Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Setting up a company in Spain costs far more than the notary fee. Under the Crea y Crece law you can now incorporate a Sociedad Limitada with share capital of just €1 — the old €3,000 minimum is gone — so the headline barrier looks tiny.
But by the time you add the company-name certificate, notary, Mercantile Registry, and then the ongoing monthly cost of accounting, social security and quarterly tax filings, the real cost of running a Spanish SL looks very different from that €1 figure. This guide separates one-off setup from recurring monthly costs, so you can see the true number before you commit.
Establishing a Company in Spain
Setting up a company in Spain generally involves obtaining a NIE number, reserving a company name, opening a Spanish bank account, signing before a notary, and registering with the Mercantile Registry.
Foreign entrepreneurs should also review corporate taxation, VAT registration, accounting obligations, and social security contributions before choosing between operating as autónomo or through an SL company.
Many international business owners establish Spanish companies without understanding the tax residency implications for themselves personally. Proper planning before incorporation is essential, especially for remote workers and Digital Nomad Visa holders.
This is general information, not definitive legal advice — every case requires individual analysis.
Page Created 9 November 2019 – Page Updated October 2025
Key Information Summary
7 Steps to Set Up a Company (SL) in Spain:
- Choose your structure — SL (limited company, min. 3,000 EUR capital) or SA (public, min. 60,000 EUR)
- Get your NIE — Foreign tax ID number required for all directors and shareholders
- Reserve company name — Apply to the Registro Mercantil Central (takes ~3 days)
- Draft statutes — Articles of association defining share structure, directors, and powers
- Sign at notary — Notarial deed of incorporation (escritura de constitucion)
- Register at Registro Mercantil — Provincial commercial registry (takes 5-15 days)
- Tax office + Social Security — Register for CIF, VAT (IVA), and employer obligations
Total cost: 3,000-5,000 EUR | Timeline: 4-8 weeks
1. Capital Investment Requirements
No Minimum Capital Required
Some business structures in Spain do not require any initial capital investment:
- Self-employed individuals (Autónomos)
- Civil Partnerships (Sociedad Civil)
- Joint Ownerships (Comunidad de Bienes)
- General and Simple Limited Partnerships (Sociedad Colectiva and Sociedad Comanditaria Simple)
Limited Liability Companies (SL, SLU, SLNE)
The minimum share capital is €1, as per the latest reform of the Ley de Sociedades de Capital. Additional reserves must be built over time to reach €3,000.
Corporations (SA and similar)
The minimum capital is €60,000, with 25% to be paid upon incorporation.
Venture Capital Entities
These require much higher capital — generally €1.2 million for companies and €1.65 million for funds — under the Law on Venture Capital Entities.
2. Incorporation and Registration Costs
Unless you register as self-employed, incorporation of a company involves several expenses.
| Concept | Typical Range | Notes |
|---|---|---|
| Name registration (company name certificate) | €15–€30 | Requested via the Central Mercantile Registry |
| Notary fees (incorporation deed) | €300–€500 | Varies by region and capital invested |
| Commercial Registry inscription | €60–€400 | Required for all companies |
| Legal and administrative setup services | €100–€600 | Assistance with tax and registration |
| Overall total for a standard SL | €500–€1,500 | May exceed €3,000 for complex cases |
All companies must also pay annual fees to legalise accounts and minutes through the Registro Mercantil.
3. Company Taxes and Fiscal Obligations
Once operational, the following taxes apply:
Economic Activities Tax (IAE)
The Economic Activities Tax depends on activity type, turnover, and municipality.
- Exemptions apply for turnover below €1 million and during the first two years of activity.
- When applicable, annual rates range from €100 to several thousand euros.
Corporate or Personal Income Tax
- Self-employed individuals and civil partnerships pay Personal Income Tax (IRPF), governed by the Ley del Impuesto sobre la Renta de las Personas Físicas, with rates between 20% and 47%.
- Companies (SL, SA, etc.) pay Corporate Tax (IS) under the Ley del Impuesto sobre Sociedades at a general rate of 25%.
