Electronic Invoicing for German Companies Operating in Spain

If you have a German company with activity in Spain — a GmbH with a branch in Barcelona, a business that regularly exports to Spanish clients, or you are a German Freiberufler resident in Mallorca or elsewhere on Spanish territory — the new e-invoicing regulations affect you directly and differently from how they affect a purely Spanish company.

The specificities of the German tax environment, intra-EU transactions between Germany and Spain, and the dual obligations that can arise when your company operates in both countries create a particular set of circumstances that generalised resources rarely explain well. This guide covers exactly that.

Particularities of German Companies Operating in Spain

Not all German companies with a presence in Spain share the same tax situation or the same invoicing obligations. There are three main profiles, each with different implications.

GmbH with a Spanish Branch

A GmbH (Gesellschaft mit beschränkter Haftung) that opens a branch in Spain constitutes a permanent establishment for tax purposes. This has direct consequences:

The Spanish branch is taxed in Spain on the income attributable to it and is subject to Spanish tax regulations, including invoicing obligations. Royal Decree 238/2026, which regulates mandatory B2B e-invoicing, applies to entrepreneurs and professionals who have their registered office, a permanent establishment, or their habitual residence in Spain. A Spanish branch of a German GmbH is, for all practical purposes, a permanent establishment.

This means that, in commercial transactions with other Spanish businesses or self-employed professionals, the Spanish branch of your GmbH will be required to issue and receive electronic invoices in structured format (Facturae, UBL or CII) within the deadlines set by the Ministerial Order developing the public invoicing solution. Deadlines depend on turnover: 12 months for companies with more than 8 million euros in turnover, 24 months for the rest.

The German parent company, by contrast, continues to be governed by German regulations, which have their own B2B e-invoicing implementation schedule (the obligation to receive e-invoices was already active from 2025, with the obligation to issue them being phased in progressively until 2028). If the GmbH invoices Spanish clients directly without going through the branch — that is, without the transaction being attributable to the Spanish permanent establishment — the RD 238/2026 obligation does not automatically apply, though there may be VAT registration and reporting obligations.

German Freelancers (Freiberufler) Resident in Spain

A German Freiberufler who moves their residence to Spain — a very common situation in Mallorca, the Costa del Sol or the Canary Islands — becomes a taxpayer in Spain and is subject to Spanish tax regulations from the moment they establish their habitual residence here.

If they carry out their professional activity from Spain, are registered in the AEAT census of entrepreneurs and professionals, and issue invoices to clients who are entrepreneurs or professionals with an establishment in Spain, the obligations of RD 238/2026 apply to them in the same way as to any Spanish self-employed professional. The deadline for self-employed individuals and income attribution entities with turnover at or below 8 million euros is 36 months from the entry into force of the Ministerial Order.

The situation becomes more complex when the Freiberufler retains clients in Germany. In that case, invoices to German clients are intra-EU transactions and have their own framework, explained further below.

Additionally, a Freiberufler resident in Spain who continues to provide services to clients in Germany may be subject to reporting obligations in Germany under the Umsatzsteuergesetz (UStG). It is essential to obtain coordinated tax advice in both countries.

Intra-EU Transactions ES-DE

Transactions between a Spanish company and a German company — whether sale of goods or provision of services — are intra-EU transactions subject to intra-EU VAT rules.

For B2B services, the general localisation rule of Article 69 of the Spanish VAT Act places the taxable event in the country of the recipient, meaning that a service provided by a Spanish company to a German company will be subject to German VAT (via the reverse charge mechanism). The Spanish invoice will carry the notation "Exempt under Article 25 LIVA" or equivalent and will not carry Spanish VAT.

For these intra-EU transactions, the obligation to issue in structured format under RD 238/2026 is triggered only when the recipient has a permanent establishment or habitual residence in Spain. If the client is exclusively German with no presence in Spain, the RD 238/2026 obligation is not triggered — though they may be required to receive invoices in structured format under German law.

Legal Framework: RD 1007/2023 and RD 238/2026 Applied to Foreign Companies

For a foreign company with activity in Spain, it is important to clearly distinguish between the two regulations that coexist in the Spanish landscape of 2026:

RD 1007/2023 (VeriFactu): regulates the invoicing registration system that must be implemented by software and computer systems used in Spain. Its aim is to guarantee the integrity, conservation, accessibility, legibility, traceability and unalterability of invoicing records. It is expected to enter into force on 1 January 2027 for companies. It affects any invoicing software used to issue invoices in Spain, regardless of whether the company is Spanish or foreign.

RD 238/2026 (B2B e-invoicing): regulates the exchange of invoices between businesses and self-employed professionals in structured format. It applies when the issuer or recipient has their registered office, permanent establishment, or habitual residence in Spain. For a Spanish branch of a German GmbH, both regulations apply.

The key point for foreign companies is the concept of permanent establishment. If you have one in Spain, you are subject to Spanish invoicing regulations. If you do not, and only carry out occasional transactions with Spanish businesses, the analysis is more complex and depends on the type of transaction and whether you have VAT registration obligations in Spain.

