Starting a business in Spain as a foreign entrepreneur can be a rewarding endeavor. Spain offers a dynamic market with access to the European Union (EU) and provides significant opportunities for growth. However, navigating the legal framework can be challenging without proper guidance. This article offers a step-by-step guide for foreign entrepreneurs looking to establish a business in Spain, covering legal requirements, company formation, and essential regulations.
Table of Contents
- Why Start a Business in Spain?
- Types of Business Structures in Spain
- Legal Requirements for Foreign Entrepreneurs
- Key Steps to Form a Business in Spain
- Understanding Taxation for Foreign Entrepreneurs
- Compliance and Regulatory Requirements
- Hiring Employees in Spain
- Licenses and Permits Required for Business
- Business Banking in Spain
- Common Challenges and Solutions
- FAQs
1. Why Start a Business in Spain?
Spain is one of the most attractive countries in Europe for foreign investors and entrepreneurs. Here’s why:
- Strategic Location: Spain is not just a gateway—it’s a global business hub, perfectly positioned to connect Europe, Latin America, and North Africa. This prime location offers unmatched logistical advantages for international businesses looking to expand across multiple continents with ease.
- Access to EU Markets: By setting up in Spain, you gain seamless entry to the European Union’s single market, giving your business access to over 500 million consumers and benefiting from zero internal trade barriers across EU member states.
- Highly Skilled Workforce: Spain boasts a well-educated, multilingual, and specialized workforce. Whether you’re in tech, renewable energy, or advanced manufacturing, you’ll find talent that’s both innovative and experienced, making it easier to scale your business with top-tier professionals.
- Dynamic Start-up Ecosystem: Cities like Madrid, Barcelona, and Valencia are buzzing with entrepreneurial energy. These cities are home to thriving start-up hubs supported by incubators, accelerators, and government incentives, offering the perfect environment for innovation and business growth.
Sources: Invest in Spain
Spanish Government Portal
2. Types of Business Structures in Spain
When setting up a business in Spain, it’s essential to choose the appropriate legal structure. Each type has different legal, tax, and financial obligations.
Sole Proprietorship (Autónomo)
For freelancers, sole traders, and increasingly digital nomads, the autónomo structure is the simplest and fastest way to establish a business in Spain. As an autónomo, you maintain full control over your business decisions and operations, making it ideal for those who value independence and flexibility. This model allows for easy management of your own work without the complexities of incorporating a company.
However, it’s important to note that, as an autónomo, you are personally liable for any business debts. This means your personal assets—such as your home or savings—could be at risk if the business runs into financial difficulties. This structure works best for those with a low-risk business model or those comfortable with assuming personal responsibility for their business’s liabilities.
For digital nomads, this structure provides a flexible, legally recognized way to work in Spain while serving clients globally. Many digital nomads choose this structure due to its ease of setup, and Spain’s social security system allows autónomos to access benefits like healthcare and pension schemes, as long as they meet contribution requirements. Spain’s affordable living, reliable internet, and attractive government incentives (like the Digital Nomad Visa) make it a welcoming destination for location-independent professionals.
However, autónomos must make monthly social security contributions (regardless of income levels), which can be burdensome for new freelancers or digital nomads just starting out. To alleviate this, Spain offers reduced contribution rates for newly registered autónomos, allowing a gradual scale-up over the first two years.
The sole proprietorship model offers digital nomads and freelancers a way to integrate into Spain’s economy, access public services, and take advantage of potential tax benefits. As Spain’s legal framework continues to adapt to remote work trends, this model will likely become even more attractive for those seeking a balance between global work and the Spanish lifestyle.
Limited Liability Company (Sociedad Limitada or SL)
The Sociedad Limitada (SL) is the most popular choice for small to medium-sized businesses in Spain. This structure offers limited liability protection, meaning that shareholders are only liable up to the amount they’ve invested. This can provide peace of mind, as personal assets are generally protected from business debts or legal issues, making it a low-risk structure compared to a sole proprietorship.
