) 9 10.9 10.9 3 (Hong Kong SAR, China) Page 48   return, but within the tax assessment period. Doing Business 2018 Spain OECD high OECD high Indicator Spain income income Overall Best Performer Payments (number per year) 9 10.9 10.9 3 (Hong Kong SAR, China) Time (hours per year) 152 160.7 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 46.9 40.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 93.60 83.45 83.45 99.38 (Estonia) Figure – Paying Taxes in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 87.66: Switzerland (Rank: 19) 84.44: Spain (Rank: 34) 83.75: Portugal (Rank: 38) 83.07: Regional Average (OECD high income) 82.14: Germany (Rank: 41) 68.29: Italy (Rank: 112) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Spain and comparator economies – Measure of Quality 120 93.60 97.67 100 92.71 83.21 83.45 80 Index score 60 52.39 40 20 0 Spain Germany Italy Portugal Switzerland OECD high income Details – Paying Taxes in Spain Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate Notes contribution (number) Payments (hours) tax rate Tax base (% of profit) on TTR Page 49   Employer paid - 1 online 84 29.9% gross salaries 35.62 Doing Business 2018 Spain Figure – Paying Taxes in Spain and comparator economies – Measure of Quality 120 93.60 97.67 100 92.71 83.21 83.45 80 Index score 60 52.39 40 20 0 Spain Germany Italy Portugal Switzerland OECD high income Details – Paying Taxes in Spain Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate Notes contribution (number) Payments (hours) tax rate Tax base (% of profit) on TTR Employer paid - 1 online 84 29.9% gross salaries 35.62 Social security contributions Corporate income 1 online 33 15% taxable profit 10.61 tax Tax on interest 0 jointly 19% interest income 0.49 not included Property tax 1 0.51% cadastral value (estimated 0.41 in 40% of property cost for these purposes) Tax on property 1 3.7% Number of years and 0.12 transfer cadastral value Tax on insurance 1 6% insurance premium 0.06 contracts Transport tax 1 EUR 532 type of truck 0.04 Environmental tax 1 various cadastral value 0.03 rates Fuel tax 1 included 0.00 small in fuel amount price Employee paid - 0 jointly 6.35% gross salaries 0.00 withheld Social security contributions Value added tax 1 online 35 21% value added 0.00 not (VAT) included Totals 9 152 46.9 Page 50   Value added tax 1 online 35 21% value added 0.00 not (VAT) Business 2018 Doing Spain included Totals 9 152 46.9 Details – Paying Taxes in Spain – Tax by Type Taxes by type Answer Profit tax (% of profit) 10.6 Labor tax and contributions (% of profit) 35.6 Other taxes (% of profit) 0.7 Details – Paying Taxes in Spain – Measure of Quality Answer Score Post ling index (0-100) 93.60 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 25% - 49% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 0.0 100 Time to obtain a VAT refund (weeks) 16.5 74.42 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 1.5 100 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Page 51   Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Spain Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 52   of agriculture or industry, national security agencies and any other Doing Business 2018 Spain government authorities. OECD high OECD high Indicator Spain income income Overall Best Performer Time to export: Border compliance (hours) 0 12.7 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 0 149.9 149.9 0.00 (19 Economies) Time to export: Documentary compliance 1 2.4 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 0 35.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 0 8.7 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 0 111.6 111.6 0.00 (27 Economies) Time to import: Documentary compliance 1 3.5 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 0 25.6 25.6 0.00 (30 Economies) Figure – Trading across Borders in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.92: Regional Average (OECD high income) 91.79: Switzerland (Rank: 38) 91.77: Germany (Rank: 39) 100.00: Spain (Rank: 1) 100.00: Italy (Rank: 1) 100.00: Portugal (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Spain – Time and Cost Time Cost 1.2 1.2 1 1 1 1 0.8 0.8 Time (hours) Cost (USD) 0.6 0.6 0.4 0.4 0.2 0.2 0 0 0 0 0 0 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Page 53   Doing Business 2018 Spain Figure – Trading across Borders in Spain – Time and Cost Time Cost 1.2 1.2 1 1 1 1 0.8 0.8 Time (hours) Cost (USD) 0.6 0.6 0.4 0.4 0.2 0.2 0 0 0 0 0 0 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Spain Characteristics Export Import Product HS 87 : Vehicles other than railway or tramway rolling-stock, and HS 8708: Parts and accessories of parts and accessories thereof motor vehicles Trade partner France France Border Spain- France border crossing Spain- France border crossing Distance (km) 474 474 Domestic transport 8 8 time (hours) Domestic transport 638 638 cost (USD) Details – Trading across Borders in Spain – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 0.0 0.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 0.0 0.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.0 0.0 Details – Trading across Borders in Spain – Trade Documents Export Import Page 54   cost (USD) Doing Business 2018 Spain Details – Trading across Borders in Spain – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 0.0 0.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 0.0 0.