Starting a Company in Spain — Complete Legal Guide (2026)

Page Created 1 October 2021 – Page Updated 27 November 2025

Starting a company in Spain should feel exciting, not exhausting.

At CostaLuz Lawyers, we know that “setting up a company in Spain” usually means dealing with a new language, a new tax system and unfamiliar rules. Our job is to turn all that into a clear, guided process. We take care of the legal, tax and employment side so you can focus on the business you actually want to build.

We don’t just open companies. We explain, translate and advise, so you understand why each step is taken and how it protects you.

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Who we help

Our clients are international, ambitious and practical. Many of them start with the same sentence:

“I just want this done properly, with no nasty surprises later.”

We regularly assist:

• Foreign founders and managers expanding to Spain for the first time
• Freelancers deciding between autónomo and a company (S.L., S.L.U. or S.A.)
• Scaleups opening a Spanish branch or subsidiary to support EU growth
• Investors who need a trusted local team for director services, registered address and ongoing compliance

Some arrive with a clear structure already in mind. Others just ask:
“What is the safest, most tax-efficient way to operate in Spain in my situation?”
We start there, with your reality—not with a generic template.

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Your company options at a glance

Spain offers several ways to operate. Each has implications for liability, tax, governance and future exits. We help you understand them in plain English.

Typical options include:

• S.L. / S.L.U. – the standard limited company for most SMEs and growth projects
• S.A. – a public limited company for larger or more complex capital structures
• Branch – an extension of your foreign company in Spain
• Autónomo (self-employed) – very fast to start, but with personal liability and different tax rules

To make it easier, here is a simple comparison:

Comparison table: company forms in Spain

Form	Typical use case	Liability	Capital & cost	Pros	Cons
Autónomo	Freelancers, solo professionals	Unlimited (personal assets)	No minimum share capital	Very quick start, low initial cost	Personal risk, less separation from personal affairs
S.L. / S.L.U.	Most SMEs and growth projects	Limited to share capital	Minimum share capital (relatively low)	Balanced option for risk + flexibility	More formalities than autónomo
S.A.	Larger ventures, complex or capital-heavy	Limited to share capital	Higher minimum capital	Suitable for bigger or listed projects	More rigid governance and formalities
Branch	Foreign companies entering Spain directly	Parent company ultimately liable	No separate share capital in Spain	Keeps group structure unified	Parent exposed; additional reporting

We walk through this table with you, line by line, and adapt it to your life: where you live and pay tax, how you get paid, who invests, and how much risk you want to keep away from your personal assets.

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What we do for you

Think of us as your legal and tax “operations layer” in Spain.

We typically help with:

1. Strategy and structure
We analyse your situation (residence, investors, risk, future exit) and recommend the right vehicle, shareholding structure, governance model and registered address. We make sure it fits both Spanish law and your home country.

2. End-to-end incorporation
We handle name clearance, NIF, bylaws, notary appointments, bank coordination and mercantile registry filings. You don’t have to chase different offices or wonder who does what.

3. Translations and legalisations
We organise sworn translations, apostilles and certified copies so your foreign documents are valid in Spain and accepted the first time.

4. Tax and accounting setup
We register you with the tax authorities, obtain VAT and withholding codes, design your accounting chart and set up practical bookkeeping so you start compliant from day one.

5. Payroll and employment
We help with Social Security registration, drafting employment or contractor agreements, onboarding employees and preparing basic internal policies.

6. Banking and payments
We prepare documentation packs for banks or EMIs and support you during KYC checks, so opening your account doesn’t become the delay that kills your launch date.

7. Licences and sector extras
From municipal licences to data protection (GDPR / LOPDGDD), e-commerce terms and IP, we help you meet the requirements specific to your sector.

8. Ongoing legal and tax counsel
If you wish, we stay with you: quarterly taxes, annual accounts, board minutes, shareholders’ agreements, commercial contracts and responses to letters from authorities.

You choose: just the launch, or a long-term partnership. Many clients keep us on board because they like having “their” Spanish legal and tax team, who already knows their story.

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How it works

We keep the process simple and transparent.

Step 1 – Discovery
A 30-minute intake and a quick scan of your situation. You tell us what you plan to do in Spain, who is involved, where you reside and your ideal timeline.