An SL is a highly flexible and scalable option, suitable for a wide range of businesses—from local start-ups to growing companies that need to bring in additional investors or partners. It’s also ideal for entrepreneurs looking to shield personal assets while maintaining complete control over the day-to-day operations of the business.
The process of setting up an SL involves depositing a minimum share capital of €3,000, which must be held in a business bank account before registration. Once the company is registered, it gains legal personality and the ability to enter into contracts, buy property, or trade in its own name. The SL is subject to corporate tax and must submit annual financial statements to the Registro Mercantil.
It is now possible to create a Sociedad Limitada (SL) in Spain with just €1 in capital, thanks to the Ley 18/2022 (Law on Business Creation and Growth). This change eliminates the previous requirement of €3,000.
However, if the capital is below €3,000, the company must:
- Set aside at least 20% of annual profits as a reserve until reaching the €3,000 threshold.
- Fulfill additional legal protections to safeguard creditors.
While this allows easier business formation, starting with a low capital could affect the company’s financial credibility.
This structure works well for those who plan to expand their business and need investment protection while operating in a stable legal environment.
Public Limited Company (Sociedad Anónima or SA)
The Sociedad Anónima (SA) is a structure designed for large corporations or businesses planning to go public and trade shares on the stock market. With an SA, shareholders benefit from limited liability, similar to an SL, but the key difference lies in its suitability for businesses aiming for significant growth or those that require a large pool of capital.
To set up an SA, the minimum share capital requirement is €60,000, with at least 25% of this amount to be paid upfront during the registration process. An SA is a complex structure but offers greater flexibility in raising capital by allowing shares to be publicly traded, making it an excellent option for companies looking to expand internationally or attract substantial external investment.
Because SAs are heavily regulated, they are required to maintain strict corporate governance practices and comply with disclosure requirements, including regular submission of financial reports and audits. This structure is often chosen by larger enterprises with the resources to meet these obligations and that plan to scale rapidly or list on stock exchanges.
Partnership (Sociedad Civil)
A Sociedad Civil is a partnership structure where two or more individuals collaborate, sharing profits, responsibilities, and liabilities. Unlike limited liability companies, partners in a Sociedad Civil are personally liable for the debts and obligations of the business. This means that each partner is accountable for the partnership’s actions, and personal assets could be at risk in the event of financial difficulties.
This structure is well-suited for small, collaborative ventures, such as professional services, family businesses, or simple business activities where partners prefer direct management and are comfortable with the associated risks. Partners typically formalize their agreement through a partnership contract, which outlines their roles, responsibilities, and how profits will be shared.
While the Sociedad Civil is relatively simple and inexpensive to set up, it’s important to understand the liability implications, making this structure more appropriate for businesses with low risk or those involving close personal relationships between partners.
Branch and Subsidiary
Foreign companies looking to operate in Spain can choose to establish either a branch or a subsidiary.
A branch functions as an extension of the parent company, and while it is not an independent legal entity, it is still required to follow local laws and regulations in Spain. The branch will operate with the same tax ID as the parent company, but the parent company is fully liable for the branch’s debts and legal obligations.
A subsidiary, on the other hand, is a separate legal entity established under Spanish law. It operates independently from the parent company and enjoys limited liability, meaning the parent company’s exposure is limited to the amount invested in the subsidiary. This structure offers greater autonomy and legal protection for the parent company and is often chosen when the business plans to operate long-term or in a high-risk industry.
Branches are simpler and cheaper to set up but offer less independence, while subsidiaries provide greater legal and financial protection, making them a more attractive option for large multinational companies looking to establish a strong presence in Spain.
3. Legal Requirements for Foreign Entrepreneurs
Foreign entrepreneurs must meet specific legal requirements before starting a business in Spain. These include:
- NIE (Número de Identificación de Extranjero): The Foreigner Identification Number is a mandatory requirement for any non-resident looking to engage in financial activities in Spain, including starting a business. It is essential for tax payments, opening a bank account, or registering a company.