The effective entry into force of RD 238/2026 is conditional on the publication and entry into force of the Ministerial Order developing the public invoicing solution. The Ministry of Finance submitted the draft Ministerial Order for public consultation in April 2026 with a deadline of 8 May 2026. Until that Order enters into force, the deadlines do not begin to run.

Intra-EU Invoicing Between Germany and Spain (VAT Exemption)

Invoices between a Spanish company and a German company in intra-EU goods transactions (exempt intra-EU supplies) or B2B service provision have specific VAT treatment.

Intra-EU supplies of goods (Article 25 LIVA): the sale of goods from Spain to Germany is exempt from Spanish VAT if the recipient is a business identified in VIES. The invoice must include the German VAT number of the recipient (DE-XXXXXXXXX), the exemption notation ("Exempt under Article 25 LIVA" or "Steuerfreie innergemeinschaftliche Lieferung"), and must be declared in Form 349 (recapitulative statement of intra-EU transactions).

B2B service provision (Article 69 LIVA): as a general rule, services between businesses are taxed in the country of the recipient. A Spanish law firm providing services to a German GmbH issues an invoice without Spanish VAT, with the reverse charge notation (Article 196, VAT Directive). The German GmbH declares and pays the VAT in Germany.

Form 349 reporting obligation: any intra-EU transaction involving goods or certain services must be declared in the quarterly (or monthly, if you exceed certain thresholds) Form 349. The German client's VAT number must be validated in VIES beforehand.

These transactions are not automatically subject to RD 238/2026 if the German recipient has no establishment in Spain, but they may be subject to German e-invoicing regulations if the German recipient requires it.

VIES Obligations and Validation of German VAT Numbers

Before issuing any VAT-exempt intra-EU invoice to a German company, it is mandatory to verify that the German VAT number (Umsatzsteuer-Identifikationsnummer, USt-IdNr.) of the recipient is valid and active in VIES (the EU VAT Information Exchange System).

The format of the German VAT number is DE followed by 9 digits (e.g.: DE123456789). Validation is carried out on the official VIES portal (ec.europa.eu/taxation_customs/vies/) or via API. In Spain, the AEAT also offers validation through its electronic office.

If you issue an exempt invoice without having validated the client's VAT number and it turns out to be invalid or deregistered, the exemption may not apply and the AEAT could claim the VAT plus interest. This is a due diligence obligation that must not be overlooked.

Your invoicing software must allow you to:

• Record the German client's VAT number in the correct format.
• Document the VIES validation (date and result).
• Generate the invoice with the mandatory fields for intra-EU transactions.
• Automatically include the correct exemption or reverse charge notation.

Bilingual Invoices: When Are They Mandatory and When Recommended?

Spanish regulations do not require invoices to be issued in any specific language. Article 6 of the Invoicing Regulation (RD 1619/2012) sets out the data an invoice must contain, but does not impose Spanish as the mandatory language. This means you can technically issue an invoice entirely in German to a German client.

However, there are important practical considerations:

When bilingualism (ES + DE) is recommended:

• When the invoice may be subject to inspection by the AEAT: having the document also in Spanish facilitates any request or audit.
• When the German client needs the invoice in German for their accounting or for VAT deduction in Germany.
• When operating in Mallorca or areas with a high concentration of German clients: an invoice in German builds trust and strengthens the commercial relationship.
• When the recipient is a German company with a branch in Spain: they may need the document in both languages for internal management.

When a single-language invoice is sufficient:

• Invoices to Spanish clients: in Spanish or the official language of the autonomous community.
• Invoices to German clients with no establishment in Spain: entirely in German is perfectly valid.
• Intra-EU invoices where the client directly manages the deduction in their country.

InvoSeal allows invoices to be issued in Spanish, English and German, with the option to configure bilingual templates for each client or client group.

Software That Supports German in the Interface AND on the Invoices

There is an important difference between software that translates its interface into German and software that generates invoices in German with the correct tax fields for the ES-DE context.

What you need as a German company operating in Spain is software that covers both dimensions:

In the interface:

• Menus, configuration and support in German.
• Technical and legal documentation in German.
• Customer service in German (not just automated translation).

On the generated invoices:

• Templates with the correct tax wording in German ("Steuerfreie innergemeinschaftliche Lieferung", "Steuerschuldnerschaft des Leistungsempfängers", etc.).
• Field for the German client's VAT number (USt-IdNr.) in the correct format.
• Automatic reverse charge notation where applicable.
• Generation in structured format (Facturae, UBL or CII) compatible with VeriFactu.
• VeriFactu QR code when the transaction is subject to this obligation.

Software that only translates the free-text fields on the invoice but does not correctly manage the mandatory tax notations can cause problems in an AEAT inspection or when the German client validates the invoice.

Case Studies

Case 1: Architecture GmbH with Projects in Mallorca

An architecture GmbH based in Munich opens a branch in Palma de Mallorca to manage construction and renovation projects in the Balearic Islands. The branch contracts with local developers, Spanish architecture firms and materials suppliers.

