Spain is not just a country with a wonderful climate and rich culture. It is a dynamically developing European economy that opens doors for ambitious entrepreneurs from all corners of the world. If you dream of your own business under the Spanish sun, this article will become your comprehensive guide.
Why exactly Spain for your business?
Why exactly Spain for your business?
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Spain occupies a strategic position on the world map — it is a bridge between Europe, Africa and America.
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The country is part of the eurozone, which ensures currency stability and access to the largest single market in the world.
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The Spanish economy is the fourth largest in Europe and the 14th in the world, which creates many opportunities for business growth and development.
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The Spanish government actively supports entrepreneurship, especially in the field of innovation and technology.
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The country offers various benefits for startups, investors and digital nomads. In addition, the Spanish labor market is distinguished by a high level of education.
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Spain is among the top countries in terms of the number of people with higher education.
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The quality of life in Spain is recognized as one of the best in the world. This means that you will not only be able to successfully run a business, but also enjoy life in a country with a rich culture, excellent cuisine and an ideal climate for work and leisure.
Can a foreigner open a business in Spain?
Absolutely yes! Spain welcomes foreign entrepreneurs and investors. Moreover, the country’s legislation is specially adapted to simplify business opening procedures for non-EU citizens.
Foreigners have equal rights with Spanish citizens in matters of doing business. You can:
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Register companies of any forms
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Own 100% of shares or stakes in a company
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Be the sole founder and director
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Open business bank accounts
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Obtain all types of licenses and permits
The only requirement is the availability of NIE (Número de Identificación de Extranjero) — the foreigner’s tax number, which is easy to obtain at any police station or Spanish consulate.
Main forms of doing business in Spain
Main forms of doing business in Spain
1
Autónomo — Spanish sole proprietor (self-employed).
Autónomo status is the simplest and fastest way to start a business in Spain.
Autónomo status is the simplest and fastest way to start a business in Spain.
1
Autónomo — Spanish sole proprietor (self-employed).
Autónomo status is the simplest and fastest way to start a business in Spain.
It is ideal for:
- Freelancers and consultants
- Small businesses with a turnover of up to 1–2 million euros per year
- Those who want to test their business idea
- Digital nomads working with Spanish clients
Advantages of autónomo status:
- Fast registration (1–2 weeks)
- Minimal startup costs
- Simple reporting
- Possibility to work in most fields of activity
- Tax benefits for beginners (reduced rates in the first months)
Taxation of autónomos:
Autónomos pay personal income tax on a progressive scale from 19% to 47%, depending on annual income. They must also make monthly social security contributions, which in 2025 amount to from €294 per month for new autónomos.
2
Sociedad Limitada (SL) — Limited Liability Company.
SL is the Spanish equivalent of LLC, the most popular form of corporate business in Spain.
2
Sociedad Limitada (SL) — Limited Liability Company.
SL is the Spanish equivalent of LLC, the most popular form of corporate business in Spain.
This form is suitable for:
- Medium and large businesses
- Companies with several shareholders
- Businesses requiring investment
- Activities with increased risks
Features of SL:
- Minimum share capital — €3,006
- Limited liability of shareholders
- Possibility to have from 1 to unlimited shareholders
- Clear separation of personal and corporate assets
- More opportunities for tax planning
Taxation of SL:
Companies pay corporate tax at 25% of profit. For new companies, a reduced rate of 15% applies during the first two years. VAT (IVA) is 21% for most goods and services, but there are reduced categories with rates of 10% and 4%.
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Sociedad Anónima (SA) — Joint-Stock Company.
SA is suitable for large projects requiring significant investment:
- Minimum share capital — €60,101
- Possibility of public offering of shares
- More complex management structure
- Suitable for large-scale projects and IPOs
3
Sociedad Anónima (SA) — Joint-Stock Company.
SA is suitable for large projects requiring significant investment:
- Minimum share capital — €60,101
- Possibility of public offering of shares
- More complex management structure
- Suitable for large-scale projects and IPOs
Other forms of business activity:
Comunidad de Bienes — simple partnership for joint activity without forming a legal entity.
Sociedad Civil — civil partnership for professional activity (doctors, lawyers, architects).
Cooperativa — cooperative for socially oriented business.