- Residency Status: EU citizens enjoy the freedom to establish businesses in Spain without additional permits. However, non-EU citizens must secure a visa and, in many cases, a residence permit. Options include the Golden Visa, available for those making significant financial investments, or the Entrepreneur Visa, designed for individuals launching innovative projects that contribute to Spain’s economy.
- Visa Requirements: Non-EU citizens must apply for a visa if they plan to stay in Spain for more than 90 days or if they wish to establish a long-term business venture. Specific visa options depend on the nature of the investment and business type.
- This version highlights the key points in a structured, easy-to-read format, making it clearer for readers to understand the legal requirements based on their residency and nationality.
4. Key Steps to Form a Business in Spain
Setting up a business in Spain involves several important steps:
- Choose a Company Name: The first step in establishing your business is to reserve a unique company name. This is done by submitting a formal request to the Central Mercantile Registry (Registro Mercantil Central). The name must be distinct and not already in use by another business in Spain. To avoid delays, it’s advisable to submit several alternative names, in case your preferred choice is unavailable. Once approved, the company name reservation is valid for a limited period, during which you must proceed with the other steps of business formation.
- Register a Trademark with OEPM: In addition to securing your company name, it’s highly recommended to register your business’s trademark with the Spanish Patent and Trademark Office (Oficina Española de Patentes y Marcas – OEPM). A trademark protects your brand name, logo, or slogan from being used by competitors and gives you exclusive rights to its use within Spain. This process is separate from company name registration and provides legal protection for your brand identity, both at a national level and, if desired, internationally through EUIPO or WIPO for broader coverage.
- Register a Domain Name: As part of establishing your business identity, securing an online presence is crucial. You should register your domain name (website URL) as soon as possible to ensure it matches your company or brand name. This step can be done through various domain registrars, and it’s essential to verify that the desired domain is available. Having a consistent and professional web address will help with branding and enhance your business’s visibility online. Additionally, consider registering alternative domain extensions (e.g., .com, .es, .eu) to protect your brand’s online identity across different markets.
- Open a Business Bank Account: After securing your company name, you’ll need to open a Spanish business bank account. This is where you will deposit the minimum share capital required to legally establish your company. For a Sociedad Limitada (SL), the minimum share capital is typically €3,000, while for larger entities like a Sociedad Anónima (SA), it is €60,000. The bank will provide a certificate confirming the deposit, which is essential for the company registration process.
- Draft the Company’s Constitution (Escritura de Constitución): The next step involves drafting the company’s constitution, a legal document that includes crucial information such as the company’s name, business activity, registered address, share capital, and details of the shareholders. This document must be formalized in the presence of a notary public to ensure it complies with Spanish law. The notary will then issue the public deed of incorporation, which you will need for the next steps.
- Register the Company: With the company’s constitution finalized, the business must be officially registered with the Mercantile Registry (Registro Mercantil) in the province where your business will operate. Registration is crucial, as it grants your company legal status. Once registered, the business will be issued with a Commercial Registry Number, allowing it to legally conduct business activities.
- Obtain a Tax Identification Number (CIF/NIF): The CIF (Certificado de Identificación Fiscal), also known as NIF (Número de Identificación Fiscal) for companies, is your company’s tax identification number. It is required for all tax-related matters, including paying corporate taxes, filing returns, and managing VAT (IVA). You must request this number from the Tax Agency (Agencia Tributaria) as soon as the company is incorporated.
- Register for Social Security: Both the business and any employees you hire must be registered with the Spanish Social Security system. This step is mandatory for ensuring employee benefits such as healthcare, unemployment insurance, and pensions. The registration process involves enrolling the company with the General Treasury of Social Security (Tesorería General de la Seguridad Social), followed by registering each employee individually.
- Obtain Necessary Licenses and Permits: Depending on your industry, you may need to apply for specific licenses or permits to legally operate your business. These can vary by region and sector and may include an Opening License (Licencia de Apertura) for physical premises, health and safety permits, or environmental permits for industries such as manufacturing or food services. It’s essential to check both local and national regulations to ensure full compliance before commencing operations.
