Want to start a business in Spain as an expat? Here's what you need to know:
- Check your legal status (EU vs non-EU citizen rules)
- Pick your business structure (Autónomo or SL)
- Get your ID numbers (NIE and NIF/CIF)
- Write a business plan
- Choose and register your company name
- Open a business bank account
- Create and notarize company documents
- Register with the Business Registry
- Get licenses and permits
- Register for taxes and social security
Key points:
- It typically takes 4-6 weeks to start a business in Spain
- Non-EU citizens need a work permit
- New companies pay 15% corporate tax for first two profitable years
- Self-employed can adjust social security contributions up to 6 times a year
Quick Comparison: Autónomo vs SL
| Feature | Autónomo | SL |
|---|---|---|
| Setup time | 1 day | 2-3 weeks |
| Setup cost | €0-100 | €1,000-1,200 |
| Liability | Unlimited | Limited to capital |
| Min. capital | None | €3,000 |
| Taxation | IRPF (19-47%) | Corporate (25%) |
Starting a business in Spain isn't easy, but it's doable with planning and expert help. This guide breaks down the process step-by-step.
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Check Your Legal Status
Starting a business in Spain as an expat? First, check your legal status. It's not just red tape - it's your business foundation.
EU vs. Non-EU Citizen Rules
Your citizenship determines the rules:
| EU Citizens | Non-EU Citizens |
|---|---|
| No work permit needed | Residency permit required |
| Need NIE and EU registry certificate | Specific visa needed |
| Simpler process | More paperwork |
EU citizens? Get your NIE (número de identidad de extranjero) and EU registry certificate. You're set.
Non-EU citizens? You'll need to show:
- Clean criminal record
- Professional qualifications
- Financial stability
Visas for Business Owners
Non-EU citizens have two main options:
1. Entrepreneur Visa
For innovative ideas:
- 3-year validity, 2-year renewal
- Faster processing
- Detailed business plan needed
- Proof of funds for incorporation
2. Self-employed Worker Visa
For existing products or services. Slower, but doable.
"The entrepreneur visa offers a longer residency period and a faster resolution process compared to other permits governed by general immigration law", - Spanish Ministry of Foreign Affairs.
Pro Tip: Apply at the Spanish embassy in your home country BEFORE moving.
Spain wants foreign talent. They're making it easier for expats to start businesses. But rules are rules.
Stuck in the legal maze? Try Find My Lawyer. They'll connect you with lawyers who know the expat business setup drill.
2. Pick Your Business Structure
Choosing your business structure in Spain is crucial. It affects your taxes, liability, and growth. Here are the main options:
Sole Trader (Autónomo)
As an autónomo, you're in charge. It's quick and cheap to set up, but:
- You're responsible for all business debts
- No minimum capital needed
- You pay personal income tax (IRPF)
- You must charge VAT (IVA) on invoices
Heads up: New autónomos can pay as low as €50 monthly for social security in the first six months.
Limited Company (SL)
An SL offers more protection but takes more effort to set up:
- Your personal assets are protected
- Needs €3,000 minimum capital
- Can have one or more shareholders
- Pays 25% corporate tax (15% for first two profitable years)
Quick Comparison
| Feature | Autónomo | SL |
|---|---|---|
| Setup time | 1 day | 2-3 weeks |
| Setup cost | €0-100 | €1,000-1,200 |
| Liability | Unlimited | Limited to capital |
| Min. capital | None | €3,000 |
| Taxation | IRPF (19-47%) | Corporate (25%) |
| Social Security | €265/month standard | €280/month first year |
Most expats start as autónomos because it's simpler. You can always switch to an SL as your business grows.
"Typically, people start as self-employed and move to a company as the business expands. Starting as a freelancer makes future changes easier."
3. Get Your ID Numbers
To start a business in Spain, you need two key IDs: the NIE and NIF/CIF. Here's what they are and how to get them:
NIE (Foreigner ID Number)
The NIE is your business passport in Spain. You'll use it for taxes, property, bank accounts, and setting up shop.
To get your NIE:
- Go to the immigration office or Spanish consulate
- Bring: EX-15 form, passport (original + copy), proof of address, 2 photos, €12 fee receipt
Tip: Book early. Slots go fast!
NIE format: X12345678A (X, Y, or Z + 7-8 digits + letter)
NIF/CIF (Tax ID Number)
NIF is for people, CIF for companies.
