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From Nevada to Valencia: how Delaguía y Luzón guided a leading software company through its establishment in Spain
For years, Delaguía y Luzón has been the trusted partner of foreign companies navigating the complex legal, tax, and administrative frameworks of Spain.
Among these success stories, one stands out for its scale and speed: a North American technology company headquartered in California and Nevada, with more than 25 years of experience in software development.
In 2023, its management team selected us to oversee their establishment in Spain.
The result? In just three months, the company launched its new European subsidiary in Valencia with full legal certainty, tax compliance, and operational readiness.
Why Europe? Strategic reasons for establishment in Spain
Spain has become one of the fastest-growing destinations for international businesses.
According to ICEX Invest in Spain, more than 15,000 foreign companies operate in the country, contributing to nearly 40% of national exports.
Spain’s advantages are clear:
- Gateway to the EU market: access to over 450 million consumers.
- Skilled workforce: Spain produces more than 120,000 STEM graduates annually, with Valencia hosting one of the country’s most dynamic tech ecosystems.
- Attractive lifestyle: Spain consistently ranks among the top European destinations for quality of life, digital nomadism, and expatriate satisfaction.
For this client, Valencia was the perfect hub.
The city combines competitive costs, an international airport with global connections, and a growing tech ecosystem, already home to over 900 innovative start-ups and multiple multinational R&D centres.
From consultation to turnkey implementation
It was clear from the start that this was not a matter of simply incorporating a company; it required a comprehensive, turnkey implementation covering every legal and operational step: incorporation, tax law, labour law compliance, immigration support, and ongoing advisory services.
What is the right legal structure for establishing in Spain?
After analysing the client’s objectives, the most suitable option was the creation of a Spanish limited liability company (Sociedad Limitada – S.L.) fully owned by the US parent company.
This structure ensured operational independence while aligning with Spain’s corporate and tax regulations.
Key steps included:
- Coordination of US documentation with apostilles and sworn translations.
- Drafting of bilingual articles of association tailored to a software consultancy.
- Reservation of the corporate name and notarial execution of the public deed of incorporation.
- Registration with the Commercial Register of Valencia and issuance of the NIF (Tax Identification Number).
- Compliance with Law 10/2010 on Anti-Money Laundering through the Certificate of Identification of Beneficial Owners.
What is the tax and regulatory compliance in Spain?
Spain offers a general corporate tax rate of 25%, with incentives for innovation, R&D, and technology-based activities.
Our legal team ensured that the subsidiary benefited from available deductions, while also establishing correct transfer pricing and parent–subsidiary frameworks to avoid double taxation.
People management: immigration, recruitment, and taxation
One of the most sensitive aspects of any establishment in Spain is workforce regularisation.
This project required both immigration support and labour law compliance:
- Immigration: Several US engineers had been residing in Spain under the Digital Nomad Visa. We coordinated their transition to Highly Qualified Employee permits, ensuring seamless incorporation into the Spanish social security system.
- Recruitment: drafting of bilingual employment contracts with specific clauses for expatriates and technical profiles, aligned with Spanish labour law.
- Taxation: personalised advice for executives to optimise personal taxation under IRPF (Personal Income Tax) and IRNR (Non-Resident Income Tax) during their transition year.
Results: a fully operational subsidiary in 3 months
Thanks to strategic planning and multidisciplinary coordination, the company achieved a secure, compliant, and sustainable establishment in Spain:
✅ Public deed of incorporation signed and registered.
✅ NIF obtained and corporate bank accounts activated.
✅ Physical headquarters in Valencia is fully operational.
✅ Workforce regularised under Spanish labour and immigration law.
✅ Tax framework aligned with both Spanish and international requirements.
Today, the subsidiary is an active player in Valencia’s booming tech sector, already expanding its workforce with local talent.
Most importantly, the client operates with peace of mind, knowing that every aspect of its establishment complies with Spanish regulations.
Building lasting success: our value proposition
Launch in Spain with confidence
Our multilingual team (Spanish · English · French · Russian) has guided international tech groups for 65 years across corporate set-up, immigration, tax, and labour compliance—especially in the Valencian Community.
1) Free scoping call
Define objectives, timeline and entity options (SL, branch, ETVE, HQ).
2) Structuring & roadmap
Tax & labour blueprint, immigration routes (HNWI/Beckham, HQP, DNV), risk map.
3) Execution
Company formation, payroll & compliance, registrations and filings.
4) Ongoing support
Accounting, audits, transfer pricing, visas & renewals, dispute resolution.
Address: Avinguda Regne de Valencia, 6, 1º-2º, 46005 Valencia, Spain
Hours: Mon–Thu 08:30–18:00 · Fri 08:30–15:00 (CET)
Languages: Spanish · English · French · Russian
FAQ: Establishment in Spain
How long does establishment in Spain usually take?
With proper legal and tax support, the process of establishment in Spain can often be completed within 6–12 weeks, depending on documentation and approvals.
What legal structure is best for establishment in Spain?
Most foreign companies choose the Sociedad Limitada (S.L.), a Spanish limited liability company, as it offers flexibility, limited liability, and full legal recognition for operations.
What documents are required for establishment in Spain?
Companies generally need apostilled articles of association, certificates of validity, sworn Spanish translations, and powers of attorney to complete the incorporation process.
How does establishment in Spain affect foreign employees?
Foreign employees may need Highly Qualified Employee permits, work visas, or, if already living in Spain, a transition from Digital Nomad Visas. Immigration support is key to a smooth establishment in Spain.
What taxes apply after establishment in Spain?
Subsidiaries in Spain pay a general corporate tax of 25%, with deductions available for innovation and R&D. Employees must also comply with Spanish personal income tax (IRPF).