How to open a business in Spain: legal advice for foreigners 

Many entrepreneurs dream of living in a country as welcoming and vibrant as Spain—where the sun shines, the food tastes delicious, and the pace of life allows you to truly enjoy each day. 

Now imagine combining that lifestyle with the opportunity to build and grow your own business in a stable legal environment with access to the European market. If that sounds like your vision, this guide will walk you through how to open a business in Spain, step by step, with clarity and legal confidence.

Why start a business in Spain?

Spain offers legal security, access to the European market, and a strong entrepreneurial ecosystem. According to Eurostat, Spain 15% of the Spanish workforce are self-employed professionals. If you’re a foreigner, setting up a business here can give you residency options, tax incentives, and the delightful Mediterranean lifestyle.

Can foreigners open a business in Spain?

Yes, both EU and non-EU citizens can open a business in Spain. If you’re from the EU/EEA, you have the same rights as Spanish nationals. If you’re from outside the EU, you’ll need a business visa or residence permit tied to entrepreneurial activity.

Legal steps to open a business in Spain

To open a business in Spain, you need to:

• Choose a legal structure (autónomo, SL, etc.)
  
• Obtain your NIE (foreign ID number)
  
• Register the business name
  
• Open a business bank account
  
• Draft and notarize company bylaws
  
• Register at the Mercantile Registry
  
• Register for taxes (Modelo 036/037)
  
• Join the Social Security system
  

Opening a business as a freelancer (autónomo)

If you want to freelance in Spain, you must register as an “autónomo.” You’ll pay IRPF (income tax), VAT, and a flat-rate social security fee (around €300/month, depending on your net earnings). It’s the fastest setup, but offers no legal separation between personal and business liabilities.

Setting up a limited company (Sociedad Limitada – SL)

Forming an SL gives you legal protection and credibility. You need €3,000 in share capital, articles of incorporation, and a notary signature. It usually takes 2–4 weeks and is ideal if you plan to scale or bring in partners.

Example: opening a digital marketing agency in Spain

Anna, a German freelancer, moves to Valencia and opens an SL for her remote agency. She got her NIE (foreigners ID), opened a bank account, incorporated her SL, and registered for VAT. In less than a month, she was legally operating with local and international clients.

Legal obligations and taxes once your business is active

Once active, your business must:

• File quarterly and annual income tax or corporate tax
  
• Declare VAT returns (IVA)
  
• Issue legal invoices and keep accounting records
  
• Register and pay social security contributions
  
• Follow labor laws if hiring staff
  

Business licenses and municipal permits

Yes, some activities require a business license. You may need:

• Activity license (licencia de actividad)
  
• Opening license (licencia de apertura)
  
• Sector permits (e.g. food, health, transport)
  

Pro tip: Check with your local Ayuntamiento to avoid fines.

How to open a branch or subsidiary of a foreign company

You can register a branch (without separate legal identity) or set up a subsidiary SL. Subsidiaries offer more autonomy and tax advantages. You’ll need parent company documents, Spanish translations, and a local representative.

Common challenges (and how to overcome them)

Foreign entrepreneurs in Spain face three main barriers:

• Bureaucracy and delays: hire a business lawyer in Spain to speed up
  
• Language barrier: official forms are in Spanish
  
• Cultural differences: business etiquette and negotiation styles differ
  

Professional help: when to hire a consultant

A legal or administrative consultant can help you save time, avoid fines, and ensure full compliance. They assist with paperwork, taxes, and licensing. Expect to pay €600–€2,000 depending on your company type and city.

Frequently asked questions

Do I need to live in Spain to open a business?
No, but non-residents need a fiscal representative and business visa.

How long does it take to open a business?
Freelancers: 1–5 days. Limited companies: 2–4 weeks.

Can I get a visa by starting a business?
Yes. Spain offers a self-employment visa and entrepreneur visa (Ley de Emprendedores).

How much tax will I pay?
SLs pay 25% corporate tax on net income. Freelancers pay between 15–30% depending on income.

What’s the difference between autónomo and SL?
Autónomo is simpler and cheaper. SL offers legal separation between the company and the individuals and is better for growth.

Conclusion: start your business in Spain the right way
 

Opening a business in Spain as a foreigner is absolutely possible—and often strategic. With clear steps, the right legal structure, and support from expert business lawyers in Spain, you can be up and running in weeks. Spain offers a mix of lifestyle and business potential that’s hard to beat. 🌍🇪🇸