Sources: Invest in Spain
5. Understanding Taxation for Foreign Entrepreneurs
Taxation is a crucial aspect of starting a business in Spain. Key taxes include:
- Corporate Income Tax (Impuesto sobre Sociedades): The standard corporate tax rate in Spain is 25%, applying to both resident companies and permanent establishments of foreign businesses. Certain newly established companies may benefit from reduced rates during their first two years of profitability, making it a favorable option for start-ups and small businesses looking to grow.
- Value Added Tax (VAT or IVA): Spain’s VAT (IVA) system is based on the type of goods or services your business offers. The general VAT rate is 21%, but there are reduced rates of 10% (for products like food, health services, and transport) and 4% (for essential items such as basic foodstuffs, books, and pharmaceuticals). Understanding these rates is crucial for pricing strategies and ensuring compliance with tax obligations.
- Non-Resident Income Tax (IRNR): Non-resident individuals and companies earning income from Spain are subject to the Non-Resident Income Tax (IRNR). The tax rates can vary, but for non-resident companies, it typically aligns with the standard corporate tax rate of 25%. For individuals, the rate generally ranges from 19% to 24%, depending on the source and location of the income. Ensuring proper tax filing for non-residents is vital to avoid penalties.
- This refined version enhances readability while providing more context for each tax type, making it clearer for businesses to understand their tax obligations in Spain.
6. Compliance and Regulatory Requirements
Entrepreneurs must follow Spain’s business regulations to stay compliant. Key requirements include:
- Annual Financial Reporting: Every company operating in Spain is required to submit annual financial statements to the Registro Mercantil. This includes the balance sheet, profit and loss account, and annual report, which must be approved by the shareholders and filed within a specific deadline. Failure to comply can result in fines or administrative sanctions. As financial regulations evolve, businesses are expected to adopt digital filing systems and comply with emerging transparency requirements, making it crucial to stay updated on these changes.
- Tax Reporting: Spanish businesses are obligated to file regular tax returns throughout the year. This includes VAT declarations, corporate income tax filings, and employee-related taxes, such as social security contributions and personal income tax withholding (IRPF). These filings must be made on a quarterly or annual basis, depending on the company’s size and structure. As tax legislation evolves, new reporting obligations may emerge, such as real-time VAT reporting (SII) or enhanced digital tax systems, underscoring the need for companies to adapt to the latest tax reforms.
- Labour Laws: Employers in Spain must comply with strict labor regulations, which include providing employees with formal contracts, ensuring safe working conditions, and adhering to fair wages and benefit entitlements such as paid leave and maternity/paternity benefits. Additionally, businesses must align with evolving remote work regulations and workplace flexibility measures, which have gained prominence due to changing work environments. Regularly reviewing labor laws is essential, as new rules may impact areas like employee well-being, work-life balance, and health and safety protocols.
- Beyond these core obligations, businesses must also anticipate future compliance requirements. For instance, environmental regulations, data protection standards (such as GDPR), and cybersecurity policies are becoming increasingly important, and failure to adapt to these new demands can result in heavy penalties.
- As laws and regulations continue to evolve with technological advancements and societal changes, it’s essential for companies to stay proactive and seek legal guidance to remain compliant. This dynamic landscape means that your legal responsibilities today may look different in the near future, so keeping an eye on upcoming reforms is crucial for long-term success.
7. Hiring Employees in Spain
If you plan to hire employees, you must comply with Spain’s labor laws. This includes:
- Employee Contracts: In Spain, every employee must have a written employment contract, which clearly outlines the terms and conditions of their role, including salary, working hours, and responsibilities. There are several types of contracts, including indefinite contracts (permanent employment), temporary contracts (for specific projects or limited periods), and internship contracts (for students or recent graduates gaining professional experience). Spanish labor laws are continuously evolving, especially in the context of protecting workers’ rights, and recent reforms have placed a greater emphasis on reducing the misuse of temporary contracts to promote more stable employment.
