Setting up a company in Spain as a foreigner: The essentials
- Anyone who wants to start a business in Spain as a foreigner can do so regardless of nationality, whether from the EU or outside the EU.
- The two most common options are forming a Sociedad Limitada (SL) or registering as self-employed (autónomo).
- Every foreign shareholder and director requires a Spanish NIE before incorporation.
- The minimum share capital for an SL is €1, although higher working capital is usually advisable.
- The incorporation process typically takes between two and six weeks.
- New companies may benefit from a reduced corporate tax rate of 15% during their first profitable years.
- Choosing between an SL and self-employment depends on liability, tax efficiency, growth plans and administrative requirements.
Should you open an SL or an autónomo?
Spain has become one of Europe’s most attractive destinations for entrepreneurs, investors and remote business owners. If you are looking to start a business in Spain as a foreigner, one of the first decisions you will need to make is whether to establish a Spanish limited company (Sociedad Limitada or SL) or operate as a self-employed professional (autónomo).
Both structures are available to foreign nationals, and each offers distinct advantages depending on the nature of your business, expected income, growth plans and tax situation.
This guide explains everything you need to know about how to start a business in Spain as a foreigner, compares an SL with self-employment and outlines the costs, requirements and tax implications of each option.
Can you start a business in Spain as a foreigner?
Yes. There are no nationality restrictions on owning shares in or acting as a director of a Spanish company.
Whether you are an EU citizen, a UK national, an American entrepreneur or from another non-EU country, you can start a business in Spain as a foreigner without restriction.
The main practical requirement is obtaining a Spanish NIE (Número de Identidad de Extranjero), which serves as your tax identification number in Spain.
While non-residents can own and manage Spanish companies, non-EU nationals who wish to live in Spain while actively running their business will generally require an appropriate residence permit.
Why many foreigners choose an SL when they start a business in Spain
The Sociedad Limitada (SL) is Spain’s most popular company structure and is often the preferred choice for those who want to start a business in Spain as a foreigner.
An SL provides limited liability protection, meaning shareholders are generally only liable up to the amount invested in the company.
The structure is particularly attractive for entrepreneurs who expect to grow their business, hire employees, work with larger clients or bring in additional shareholders in the future.
An SL can have one shareholder or multiple shareholders, and neither the shareholders nor directors need to be Spanish nationals.
Requirements when you start a business in Spain as a foreigner
Several formalities must be completed before incorporation:
- Obtain NIE numbers for shareholders and directors.
- Reserve a company name with the Registro Mercantil Central.
- Open a Spanish company bank account.
- Deposit the share capital.
- Prepare the company’s bylaws and incorporation deed.
- Sign the incorporation documents before a Spanish notary.
- Register for tax purposes and obtain the company NIF.
- Register the company with the Mercantile Registry.
Since Startup Law 28/2022, the minimum share capital requirement has been reduced from €3,000 to €1, making it more accessible than ever to start a business in Spain as a foreigner.
How to start a business in Spain as a foreigner: step by step
- Obtain NIE numbers.
- Reserve the company name.
- Open a business bank account.
- Deposit share capital.
- Prepare the incorporation deed and bylaws.
- Execute the deed before a notary.
- Obtain the company NIF.
- Register with the Mercantile Registry.
- Register for VAT, corporate tax and social security obligations.
Costs involved when you start a business in Spain as a foreigner
| Item | Approximate Cost |
|---|---|
| Company name certificate | €15–€20 |
| Notary fees | €150–€500 |
| Mercantile Registry fees | €100–€300 |
| Legal and advisory fees | €600–€1,500+ |
| Minimum share capital | From €1 |
| Typical timeline | 2–6 weeks |
Tax implications when you start a business in Spain as a foreigner
An SL generally pays corporate income tax at 25%.
Newly established companies can benefit from a reduced 15% rate during their first profitable years, subject to eligibility requirements.
The company may also need to register for VAT (IVA), payroll taxes and social security contributions depending on its activities.
For entrepreneurs expecting substantial profits, choosing to start a business in Spain as a foreigner through an SL may provide tax planning opportunities that are unavailable to self-employed individuals.
SL versus self-employed: which suits you best?
One of the most important decisions when you start a business in Spain as a foreigner is choosing between an SL and self-employed status.
Registering as an autónomo is generally simpler, faster and cheaper. It is often suitable for freelancers, consultants, digital nomads and professionals who work independently.
However, an SL may be the better option where business income is growing, liability protection is important or multiple owners are involved.
| Factor | SL Company | Self-Employed (Autónomo) |
|---|---|---|
| Liability | Limited | Unlimited |
| Setup costs | Higher | Lower |
| Administration | More complex | Simpler |
| Hiring employees | Ideal | Possible |
| Growth potential | High | Moderate |
Many entrepreneurs initially register as self-employed before transitioning to an SL as revenue and business complexity increase.
Speak to our commercial team about how to start a business in Spain as a foreigner
Our Valencia team assists foreign entrepreneurs with every stage of company formation, from NIE applications and company name reservations to notarial incorporation, tax registration and ongoing compliance.
Email: felix.delaguia@delaguialuzon.com
Phone: +34 963 74 16 57
Address: Avinguda Regne de Valencia, 6, 1º–2º, 46005 Valencia, Spain
FAQs
Do I need to live in Spain to start a business here as a foreigner?
No. Non-residents can own and manage Spanish companies, although non-EU nationals who wish to reside in Spain may need a suitable residence permit.
Can I really establish an SL with €1?
Yes. The legal minimum capital is now €1, although many businesses choose to contribute more realistic working capital.
Is it better to be self-employed or form an SL?
This depends on your expected income, business risks, liability concerns and growth plans. Many smaller businesses begin as autónomos and later incorporate as an SL.
How long does it take to start a business in Spain as a foreigner?
In most cases, the incorporation process takes between two and six weeks, depending on NIE processing times and registration formalities.
