Pop-ups – Taking your brand to Ibiza this summer?

As UK hospitality brands increasingly follow their clientele to luxury destinations like Ibiza in the summer and Dubai in the winter, pop-up bars and restaurants have become a strategic way to build international visibility, test new markets, and drive revenue year-round. But while the commercial appeal is clear, these cross-border ventures come with important corporate compliance, tax, and immigration obligations that are easy to overlook. From local registration requirements and employment tax risks to immigration rules and the potential creation of a taxable presence abroad, businesses must navigate a complex landscape to stay compliant and avoid costly pitfalls.

To help you concentrate on your business and what you love to do best, we have collated the following high-level checklist to make sure the compliance reporting is covered:

Overseas expenses

Have you checked whether expenses incurred in Ibiza are deductible for UK corporation tax purposes?

Value added tax (VAT)

Have you considered whether UK VAT is chargeable or recoverable, and whether you need to register for Spanish IVA?

Spanish corporation tax

Could your Ibiza presence create a permanent establishment, requiring a local tax return and payment of Spanish corporation tax?

Transfer pricing policy

Have you reviewed your transfer pricing to ensure UK support services are charged to the Ibiza pop-up at arm’s length?

Tax incentives

Are there any Spanish tax credits available for using sustainable or locally sourced products that you could benefit from?

Double tax relief

Have you ensured your business won’t be taxed twice by applying the UK/Spain double tax treaty?

Employment taxes

Do you need to register as an employer under Spanish tax regulations and operate local payroll? – likely if you hire
staff locally. Have you checked whether UK PAYE and NIC still apply e.g. for seconded staff?

Employment law

Should you be using UK or Spanish contracts? Are your UK employment contracts compliant with Spanish law, and have they been reviewed locally? Have you chosen the right contract type for secondees and ensured it meets both UK and Spanish legal requirements?

Immigration law

Do your UK staff need a visa or permit to work in Spain? British nationals no longer benefit from EU freedom of movement, so entry into Spain for work purposes requires careful planning to avoid delays, entry bans, and costly fines.

At Moore Kingston Smith, we can provide comprehensive support across all the areas outlined above to provide compliant and efficient solutions. We can also seamlessly draw on our trusted colleagues across the Moore Global network. Get in touch today to arrange a call and explore how we can support your international plans.