- Social Security Contributions: Employers are required to make social security contributions for each employee, covering essential benefits such as unemployment insurance, healthcare, disability, and pensions. These contributions are mandatory and calculated based on the employee’s earnings, with specific rates set by law. As Spain adapts to an aging population and shifts in the workforce, social security policies may undergo changes, particularly in the areas of pension reforms and the inclusion of remote or gig economy workers under the social security umbrella.
- Working Conditions: Spain enforces strict regulations to ensure fair and safe working conditions. This includes legal limitations on working hours (typically a 40-hour workweek), paid holidays (at least 30 calendar days per year), and generous maternity and paternity leave entitlements, which have recently been expanded to promote gender equality. In addition, Spain is increasingly introducing legislation aimed at improving work-life balance and remote working conditions, reflecting the modern shift towards flexible work environments. Keeping abreast of these changes is crucial, as the country continues to adjust labor laws to meet evolving societal expectations and technological advancements.
- As employment laws in Spain continue to adapt to economic and social shifts, businesses must remain vigilant. Future regulations may place a greater emphasis on employee well-being, remote work policies, and digital workspaces. Staying informed and compliant with these changes is essential for maintaining a healthy and lawful working environment.
8. Licenses and Permits Required for Business
Depending on your business activity, specific licenses and permits may be required:
- Opening License (Licencia de Apertura): To legally operate a physical business location in Spain, you must obtain a Licencia de Apertura from the local city council (Ayuntamiento). This license is essential for any business opening commercial premises, such as a shop, office, or warehouse. The application process involves a thorough inspection of the premises to ensure they meet local health, safety, and zoning regulations. Depending on the type of business, specific fire safety or accessibility requirements may also be imposed. As urban regulations continue to evolve, especially with an increasing focus on sustainability and urban development standards, it’s important to stay updated on local rules to ensure ongoing compliance.
- Sector-Specific Licenses: Certain industries in Spain require specialized permits beyond the general operating license. For example, businesses involved in food services must secure sanitary permits and adhere to food safety standards. Companies in the healthcare sector need to meet strict medical licensing and hygiene protocols to protect public health. Similarly, businesses in the construction industry must comply with building regulations, which include obtaining construction permits and ensuring all health and safety measures are in place. These sector-specific licenses are subject to frequent regulatory updates, driven by technological advancements, public health concerns, and environmental considerations, making it crucial for businesses to regularly review compliance requirements.
- Environmental Permits: With growing emphasis on environmental sustainability, many industries are required to obtain environmental permits. These are particularly relevant for businesses that impact air quality, water usage, or waste disposal, such as manufacturing, agriculture, and energy production. Environmental permits ensure that companies comply with local and national environmental protection laws, such as the Spanish Law on Environmental Impact Assessments. As the European Green Deal and Spain’s commitment to carbon neutrality gain traction, stricter environmental regulations are anticipated. Businesses will need to integrate sustainable practices into their operations to not only meet compliance but also align with corporate social responsibility trends that are increasingly important to consumers and investors.
- In addition to these core permits, businesses should also anticipate future regulatory changes aimed at addressing emerging challenges such as climate change, public health, and technological innovations. As Spain continues to adapt its legal framework to meet these evolving demands, staying ahead of new compliance requirements is essential for ensuring the long-term success and sustainability of your business.
9. Business Banking in Spain
To effectively manage business operations, foreign entrepreneurs should consider:
- Opening a Business Bank Account: One of the first and most crucial steps in establishing your business in Spain is opening a business bank account. This account is required for depositing the minimum share capital (typically €3,000 for a Sociedad Limitada or €60,000 for a Sociedad Anónima) and managing day-to-day transactions. A certificate from the bank confirming the deposit of share capital is necessary for completing company registration with the Registro Mercantil. Microenterprises, which often have simpler financial needs, must also follow this procedure, but they benefit from having low-cost banking options tailored to their size and structure. Digital nomads looking to establish a business presence in Spain will also need a local bank account to facilitate international transactions, making it easier to manage their global clientele.