For individuals:
- Your NIE is your NIF
- Use it on invoices and tax docs
For companies:
- CIF format: Letter + 8 digits (e.g., B12345678)
- Letter shows company type
To get a CIF:
- Apply within a month of company setup
- Use Form 036 or 037
- Provide: Company registration certificate, rep's valid ID
Note: Your CIF becomes your VAT number by adding "ES" (e.g., ES B12345678)
These IDs are a must for legal business in Spain. Don't skip them!
4. Write a Business Plan
A solid business plan is crucial for expats starting a business in Spain. It's your roadmap and a key document for visas and funding.
Market Research
Before writing, dive into the Spanish market:
- Study consumer behavior and trends
- Analyze competitors
- Check industry regulations
Spain's market highlights:
- Services: ~70% of GDP
- Booming e-commerce
- Strong renewable energy sector
- Growing tech hub (fintech, AI)
"Team up with a local market research firm. They know Spain's business world inside out."
Financial Plans and Marketing
Your plan must show you've done the math:
1. Startup costs
For a limited liability company (SL):
- €3,000 minimum share capital
- €1,500-€2,000 for notary and registration
2. Tax planning
- Corporate tax: 25% (10% for new companies, first two years)
- VAT: typically 21%
3. Sales forecasts
Be realistic. Include best and worst-case scenarios.
4. Cash flow projections
Show monthly money management for at least year one.
5. Marketing strategy
Outline your approach to reach Spanish customers.
| Section | What to Include |
|---|---|
| Business Profile | Mission and structure |
| Market Analysis | Competitors, industry trends |
| Financial Forecasts | 3-year income/expense projections |
| Commercial Plan | Marketing and sales strategies |
| Team | Key member bios |
| Innovation | Your unique offering in Spain |
Your plan isn't just for you. It's a tool to convince visa officers and potential investors.
"Due to Brexit, I had to move to Spain to continue with the development of my business. It was complicated to move my company from the UK to Spain. Although it is a long process, Marfour's lawyers knew how to handle all the stages of the process very well. They drafted my business plan as well." - Bryan Adams, Client of Marfour International Law Firm
Not sure where to start? Get help from a Spanish accountant or business advisor. They'll ensure your plan meets Spanish requirements and impresses potential partners.
5. Choose and Register Your Company Name
Picking a name for your Spanish business isn't just fun - it's a legal must-do. Here's how to nail it:
Check If Your Name's Available
Before you get attached to a name:
- Search the Central Mercantile Registry
- Google it and check social media
- See if the domain's free for your website
"Search for an original, unique name that's never been used and fits you." - SelfEmployed Spain
Pro tip: Keep it short and catchy. Don't go for something like "Peluquería María" if you're opening a hair salon in a busy area.
How to Register Your Name
Found a free name? Great! Now:
- Ask for a name certificate from the Central Mercantile Registry
- Pay up (about €13.52 online)
- Wait for the green light (usually 5-15 work days)
| What You're Doing | How Much It Costs | How Long It Takes |
|---|---|---|
| Getting your name certificate | €13.52 (online) | 5-15 work days |
| Registering your company | From €200 + VAT (21%) | 2-8 weeks |
Heads up: Your name needs to follow Spanish Commercial Code rules. It can't be too close to other businesses - that's asking for legal trouble.
Once you've got your name, it goes in your company's Articles of Association. These docs spell out how your business is set up and run.
6. Open a Business Bank Account
Opening a business bank account is crucial for expats starting a company in Spain. It's your gateway to the Spanish financial system.
What You'll Need
Before hitting the bank, gather these:
- No-name coincidence certificate from Central Mercantile Registry
- NIE for all directors and shareholders
- Tax ID Number
- Certificate of Incorporation
- Articles of Association
- Proof of address
- Passport or ID card
- Good Standing Certificate (if available)
- Latest financial report (if available)
Non-Spanish documents? Get them translated, notarized, and maybe even Apostilled.
Initial Deposit
Here's what you might need to open an account:
| Bank Type | Initial Deposit Range |
|---|---|
| National Banks | €3,000 - €5,000 |
| Local Savings Banks | €1,000 - €3,000 |
| Online Banks | €0 - €1,000 |
Santander's Cuenta 1|2|3 Profesional often has a lower initial deposit for freelancers and small businesses.
