Starting a Business in Spain as a Foreigner | US Guide

Are you looking to start a business in Spain as a foreigner? To get your Spanish business going, you’ll need to understand business and visa requirements. This article will cover the essential steps and resources to establish your business in this European market.

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How to Start a Business in Spain as a Foreigner: First Steps

There are some basic key steps to starting a business in Spain as foreigner:

1. Figure out your business structure, such as a sole proprietorship
2. Get the necessary documentation
3. Register your business
4. Adhere to the tax and Social Security obligations

But first, make sure you can even open a business in Spain.

Can I Open a Business in Spain as a Non-Resident?

Yes, non-residents can open businesses in Spain. The country welcomes entrepreneurs from around the world, including US citizens. Spain’s infrastructure, location, and business environment make it an attractive destination for foreigners. However, you have to the correct visa.

Can You Move to Spain and Start a Business?

Yes, you can move to Spain to start a business. The country offers two main visas for foreigners looking to get their business going:

• Self-employed work visa: A good option if your business idea is not innovative and does not include technology.¹

• Entrepreneur visa: A good option if you have a business idea that is based on technology and innovation.²

To apply for either visa, you will need to meet several requirements, including having a detailed business plan and proof of funds to support your business. The process for applying for a visa can take several months, so it is important to start planning well in advance.

What Steps Will Be Involved in Starting a Business in Spain for Foreigners?

Embarking on a business venture in Spain as a foreigner involves a series of key steps:

1. Get a Foreigner Identity Number (NIE), also known as a Número de Identidad de Extranjero, which is a unique tax identification number.³

2. Register your company with a no-name coincidence certificate from the Mercantile Registry (Registro Mercantil Central or RMC).⁴

3. Open a business bank account with the necessary minimum deposit and have the share capital required.

4. Sign the deed of incorporation, which is a legal document that outlines the key details of your company and is signed by a notary.⁵

5. Register for social security and contribute to the Spanish social security system based on your business structure and employees.⁶

How Much Money Do I Need to Start a Business in Spain as a Non-Resident?

The cost of starting a business in Spain varies depending on your chosen business structure. For example, starting a self-employed international business is the most affordable option.

However, to start a limited liability company (LLC), the most common structure in Spain, requires €3,000 in capital plus another €1,500 to €2,000 for other expenses like legal fees and certificates.

Additional costs to consider include office space and supplies, legal and accounting assistance, as well as quarterly VAT and income taxes.

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Legal Requirements for Starting a Business in Spain as a Foreigner

While Spain welcomes foreign investment, you’ll want to ensure you understand the legal requirements for a smooth and successful start. Some of the most important legal requirements for your business include:

• Have your visa and work permits in hand
• Get your NIE (Número de Identidad de Extranjero)
• Register your company
• Obtain the business licenses necessary for your business activity

Meeting the basic legal prerequisites can give you a solid foundation for your business in Spain and maximize your chances of success.

Choose a Legal Structure in Spain as a Foreigner

One of your most important decisions involves selecting the legal structure that best suits your business. This choice will impact your financial obligations, liability and operations.

The main legal structures for starting a business in Spain include:⁷

1. Self-Employed (Autónomo)

• Best for: Freelancers and independent contractors offering services
• Pros: Simple registration process and lower initial costs
• Cons: Unlimited personal liability for debts and obligations

2. Limited Liability Company (Sociedad Limitada or S.L.)

• Best for: Small to medium-sized businesses
• Pros: Limited liability for shareholders and more credibility with investors
• Cons: More complex registration process and higher setup costs

3. Partnership (Sociedad Colectiva)

• Best for: Businesses with two or more partners
• Pros: Shared responsibilities and broader skillset and resources
• Cons: Shared liability for debts and potential disagreements between partners

4. Corporation (Sociedad Anónima)

• Best for: Large businesses
• Pros: Combines limited liability and credibility with investors
• Cons: More complex structure

Obtain Licenses and Permits for Your Business

Once you have your business structure down, such as self-employed or LLC, it’s time to get the necessary licenses and permits for your business. These legal requirements vary depending on your business type and location.