- Banking Services for Microenterprises: For microenterprises (companies with fewer than 10 employees and annual turnover below €2 million), Spanish banks offer specialized business accounts designed to meet their more modest requirements. These accounts often feature lower fees, minimal deposit requirements, and access to essential tools such as online banking platforms for invoicing and managing cash flow. Banks may also provide business credit cards and microloans to help these smaller companies handle liquidity needs. Additionally, many financial institutions are beginning to offer customized digital services to simplify operations for small businesses, particularly in light of Spain’s push toward digital transformation for micro and small enterprises.
- Banking Services for Digital Nomads: Spain is becoming increasingly attractive to digital nomads due to its favorable climate, cost of living, and emerging digital infrastructure. Digital nomads who choose Spain as a base of operations may want to open a local business or personal bank account to manage their finances efficiently, especially if they operate through a Sole Proprietorship (Autónomo) or as a freelancer. Spanish banks now offer a variety of international-friendly accounts, which facilitate multi-currency transactions, low international transfer fees, and access to global payment platforms. For remote workers, these banking options can significantly reduce the hassle of managing income from global clients while meeting local tax and legal obligations.
- Financing and Growth Support: Many Spanish banks provide financing options that are specifically tailored for start-ups and microenterprises. These include microcredit schemes, small business loans, and government-backed grants designed to foster entrepreneurship. Start-ups, including those led by digital nomads, can access specialized financing programs, such as seed funding for innovative projects or venture capital for tech-driven businesses. Additionally, banks may offer financial advisory services and tools like expense tracking or payroll management, which can help businesses optimize their cash flow and growth strategies. Microenterprises benefit greatly from such targeted support, as they often face challenges in securing traditional loans due to their smaller size and limited financial history.
- Digital and Online Banking: With the rise of digital banking, Spanish banks have embraced online services that make managing business finances easier for both microenterprises and remote workers. Online platforms enable real-time monitoring of transactions, easy invoicing, and tax filing integration, reducing the administrative burden on small business owners and freelancers. Many banks also provide mobile banking apps that allow business owners to manage their accounts from anywhere, which is particularly beneficial for digital nomads who may frequently move between countries but still need to maintain a stable financial presence in Spain. As Spain continues to invest in fintech innovations, these services are likely to become even more accessible and efficient.
- Whether you’re running a microenterprise, working as a digital nomad, or launching a full-scale start-up, understanding the banking landscape in Spain is essential for managing daily operations and long-term growth. Spain’s banking sector is increasingly adapting to the needs of modern entrepreneurs, offering flexible and tailored services that evolve with the changing business environment. As remote work becomes more prevalent and microenterprises continue to drive economic growth, expect Spanish banks to expand their digital banking options, providing even more tools to support financial management in the digital age.
10. Common Challenges and Solutions
Starting a business in Spain comes with its challenges:
- Bureaucracy: Navigating Spain’s administrative procedures can often feel slow and complex, especially for foreign entrepreneurs unfamiliar with the system. Obtaining permits, registering a business, or securing the necessary licenses can involve lengthy waiting periods, various government approvals, and multiple interactions with different authorities. This can be particularly challenging if you’re not aware of the intricacies of local laws or timelines. To avoid delays and reduce administrative hurdles, it is highly recommended to hire local legal experts or business consultants who are well-versed in Spain’s bureaucratic processes. These professionals can streamline the paperwork, ensure that all legal obligations are met promptly, and help you avoid costly mistakes or missed deadlines. Many entrepreneurs find that the investment in such services more than pays for itself in the time saved and efficiency gained.
- Additionally, Spain’s bureaucracy has been adapting to modern technology, with efforts to digitize various administrative procedures. While some processes can now be completed online (e.g., tax filings, business registrations), many remain manual and paper-based, particularly at the municipal level. As Spain continues its digital transformation, expect gradual improvements in the speed and transparency of its bureaucratic system, but for now, expert assistance remains invaluable.
- Language Barrier: Although many professionals in Spain, particularly in urban areas and large companies, are fluent in English, the country’s official language for legal and administrative matters is Spanish. This means that most important documents, including contracts, government forms, and business registration papers, will be written in Spanish. Entrepreneurs who do not speak the language may face challenges understanding the fine print in legal agreements or navigating government websites and forms, which could lead to misunderstandings or costly errors.