Step 2 – Blueprint
We send you a written plan: recommended entity, founders, capital, timeline and key risk points (tax, liability, compliance). This is your roadmap, in plain English.

Step 3 – Paperwork
We draft bylaws, prepare powers of attorney, coordinate translations and schedule notary appointments. You receive clear instructions and document checklists, not legal chaos.

Step 4 – Registration
We obtain tax IDs, file with the mercantile registry, register with Social Security where required and arrange digital certificates so you can actually operate.

Step 5 – Go-live
We help you cross the practical finish line: bank set-up, invoicing system, payroll, first contracts and a compliance calendar for the next 12 months.

Throughout the process you have a named contact and regular updates. You always know what has been done, what is pending and who is doing it.

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What you receive when your company is ready

When your Spanish company is fully set up, you typically receive:

• Incorporation deed and bylaws
• Company NIF and digital certificate
• Mercantile registry extract (nota simple)
• Tax census registration forms and codes
• Accounting chart and bookkeeping workspace
• Social Security registrations for the company and, where applicable, directors or employees
• A clear compliance calendar and a simple founder handbook tailored to your activity

In short: not just a registered company, but a company that can operate safely from day one.

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Why CostaLuz Lawyers

Many providers can “open” a company in Spain. Fewer will stand next to you when an authority asks questions.

Clients choose us because we are:

Foreign-founder-friendly
We speak law and business, in clear English and Spanish. We understand the concerns of non-resident founders, digital nomads, remote workers and international families because we work with them every day.

One team under one roof
Lawyers, tax advisors and payroll specialists work together on your file. You don’t have to coordinate three or four different firms.

Organised and predictable
We use checklists, written roadmaps, timelines and regular updates. You know what you are paying for and what stage your company is at.

Litigation-aware
We are a law firm, not just a paperwork service. If a registry, bank or authority pushes back, we respond in writing and, where necessary, defend your position.

Above all, we want you to feel that you are not alone in a new system—that you have a team that understands both Spanish law and your own context.

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FAQs – straight answers

Do I need to be physically in Spain to sign?
Not always. In many cases we can work through notarial powers and, where allowed, remote or video procedures. We explain the options depending on your country of residence.

How long does it take to set up a company in Spain?
It depends on document readiness, bank KYC and registry workload. After the first consultation, we give you a realistic time window, not a generic “X days” promise.

Can I hire staff before everything is fully registered?
Sometimes we can stage Social Security registration and initial contracts as soon as the law allows. We map this in the blueprint so your hiring plan fits the legal timeline.

Should I start as autónomo or with an S.L.?
It depends on income, risk, family situation, tax residence and who you work with. We compare tax, liability and cost. Some clients start as autónomos and move to an S.L. later; others go straight to an S.L. because of investors, branding or risk.

Can you maintain the company after incorporation?
Yes. Our Business Program covers tax, accounting, payroll, basic contracts and governance, with optional modules for licences, data protection and sector-specific compliance.

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Lawyer tips for new companies in Spain (2025)

From watching many incorporations and a few avoidable headaches, here are some practical tips:

• Decide the cap table early
  Changing owners later means notary, registry and sometimes tax. Clarifying shares and roles up front saves money and friction.
• Keep names and data consistent
  Founders’ names, addresses and passport details should match exactly across all documents. Small inconsistencies can cause big delays.
• Prepare for the bank
  Have clear UBO charts, proof of funds and, if relevant, group structure. A tidy file can reduce weeks of back-and-forth with compliance departments.
• Draft your first three contracts early
  Employment/contractor terms, services agreement and data-processing clauses. Good templates protect you when business starts to move faster.
• Document everything
  Spanish registries and authorities reward clean, coherent documentation. When something matters, we put it in writing.

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Our Business Program (ongoing support)

Launching is only the beginning.

Our Business Program is a single monthly plan that can include:

• Quarterly tax returns and annual accounts
• Payroll and Social Security filings
• Board minutes and basic corporate housekeeping
• Standard commercial templates (services, NDAs, DPAs)
• A compliance calendar and on-call support for everyday legal and tax questions

You can add modules for sector licences, data protection and extra regulatory work as your company grows.

