Buying Business Property in a Foreign Country: A Comprehensive Guide
Thinking about buying business property in a foreign country? Explore key considerations, legal requirements, and tips for success.
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.
Navigating the complexities of doing business across borders just got easier. Check out the Wise Business account - Easy to set up, easy to use, built for international business needs. | |
---|---|
There are some basic key steps to starting a business in Spain as foreigner:
But first, make sure you can even open a business in Spain.
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.
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.
Embarking on a business venture in Spain as a foreigner involves a series of key steps:
Get a Foreigner Identity Number (NIE), also known as a Número de Identidad de Extranjero, which is a unique tax identification number.3
Register your company with a no-name coincidence certificate from the Mercantile Registry (Registro Mercantil Central or RMC).4
Open a business bank account with the necessary minimum deposit and have the share capital required.
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
Register for social security and contribute to the Spanish social security system based on your business structure and employees.6
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.
💡 Lower the costs of setting up a business abroad with Wise. |
---|
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:
Meeting the basic legal prerequisites can give you a solid foundation for your business in Spain and maximize your chances of success.
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)
2. Limited Liability Company (Sociedad Limitada or S.L.)
3. Partnership (Sociedad Colectiva)
4. Corporation (Sociedad Anónima)
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:
Consulting with legal experts or business advisory services can streamline this process and ensure you meet all the requirements.
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:
The Spanish government may request evidence of how your business can create jobs for Spanish workers.
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:
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can get major currency account details, including Euro account details, for a one-off fee to receive overseas payments like a local. You can also send money to 160+ countries.
Wise Business offers the tools and features designed to streamline your financial operations and simplify your international expansion:
🔍 Read the guide on how to open a Wise Business account |
---|
With Wise Business, you'll have everything you need to manage your finances efficiently as you navigate the exciting journey of starting a business in Spain.
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:
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.
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.
Here are some useful resources for further reading before embarking on your new business in Spain:
🔍 Read next: | |
---|---|
8 Tips for Starting a Business in Another Country |
Sources:
All sources checked July 30 2024.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Thinking about buying business property in a foreign country? Explore key considerations, legal requirements, and tips for success.
Understand the definition of a business partnership, explore its types, advantages, and disadvantages, as well as how to form a partnership
Learn all about forming a Wyoming LLC, including benefits, formation process, costs, and privacy protections. Discover why Wyoming is a top choice for LLCs
Learn about forming an LLC in Arkansas, including benefits, costs, taxes, and the formation process. Discover why Arkansas is a great state for LLCs.
Learn about forming an LLC in Indiana, including benefits, costs, taxes, and the formation process. Discover why Indiana is a great state for LLCs.
Discover the benefits and setup process of a manager managed LLC. Learn the differences between manager managed and member managed LLCs and more.