How long must a company keep its documentation?

In running a business, it is essential to be clear about how long any type of company documentation (books, invoices, accounts, minutes, contracts…) must be kept in order to comply with all applicable regulations and avoid penalties.

The obligation to retain a company’s documentation will vary depending on the regulations in question. We will try to shed some light on this diverse body of legislation:
What does the Commercial Code say?
Article 30 of the Commercial Code establishes the obligation to keep for 6 years the mandatory books (journal, inventory and annual accounts book, and, where applicable, minute book, register of registered shares, and register of members), as well as non-mandatory books (for example, the general ledger, VAT records, etc.), in addition to the documentation and supporting evidence underlying the entries recorded in them (invoices issued and received, receipts, corrective invoices, bank documents, etc.). The period starts to run from the last entry made.
Periods for retaining company documentation under tax regulations
The General Tax Law (LGT) establishes a four-year period for keeping records. The period starts to run from the end of the voluntary filing period for each tax.
However, in the case of tax assets—for example, tax loss carryforwards (bases imponibles negativas)—the tax authorities are entitled to verify and request the necessary information relating to those already time-barred periods; in other words, in these cases there is an obligation to keep the documentation.
For example, if an asset is depreciated over 15 years, its purchase invoice must be kept not for four years, but until four years after the last period in which depreciation was applied, that is, for 19 years.
Employment regulations
The statute of limitations for labor-law infringements is three years, whereas infringements relating to Social Security become time-barred after five years.
The documentation to be kept is confined to Social Security registration and deregistration records, proof of salary payments, employment contracts, or working-time records.
The employer must keep the monthly summaries of working-time records for a minimum period of four years.
Anti-money laundering and counter-terrorist financing regulations
The general retention obligation is set at ten years.
Foundations and associations
The obligation to keep, for a period of ten years, the documents or records evidencing the application of funds to the various projects.
Grants: how long to keep supporting documents
Bank receipts, original documents evidencing the application of the funds received, certificates, etc. must be kept throughout the grant’s justification period. If the grant is co-financed with European funds, the period is 3 years from December 31 following the submission of the accounts in which the expenditure on the operation is included. Invoices must be kept for 6 years. For grants for fixed assets, it is best to keep all documentation for 10 years. In any event, the grant’s terms and conditions (bases) should be checked, in case they specify the retention period for documents that may be subject to administrative verification or control.

Documents that must be kept for the company’s entire life
1. Deeds of incorporation and bylaws.
2. The notarization of corporate resolutions.
3. The granting or renewal of powers of attorney.
4. The purchase and sale of S.L. shares (participaciones), assets, or S.A. shares (acciones).
5. Deeds of dissolution or liquidation.
6. Minute books.
In addition, there are changes to tax census registrations (variaciones censales), inspection reports, inspection visit books, private contracts, and documents relating to profit-participating loans or pledges of shares….
Lastly, documentation evidencing licenses or authorizations of any kind (municipal building permits, driveway access permits…), as well as compliance with legal obligations (technical building inspections, etc.).
Offenses against Social Security
Article 131 of the Criminal Code establishes 10 years for retaining tax and employment documentation related to offenses against Social Security or the tax authorities, since these offenses become time-barred after 10 years when the penalty is imprisonment or disqualification for more than 5 years and less than 10. Therefore, in criminal proceedings, employment and tax documentation up to 10 years old could be required.


Documentation needed to exercise rights or respond to claims
It must be kept for as long as necessary to be able to exercise certain rights or respond to potential claims. Here is a reminder of some limitation periods under the Civil Code: 6 years: real actions concerning movable property; 15 years: personal actions with no specific limitation period; 20 years: mortgage action; 30 years: real actions concerning immovable property.