Navigating Post-Brexit Rules, Visa Requirements, and Steps to Successfully Acquire a Business in Spain
UK entrepreneurs can still buy a business in Spain after Brexit, but the process has changed. When the UK was part of the EU, Britons had freedom of movement – they could move to Spain and start a business with minimal formalities. Now, however, the UK is a “third country” in EU terms, so British buyers face additional steps like securing visas and permits. But don’t be discouraged: with the right preparation and expert guidance, buying a Spanish business is absolutely achievable. This guide explains what’s changed post-Brexit and walks you through all the key requirements – from immigration rules to legal procedures – in a clear, step-by-step manner. Despite the added complexities, thousands of Britons continue to successfully purchase businesses in Spain. With careful planning and professional help, you can turn your Spanish business ambitions into reality.
Can I Buy a Business in Spain After Brexit? (What’s Changed and What’s Possible)
Yes – UK citizens can buy or start a business in Spain after Brexit, but you must follow the same procedures as any non-EU foreigner. What changed after Brexit? In a nutshell, British nationals lost their automatic EU privileges in Spain. Before 2021, a Briton could move to Spain, register as an EU resident, and operate a business freely. Now, UK citizens are considered third-country nationals who must obtain the appropriate visa or work permit before living or working in Spain. Here are the key post-Brexit changes to keep in mind:
- No Automatic Right to Live or Work: Britons no longer have an automatic right to reside or work in Spain. If you plan to stay longer than 90 days or manage the business on the ground, you must apply for a Spanish visa or residence permit (e.g. a work visa, self-employed visa, etc.).
- 90-Day Travel Limit: Without a visa, UK visitors can only stay in Spain (and other Schengen countries) for up to 90 days in any 180-day period. In practical terms, this means you cannot remain continuously in Spain to run a business unless you secure the proper residency. Business owners now need to plan around this 90/180 rule or obtain a residence visa if they want to be in Spain full-time.
- Extra Administrative Steps: As a non-EU investor, you’ll encounter more paperwork and checks. For example, you’ll need to get a foreigner’s ID number (NIE), show more documentation (e.g. proof of funds, background checks), and go through immigration procedures that weren’t required for Britons before. The process to set up or acquire a business might be slower – where it was once immediate, now it can take a few months due to visa processing. Patience and thorough documentation are essential.
- Trade and Regulatory Changes: If your business trades goods or services with the UK, customs and tax rules now apply. Moving goods between the UK and Spain involves customs declarations, potential tariffs, and an EORI number for customs clearance. Additionally, UK companies may face certain EEA nationality restrictions in specific regulated sectors in Spain. For most industries, there is no general restriction on foreign ownership, but it’s wise to check if any local licensing rules require EU/Spanish residency.
Despite these changes, it remains perfectly possible for a Briton to purchase or launch a business in Spain. Foreigners (including non-EU citizens) can legally own Spanish companies and property – Spain imposes no general restrictions on business ownership by nationality.
The key difference post-Brexit is that you must comply with the standard non-EU immigration and setup procedures. With the hurdles identified above, you can plan accordingly. Think of it this way: buying a business in Spain is still on the menu for UK buyers, you just have a new recipe to follow.
For UK entrepreneurs considering buying a business in Spain post-Brexit, the road may seem more complex—but it’s far from impossible. At this crucial first stage, having expert support makes all the difference. Lawants is a trusted law firm in Spain that helps foreign investors like you navigate every legal and administrative step of the business formation process. Contact us.
Why Spain Remains an Attractive Business Destination (Benefits for UK Entrepreneurs)
Why go through the extra effort? Quite simply, Spain offers many advantages that make the effort worthwhile. Here are some of the top benefits for UK entrepreneurs considering a Spanish business venture:
- Robust Economy & Market Opportunities: Spain boasts the 4th largest economy in the EU (about $1.4 trillion GDP), with a diverse and growing market. Sectors like technology, tourism, real estate, renewable energy, agriculture, and manufacturing are thriving. The economy has bounced back strongly and was even one of Europe’s fastest-growing in 2024. Spain’s domestic market of 47+ million people (plus over 85 million annual tourists) provides a solid customer base for new business owners. Spain was recently ranked the 3rd most attractive country in Europe for setting up a business, underscoring its appeal to entrepreneurs.