Tax system in Spain for business
The Spanish tax system is relatively transparent and predictable. The main taxes that apply to business are:
Tax system in Spain for business
The Spanish tax system is relatively transparent and predictable. The main taxes that apply to business are:
Corporate tax (Impuesto sobre Sociedades)
- Standard rate: 25%
- Reduced rate for new companies: 15% during the first two years
- Reduced rate for innovative startups: can be lowered to 10%
Personal income tax for autónomos (IRPF)
Progressive scale:
- Up to €12,450: 19%
- €12,450 – €20,200: 24%
- €20,200 – €35,200: 30%
- €35,200 – €60,000: 37%
- Over €60,000: 45%
- Over €300,000: 47%
VAT (IVA)
- Standard rate: 21%
- Reduced rate: 10% (food, medicines, books)
- Super-reduced rate: 4% (bread, milk, fruit, vegetables)
- Exemptions: education, healthcare, financial services
Social security contributions
Autónomos and companies are required to contribute to the social security system:
- Autónomos: from €294 per month (reduced tariff for new ones)
- Companies: about 30% of payroll
Tax benefits and advantages
Tax benefits and advantages
Canary Islands (ZEC):
Special economic zone with corporate tax at 4% for certain activities.
Benefits for startups:
- Reduced corporate tax to 15% during the first two years
- Ability to carry forward losses to future periods
- Capital gains tax exemptions for investors
Double taxation treaties:
Spain has agreements with over 100 countries, allowing to avoid double taxation and optimize tax burden.
Best cities to start a business in Spain
Best cities to start a business in Spain
Madrid is the financial and business center of Spain. The headquarters of the largest Spanish and international companies are located here.
Advantages of Madrid:
Advantages of Madrid:
- Decision-making center
- Developed financial infrastructure
- Best networking opportunities
- High concentration of talent
- Excellent transport accessibility
- Fintech and banking services
- Consulting and professional services
- Headquarters of international companies
- B2B services
Barcelona is recognized as one of Europe’s leading technology hubs. The city hosts the Mobile World Congress and many other international events.
Advantages of Barcelona:
Advantages of Barcelona:
- Strong startup ecosystem
- International atmosphere
- Proximity to France and the rest of Europe
- Developed design and creative industries sector
- Quality higher education
- IT and software development
- Design and creative services
- E-commerce
- Biotechnology
- Tourism services
Valencia is quickly becoming an alternative to Madrid and Barcelona for technology companies, offering more affordable costs and high quality of life.
Advantages of Valencia:
Advantages of Valencia:
- Lower cost of doing business
- Growing IT sector
- Excellent logistics (largest port on the Mediterranean Sea)
- Strong universities
- Ideal climate
- Early-stage startups
- Logistics and international trade
- Agrotechnology
- Renewable energy
Malaga is actively positioning itself as a hub for digital nomads and remote work thanks to the Málaga Work Bayprogram.
Advantages of Malaga:
Advantages of Malaga:
- Excellent year-round climate
- Growing IT ecosystem
- Programs supporting digital nomads
- Relatively low cost of living
- Quality infrastructure
- Digital agencies
- Remote services
- Consulting
- Educational technologies
The Canary Islands offer unique tax benefits through the ZEC (Zona Especial Canaria).
Advantages of the Canary Islands:
Advantages of the Canary Islands:
- Corporate tax 4%
- Income tax benefits
- Status of EU outermost region
- Excellent quality of life
- Strategic location between Europe, Africa, and America
- International holding
- IT services
- Shipping and logistics
- Financial services
Step-by-step process of starting a business in Spain
Step-by-step process of starting a business in Spain
For Autónomo (self-employed status):
- Obtain NIE — foreigner identification number
- Choose a tax regime — modular or direct method
- Register with the tax office (Hacienda) — submit form 036 or 037
- Register with social security — obtain social security number
- Open a business bank account
- Obtain licenses (if required for your activity)
For a company (SL):
- Obtain NIE for all founders
- Reserve the company name in the Central Commercial Registry
- Open a bank account and deposit the share capital
- Notarize the incorporation documents
- Register with the tax office — obtain the company tax number (CIF)
- Register with the Commercial Registry
- Register with social security as an employer
- Obtain licenses and permits
Popular business sectors in Spain
Popular business sectors in Spain
Tourism and Hospitality
Spain is the second most popular tourist country in the world. The tourism sector accounts for about 12% of the country’s GDP.