Value Added Tax (IVA)
Most goods and services are subject to Value Added Tax (IVA). Businesses must remit VAT collected to the Treasury but may deduct VAT on expenses backed by invoices.
Social Security Contributions
- Self-employed individuals pay monthly contributions between €230 and €420, according to the Spanish Social Security System.
- Employers contribute around 30–35% of each employee’s gross salary.
- Interns cost approximately €40 per month each.
Local and Regional Taxes
Depending on location, you may also pay:
- Property tax (IBI) — local council
- Business licence fees — municipal authority
- Stamp duty (AJD) and property transfer tax (ITP) — via the Agencia Tributaria
- Capital gains on urban land (IIVTNU) — municipal tax
4. Everyday Operating Expenses
Accounting and Tax Management
Professional accounting and tax management costs typically range between €30 and €150 per month.
Branding and Intellectual Property
Trademark registration through the Spanish Patent and Trademark Office (OEPM) costs around €150; European registration via EUIPO costs around €900.
Premises and Utilities
- Rent, mortgage, or community fees
- Utilities (electricity, water, gas, internet)
- Business licence renewals (€500–€1,000 per year)
- Insurance coverage
Vehicle Costs
- Purchase, lease or rental
- Fuel and maintenance
- Annual municipal vehicle tax
- Insurance
Other Expenses
- Telecommunication and IT services
- Marketing and advertising
- Office materials and equipment
- Business travel and per diem costs
5. Sale or Transfer of Assets
When selling company property:
- Profits are taxed at 25% under Corporate Tax.
- Municipal capital gains on land (IIVTNU) apply.
- Legal and notarial fees must be added to transaction costs.
6. Key Tips for 2025
- Regional variation: Costs, licences and tax rates vary across Spain.
- Capital reserves: Even with €1 minimum capital, reserves must reach €3,000.
- Start-up benefits: Certain start-ups qualify for reduced tax and social contributions.
- Annual obligations: All companies must file yearly accounts with the Commercial Registry and the Tax Agency.
- Professional advice: A certified gestor or accountant is essential to ensure compliance.
Expert Support for Business Setup in Spain
If you are planning to establish a company in Spain or already operate one and need guidance on taxes, compliance, or payroll management, our specialist team can assist you from start to finish — including registration, tax strategy and legal maintenance.
We provide clear, bilingual support and tailor advice to your business model and region.
Contact us for an initial consultation — free of charge.
Contact us today to start your journey!
Frequently Asked Questions
Q: How much does it cost to set up a company in Spain?
Setting up a Spanish SL (Sociedad Limitada, equivalent to a UK Ltd) typically costs between €2,500 and €4,000 in total where the founders capitalise at €3,000. Since the Crea y Crece reform the minimum share capital is €1, with reserves built up to €3,000 over time, so the unavoidable costs are the notary fees (€400-€800), commercial registry fees (€150-€300), and legal/advisory fees.
Q: What is the minimum share capital for a Spanish company?
The minimum share capital for a Sociedad Limitada (SL) is €1 since the Crea y Crece reform of the Ley de Sociedades de Capital; the former €3,000 minimum no longer applies, although reserves must be built up to €3,000 over time. For a Sociedad Anónima (SA), the minimum is €60,000 with at least 25% paid up at incorporation.
Q: What are the ongoing costs of running a Spanish company?
Annual running costs include: corporate tax (25% on profits), quarterly VAT returns, annual accounts filing (€200-€500), accounting fees (€150-€400/month), social security for directors (approximately €300-€400/month minimum), and the annual corporate tax return. Budget €5,000-€8,000 per year minimum for compliance costs.
Q: Do I need a Spanish NIE to form a company in Spain?
Yes. All directors and shareholders of a Spanish company need a NIE (Número de Identidad de Extranjero). If the shareholder is a foreign company, it needs a Spanish NIF (tax identification number). The NIE can be obtained at a Spanish consulate abroad or at a police station in Spain.