- Access to the EU Single Market: Owning a business in Spain gives you a foothold inside the European single market. This can restore some of the EU access that UK businesses lost after Brexit. Goods and services produced by your Spanish company can circulate freely throughout the EU’s 27 countries, reaching a market of 500+ million consumers without customs barriers. If you’ve faced hurdles exporting from the UK to Europe, setting up operations in Spain can strategically overcome trade barriers and simplify EU-wide sales. Spain is also a strategic gateway to Latin America, North Africa, and the Middle East – perfect for globally minded entrepreneurs.
- Government Incentives and Support: The Spanish government actively encourages foreign investment and entrepreneurship through tax credits, grants, and a business-friendly climate. Spain’s corporate tax rate is 25%, with available incentives reducing the effective rate to ~20% in many cases. There are generous R&D tax credits (up to 42%) and a special “patent box” regime for intellectual property income. The “Beckham Law“ offers qualifying expats a flat 24% income tax rate on Spanish-source income for up to 6 years. Spain also launched entrepreneur visa programs to attract startup founders, providing financial and fiscal incentives to sweeten investment deals.
- Established Expat Community and Talent Pool: Spain has long been a favorite for British expats – by 2024, roughly 275,000 UK nationals were officially residing in Spain. If you relocate, you’ll find existing English-speaking networks and communities, easing cultural adjustment. Spain offers a skilled local workforce and many bilingual professionals who can bridge language gaps in your business. The country produces excellent talent in engineering, hospitality, and digital technology through strong universities and training programs.
- Quality of Life (A Bonus for You and Employees): Spain consistently ranks high for quality of life – with warm climate, beautiful scenery, rich culture, and relaxed pace. Cities like Barcelona, Madrid, Valencia, and Málaga offer modern infrastructure and vibrant business scenes alongside beaches, art, and cuisine. This high quality of life helps attract and retain talent. For UK entrepreneurs, relocating to Spain means enjoying 300 days of sunshine a year while building your venture. The work-life balance ethos is strong, and benefits like public healthcare are excellent. Spain isn’t just good for business – it’s good for the soul.
By combining solid economic fundamentals with lifestyle perks, Spain remains a top choice for entrepreneurs. Many Brits have found that, post-Brexit, establishing a presence in Spain is a smart way to enjoy the best of both worlds: access to European markets and a sunny home base.
Visa and Residency Options for UK Nationals In Spain After Brexit
One of the first things to address if you plan to buy and run a business in Spain is securing the right visa or residency permit. Since Brexit, UK nationals must navigate Spain’s immigration system like other non-EU citizens. In simple terms: if you want to live in Spain or stay longer than 90 days at a time, you need a visa or residence permit. There are several pathways, and the best one depends on your situation. Below are the main visa/residency options for British entrepreneurs:
- Non-Lucrative Visa (NLV): This is a residency visa for living in Spain without working. It’s popular among retirees or those with sufficient passive income who want to reside in Spain for lifestyle reasons. The NLV allows you to live in Spain year-round, but you cannot engage in any paid work or business activity. To qualify, you must show significant financial means: at least 400% of Spain’s IPREM income index per year (around €28,800 for one person, plus ~€7,200 for each dependent in 2025). You also need private health insurance and a clean criminal record. The NLV is initially one year, renewable for two-year periods. Important: This visa is not suitable if you intend to actively run your business daily. However, some investors obtain an NLV to reside in Spain while hiring local managers to operate the company. In summary, the NLV is a residency-by-income option – great for living in Spain, but you’d need to switch visa status before you can legally work in your new business.
- Entrepreneur Visa / Self-Employed Work Visa: Spain offers visa pathways for those who plan to actively start or run a business. There are two main routes:
- Entrepreneur Visa (Visado para emprendedor): Designed for innovative startups and business ventures deemed of “special economic interest” to Spain. You must present a viable business plan that is innovative or high-potential, evaluated by Spanish authorities. The plan should highlight job creation in Spain, your professional qualifications, market analysis, financing, and added value to the economy. If approved, you get a one-year entrepreneur visa to move to Spain and launch the business. Family members can join on this visa. After the first year, you can convert it to a residence permit for up to 2 years, renewable as needed. This is ideal for tech startups or innovative ventures, as it fast-tracks residency. You’ll need sufficient funds to start the project and support yourself (typically 100% of IPREM for yourself and 50% per dependent).