Opportunities:
Opportunities:
- Hotels and apartments
- Restaurants and bars
- Tourist services and excursions
- Short-term rentals
- Event tourism
Information Technology
The IT sector in Spain grows by 15–20% per year, significantly exceeding the EU average.
Opportunities:
Opportunities:
- Mobile app development
- SaaS solutions
- E-commerce platforms
- Cybersecurity
- Artificial intelligence
Renewable Energy
Spain is one of the leaders in renewable energy in Europe.
Opportunities:
Opportunities:
- Solar energy
- Wind energy
- Energy consulting
- Energy storage systems
Agrotechnologies
Spain is the largest producer of fruits and vegetables in the EU.
Opportunities:
Opportunities:
- Precision agriculture
- Irrigation systems
- Organic production
- Food technologies
Real Estate
The Spanish real estate market has recovered after the crisis and shows stable growth.
Opportunities:
Opportunities:
- Development
- Property management
- Renovation and reconstruction
- Commercial real estate
Types of visas for doing business in Spain
Types of visas for doing business in Spain
Digital Nomad Visa
Since 2023, Spain offers a special visa for digital nomads, allowing them to live in the country for up to a year while working remotely.
Requirements:
Requirements:
- Income of at least €2,000 per month
- Work for companies outside Spain (minimum 80% of income)
- Health insurance
- No criminal record
Startup Visa
Visa for entrepreneurs with innovative projects approved by a special commission.
Requirements:
Requirements:
- Innovative nature of the project
- Economic justification
- Sufficient financial resources
- Higher education or experience in the field
Investor Visa (Golden Visa)
Visa for large investors providing residency in exchange for significant investments.
Requirements:
Requirements:
- Investment of €500,000 in real estate
- Or €1 million in Spanish company shares
- Or €2 million in government bonds
Self-employed visa
Standard work visa for those planning to run a business in Spain as Autónomo.
Requirements:
Requirements:
- Business plan
- Sufficient financial resources
- Relevant education or experience
- No criminal record
Banking services for business
The Spanish banking system is considered one of the most reliable in the world. A corporate bank account is required to run a business.
Banking services for business
The Spanish banking system is considered one of the most reliable in the world. A corporate bank account is required to run a business.
Main banks for business:
- Santander — largest bank in Spain with excellent service for international business
- BBVA — strong position in digital services
- CaixaBank — wide branch network
- Sabadell — specialization in small and medium-sized businesses
Documents for opening a corporate account:
- NIE of all signatories
- Company incorporation documents
- Certificate from the commercial registry
- Business plan
- Proof of company address
- Intellectual property and licensing documents
Intellectual property and licensing
Spain participates in all major international agreements for intellectual property protection.
Intellectual property and licensing
Spain participates in all major international agreements for intellectual property protection.
Trademark registration:
- At the Spanish Patent and Trademark Office (OEPM)
- Or at the European Union Intellectual Property Office (EUIPO)
Patents:
- National registration via OEPM
- European registration via EPO
- International registration via WIPO
Labor law
If you plan to hire employees, it is important to know the basics of Spanish labor law:
Labor law
If you plan to hire employees, it is important to know the basics of Spanish labor law:
Types of employment contracts:
- Permanent contract — standard form
- Fixed-term contract — for temporary projects
- Part-time contract
- Internship contract for young specialists
Social guarantees:
- Minimum wage: €1,134 per month (2025)
- Vacation: minimum 30 calendar days
- Sick leave: 100% pay from the 4th day
- Maternity/paternity leave: 16 weeks for mother, 16 weeks for father
Support for startups and innovation
The Spanish government and regional authorities offer many support programs for new companies:
Support for startups and innovation
The Spanish government and regional authorities offer many support programs for new companies:
ENISA — National Innovation Company
Provides loans for innovative companies on favorable terms.
Provides loans for innovative companies on favorable terms.
ICO — Official Credit Institute
Funding programs for SMEs.
Funding programs for SMEs.