Company Formation Costs in Spain (2026)
| Cost Item | SL (Sociedad Limitada) | SA (Sociedad Anónima) | Autónomo (Self-Employed) |
|---|---|---|---|
| Minimum Capital | 1 EUR (Ley Crea y Crece) | 60,000 EUR | None |
| Notary Fees | 300–600 EUR | 600–1,200 EUR | N/A |
| Commercial Registry | 150–300 EUR | 300–500 EUR | N/A |
| Corporate Tax Rate | 25% (15% first 2 years) | 25% | Progressive IRPF 19–47% |
| Social Security (monthly) | ~370 EUR/month | ~370 EUR/month | ~300 EUR/month (cuota reducida available) |
| Annual Accounts Filing | Required | Required + external audit | Not required |
Related Legal Guides
Maria Luisa de Castro
Founder & Immigration Law Specialist at CostaLuz Lawyers
Maria Luisa is the founder of CostaLuz Lawyers and a Spanish-qualified lawyer specialising in Property Law and Consumer Real Estate Law (Derecho de Consumo Inmobiliario) for international clients for over 20 years. She is registered with the Colegio de Abogados and advising international buyers, expats, and families across Spain.
For a complete overview of property law and conveyancing in Spain, see our Buying Property in Spain Complete Legal Guide 2026.
Aviso legal: Esta informacion se proporciona unicamente a titulo orientativo y no constituye asesoramiento fiscal o legal personalizado. Cada caso debe evaluarse de forma individual segun las circunstancias especificas del cliente. Es imprescindible consultar a un especialista cualificado antes de tomar cualquier decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
Need legal help in Spain?
Our bilingual lawyers help foreign residents with property, tax, inheritance and residency. Bilingual help across southern Spain since 2006.
Book a call about your setup costs. We will give you a clear picture of the one-off and recurring costs for your specific plan — SL or autónomo — so there are no surprises after you start. No obligation.
Prefer to write first? Send a message → — María replies within one business day.
Need to speak now? +34 919 499 342 (EN/ES, 24h). Office: +34 956 092 687. Costaluz Lawyers — María Luisa de Castro, ICA Cádiz nº 2745.
Hi ! I would like to open a company of mine in spain where I live and have residence permit. I would like to work with you on details ! Please contact with me via e-mail. Thanks
Best
Dear Asli:
Thank you for reaching out with your interest in opening a company in Spain. I appreciate your willingness to work with us on the details of this exciting endeavor. I will be contacting you shortly via email to discuss further and assist you through this process.
Best regards,
Maria L. de Castro
Hi, is it possible to receive more informations about the set up company for foreigners ? Thank
Dear Laurent:
I’d be delighted to answer any questions you have about setting up a company for foreigners. What specific information are you looking for?
Best wishes,
Maria
Hi. I’m morrocan live in China. I would open company in Spain can have more informations thanks
Yes, it’s possible to open a company in Spain as a Moroccan citizen living in China, but you need to look at two things:
Your visa/residence – usually a self-employed / business visa or, in some cases, an entrepreneur visa if the project is innovative.
The company itself – most foreigners use a Sociedad Limitada (S.L.), similar to a limited company.
Immigration will normally ask for a business plan, proof of funds, no criminal record, and health insurance, among other documents.
If you share what kind of business you want to open and whether you plan to live in Spain, a lawyer can give you more specific guidance on the best route for you.
Hi, i am live in Portugal last 5 years, i have 2 renewal TRC card, i am already applying my nationality, porce on going , i have restaurant Business, now i need move Spain with my resturent business.
So i need to know which document required for start business there ..
Hi, and thank you for your question
Very briefly, to move your restaurant business to Spain you need to look at two things:
1. Right to live and work in Spain
Valid passport
Your Portuguese residence card and status
Criminal record certificate
Proof of funds and a basic business plan for Spain (if applying as self-employed / business owner)
2. Documents to start the restaurant
NIE (foreigners’ ID in Spain)
Either company setup (S.L.) or self-employed registration
Lease or purchase contract for the premises
Town Hall opening licence and health/safety compliance
From there, we tailor the list depending on your nationality and the city in Spain where you want to open.