- Self-Employed Work Permit (Visado de trabajo por cuenta propia): If your business is more traditional or you’re purchasing an existing business, you’d likely use the standard self-employed visa process. You must provide a solid business plan, proof of professional qualifications, evidence of sufficient investment capital, and any required licenses. You need to convince authorities that your business is viable and you won’t become a burden on the state. If approved, you get a one-year work and residence permit to run your business, renewable as long as the business operates. This autónomo (self-employed) visa isn’t limited to “innovative” businesses – even small shops or consultancies can qualify. The process takes a couple of months and involves both the Ministry of Labor and the consulate. Many UK entrepreneurs have successfully obtained self-employed visas for restaurants, retail stores, consultancies, etc. Be prepared for detailed paperwork – all business licenses should be lined up at application time.
- Golden Visa (Investor Visa): (Update: Abolished effective 3 April 2025) This was previously popular for non-EU investors, granting residency rights for significant investments (€500,000+ in real estate or €1,000,000 in Spanish companies). The program ended due to concerns about real estate speculation. New applications are not accepted. For UK investors today, plan on the other visa types above.
Choosing the Right Path: If you’re actively running a business in Spain, you need either a work visa or entrepreneur/self-employed permit. If retiring or only residing without working, the NLV works. Once you secure the appropriate visa and arrive in Spain, you’ll be issued a TIE (foreigner ID card) and officially become a resident.
Requirements and Essential Documentation for Business Purchase in Spain after Brexit
efore purchasing a business, you need to handle some bureaucratic must-haves. Spain requires certain identification numbers and documents for foreign nationals doing official business. Here are the essential pieces of paperwork a UK buyer should obtain:
- NIE (Número de Identificación de Extranjero): This is the Foreigner’s Identification Number in Spain, mandatory for virtually all legal or financial transactions. Think of the NIE as your personal tax ID in Spain. You need an NIE to buy a business, open a bank account, sign notary documents, pay taxes, register utilities – essentially, to be identified in Spain’s systems. Important: Getting an NIE does not grant you residency – it’s simply an identification number. You can apply at a Spanish consulate in the UK or at an immigration office in Spain. Fill out form EX-15, provide your passport, and crucially, provide a reason for needing the NIE (e.g., “to purchase a business in Spain”). Processing takes a few weeks at consulates, but only days in Spain. Do this early – you can’t complete the business acquisition without it.
- Spanish Bank Account: While not legally required, you’ll absolutely want a Spanish bank account. For new companies, you must deposit share capital (often €3,000 minimum) in a Spanish bank. For existing businesses, a local account helps handle transactions, expenses, and operations. Many Spanish government payments require direct debit from a Spanish bank. As a non-resident, you can open an account with your passport and NIE. Choose a bank experienced with foreigners to smooth the process.
- CIF/NIF (Tax ID for the Business): Every Spanish business has a tax identification number (NIF). If buying an existing company, it already has a NIF – you’ll update ownership records but keep the same number. If forming a new company, you’ll obtain a new NIF during incorporation. Your lawyer or gestor typically handles this paperwork.
- EORI Number (for Import/Export): If your business engages in international trade, you need an EORI number for customs declarations. All EU importers/exporters must have one. Apply through the Spanish Tax Agency – it’s usually straightforward but allow up to 10 days. Post-Brexit, this is crucial: a UK EORI isn’t valid for EU customs, so your Spanish entity needs its own. Without it, shipments get stuck at customs.
- Licenses, Permits, and Registrations: Depending on your industry, you may need specific permits (restaurants need health licenses, tour companies need tourism registration, etc.). During due diligence, verify all necessary licenses are in place and transferable. After purchase, transfer or update licenses promptly to keep operations legal.
- Work and Residency Documents: If working in the business, ensure you have a valid work/residence permit by the time you’re actively managing. Once resident, you’ll get a TIE card as your residency ID. If hiring employees, register the company with social security.
Preparing paperwork is absolutely essential. Many buyers engage a Spanish lawyer early to handle administrative tasks and ensure nothing is overlooked. Getting documents in order ahead of time avoids frustrating delays when you’re ready to sign the deal.
Choosing the right visa is only one piece of the puzzle—setting up the business itself involves even more crucial steps. Whether you’re starting from scratch or purchasing an existing operation, Lawants offers tailored legal assistance for entrepreneurs setting up businesses in Spain. We assist with company registration, drafting articles of association, tax setup, and more. Let our team streamline the process so you can focus on your business vision. Contact us today.