Funding programs for small and medium-sized businesses.
Funding programs for small and medium-sized businesses.
Regional programs:
- Madrid: Madrid Emprende
- Catalonia: ACCIÓ
- Valencia: IVACE
- Andalusia: IDEA
Business incubators and accelerators:
- Wayra (Telefónica)
- Lanzadera (Juan Roig)
- Seedrocket
- Ship2B
Our services: turning your business dreams into reality
We know Spanish business from A to Z and are ready to become your reliable partners on the path to success. Our team of experts offers a full range of services for starting and developing a business in Spain:
Our services: turning your business dreams into reality
We know Spanish business from A to Z and are ready to become your reliable partners on the path to success. Our team of experts offers a full range of services for starting and developing a business in Spain:
🚀 Dream Business — turnkey company registration
Full support for registering any form of business in Spain:
- Consultation on choosing the optimal legal structure
- Company name reservation
- Preparation of all necessary documents
- Notarization
- Registration in the commercial registry
- Obtaining a tax number (CIF)
- Opening a corporate bank account
- Registration in social security
Timeline: 2–4 weeks
Result: Fully operational company
Dream Startup — from idea to successful business
Comprehensive support for innovative projects:
- Analysis and development of business idea
- Creation of a professional business plan
- Market and competitor research
- Financial modeling and forecasts
- Assistance in obtaining a startup visa
- Finding investors and grants
- Legal support for the project
- Integration into Spain’s startup ecosystem
Feature: We don’t just prepare documents; we create the foundation for the successful development of your project in Spain.
💼 Dream Mini Business — Autónomo status for freelancers
Fast registration of individual entrepreneur status:
- Obtaining NIE (if necessary)
- Choosing the optimal tax regime
- Registration with the tax office (Hacienda)
- Social security registration
- Reporting consultations
- Assistance in obtaining professional licenses
- Tax optimization
Ideal for: Freelancers, consultants, digital nomads, small businesses
📊 Tax consulting — optimizing your expenses
Professional tax planning and advisory:
- Analysis of current tax burden
- Development of a tax planning strategy
- Consultation on international taxation
- Assistance with applying double taxation agreements
- Tax incentives and preferences
- Representation before tax authorities
- Tax due diligence when buying a business
Result: Significant tax savings while fully complying with the law
📈 Accounting support — forget about routine
Complete bookkeeping and reporting:
- Managing primary documentation
- Preparing monthly reports
- Filing tax returns
- Payroll and social security calculations
- Management reporting
- Financial planning consultations
- Preparation for tax audits
Advantage: We free you from routine work so you can focus on business growth.
🏛️ Corporate services — growing your business
Comprehensive legal and corporate support:
- Corporate planning and restructuring
- Drafting contracts and agreements
- M&A deal support
- Licensing
- Trademark and patent registration
- Labor law and HR consulting
- Representation in courts and government agencies
Why choose us?
Why choose us?
✅ Expertise — Deep knowledge of Spanish law and business practices
✅ Personalized approach — Tailored solutions for each client
✅ Speed — Fast task completion thanks to streamlined processes
✅ Transparency — Clear deadlines, fixed prices, reporting at every stage
✅ Support — Assistance not only during launch but also in business development
✅ Network — Connections with banks, investors, government agencies, and business community
Start your path to success today
Spain opens unlimited opportunities for ambitious entrepreneurs. The country offers a stable economy, favorable taxation, high quality of life, and access to the European market.
Whether you want to launch a tech startup in Barcelona, open a restaurant in Madrid, operate as Autónomo in Valencia, or create an international company in the Canary Islands — we will help make your business dreams a reality.
Spain opens unlimited opportunities for ambitious entrepreneurs. The country offers a stable economy, favorable taxation, high quality of life, and access to the European market.
Whether you want to launch a tech startup in Barcelona, open a restaurant in Madrid, operate as Autónomo in Valencia, or create an international company in the Canary Islands — we will help make your business dreams a reality.
Your success in Spain begins with a single call or message. Let’s discuss how we can help you build a thriving business under the Spanish sun!
Fill out the form, and we will contact you for a personal consultation and project discussion!
Fill out the form, and we will contact you for a personal consultation and project discussion!