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Set Up a Business in Spain
A clear overview of how to form and operate a company in Spain. From choosing the right legal structure to registering with the authorities, here is what to expect at a high level before you start.
The Overview
Why set up in Spain
Spain offers access to the European single market, a growing startup ecosystem and clear legal frameworks for foreign founders. Whether you are launching a venture, relocating an existing company, or going freelance, the process follows a defined sequence of steps handled through notaries, registries and the tax authority.
The right legal form depends on your activity, ownership structure, capital and appetite for personal liability. Below we outline the most common structures, the key steps to incorporate, and the main taxes you will encounter once trading.
This page is general guidance. We handle the full formation, tax registration and compliance on your behalf so you can focus on the business.
Legal Forms
Choosing a company structure
The five forms below cover most founder scenarios. An S.L. (Sociedad Limitada) is the default choice for small and medium businesses.
| Form | Type | Min. capital | Liability | Best for |
|---|---|---|---|---|
| Autónomo | Sole Trader | None | Personal / unlimited | Freelancers, consultants and small solo businesses |
| S.L. (Sociedad Limitada) | Limited Company | €3,000 (from €1 under Startup Act) | Limited to capital | The most common form for SMEs and founders |
| S.L. Nueva Empresa | New Enterprise SL | Standard €3,000 | Limited to capital | Small businesses wanting a simplified setup |
| S.A. (Sociedad Anónima) | Public Limited Company | €60,000 | Limited to capital | Larger companies or those planning to raise equity |
| S.L. Laboral | Worker-Owned SL | Standard €3,000 | Limited to capital | Cooperatives where most workers are partners |
Capital figures are indicative. The Ley de Apoyo a las Startups allows certain qualifying startups to incorporate an S.L. with €1 share capital during the first years.
The Process
Key steps to incorporate
Obtain your NIE
Get your foreigner identification number, the prerequisite for any legal or financial activity in Spain.
Reserve a company name
Apply for a negative certificate at the Commercial Registry to confirm your chosen name is available (for SL and SA).
Deposit share capital
Open a Spanish bank account in the company's name and deposit the initial share capital.
Sign before a notary
Sign the incorporation deed (escritura pública) before a Spanish notary to legally form the company.
Register the company
File the deed with the Mercantile Registry to give the company full legal personality.
Register for taxes
Obtain the company tax ID (CIF) and register for VAT (IVA), withholding taxes and corporate tax.
Social security & licences
Register with Social Security for yourself and any staff, then apply for the relevant municipal activity licence.
Taxation
What you will pay once trading
The main taxes a Spanish business encounters. Rates below are general and depend on your structure and turnover.
25%
Corporate tax (Impuesto de Sociedades)
Newly created companies may qualify for a reduced 15% rate on the first two profitable years.
21%
VAT (IVA), standard rate
Charged on most goods and services, with reduced rates of 10% and 4% for specific items.
IRPF
Income tax (for autónomos)
Progressive personal income tax paid by sole traders on their net profits.
Start Trading in Spain
Ready to set up your business?
Tell us about your venture and we will handle formation, tax registration and ongoing compliance from day one.