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.0 0.0 Details – Trading across Borders in Spain – Trade Documents Export Import Packing List Packing List Commercial invoice Commercial invoice CMR waybill CMR waybill Intrastat Intrastat Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Page 55   Intrastat Intrastat Doing Business 2018 Spain Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value EUR 46,535.00 Court name Madrid Court of First Instance City Covered Madrid OECD high OECD high Indicator Spain income income Overall Best Performer Time (days) 510 577.8 577.8 164.00 (Singapore) Cost (% of claim value) 17.2 21.5 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 11.0 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.74: Portugal (Rank: 19) 71.32: Germany (Rank: 22) 69.97: Spain (Rank: 26) Page 56   of judicial processes Quality Business Doing index (0-18) 2018 Spain 11.0 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.74: Portugal (Rank: 19) 71.32: Germany (Rank: 22) 69.97: Spain (Rank: 26) 66.76: Regional Average (OECD high income) 66.49: Switzerland (Rank: 45) 54.79: Italy (Rank: 108) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Spain – Time and Cost Time Cost 1200 1120 30 1000 23.1 24.0 25 Cost (% of claim value) 21.5 800 20 Time (days) 17.2 17.2 14.4 577.8 547 600 499 510 510 15 400 10 200 5 0 0 Germany Italy OECD high income Portugal Spain Switzerland Figure – Enforcing Contracts in Spain and comparator economies – Measure of Quality Spain 3 2.5 2.5 3 Germany 3 1.5 2 4.5 Italy 3 4 3 3 Portugal 2.5 4 2.5 3.5 Switzerland 2.5 1 2.5 4.5 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 Page 57   14 0 0 Germany Italy OECD high income Portugal Spain Switzerland Doing Business 2018 Spain Figure – Enforcing Contracts in Spain and comparator economies – Measure of Quality Spain 3 2.5 2.5 3 Germany 3 1.5 2 4.5 Italy 3 4 3 3 Portugal 2.5 4 2.5 3.5 Switzerland 2.5 1 2.5 4.5 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Spain Indicator Time (days) 510 Filing and service 50 Trial and judgment 280 Enforcement of judgment 180 Cost (% of claim value) 17.2 Attorney fees 12.7 Court fees 4.5 Enforcement fees 0 Quality of judicial processes index (0-18) 11.0 Court structure and proceedings (-1-5) 3.0 Case management (0-6) 2.5 Court automation (0-4) 2.5 Alternative dispute resolution (0-3) 3.0 Details – Enforcing Contracts in Spain – Measure of Quality Page 58   Alternative dispute resolution (0-3) 3.0 Doing Business 2018 Spain Details – Enforcing Contracts in Spain – Measure of Quality Answer Score Quality of judicial processes index (0-18) 11.0 Court structure and proceedings (-1-5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 2.5 1. Time standards 0.5 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? Yes 1.c. Are these time standards respected in more than 50% of cases? No 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 2.5 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 59   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Spain 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 0.5 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 3.0 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 60   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Spain Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) OECD high OECD high Indicator Spain income income Overall Best Performer Recovery rate (cents on the dollar) 76.6 71.2 71.2 93.1 (Norway) Time (years) 1.5 1.7 1.7 0.4 (Ireland) Page 61   Cost (% of estate) 11.0 9.1 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Spain OECD high OECD high Indicator Spain income income Overall Best Performer Recovery rate (cents on the dollar) 76.6 71.2 71.2 93.1 (Norway) Time (years) 1.5 1.7 1.7 0.4 (Ireland) Cost (% of estate) 11.0 9.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 12.0 12.1 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Spain and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.27: Germany (Rank: 4) 79.67: Portugal (Rank: 15) 78.74: Spain (Rank: 19) 76.97: Italy (Rank: 24) 76.12: Regional Average (OECD high income) 62.63: Switzerland (Rank: 45) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Spain – Time and Cost Time Cost 3.5 25 22.0 3.0 3.0 3 20 2.5 Cost (% of estate) Time (years) 2 1.8 15 1.7 1.5 11.0 1.5 1.2 9.1 9.0 10 8.0 1 4.5 5 0.5 0 0 Germany Italy OECD high income Portugal Spain Switzerland Figure – Resolving Insolvency in Spain and comparator economies – Measure of Quality Spain 6 3 1 2 Page 62   0 0 Germany Italy OECD high income Portugal Spain Switzerland Doing Business 2018 Spain Figure – Resolving Insolvency in Spain and comparator economies – Measure of Quality Spain 6 3 1 2 Germany 6 3 3 3 Italy 5.5 3 2 3 Portugal 5.5 3 3 3 Switzerland 4 3 4 1 OECD high income 5.4 2.8 2.3 1.9 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Spain and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 90 80.6 80 76.6 71.2 70 64.6 63.8 60 50 46.7 40 30 20 10 0 Spain Germany Italy Portugal Switzerland OECD high income Details – Resolving Insolvency in Spain Indicator Answer Explanation Proceeding reorganization Mirage will file for insolvency proceedings (declaración de concurso) and would seek to reach a reorganization agreement with its creditors. One of the main advantages of this option is that once the “concurso” commences, all enforcement actions against the debtor would be automatically suspended for at least a year. The Insolvency Act provides a unitary form of insolvency proceedings (procedimiento concursal) which has a common phase and two