Situation: the branch is a permanent establishment in Spain. All invoices it issues to Spanish clients (B2B) must comply with RD 238/2026 once the deadlines enter into force. The branch's invoicing software must implement VeriFactu.

Invoices issued directly by the German parent to clients in Germany continue to be governed by German regulations. Intercompany invoices between the parent and the branch require specific transfer pricing analysis.

Solution with InvoSeal: the Spanish branch uses InvoSeal in Spanish for local invoices (with VeriFactu activated) and in German for communications with the parent company and German suppliers. Intra-EU invoices are generated with the correct notations and integrated VIES validation.

Case 2: German Software Developer Freelancer Resident in Barcelona

A German software developer moves to Barcelona. She retains three clients in Germany and acquires two new clients in Spain. Her Spanish NIF as a self-employed professional is her primary identification number.

Situation: her invoices to Spanish clients are domestic transactions subject to Spanish VAT and, in due course, to the e-invoicing obligation of RD 238/2026. Her invoices to German clients are intra-EU service provisions: no Spanish VAT, with reverse charge, declared in Form 349.

She needs software that simultaneously manages domestic invoices with Spanish VAT and intra-EU invoices at 0% with the correct notation, and that can send invoices to German clients in German.

Solution with InvoSeal: configuration of two client types (domestic and intra-EU), with differentiated templates and automatic generation of the exemption or reverse charge notation as applicable.

Case 3: Spanish Company with Mainly German Clients in the Tourism Sector

A Spanish holiday apartment management company in Mallorca works primarily with German travel agencies and tour operators. It invoices German companies for management fees and maintenance services.

Situation: the Spanish company is fully subject to RD 238/2026. Its German clients have no permanent establishment in Spain, so the obligation to receive invoices in structured format under RD 238/2026 is not triggered for those transactions — though German clients may require structured formats under German law.

The invoices are B2B service provisions: no Spanish VAT (reverse charge), declared in Form 349, issued in German or bilingual at the client's request.

Solution with InvoSeal: bilingual ES-DE invoices with automatic intra-EU VAT management, VIES validation and Form 349 export.

Frequently Asked Questions

Is a German GmbH without a branch in Spain subject to RD 238/2026? Not directly. RD 238/2026 applies when the issuer or recipient has their registered office, permanent establishment, or habitual residence in Spain. A GmbH that invoices from Germany to Spanish clients without having a permanent establishment in Spain is not directly subject to RD 238/2026, though it may be required to receive invoices in structured format if the Spanish client so demands under Spanish regulations. If it has a permanent establishment in Spain (branch, agency, fixed place of business), it is subject.

Does a German freelancer resident in Spain need to register with the AEAT? Yes. A Freiberufler who moves their habitual residence to Spain and carries out their activity here must register in the AEAT census of entrepreneurs and professionals (form 036 or 037), file quarterly VAT returns and comply with all tax obligations of a Spanish self-employed professional. Habitual residence in Spain triggers full subjection to Spanish tax regulations.

Can I issue invoices in German to my German clients from Spain? Yes. Spanish regulations do not impose Spanish as the mandatory language on invoices. You can issue invoices entirely in German. However, if the invoice may be subject to inspection by the AEAT (for example, if it is related to transactions subject to Spanish VAT or deductions in Spain), having the document also in Spanish facilitates any dealings with the tax authority.

What is Reverse Charge and when does it apply to ES-DE invoices? Reverse charge (inversión del sujeto pasivo) is the mechanism by which the VAT on a transaction is declared and paid by the recipient (rather than the issuer). It applies to intra-EU B2B service provisions under the general localisation rule: if a Spanish company provides services to a German GmbH, the invoice carries no Spanish VAT and the GmbH declares the VAT in Germany. The invoice must include the notation "Steuerschuldnerschaft des Leistungsempfängers" (or the Spanish/English equivalent) and the German client's VIES-validated VAT number.

Does VeriFactu affect intra-EU invoices between Spain and Germany? VeriFactu affects the invoicing software, not the type of transaction. If you use invoicing software in Spain that is subject to VeriFactu (because you operate from Spain), all invoices you issue must generate invoicing records with a chained hash and electronic signature, regardless of whether the invoice goes to a Spanish or German client. The difference is that the intra-EU invoice will carry the German VAT number, the exemption or reverse charge notation and 0% VAT rate, but the VeriFactu record is generated in the same way.

Is InvoSeal available in German? Yes. InvoSeal has a fully trilingual interface in Spanish, English and German. Invoice templates include the correct tax notations in all three languages, with automatic management of intra-EU VAT notations (exemption, reverse charge) and a field for the client's European VAT number with integrated VIES validation.

InvoSeal: Spanish, German and English as Native Languages

InvoSeal is not Spanish software with a German translation bolted on as a secondary module. It is built from day one for companies operating in multilingual and multi-jurisdictional environments: German freelancers in Mallorca, GmbH companies with branches in Barcelona, Spanish businesses with supply chains in Germany.

Invoices in Spanish with Spanish VAT, invoices in German with reverse charge, bilingual invoices for clients who need them in both languages. VeriFactu activated when applicable. Integrated VIES validation. Form 349 export.

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