Here are some of the most common licenses and permits you’ll need:

• No-name coincidence certificate: This certificate, obtained from the Mercantile Registry (RMC), confirms that your desired company name isn't already in use. The process usually takes about three days.⁴
• Deed of incorporation: This official document outlines your company's essential details. It's typically signed before a notary, who will need various documents, including your NIE and the certificate from the Mercantile Registry.³
• Corporate Tax Identification Number (CIF): Get a Corporate Tax Identification Number (CIF) from the tax office.⁸

Consulting with legal experts or business advisory services can streamline this process and ensure you meet all the requirements.

How to Get a Business Visa in Spain

Non-EU citizens who plan to start a business in Spain will need a valid visa. Here are the steps you need to get a business visa:

1. Apply at the Spanish embassy in your home country
2. Provide evidence of sufficient funds to invest in your business and support yourself while living in Spain
3. Submit a comprehensive business plan outlining your company's goals and strategies
4. Offer proof of your skills and experience relevant to your business venture

The Spanish government may request evidence of how your business can create jobs for Spanish workers.

Tips for Opening a Business Account in Spain as a Foreigner

Opening a business bank account in Spain is necessary for foreign entrepreneurs. Here is how to streamline the process with a list of things you need to open a business account:

• Choose the right bank: Research and compare different banks to find one that suits your business needs. Consider factors such as fees, online banking services, and customer support. Some banks may cater specifically to foreign businesses, offering multilingual services and specialized account options.
• Prepare required documentation: Gather all necessary documents, typically including proof of identity and proof of business registration.
• Consider a business account with international capabilities: If your business involves international transactions, explore business account options that offer features like multi-currency accounts and international money transfers.

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Applying and Registering for the Deed of Incorporation

Once you have a foreigner's tax identification number (NIE) and register your company name, the next step is applying for the deed of incorporation. This legal document formally establishes your company and outlines key details like its name, address, directors, board members, and shareholders.

To obtain the deed of incorporation, schedule an appointment with a local notary public. You’ll need the following documents:

• Tax form 036: This form is used to request a tax identification number and provide essential details about your business activity.⁹
• Mercantile Registry Certificate: This certificate confirms that your chosen company name is unique and not already in use.
• Foreigner's Tax Identification Number (NIE): This number is essential for any fiscal transactions in Spain, including company incorporation.
• Bank certificate: This document serves as proof of the minimum share capital deposit (€3,000) in your Spanish business bank account.

After the notary public has verified your documents and you have signed the deed of incorporation, you will receive the original document. Then it’s time to register your deed of incorporation with the following.

Can I Get Residency in Spain if I Buy a Business?

While buying a business in Spain does not automatically grant you residency, it can be a pathway to obtaining a visa allowing you to live and work there.

You will still need to apply and get either the entrepreneur visa or self-employed work visa. Note that Spain discontinued its Golden visa program in 2024 that previously allowed non-EU residents to gain residency by investing in the country.

Helpful Links for Starting a Business in Spain as a Foreigner

Here are some useful resources for further reading before embarking on your new business in Spain:

• The Spanish Ministry of Industry, Commerce and Tourism: Offers comprehensive information on starting and running a business in Spain, including legal requirements, permits, and licenses.
• The Spanish Tax Agency: Provides information on tax obligations for businesses, including registration, filing, and payment.
• The Spanish Social Security Administration: Manages social security contributions for employees and self-employed individuals.
• The Spanish Chamber of Commerce: Offers support services for businesses, including training, networking, and advocacy.
• The Spanish Companies Registry: The official register of companies in Spain, where you can search for information on existing companies and register your own.
• Invest in Spain: The official website for foreign investment in Spain provides information on the investment climate, incentives, and opportunities.

🔍 Read next:
8 Tips for Starting a Business in Another Country

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Sources:

1. Ministry of Foreign Affairs, European Union and Cooperation of Spain - Self-employed work visa
2. Ministry of Foreign Affairs, European Union and Cooperation of Spain - Entrepreneur visa
3. Ministry of Foreign Affairs, European Union and Cooperation of Spain - Foreigner Identity Number (NIE)
4. Registro Mercantil Central - COMPANY NAME/LEGAL NAME
5. Social Security - Totalization Agreement with Spain
6. Strongabogados -Business types in Spain
7. Strongabogados - NIE, CIF, VAT#: Tax ID numbers in Spain
8. Strongabogados - NIE, CIF, VAT#: Tax ID numbers in Spain
9. Spanish Tax Agency - Forms 036 and 037

All sources checked July 30 2024.