Why Start a Business in Spain?
Spain has a convenient geographical location for accessing the markets of the EU, the Middle East, North Africa and Latin America. Foreign companies can take advantage of a loyal government policy on direct investment and simplified conditions for doing business in Spain.
How to Start a Business in Spain: Step-by-Step
1. Decide on the legal form of the business
2. Obtain an identification number (NIE)
3. Open a company bank account
4. Register a unique company name
5. Draw up an agreement between shareholders
6. Register the company with a notary
7. Register with the tax service
8. Register with the social security system
Starting a Business in Spain as a Foreigner
Foreigners have the right to set up a business in Spain. The main requirement is to obtain an NIE identification number, which is necessary for opening an account, signing contracts, registering a business and paying taxes.
Company Formation in Spain: Key Options
In Spain, there are several key structure options to start a business. The Limited Liability Company (SL) is suitable for small and medium-sized enterprises, providing limited liability and requiring a minimum share capital of €3,000. The Public Limited Company (SA) is intended for larger companies with larger capital investments, with a minimum share capital of €60,000 and the structure allows for attracting investors through the issuance of shares. Sole proprietors (self-employed) have a simple and quick registration procedure with minimal start-up costs and full control over the business.
Taxation and Accounting for Businesses in Spain
The basic rate of corporate income tax (CIT) in Spain is 25%. Newly created companies, as well as startups that meet certain criteria, can apply a reduced rate of 15% for the first two taxable periods. For small and micro enterprises, the CIT rate is gradually reduced starting in 2025, down to 17% for profits up to €50,000.
Opening a Business Bank Account in Spain
To open a business account in Spain, a company must have a Spanish tax number and proof of registration with the Commercial Registry. Banks may require incorporation documents, identification of beneficiaries, and a description of the company's activities.
Company Registration Costs in Spain
Name of the service
Start
Lite
Business🔥
Pro
Onboarding (name check, bylaws, NIF/VAT number)
✅
✅
✅
✅
Company Incorporation
(Company Incorporation with Foreign company as shareholder: Euro 1650 (per entity in addition to the total company registration fee)
✅
✅
✅
✅
Obtaining NIF (foreigner identification number)
❌
✅
✅
✅
Registered corporate address for 1 year
❌
❌
✅
✅
Tax Representation and reception of government notifications via DEH (1 year)
❌
❌
✅
✅
Digital Certificate
❌
❌
✅
✅
Corporate Account Opening
❌
❌
❌
✅
Shareholders’ or Investment Agreement
❌
❌
❌
✅
Assistance with investment attraction
❌
❌
❌
✅
Total cost
from 2500 EUR
from 1,920 EUR
from 3050 EUR
from 2,340 EUR
from 4100 EUR
from 3,140 EUR
from 6890 EUR
from 5,295 EUR
*The offer is valid until 2026-01-31
Common Mistakes in Company Formation in Spain
When opening a business in Spain, foreign entrepreneurs often encounter common mistakes that can lead to delays or unnecessary costs. One such mistake is underestimating the complexity of the company registration procedure and not taking into account the deadlines associated with involving notaries, translators, banks and government agencies. Also common is the incorrect assessment of the legal forms of the business, which can affect tax obligations and the scope of liability. It is important to consult a lawyer or tax advisor in advance to choose the optimal company form and avoid legal and administrative complications.
5.0
"Their adept use of technology for communication and project management streamlined the entire process."
Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.
Oleksandr Platonov
CEO, VorfahrQR UG
Germany📍
Apr 10, 2024
5.0
"They have a modern and technological approach to doing business."
The client is satisfied with Icon.Partners' work, whose documentation is a vital part of their success. The client resolves legal and financial issues with the help of the team. Their excellent communication skills, timely delivery, modern approach, and diverse expertise make them a great partner.
Anton Tkachov
CEO of Gotoinc LTD
Cyprus📍
Jan 18, 2024
Reviews
5.0
"Their adept use of technology for communication and project management streamlined the entire process."
Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.
Oleksandr Platonov
CEO, VorfahrQR UG
Germany📍
Apr 10, 2024
Reviews