- To mitigate this, it’s advisable to hire a professional translator or bilingual legal advisor who can help interpret key documents and ensure that all procedures are correctly followed. Additionally, having a local partner or consultant who is fluent in both Spanish and your native language can help bridge the gap and provide guidance throughout the business setup process. As Spain’s international business community continues to grow, more services are becoming available in English, but until full adaptation is achieved, local language support remains essential for efficient business operations.
- Both bureaucracy and the language barrier are key challenges that many foreign entrepreneurs face when entering the Spanish market. However, by leveraging the expertise of local professionals and utilizing the available resources, these obstacles can be significantly reduced. As Spain continues to evolve and modernize its administrative and digital processes, these challenges will likely lessen, but for now, proactive planning and support are essential for a smooth business setup experience.
Ready to Start Your Business in Spain? Let Us Guide You!
Establishing a business in Spain can be a complex process, but you don’t have to navigate it alone. Our team of expert business lawyers is here to provide the personalized legal guidance you need to get started quickly and efficiently.
Whether you’re a freelancer, an entrepreneur, or planning to expand your international business, we’ll help you every step of the way—from choosing the right business structure to handling legal obligations and securing the necessary permits.
At our firm, we specialize in helping foreign entrepreneurs set up successful businesses in Spain. With a deep understanding of Spanish law, we’ll ensure that your venture is not only legally compliant but also optimized for growth.
💼 Contact us today for a consultation and let our expert lawyers help you turn your business dream into reality. We’re ready to provide tailored solutions and support you in every phase of your entrepreneurial journey.
📞 Get in touch now and let’s start building your business in Spain together!
11. FAQs
1. What is the minimum investment required to start a business in Spain?
The minimum share capital for a Sociedad Limitada (SL) is €3,000, while for a Sociedad Anónima (SA), it is €60,000. These funds must be deposited into a Spanish business bank account before the company is registered.
2. Can non-EU citizens start a business in Spain?
Yes, non-EU citizens can start a business in Spain, but they will need to secure the appropriate visa and residence permit. Options include the Golden Visa for significant investments and the Entrepreneur Visa for innovative start-ups.
3. What is an NIE, and why do I need it?
The NIE (Número de Identificación de Extranjero) is a Foreigner Identification Number required for any financial transaction in Spain, such as starting a business, buying property, or opening a bank account.
4. How long does it take to register a company in Spain?
The company registration process typically takes between 1 and 3 months, depending on the company structure, administrative processing, and whether all required documents are in order.
5. Is it necessary to have a local partner to start a business in Spain?
No, it is not required to have a local partner. Foreign entrepreneurs can fully own and operate businesses in Spain. The ownership structure can be 100% foreign, providing full control over the business.
6. What taxes do businesses in Spain need to pay?
Spanish businesses must pay several taxes, including corporate income tax (25%), Value Added Tax (VAT) at 21%, 10%, or 4%, and social security contributions for employees.
For Russian Entrepreneurs:
7. What business opportunities are there for Russian entrepreneurs in Spain?
Russian entrepreneurs can find opportunities in real estate, tourism, and technology sectors in Spain. Spain offers access to the EU market and has a high demand for luxury services, appealing to Russian investors.
8. Do I need a visa to start a business in Spain as a Russian citizen?
Yes, as a Russian citizen, you will need an Entrepreneur Visa or a Golden Visa for significant investments, such as investing €500,000 in real estate or other assets.
For Chinese Entrepreneurs:
9. Can Chinese nationals invest in the Spanish real estate market as part of their business plan?
Yes, Chinese entrepreneurs can invest in Spanish real estate to obtain a Golden Visa, which requires a minimum investment of €500,000 in property. This visa allows residency and business opportunities in Spain.
10. How can Chinese entrepreneurs benefit from the Digital Nomad Visa in Spain?
Spain’s Digital Nomad Visa is ideal for Chinese entrepreneurs running remote businesses. This visa will allow Chinese nationals to live in Spain while managing global operations from a legally recognized base in Europe.