How to Buy a Business in Spain After Brexit: Step-by-Step Process
Let’s walk through the step-by-step process of finding and purchasing a business in Spain. This roadmap breaks the journey into clear stages for an organized approach:
1. Plan and Seek Professional Advice: Every successful purchase starts with good preparation. Clarify your goals and budget – decide what type of business you want (industry, size, location) and how much you can invest. Research market conditions in your area of interest. Crucially, consult with experts early. Engaging a Spanish lawyer and accountant at the planning stage can save costly mistakes later. They’ll explain legal requirements (visas, licenses, contract laws) and tax implications. Since you’re a UK national, discuss post-Brexit nuances like visa requirements or optimal business structures. Also ensure your financing is lined up – whether cash, loans, or investor funds. Planning isn’t glamorous, but it’s arguably the most important step.
2. Search for the Right Business Opportunity: Begin searching for businesses that meet your objectives through online marketplaces, local Spanish brokers, and industry networking. Consider factors like location and industry health – coastal areas for hospitality, cities like Madrid, Barcelona, or Valencia for tech companies. Do initial due diligence: request financial summaries and understand why the owner is selling. Shortlist promising options that align with your budget and skills. Also consider whether you want a share purchase (buying the company entity) or asset purchase (buying only business assets).
3. Conduct Thorough Due Diligence: This is arguably the most critical step to protect yourself. Investigate every aspect of the business’s health and legal standing:
- Financial Records: Have an accountant review last 3 years of financial statements, tax returns, and bank records. Verify revenues and profits, check for anomalies, and beware of “cash” businesses with unreported income.
- Legal and Compliance: Review all contracts and legal documents, ensure all required licenses are valid, and check for pending lawsuits or compliance issues.
- Taxes and Liabilities: Verify all VAT, income tax, and social security payments are current. Identify all outstanding debts and avoid inheriting hidden liabilities.
- Employees and Contracts: Review employment contracts and payroll records. Check if key employees are critical to operations and whether they’ll stay.
- Assets and Inventory: Verify ownership of key assets and do stocktakes of inventory. If real estate is included, do a property title search.
- Reputation and Customers: Check online reviews and assess the business’s market position and competition.
Due diligence uncovers deal-breakers or renegotiation opportunities. Take time (usually a few weeks) to inspect everything with professional help.
4. Valuation and Financing: Work on valuing the business using financial data from due diligence. Spanish businesses are often valued based on earnings multiples or asset values plus goodwill. Engage a valuation expert or refer to industry benchmarks. Arrange financing:
- If using personal funds, ensure they’re liquid and ready in euros
- If taking loans, talk to banks early (Spanish banks may lend to non-residents with conditions)
- Budget for additional costs: transfer taxes, notary fees, registration fees, professional fees
5. Negotiate the Deal and Structure the Purchase: Hash out sale specifics based on due diligence and valuation:
- Purchase Price and Payment Terms: Single lump sum or structured payments with earn-outs
- Inclusions and Exclusions: Clarify exactly what’s included (assets, liabilities, contracts)
- Deal Structure: Share purchase vs asset purchase (discuss with your lawyer)
- Seller Warranties: Get assurances about financial accuracy, no undisclosed debts, clear asset ownership
- Transition Support: Negotiate seller training period and non-compete clauses
6. Legal Contract and Closing: In Spain, business transfers are formalized through a public deed signed before a Notary Public. The notary prepares the deed, payment is made (usually by bank transfer or banker’s draft), both parties sign, and ownership is officially transferred. The notary registers changes with relevant authorities.
7. Post-Purchase Tasks: After closing:
- Register with authorities and update company ownership records
- Transfer licenses and contracts to your name
- Set up accounting with a local gestor/contable
- Integrate and plan your first 100 days of improvements
With proper planning and professional help, you can successfully navigate this process and become the new owner of a Spanish business.
Financial and Tax Considerations for UK Buyers
Buying and operating a business in Spain comes with important financial and tax implications, especially post-Brexit. Here are key considerations:
- Tax Residency: If you spend more than 183 days in Spain in a calendar year, you become a Spanish tax resident. As a tax resident, Spain will tax your worldwide income (including UK income), though you’ll get credits for foreign taxes paid. If you remain under 183 days, you’re a non-resident and Spain only taxes your Spanish-source income. Plan carefully as this significantly changes your tax obligations.
- UK-Spain Double Tax Treaty: The UK and Spain have a comprehensive double taxation agreement ensuring you won’t pay tax twice on the same income. While you might file returns in both countries, you’ll claim tax credits or exemptions for tax paid to the other country.