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Legal note – updated for current rules

Our company formation and ongoing advice are fully aligned with recent Spanish and EU rules affecting companies and foreign founders, including:

• The current Spanish Corporate Enterprises Law (Ley de Sociedades de Capital) and related regulations on directors’ duties, capital and governance
• The Spanish Startups Law (Ley de Startups), where applicable, and other incentives for innovative projects and international talent
• Recent updates to tax and Social Security rules for company owners, directors and cross-border situations

Because these rules evolve, we do not apply a one-size-fits-all checklist. Before filing, we confirm the exact requirements with the relevant mercantile registry, tax office and, where necessary, Social Security office. That way, your Spanish company starts life on a solid and up-to-date legal footing.

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Next step

Tell us three things:

1. What you plan to do in Spain
2. Who the founders or investors are
3. Your ideal start date

We will send you a tailored roadmap, a document checklist and a personalised quote proposal—so you know exactly what your “Set Up a Company in Spain” journey will look like, in time and in cost.

About CostaLuz Lawyers and the Author

You can read testimonials from hundreds of satisfied clients, going back to 2006, on our website, on Google Reviews and on EyeonSpain.

Reviewed by María de Castro, Abogado no. 2745, Ilustre Colegio de Abogados de Cádiz. CostaLuz Lawyers has supported international buyers since 2006 on EyeonSpain  with guidance and advice on the legal aspects of life in Spain. Included in the lawyers lists of the UK and Ireland embassies. Updated 22 Nov 2025.

María Luisa de Castro’s work, founder of CostaLuz Lawyers, is backed by a strong presence in specialist media and professional directories. Her track record as a Property Law and Consumer Real Estate Law (Derecho de Consumo Inmobiliario) specialist can be seen in her guides for international audiences on Expatra, in her long-running blogs on Spanish off-plan protection and Ley 57/1968 on EyeOnSpain , in her legal analysis for Confilegal and Legal Today, and in her contributions for the Spanish Bar Council (Consejo General de la Abogacía Española)

Her work is also profiled on international retirement and expat platforms such as Retirement Abroad, and has been highlighted by expat media including The Olive Press News Spain and The Local Spain among other specialist expat and legal forums.

Her legal work has also been featured or referenced in respected international and Spanish media, including The Telegraph, The Times, the BBC, El País and El País English, The Local Spain, The Olive Press and other reputable outlets, particularly in connection with landmark court rulings on Ley 57/1968 and Spanish consumer protection.

CostaLuz Lawyers is also included in the official lists of English-speaking legal professionals for British and Irish nationals in Spain, as compiled by the UK government’s “Spain: list of lawyers” and by the Embassy of Ireland in Spain and its honorary consular network.

The Beckham Law for Entrepreneurs

Spain’s Beckham Law (Régimen Especial de Trabajadores Desplazados, Article 93 LIRPF) is one of the most attractive tax incentives in Europe for entrepreneurs relocating to Spain. It allows qualifying individuals to be taxed as non-residents for up to six years, paying a flat 24% income tax rate on Spanish-source income (instead of the progressive rates up to 47%).

Who qualifies?

• You must not have been a Spanish tax resident in the previous five tax years.
• Your relocation to Spain must be due to an employment contract with a Spanish company, or appointment as a director of a Spanish company (provided you own less than 25% of the shares).
• Since the 2023 reform (Law 28/2022, the Startup Law), digital nomad visa holders and entrepreneurs moving to Spain to develop an innovative business project may also qualify.

Key benefits for company founders:

Aspect	Standard tax regime	Beckham Law regime
Income tax rate	19% – 47% (progressive)	24% flat (up to EUR 600,000)
Wealth tax	On worldwide assets	Only on Spanish assets
Foreign income reporting	Full worldwide disclosure (Modelo 720)	Not required for non-resident status
Duration	Ongoing	Year of arrival + 5 years

Important: The Beckham Law election must be made within six months of your Spanish social security registration. Missing this deadline means losing the benefit permanently. See our full Beckham Law guide for details.