possible outcomes: (i) reorganization (convenio de acreedores) or (ii) liquidation. The law will also set forth all assumptions on which the reorganization proceeding could be converted into liquidation. Outcome going concern The hotel will continue operating as a going concern given the financial well-being and viability of the company. While most insolvency proceedings (concursos) in Spain ended up in liquidations, in the case at stake a liquidation proceeding would not make much sense Page 63   since the market value of the operating business is much greater than the value of its assets Spain Germany Italy Portugal Switzerland OECD high income Doing Business 2018 Spain Details – Resolving Insolvency in Spain Indicator Answer Explanation Proceeding reorganization Mirage will file for insolvency proceedings (declaración de concurso) and would seek to reach a reorganization agreement with its creditors. One of the main advantages of this option is that once the “concurso” commences, all enforcement actions against the debtor would be automatically suspended for at least a year. The Insolvency Act provides a unitary form of insolvency proceedings (procedimiento concursal) which has a common phase and two possible outcomes: (i) reorganization (convenio de acreedores) or (ii) liquidation. The law will also set forth all assumptions on which the reorganization proceeding could be converted into liquidation. Outcome going concern The hotel will continue operating as a going concern given the financial well-being and viability of the company. While most insolvency proceedings (concursos) in Spain ended up in liquidations, in the case at stake a liquidation proceeding would not make much sense since the market value of the operating business is much greater than the value of its assets sold separately. Therefore, the possibilities to fetch market value in a reorganization proceeding are greater than in a liquidation proceeding. Time (in years) 1.5 An abbreviated insolvency proceeding before the commercial Court of Madrid will last 1.5 years (art. 190 LC). Once the insolvency proceeding commences, the appointment of the insolvency administration and the publication of the procedure will last about 1 month. After that, the preparation of creditors’ claims and the report of insolvency administration will happen in a period of 6 months (the creditors have a month to submit their claims and the insolvency administration must review the documentation and accept or reject the claims). This estimate includes the time spent by the insolvency administration in resolving all challenges. Following publication of the report by the insolvency administration, it will take approximately 3-6 months for the debtor to prepare and negotiate the reorganization agreement with the creditors, which will be voted a month after it is admitted by the Commercial Court. Assuming that the agreement is approved by the creditors' meeting, the court would ratify the agreement and the secured creditor would start receiving payments. Cost (% of 11.0 The costs associated with the reorganization proceeding would amount to approximately estate) 11% of the value of the estate according to our estimate. The main component of this expenditure would be the attorney’s fees (4 - 7%), Insolvency representative fees (3.5%), Trustee (0.5%) cost of service and publication in the Official Gazette (0.2%). Recovery rate (cents on the 76.6 dollar) Details – Resolving Insolvency in Spain – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 12.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both Page 64   dollar) Doing Business 2018 Spain Details – Resolving Insolvency in Spain – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 12.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 6.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 2.0 Which creditors vote on the proposed reorganization plan? (c) Other 1.0 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Page 65   Creditor Doing participation Business 2018 index (0-4) Spain 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for Page 66   work of equal value and nondiscrimination based on the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Spain Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Spain Answer Hiring Page 67   Fixed-term contracts prohibited for permanent tasks? Yes days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Spain Details – Labor Market Regulation in Spain Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 36.0 Maximum length of xed-term contracts, including renewals (months) 48.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 1005.9 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 6.0 Working hours Standard workday 8.0 Maximum number of working days per week 5.5 Premium for night work (% of hourly pay) 6.6 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 0.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 22.0 Paid annual leave for a worker with 5 years of tenure (working days) 22.0 Paid annual leave for a worker with 10 years of tenure (working days) 22.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 68   Third-party Doing approval Business 2018 if nine workers are dismissed? Spain No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 2.1 Notice period for redundancy dismissal for a worker with 5 years of tenure 2.1 Notice period for redundancy dismissal for a worker with 10 years of tenure 2.1 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 2.1 Severance pay for redundancy dismissal for a worker with 1 year of tenure 2.9 Severance pay for redundancy dismissal for a worker with 5 years of tenure 14.3 Severance pay for redundancy dismissal for a worker with 10 years of tenure 28.6 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 15.2 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 112.