Go early. Spanish banks usually open 8:30 AM to 2 PM on weekdays. Beat the crowds and get the help you need.
When picking a bank, look at:
- Fees
- Online banking
- International payment costs
- POS commissions
- English-speaking support
- Credit access
ING Direct's Cuenta Negocios offers free credit cards and daily transfers up to €50,000 - great for high-volume businesses.
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7. Create and Notarize Company Documents
Setting up your business in Spain? You'll need to create and notarize your company documents. Here's what you need to know:
Company Statutes: The Basics
Your company statutes (or Articles of Association) are crucial. They should include:
- Company name
- Business purpose
- Registered office
- Share capital
- Number of shares
For a Limited Company (SL), you need at least 3,000 euros in share capital.
"Get a lawyer or notary to draft your statutes. It's the best way to make sure they're legally sound." - Spanish Business Expert
Notarization: Making It Official
In Spain, notaries are government officials who make your documents legal and authentic.
Here's the process:
1. Find a notary
Look in local directories or ask a lawyer for recommendations. Pick one in your business area.
2. Get your documents ready
You'll need:
- Passport
- NIE
- Company statutes
- Bank certificate showing capital deposit
3. Book your appointment
Notaries usually work 8:30 AM to 2 PM on weekdays.
4. At the notary's office
- They'll check everyone's ID
- Read the deed out loud (usually in Spanish)
- You'll sign the documents
Don't speak Spanish? Bring a translator. Some notaries won't proceed without one.
5. Costs
Notary fees are set by the government. They depend on your company's value and the deed's complexity.
| Company Value | Approximate Notary Fee |
|---|---|
| < 100,000 € | 0.4% of declared value |
| > 400,000 € | 0.1% of declared value |
Remember: You can't register your company without notarized documents. It's a must-do step to make your business official in Spain.
Need help? Services like Find My Lawyer can connect you with lawyers and accountants who know the ropes.
8. Register with the Business Registry
Time to make your business official. Here's how to register with the Spanish Business Registry (Registro Mercantil):
What You'll Need
- Notarized deed of incorporation
- NIE for all partners and directors
- CIF
- Bank certificate showing capital deposit
- Declaration of foreign investments (Model D1A)
"Double-check your paperwork. Missing documents can set you back weeks." - María González, Madrid Chamber of Commerce
Costs and Timing
| Fee | Cost |
|---|---|
| Name reservation | €13.52 + VAT |
| Registration | €40 - €100 |
| Deed entry | €200 + VAT (21%) |
Total cost for a Spanish SL? About €2,000, including legal fees and VAT.
Timeframe? It varies:
- Average: 9 weeks
- Best case: 2-3 weeks
- Worst case: 2 months
Why the range? It depends on your prep work and how busy the registry is.
Want to speed things up? Try Find My Lawyer to connect with local experts.
After Registration
- Get your final CIF from the Spanish Tax Agency
- Register with Social Security if you're hiring
9. Get Licenses and Permits
Starting a business in Spain? You'll need more than just registration. Here's the scoop on licenses and permits:
Business-Specific Licenses
Different businesses, different licenses. Check out this quick rundown:
| Business Type | Required License |
|---|---|
| Food Services | Sanitary Permit |
| Healthcare | Medical License |
| Retail/Trading | Retail License |
| Tourism | Tourism License |
| Financial Services | Financial Services License |
Got a physical location? You NEED a "Licencia de Apertura" (Opening License).
Local Rules and Permits
Spain's cities and towns have their own rules. Keep these in mind:
- Can your business operate in your chosen spot? (Zoning laws)
- Will you impact the environment? (Environmental permits)
- Planning to build or renovate? (Construction permits)
Here's a tip: Always check with your local city council (Ayuntamiento).
Getting Your Licenses
- Figure out what you need
- Gather your docs (registration certificate, tax ID, address proof, etc.)
- Apply through your Ayuntamiento
- Pay up (costs vary)
- Play the waiting game (could be days or weeks)
Don't forget: Staying compliant is an ongoing job. Keep those licenses up to date!
