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A full guide to setting up a business in Spain as a foreign national
Spain remains an extremely popular location for setting up a business, with excellent trading opportunities across Spain and the EU and a relaxed business culture. If you are aiming to start a Spanish company, ensure you understand what will be required from you and the issues you may face during the company formation process.
This guide will summarise all the information in our setting up a Spanish business hub, and the importance of seeking legal advice from international and multilingual lawyers.
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What are the pros and cons of starting a business in Spain?
Spain remains an extremely popular location for setting up a business, with trading opportunities and a relaxed business culture. However, there are things to consider before incorporation:
| Advantages | Disadvantages |
|---|---|
| Extensive trade partnerships and access to the markets of the EMEA. | May need to go through multiple procedures to set up the business. |
| Enjoy the forward-thinking business culture. | May need to adapt to a different business culture. |
| Take advantage of Spain’s well-developed infrastructure. | Spain’s unemployment rates have slightly risen towards the end of 2022. |
| Spain offers a lower tax burden. | |
| Spain has recently improved national employment conditions with key structural reforms. |
Although there may be obstacles when setting up a business in Spain, seeking legal advice as soon as possible will make you aware of any potential issues.
Our Spanish lawyers (Abogados) can advise you on the best business structure to suit your business, such as a limited liability (sociedad limitada) or sole trader (empresa individual) company, and explain all legal aspects you must consider in your own language.
Find out more about the pros and cons of setting up a business in Spain as a foreign national with our expert guide here.
Can a foreign national start a business in Spain?
Regardless of whether you are an EU citizen or not, you can set up a business in Spain as a foreign national. Although EU citizens have an advantage over citizens of non-EU countries due to trading agreements, foreign nationals (such as British nationals) can easily set up a Spanish company with the right documentation and work visas.
There is a range of options regarding the type of commercial entity you can set up. The options are:
Self-employed
Sole trader
Partnership
Limited liability company.
Find out more about the different commercial entities in Spain here.
Non-EU citizens moving to Spain to start a business will need a valid work permit to do so. You must apply to the Spanish embassy in your home country depending on the type of visa required and a work permit. You will also require that you do not have a criminal record and proof that you are not prohibited from entering Spain.
Find out more about how a foreigner can start a business in Spain with our expert guide here.
Can I start a business in Spain after Brexit?
Brexit has impacted the interaction between Britain and the rest of Europe. One of the main differences since leaving the EU is the effect on the import and export trade, as there are additional tariffs to be paid when transporting goods to European countries.
Businesses will need an Economic Operators Registration and Identification (EORI) number to move goods between Britain and Spain.
Since leaving the European Union, it has become more demanding for British nationals to start a business in Spain. British citizens need a work permit to form a limited company in Spain, alongside a foreigner’s tax identification number (NIE), a company tax identification number (CIF), a Spanish bank account and social security number, and to register the company name with the Mercantile Registry (RMC).
Find out more about how to start a business in Spain after Brexit with our expert guide here.
What is the cost of starting a business in Spain?
Regardless of whether you are starting a new business in Spain or creating a Spanish branch of an existing company, non-EU citizens must provide a range of documentation. This includes evidence of obtaining an NIE number, which currently has an estimated €12.00 administration fee, and registering the business at the Mercantile Registry, which costs around €250.00.
Following the opening of a Spanish bank account, new companies must prove they have sufficient funding to launch a successful business. Currently, the minimum initial share capital for a Spanish business is €3,000.00.
Find out more about the cost of setting up a business in Spain with our expert guide here.
Is Spain a good location to start a business?
There are several advantages to starting a business in Spain. Spain is the 14th largest economy in the world, and has access to the world’s largest trading market, the European Union.
The Spanish government also welcomes foreign investment and offers various incentives to allow foreign business owners to expand and relocate to Spain.
Find out more about if Spain is a good location to start a business in with our expert guide here.
Although foreign nationals may face certain issues, including a language barrier and adapting to a different business culture, by seeking legal advice from multi-lingual and multi-jurisdictional lawyers, these problems can be addressed and dealt with accordingly.
Contact Giambrone & Partners today for more information.
Where is the best place to start a business in Spain?
In Spain, most businesses will communicate with you in English, unless you are dealing with local merchants. Popular Spanish cities to start a business in include Madrid (Spain’s capital), Barcelona, and Valencia. Each Spanish city has its own advantages and disadvantages for a foreign national intending to start a company in Spain or open a Spanish branch of an existing company.
Find out more about the best places to start a business in Spain with our expert guide here.
How to start a small business in Spain
Whether you are a member of an EU country or not, you can start a small business in Spain. First, you must decide whether to start a small limited company, become a sole trader or simply work as a freelancer.
Freelancing (or autónomo) allows entrepreneurs to run their own businesses at a much lower cost and with less administration. For this, you will need to apply for a visa to enter Spain, as well as a residence permit and a self-employed work permit, which allows foreigners to live and work in Spain for one year.
Find out more about how to start a small business in Spain with our expert guide here.
How easy is it to start a business in Spain?
There are no limitations to who can start a business in Spain. Spain is also one of the countries that provide the Golden Visa programme to help prospective entrepreneurs when making commercial investment in Spain.
Foreign national business owners looking to make large investments in the Spanish economy may be liable for this entrepreneur visa, and, in return, offered residency in Spain. An entrepreneur visa can help ease the company formation process, benefiting the business owner looking to move and the general Spanish market.
Find out more about how easy it is to start a business in Spain with our expert guide here.
Giambrone & Partners is an international law firm with multijurisdictional and multilingual lawyers (Abogados). We provide a bespoke service to help you ensure all business activity in Spain is completely legal and follows Spanish regulations.
Contact our Spanish desk today for more information.
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