- Business Taxes in Spain:
- Corporate Tax: 25% on net profits (sometimes 15% for new companies in first two years)
- VAT (IVA): 21% standard rate on most goods/services, filed quarterly
- Social Security: Roughly 30% of employee gross salary plus employee contributions (~6%)
- Local Taxes: Property tax (IBI), business activity tax (IAE – usually exempt for small businesses)
- Currency and Financial Management: Monitor GBP/EUR exchange rates as fluctuations can affect your costs. Consider converting funds when rates are favorable and use foreign exchange specialists for better rates than high-street banks.
Tax planning is essential. Consult a cross-border tax advisor who understands UK-Spain situations to optimize your structure and take advantage of beneficial regimes like the 24% expat tax rate under the “Beckham Law.”
Challenges and Tips for Post-Brexit Business Buyers
- Bureaucracy and Legal Complexity: Spanish bureaucracy can be paperwork-heavy and slow. Tip: Work with a local gestor or legal advisor, allow extra time for approvals, and keep copies of all stamped documents.
- Immigration and Travel Limits: Without residency, you’re limited to 90-day stays. Tip: Secure appropriate residency visa early or have a reliable local manager to run operations when you’re not present.
- Language and Cultural Barriers: Language can be a barrier in negotiations and dealing with authorities. Tip: Invest time in learning Spanish, hire bilingual staff for key roles, and have important documents in both English and Spanish.
- Regulatory Differences: Spanish labor laws have generous employee protections and stricter firing rules. Tip: Educate yourself on Spanish regulations, consult with HR specialists, and retain local professionals for payroll and compliance.
- Post-Brexit Trade Hurdles: Moving goods between Spain and UK now involves customs declarations and VAT complications. Tip: Get an EORI number early, consider using customs brokers, and explore EU-centric supply chains.
- Bonus Tip: Build a support network of other British or international business owners in Spain through chambers of commerce or expat entrepreneur groups.
Frequently Asked Questions about Buying a Business in Spain After Brexit
- Do I need to be a Spanish resident to buy a business in Spain?
No – foreigners can buy Spanish businesses without being residents. However, if you plan to live in Spain or work in your business, you’ll need the appropriate visa or residence permit.
- Does buying a business give me residency automatically?
No – simply purchasing a business doesn’t grant residency rights. The Golden Visa program was abolished in April 2025. You must apply through standard visa routes (non-lucrative, work visa, entrepreneur visa, etc.).
- How long can I stay in Spain without a visa?
90 days within any 180-day period in the Schengen Area. This is roughly 3 months out of 6. For longer stays, you need a visa or residence permit.
- What taxes will I pay when buying and running a business?
Transaction taxes depend on deal structure (share purchases generally exempt from transfer tax, asset purchases may incur VAT or transfer tax). Ongoing taxes include corporate tax (25%), VAT (21%), social security (~30% of payroll), and potentially personal income tax on your earnings.
- Do I need a lawyer to buy a business in Spain?
Absolutely recommended – Spanish business law differs significantly from UK law. A bilingual lawyer will protect your interests, perform due diligence, draft contracts, and handle bureaucratic tasks like obtaining your NIE.
Buying a Business in Spain with Lawants: Expert Legal Support for UK Investors
Navigating post-Brexit Spanish business law can be challenging, but you don’t have to do it alone. Lawants is an international law and accounting firm specializing in cross-border transactions for foreign entrepreneurs in Spain.
We provide expert guidance at every stage: initial planning and visa advice, thorough due diligence, contract drafting and review, NIE procurement, business registration, and ongoing tax and legal compliance. Our bilingual team understands both Spanish and UK contexts, making us uniquely positioned to guide UK investors through post-Brexit requirements.
Post-purchase support includes ongoing tax advice, accounting, payroll, VAT filings, and legal compliance. We become your focal point for all legal and tax needs in Spain, letting you focus on running and growing your business.
With offices in Barcelona and experience in international trade, we make foreign clients feel at home in the Spanish market. Contact Lawants for a personalized consultation about acquiring a business in Spain – we’ll turn a potentially daunting process into a smooth, successful experience.
Buying and running a business in Spain requires careful planning, local expertise, and knowledge of post-Brexit procedures. Lawants specializes in helping UK entrepreneurs establish and manage businesses in Spain, from start to finish. With bilingual professionals and a deep understanding of both Spanish and UK legal systems, we make it easier for you to succeed. Start your business journey in Spain with confidence—reach out to Lawants today. Contact us.
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