✓ Company registration in Spain: branches, limited liability companies, partnerships, and others ✓ Opening corporate and personal bank accounts ✓ Drafting business plans ✓ Obtaining tax residency status ✓ Obtaining a residence permit in Spain for the whole family ✓ Verification of the source of funds origin
Company Registration in Spain
Sunny Spain is renowned not only as a tourist destination but also as a highly developed country with a steadily growing economy that attracts entrepreneurs and investors from around the world.
Both EU residents and non-residents have the right to start a business in Spain; however, non-residents must follow additional procedures to successfully register a company.
Why register a company in Spain?
✓ As an EU member, companies in Spain have access to the world’s largest market — the European Union. ✓ The country boasts a large and diverse market, ideal for implementing various business ideas. ✓ Spain has advanced infrastructure and ranks 12th globally for infrastructure and logistics services. ✓ Tax benefits for companies: Newly established companies are taxed at a rate of 15% for the first profitable tax period and the following tax period. ✓ The presence of free economic zones offering tax incentives, such as reduced corporate tax, VAT discounts, and stamp duty reductions. ✓ Spain is home to one of Europe’s most significant IT markets, with over 33,000 IT companies. ✓ Opportunity to gain Spanish residency and obtain a residence permit for the whole family through business immigration. ✓ Spain offers a perfect blend of business opportunities and personal preferences: safety, quality of life, climate, healthy food, children’s education, and more.
Types of Companies in Spain
The most popular business structures for company registration in Spain are: sole proprietorship (empresa individual or empresa privada), limited liability company (SL or SRL), public limited company (SA), and branch of a foreign company. Below is a detailed description to help you decide which type of company in Spain best suits your business.
— Sole Proprietorship in Spain
This structure is ideal for web designers, programmers, other IT specialists, consultants, artists, and other freelancers who do not anticipate a high annual turnover or the need to hire many employees. The downside of this form is the lack of distinction between business and personal assets, meaning the entrepreneur bears full liability for any potential company debts and tax filings. Taxation: Sole proprietors pay Spanish personal income tax (IRPF — impuesto sobre la renta de las personas físicas).
— Limited Liability Company in Spain (Sociedad de Responsabilidad Limitada — SL or SRL)
This is the most common type of company in Spain. SL companies are suitable for small and medium-sized businesses, those with a limited number of partners, and family businesses. An SL can be owned by a single person.
Minimum share capital: €3,000.
Companies must submit statutory tax returns and financial statements.
— Public Limited Company (Sociedad Anónima — SA)
An SA is designed for large companies trading shares or expecting partner turnover.
Minimum share capital: €60,000, with an initial contribution of at least 25%.
— Branch (Sucursal)
A branch in Spain is registered when a foreign parent company decides to expand. A branch does not have its own legal personality and is considered subordinate to the parent company. Having a branch in Spain allows for obtaining work and residence permits for key employees of the parent company under the Intra-Company Transfers (ICT) program. ICT offers a simplified process for obtaining a Spanish residence permit for executives and key employees transferred from the parent company to its branch in any EU country.
How to Open a Company in Spain as a Foreigner
Depending on the type of company, the procedure may vary slightly, but the general steps for a foreigner to establish a business in Spain are as follows:
Obtain an NIE Number The NIE (Número de Identidad de Extranjero) is a personal identification and tax number for foreigners, required to open a bank account, undergo tax identification, and purchase real estate. You can obtain the NIE in Spain at the main police office or abroad at a Spanish diplomatic mission or consulate.
Choose Three Company Name Options and Obtain a Certificate of Uniqueness You must submit an application with three proposed company names to the Corporate Registry of Spain (Registro Mercantil) to obtain a Certificate of Uniqueness. This certificate confirms that the name you intend to use has not already been registered.
Open a Corporate Bank Account and Deposit Share Capital The amount of share capital depends on the type of company you intend to create (e.g., for a limited liability company, the minimum deposit is €3,005.06). The bank will issue a certificate of deposited capital, which must be presented to a notary for company registration in Spain.
