Company incorporation in Spain

If you do business in Spain there may be a point that it makes sense to set up a local company. Then you need to know how to comply with local regulations and who can help you.

This article describes:

the most likely types of company to set up;
how you do this and who can help you;
a few important fiscal regulations.

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Your legal entity in Spain

Spain is an attractive destination for foreign businesses due to its strong economy, access to the European Union, and growing markets in industries like tourism, technology, and agriculture.

Most Common Business Forms for Foreign Companies

The most common legal structure for foreign businesses in Spain is the Sociedad de Responsabilidad Limitada (SL).

Similar to a limited liability company (LLC) in other jurisdictions.
Requires a minimum share capital of €3,000, fully paid upon incorporation.
Liability is limited to the company’s assets, protecting shareholders from personal liability.

For larger businesses, the Sociedad Anónima (SA) is an alternative, requiring a minimum share capital of €60,000.

Setting Up a Company in Spain

The process to incorporate an SL involves the following steps:

Obtaining a tax identification number (NIE) for all shareholders and directors.
Checking the availability of the company name and reserving it with the Commercial Registry (Registro Mercantil).
Drafting and notarizing the company’s Articles of Association (Escritura Pública).
Depositing the share capital in a Spanish bank account and obtaining a deposit certificate.
Registering the company with the Commercial Registry and obtaining a tax number (CIF).

Foreign nationals can act as directors (Administrador) of an SL or SA. Residency is not mandatory, but a local business address is required.

Taxation and Withholding Taxes

Spanish companies are subject to corporate income tax (Impuesto sobre Sociedades) at a standard rate of 25%.

Regarding dividends:

Dividends paid to foreign shareholders are subject to a withholding tax of 19%, which may be reduced under tax treaties.
Spain has an extensive double taxation treaty network to avoid double taxation and reduce withholding tax rates for foreign investors.

Service Providers for Company Incorporation

These firms assist foreign businesses with legal, administrative, and tax-related processes to ensure a smooth incorporation experience.

Travel to Spain for a better impression

The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.

With Trip.com you can compare flights and also book your hotel.

Hotellook compares different hotel sites so you always have the best rate.

Localrent connects you to national rental car providers per country.

Frequently asked questions

How to convince an importer in Spain to work with you?

As in any country, convincing an importer or wholesaler to put your product in his assortment is difficult. Also in Spain importers look at the rotation of the product, how easy and often they can sell it, and multiply this with the margin they can make on it. The result should be higher than they earn now from any competing product. Only if you have proper sales data, for example from other countries, they will engage in a discussion with you.