For U.S. Entrepreneurs:
11. Do U.S. citizens need a visa to start a business in Spain?
Yes, U.S. citizens need an Entrepreneur Visa or a Golden Visa depending on their investment amount or business model. U.S. nationals investing €500,000 or more in Spanish assets can apply for a Golden Visa.
12. Can American freelancers register as Autónomos in Spain?
Yes, American freelancers can register as Autónomos to legally work and pay taxes in Spain. They will need to obtain a residence visa and an NIE, as well as comply with local tax and social security laws.
For British Entrepreneurs:
13. How has Brexit affected the ability of UK entrepreneurs to start businesses in Spain?
Post-Brexit, UK entrepreneurs are treated as non-EU citizens, requiring a visa to start a business in Spain. The Entrepreneur Visa or Golden Visa are available options for British nationals who want to start or invest in a business.
14. Can UK residents still access the EU market through a business in Spain?
Yes, by establishing a business in Spain, UK residents gain access to the European Union’s single market, allowing them to trade freely across EU member states, despite Brexit.
15. What type of business is ideal for digital nomads in Spain?
Digital nomads can register as Autónomos or establish a small Sociedad Limitada (SL) to manage their freelance or remote business activities. The Digital Nomad Visa will offer additional flexibility for non-EU citizens wishing to work remotely from Spain.
16. Can I buy an existing business in Spain as a foreigner?
Yes, foreigners can buy an existing business in Spain. This process typically involves conducting due diligence, signing purchase agreements, and obtaining the necessary permits and licenses to operate the business.
17. What are the main business sectors open to foreign investment in Spain?
Key sectors open to foreign investment include tourism, renewable energy, technology, real estate, and agriculture. Spain offers numerous incentives to attract foreign capital into these industries.
18. What legal support is available for foreigners starting a business in Spain?
Foreign entrepreneurs can hire legal consultants or business advisors specialized in Spanish corporate law to assist with company formation, compliance, taxation, and obtaining the necessary visas and permits.
19. Do I need a business plan to start a business in Spain?
Yes, especially for non-EU citizens applying for an Entrepreneur Visa, a comprehensive business plan is required. It should detail the business’s economic viability, projected job creation, and how it will contribute to the Spanish economy.
20. What is the process for registering a trademark in Spain?
To protect your brand, you must register your trademark with the Spanish Patent and Trademark Office (OEPM). This process ensures exclusive rights to your business name, logo, or slogan within Spain.
Sources:
- Ley 18/2022, de creación y crecimiento de empresas, Spain’s official law regarding the capital requirements for establishing businesses: Ley Crea y Crece
- Invest in Spain, general guidelines for setting up a business as a foreigner: Invest in Spain
- Spanish Government Portal, detailed information on company registration processes: Administración.gob.es
- Key Normative References:
- Ley 18/2022, de 28 de septiembre, de creación y crecimiento de empresas:
This law reduces the minimum capital needed to create a Sociedad Limitada (SL) to €1, facilitating the process for entrepreneurs to start businesses in Spain. Full text - Real Decreto 1784/1996:
This decree governs the Reglamento del Registro Mercantil, including how companies must register and comply with annual financial reporting requirements. More information - Ley 14/2013, de apoyo a los emprendedores y su internacionalización:
Provides guidelines on entrepreneur visas and the establishment of innovative projects for non-EU citizens. Full text - Reglamento sobre Extranjería:
Covers residency requirements and visas for non-EU entrepreneurs, including those applying for Golden Visas for investment in Spain. More information
Legal Disclaimer and Investment Recommendation Disclaimer
The content of this document is for informational and educational purposes only and does not constitute legal or investment advice. It is not intended to replace personalized professional guidance.
No client relationship is established by the use of this information, and it should not be relied upon as the basis for any decision-making without consulting a qualified attorney or financial advisor. The information provided is general in nature and may not be applicable to individual circumstances.
We disclaim any liability for actions taken based on this content. Always seek tailored, professional advice to address your specific legal or financial situation.
