How to start a business in Spain as a foreigner

by | Apr 4, 2025 | invest, procedures and formalities

If you're a foreigner looking to start a business in Europe, Spain is one of the best gateways. Thanks to its strategic location, language, legal security, and agreements with other countries, more and more people are choosing to establish their businesses here, whether to operate from abroad or to settle in the country.

In this guide, we explain how to start a business in Spain if you are neither a Spanish nor an EU citizen. It includes types of companies, legal requirements, taxes, visas, and benefits. 

It is possible to start a company in Spain and continue living abroad. Or, you can start a company in Spain and use that as your reason for settling in this country. In that case, in addition to starting the company, you must apply for the entrepreneur visa or self-employed work visa. In all cases, you can apply for residency for your family (spouse, children, dependent parents).

 

Most common types of companies for foreigners

  • Self-employed: fast and economical, ideal for freelancers.
  • Limited Company: the most widely used form for SMEs. It requires a minimum share capital of €3,000.
  • Public Limited Company (PLC): for large investments, with capital from €60,000.
  • Foreign branch or subsidiary: If you already have a company in another country and want to operate in Spain.

The Limited Company is the most popular option for international entrepreneurs, as it combines flexibility, asset protection, and ease of management.

The 10 steps to starting a business

 

1) Reserve the company name

This is your company’s legal name. You must submit a list of three potential names (in order of preference) to Spain’s Central Mercantile Registry (Registro Mercantil Central). The registry will approve the first available option. The process usually takes up to 48 hours.  

2) Open a File at the Notary 

You’ll need to choose a notary in Spain to handle the legal creation of your company. The first step is opening a file and obtaining a certificate of business interest. 

3) Obtain a NIE (Foreigner Identification Number)

All company partners and the appointed director must have a NIE (Número de Identificación de Extranjero). This number is essential for tax purposes and legal identification in Spain, even if you don't live there. You can apply for a NIE in Spain or at your local Spanish consulate in Argentina. 

4) Draft the Company Bylaws (Statutes)

At this stage, you’ll define the company’s structure: who the partners are, who the director is, and the type of business activity your company will carry out.

5) Deposit the Share Capital

The minimum capital to establish a limited liability company (Sociedad Limitada) is €3,000. For a corporation (Sociedad Anónima), the minimum is €60,000. This capital must be deposited into a bank account opened in the company’s name.

6) Sign the Deed of Incorporation

This step takes place at the same notary where you opened the file. The company is officially created through a public deed, and the notary also certifies the bylaws.

7) Obtain a Provisional Tax Identification Code (CIF)

After signing the incorporation deed, your company receives a provisional CIF, which allows it to begin operations.

8) Register the Company with the Mercantile Registry

Within one month of signing the deed, you can register your business with the local office of the Mercantile Registry (Registro Mercantil) based on your company’s address.

9) Obtain the Final CIF

This is your company’s official tax identification code issued by Spain’s Tax Agency (Agencia Tributaria). You must complete an online form and then submit it in person at your local tax office.

10) Register with Social Security

At least one of the partners must register with Spain’s Social Security system. If you have a digital certificate, you can complete this process online. Otherwise, it must be done in person at the Social Security office corresponding to your company’s address. 

    How Much Does It Cost to Start a Company in Spain?

    The total cost can range from €1,000 to €3,500, depending on which steps you handle yourself and which are managed by a law firm or business consultant.

    Fixed cost includes

    • Notary fees: Depend on your share capital. Starting from €60 for capital up to €3,100 and about €90 for capital up to €6,010. For larger amounts, a variable percentage (0.03% to 0.45%) applies.

       

    • Company name reservation with the Central Mercantile Registry: Between €16.36 and €24.31 depending on the delivery method.

       

    • Registration and publication in the Mercantile Registry and BORME (Spain’s Official Gazette): €210.

    Other services, such as drafting your company bylaws, can start at €500 for basic versions and may increase depending on complexity. That’s why many people choose to work with a law firm to streamline the process and ensure compliance. 

    Taxes paid by a company in Spain

    • Corporate Tax: 25% of the profits

    • VAT: 21% overall (may vary by sector)

    • Personal Income Tax Withholdings: if you have employees or suppliers

    • Quarterly and annual statements

    Advantages of creating a company in Spain as a foreigner

    • Access to the European market

    • Modern and reliable banking system

    • Double taxation agreements with many countries

    • Possibility of obtaining legal residence

    • Lower operating costs than in other EU countries

    How can we help you?

    We are a law firm in Barcelona specializing in advising foreigners who wish to invest or start a business in Spain. We support you throughout the entire process:

    • NIE Application

    • Incorporation of companies

    • Assistance for operating from abroad

    • Tax and immigration advice

    You can write to us by email or WhatsApp for a free initial evaluation of your case.

     

    FAQs

    • Can I open a business without living in Spain? Yes. Residency isn't required. You just need a Foreign National Identification Number (NIE) and legal representation.
    • What type of company is best? For most cases, a Limited Company.
    • Can my business operate online only? Yes, many foreign companies provide digital services from Spain.
    • How long does the opening process take? Between 15 and 30 working days, depending on the complexity of the case.
    • Can I get residency by opening a business? Yes, if certain requirements are met. We'll advise you based on your situation.