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? No Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 12.0 Business Reforms in Spain In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Spain implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Enforcing Contracts: Spain made enforcing contracts easier by reducing court fees for ling a claim. DB2017 Getting Electricity: Spain made getting electricity easier by upgrading Madrid’s electrical grid, thereby allowing more customers to connect to the low-voltage network. Furthermore, the approval process to obtain a new commercial connection was streamlined. Paying Taxes: Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, Page 69   and abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for ling social Minimum contribution period for unemployment protection (months)? 12.0 Doing Business 2018 Spain Business Reforms in Spain In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Spain implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Enforcing Contracts: Spain made enforcing contracts easier by reducing court fees for ling a claim. DB2017 Getting Electricity: Spain made getting electricity easier by upgrading Madrid’s electrical grid, thereby allowing more customers to connect to the low-voltage network. Furthermore, the approval process to obtain a new commercial connection was streamlined. Paying Taxes: Spain made paying taxes less costly by reducing the property tax rate, vehicle tax rate, tax on property transfer, and abolishing the environmental fee. Spain made paying taxes easier by introducing a new electronic system for ling social security contributions. Enforcing Contracts: Spain made enforcing contracts easier by introducing a mandatory electronic ling system for court users. DB2016 Protecting Minority Investors: Spain strengthened minority investor protections by requiring that major sales of company assets be subject to shareholder approval. Paying Taxes: Spain made paying taxes less costly for companies by reducing rates for corporate income, capital gains and environment taxes—and made it easier by introducing the online Cl@ve system for ling VAT returns. At the same time, Spain reduced the amount allowable for depreciation of xed assets and raised the ceiling for social security contributions. DB2015 Starting a Business: Spain made starting a business easier by introducing an electronic system linking several public agencies and thereby simplifying business registration. Registering Property: Spain made transferring property easier by reducing the property transfer tax rate. Paying Taxes: Spain made paying taxes less costly for companies by reducing the statutory corporate income tax rate. Resolving Insolvency: Spain made resolving insolvency easier by introducing new rules for out-of-court restructuring, introducing provisions applicable to prepackaged reorganizations and making insolvency proceedings more public. DB2014 Starting a Business: Spain made starting a business easier by eliminating the requirement to obtain a municipal license before starting operations and by improving the e ciency of the commercial registry. Labor Market Regulation: Spain reduced the maximum cumulative duration of xed-term contracts and increased the minimum wage. DB2013 Trading across Borders: Spain reduced the time to import by further expanding the use of electronic submission of customs declarations and improving the sharing of information among customs and other agencies. Resolving Insolvency: Spain strengthened its insolvency process by making workouts easier, o ering more protections for re nancing agreements, allowing conversion from reorganization into liquidation at any time, allowing reliefs of the stay under certain circumstances and permitting the judge to determine whether an asset of the insolvent company is necessary for its continued operation. Labor Market Regulation: Spain temporarily allowed unlimited duration of xed-term contracts. Page 70   DB2012 continued operation. Doing Business 2018 Spain Labor Market Regulation: Spain temporarily allowed unlimited duration of xed-term contracts. DB2012 Starting a Business: Spain eased the process of starting a business by reducing the cost to start a business and decreasing the minimum capital requirement. DB2011 Trading across Borders: Spain streamlined the documentation for imports by including tax-related information on its single administrative document. Resolving Insolvency: Spain amended its regulations governing insolvency proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Labor Market Regulation: Spain reduced the notice period applicable in case of redundancy dismissals. DB2010 Paying Taxes: Spain made paying taxes easier and less costly for companies by improving e ciency in the electronic ling and payment system and reducing the corporate income tax rate. DB2008 Paying Taxes: Spain made paying taxes less costly for companies by reducing the corporate income tax rate. Page 71   DB2008 Paying Doing Taxes: Spain Business 2018made paying taxes less costly for companies by reducing the corporate income tax rate. Spain Page 72