Hiring Staff in Spain — What You Need to Know

Spain has comprehensive employment legislation that protects workers strongly. As an employer, you need to understand the key obligations:

• Employment contracts. Must be in writing for contracts exceeding four weeks. Spain uses several contract types: indefinite (contrato indefinido), temporary, part-time, and training contracts. The 2022 labour reform significantly restricted temporary contracts.
• Social security contributions. Employer contributions are approximately 30% to 35% on top of the gross salary. This covers healthcare, unemployment, occupational accident insurance, and pension contributions.
• Minimum wage. The Salario Mínimo Interprofesional (SMI) for 2026 is EUR 1,221 per month (14 payments) or EUR 17,094 annually, as set by Real Decreto 126/2026 (verified August 2026). This is updated annually by government decree.
• Working hours. The standard working week is 40 hours. Spain is moving toward a 37.5-hour week (under current legislative proposals). Annual leave is a minimum of 30 calendar days (22 working days).
• Dismissal costs. Unfair dismissal compensation is 33 days’ salary per year worked (capped at 24 months’ salary) for indefinite contracts signed after the 2012 reform. Objective dismissal (redundancy) carries 20 days per year (capped at 12 months).
• Payroll and reporting. Monthly social security filings, quarterly tax withholding declarations (Modelo 111), and annual income certificate (Modelo 190) are mandatory.

Our recommendation: Use a Spanish gestoría or payroll service for employment administration. The compliance burden is significant and penalties for errors are steep. At CostaLuz Lawyers, we offer full employment consultancy to handle this for you.

Frequently Asked Questions

What is the minimum capital to start a company in Spain?

For an SL (Sociedad Limitada), the minimum share capital is EUR 1 following the Crea y Crece reform of the Ley de Sociedades de Capital; the previous EUR 3,000 minimum no longer applies. For an SA (Sociedad Anónima), it is EUR 60,000 (25% must be paid up at incorporation). For an autónomo (self-employed), no minimum capital is required.

How long does it take to set up an SL in Spain?

With all documents ready, an SL can be incorporated in 2 to 6 weeks. The fastest route is the express formation process using a standard set of articles, which can be completed in as little as 48 hours in some cases.

Do I need to be resident in Spain to set up a company?

No. Non-residents can set up a Spanish company. However, you will need a Spanish tax identification number (NIE for individuals, NIF for the company) and a Spanish bank account for the company. If you plan to manage the company from Spain, you will also need a residence permit.

What is the corporate tax rate in Spain?

The standard corporate tax rate is 25%. New companies pay a reduced rate of 15% on the first EUR 300,000 of taxable income for their first two profitable years. Micro-enterprises (turnover below EUR 1 million) benefit from additional incentives.

SL or autónomo — which is better?

It depends on your situation. An autónomo is faster and cheaper to set up but carries unlimited personal liability and progressive income tax rates (up to 47%). An SL limits your liability to the share capital, has a flat 25% corporate tax rate, and looks more professional to clients and partners. For most businesses expecting revenue above EUR 40,000 to EUR 50,000, the SL is the better choice.

Can I use the Beckham Law if I start a company in Spain?

Yes, if you meet the conditions: you must be employed by or appointed as director of a Spanish company (owning less than 25% of shares), and you must not have been a Spanish tax resident in the previous five years. The Beckham Law offers a flat 24% income tax rate for up to six years.

What ongoing compliance obligations does a Spanish company have?

Annual accounts must be filed with the Mercantile Registry. Corporate tax returns (Modelo 200) are filed annually. VAT returns (Modelo 303) are filed quarterly. Payroll withholding (Modelo 111) is filed quarterly if you have employees. Annual declarations and the Modelo 720 (overseas assets) may also apply depending on your circumstances.

Can I open a Spanish company remotely without visiting Spain?

Yes, via a poder notarial (power of attorney). You grant power of attorney to a Spanish lawyer (which can be done at a Spanish consulate or notary in your country), and the lawyer handles the entire incorporation process in Spain on your behalf. This is a common arrangement for international clients.

Next Steps

Setting up a company in Spain is a significant step — but with the right legal guidance, it does not have to be complicated. At CostaLuz Lawyers, we handle the complete formation process: legal structuring, notarial acts, tax registration, bank account opening, and ongoing compliance.