10. Register for Taxes and Social Security
Starting a business in Spain? You'll need to handle taxes and social security. Here's the lowdown:
Business Taxes in Spain
Spanish businesses face these key taxes:
| Tax Type | Rate | Notes |
|---|---|---|
| Corporate Income Tax | 25% | 15% for new companies in first 2 profitable years |
| VAT (IVA) | 21% | Standard rate |
| Business Activity Tax (IAE) | Varies | Waived for businesses with profits under €1 million |
Corporate Income Tax (CIT) is the big one:
- File within 6 months and 25 days after your accounting period ends
- Pay in installments (usually 18% of last year's tax bill)
- New in 2023: 23% rate for businesses with net turnover under €1 million
Keep detailed records. The Spanish Tax Agency loves paperwork.
Social Security Sign-Up
You MUST register for social security. It covers healthcare, family benefits, and pensions.
How to do it:
- Get your Tax ID (NIF)
- Gather documents (proof of business activity, office address)
- Register online or in-person at your local social security office
- Choose your contribution level (if self-employed)
For self-employed folks (autónomos), contributions work like this:
| Monthly Income | Monthly Contribution (2023) |
|---|---|
| < €670 | €230 |
| €670 - €1,000 | €230 - €500 |
| €1,000 - €2,000 | €500 - €1,000 |
| > €6,000 | €590 |
You can adjust your contribution up to 6 times a year if your income changes.
Stuck with Spanish bureaucracy? Consider using a service like Find My Lawyer to connect with local experts who can guide you through the process.
Conclusion
Starting a business in Spain as an expat? It's a mix of opportunities and hurdles. But don't worry - our 10-step guide has you covered.
Here's what you need to know:
- EU citizens have it easier, but non-EU folks can make it work too.
- Autónomo or SL? Both have their perks. Choose wisely.
- Paperwork is crucial. Stay organized.
- Your business plan is your compass. Make it solid.
- Spanish bureaucracy is tricky. Get help.
"Find My Lawyer connects expats with Spanish legal pros who know the ins and outs of business setup and immigration."
Tax Bonus: New companies pay just 15% corporate tax for their first two profitable years. After that, it's 25%.
Social Security Tip: Self-employed? You can tweak your contributions up to 6 times a year. Great for managing cash flow when you're just starting out.
Look, it might seem tough. But plenty of expats have done it before you. With some planning, expert advice, and patience, you can join them. Your Spanish business dream? It's within reach.
Helpful Resources
Starting a business in Spain as an expat can be tricky. Here are some resources to help:
1. Find My Lawyer
A platform that connects you with Spanish lawyers and accountants. You can search by location and specialty.
2. My Lawyer in Spain
English-speaking Spanish lawyers with offices across Spain and the islands.
3. My Spain Visa
Helps with visa applications, including Non-Lucrative Visas and Golden Visas.
4. Official Government Resources
- Spanish Ministry of Industry, Commerce and Tourism
- Spanish Tax Agency
- Spanish Social Security Administration
- Spanish Companies Registry
- Invest in Spain
5. Consulate Websites
Check your home country's consulate website for recommended local lawyers.
Useful for EU citizens looking for legal help in Spain.
Pro Tip: When looking for a lawyer, go for independent recommendations. Don't just take advice from real estate agents or property developers.
FAQs
How long does it take to start a business in Spain?
It typically takes 4-6 weeks to start a business in Spain. But here's the catch: this clock starts ticking AFTER you get your Spanish tax ID (NIE). Getting that NIE? That's a whole other timeline.
How difficult is it to start a business in Spain?
Let's be real: it's not a walk in the park, especially for expats. You'll need to:
- Open a business bank account
- Notarize your docs
- Register with the Commercial Registry and Tax Office
- Maybe even deal with Social Security
It's doable, but you'll need to stay on your toes.
Can Americans start a business in Spain?
Yep, Americans can jump into the Spanish business scene. Spain's doors are open to global entrepreneurs. BUT - and it's a big but - you need the right visa. Non-EU folks must snag a work permit before diving in.
How to register a company in Spain?
Here's the game plan:
- Plan your business (duh, but important)
- Pick a structure (Sole Trader or Limited Company?)
- Get a provisional tax ID (NIF)
- Make sure your business name is available
- Draft those Articles of Association
- Open a business bank account
How long does it take to register a company in Spain?
Registering usually takes 4-6 weeks. Again, this is AFTER you've got your tax ID (NIE). But don't set your watch by it - the timeline can stretch depending on your business type and how swamped the Commercial Registry is.
"For an LLC, you're looking at an average of 9 weeks. That covers everything from planning to incorporation to getting your bank account up and running."