Articles of Incorporation The founders must sign an incorporation agreement defining the company director(s). You will need the certificate of name registration and the bank receipt confirming the deposit.
Register the Company with a Notary Notarize all documents, incorporation certificates, and formalize the company registration in Spain. The notary issues a Deed of Incorporation and registers the company in the Companies Registry.
Submit Documents to Spanish Tax Authorities and Social Security Services At the tax office, you must apply for a CIF (corporate tax identification code) and file a declaration of the company’s commencement of activities, specifying the tax system under which the company will operate.
If you are interested in starting a business in Spain, we recommend utilizing the services of our Spanish lawyer to avoid complications and delays due to unfamiliarity with the documentation process. For a cost estimate of company registration in Spain, please leave us a request or complete the form below.
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A company is considered a tax resident in Spain and subject to corporate tax on worldwide income if:
It is incorporated under Spanish law.
Its registered office is in Spain.
Its actual headquarters are located in Spain (where the business activity is managed and controlled).
If a company is incorporated in a country or territory with no taxation or considered a tax haven (offshore companies), it is deemed a Spanish tax resident if its primary activity is carried out in Spain or its main assets are located in Spain.
Non-resident companies are taxed only on income and capital gains derived from Spanish sources.
Corporate Tax
General corporate tax rate
25%
Newly established companies: first profitable tax period + the following period
15%
Does not apply to public limited companies or companies that are part of national or international groups.
Local Tax on Entrepreneurial and Professional Activities (a local direct tax applied annually to commercial, professional, or creative activities.)
Varying based on factors and capped at 15% of the estimated average profit from the activity
Companies operating in the Canary Islands Special Zone (ZEC)
4%
Other Business Taxes in Spain
VAT (Impuesto sobre el Valor Añadido — IVA)
21% (standard), 10% (reduced), 4% (basic goods)
Capital tax
1% (on capital reduction or company dissolution, paid by shareholders)
If you are interested in starting your own business in Spain, we highly recommend scheduling an individual legal consultation with our specialists. During the consultation, you will receive detailed information on how to open a business in Spain, taxes you need to pay in Spain, the procedure for verifying the origin of funds, all matters related to obtaining a residence permit in Spain. To schedule a consultation, please submit a request.
OBTAIN PROFESSIONAL IMIGRATION ADVICE
If you have any questions in any of the directions, please contact us.
FAQ – Company Registration in Spain
How Can a Ukrainian Citizen Open a Company in Spain?
Ukrainian citizens, like any other foreign nationals, can open a company in Spain and serve as its Director. To do so, they need to follow the standard company registration procedure:
Obtain a foreigner’s tax identification number (NIE).
Choose and register a company name.
Open a bank account and deposit the share capital.
Purchase or rent office premises.
Appoint a director.
Register the company with government and tax authorities.
Do I Need a Resident Director in Spain?
No, Spain does not require the appointment of a resident director. Consequently, a foreign director can manage the company.
Can I Obtain a Residence Permit by Opening a Company in Spain?
Registering a company in Spain is the foundation for business immigration. You can apply for an entrepreneurial visa to Spain if you engage in actual office operations, have a residence in Spain, maintain a stable income, and demonstrate good character. By meeting a set of legal requirements, the entrepreneur and their family can obtain Spanish residence permits and enjoy all the benefits of living in an EU country.
What is the Current Corporate Tax Rate in Spain in 2023?
The standard corporate tax rate in Spain is 25%. However, the 2023 budget reduces the rate to 23% for taxpayers with a net turnover of less than €1 million in the previous tax year, excluding organizations that are part of a commercial group or passive holding companies.
Where is Better to Open a Company: Spain or Portugal?
Both Spain and Portugal are highly reputable countries with excellent business environments, making it impossible to definitively say which is better for business. The decision depends on the entrepreneur’s criteria, interests, and goals. We always recommend approaching the choice of country comprehensively, considering tax and immigration laws in conjunction with the objectives the entrepreneur aims to achieve.
In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes i...
In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes in immigration and corporate law of European countries, particularly:
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