What Foreign Founders Need to Know Before Setting Up a Business in Spain: Costs, Steps, Requirements, and Mistakes to Avoid
Lawants Guide · Foreign Company Formation in Spain Foreigners can set up and own 100% of a company in Spain. You do not need a Spanish partner, you do not need to move to Spain, and in most cases the whole process can be completed remotely through a notarial Power of Attorney.
The real question is not whether you can start a business in Spain, but which structure should own and operate it. For US founders with an LLC, UK entrepreneurs post-Brexit, EU founders, Canadian companies and international groups, the wrong structure can create delays, banking issues, tax exposure or unnecessary restructuring after incorporation.
Lawants has been setting up companies in Spain exclusively for foreign entrepreneurs and international businesses for over twenty years. Every case is reviewed personally by Roberto Bosco, Managing Director, before any procedure begins.
Can a Foreigner Start a Business in Spain?
- Yes, foreigners can own 100% of a Spanish company. No local partner is required.
- The most common structure is the Sociedad Limitada (S.L.), equivalent to a US LLC or UK Ltd.
- The minimum share capital is 3,000 euros, paid at incorporation.
- Most formations can be completed remotely through a notarial Power of Attorney, without travelling to Spain.
- Incorporation typically takes 7 to 10 business days with Lawants from receipt of complete documentation.
- A NIE (Número de Identificación de Extranjero) is mandatory for every individual shareholder and director.
- If the shareholder is a foreign company (US LLC, UK Ltd, Italian S.r.l.), that entity must obtain a separate Spanish NIF before incorporation can proceed.
- Non-EU founders who intend to live and work in Spain will also need the appropriate immigration authorisation.
Yes. Foreigners can own 100% of a Spanish company, act as sole director and complete the entire incorporation remotely without moving to Spain.
There is no requirement for a local partner, no minimum residency period, and no nationality restriction. The legal framework is the Ley de Sociedades de Capital (LSC), which applies equally to Spanish and foreign founders.
Foreigners can own 100% of a Spanish company, act as sole director, and complete the incorporation remotely through a Power of Attorney. The most common structure is a Sociedad Limitada (S.L.). Individual shareholders need a NIE, while foreign corporate shareholders require a Spanish NIF before incorporation can proceed.
The practical complexity is not procedural but strategic: choosing the right structure, understanding the tax implications for non-resident owners, managing the NIF requirement when the shareholder is a foreign legal entity, and knowing when remote incorporation is the right approach.
These are the decisions where getting professional advice before starting saves time and money.
The incorporation is usually the easy part. Choosing the right structure is what matters.
Many foreign founders contact Lawants after discovering that a US LLC, UK Ltd, foreign holding company or non-resident shareholder requires additional tax registrations and planning before the Spanish company can be incorporated correctly.
For more than twenty years, Lawants has assisted international entrepreneurs, foreign investors and multinational groups establishing operations in Spain, coordinating the entire process remotely from structure design to incorporation and tax activation.
Every enquiry is reviewed personally by Roberto Bosco before any incorporation process begins.
Managing Director, Lawants
Reply within 24 business hours
Why Foreign Entrepreneurs Choose Spain to Start a Business
EU Market Access
Competitive Costs
Remote Incorporation
Stable Legal Framework
- EU Market Access: A Spanish company can operate throughout the European Union and access a market of more than 450 million consumers. Businesses trading across Europe can also benefit from the VIES system for intra-community VAT transactions.
- Competitive Costs: Labour costs, office rents and operating expenses are generally lower than in many Western European countries. New companies may also qualify for a reduced 15% corporate tax rate during their first profitable years.
- Remote Incorporation: Most foreign founders can incorporate a Spanish company without travelling to Spain by using a notarial Power of Attorney and local representation.
- Stable Legal Framework: The Sociedad Limitada (S.L.) is a well-established corporate structure governed by EU-aligned legislation and widely recognised by banks, investors and business partners.
Choosing the Right Business Structure in Spain
The choice of legal structure determines liability exposure, tax treatment, administrative burden, and how the company is perceived by Spanish banks and partners.
For most foreign founders, the decision is between three options: S.L., branch or subsidiary.
| Structure | Best for | Liability | Key constraint |
|---|---|---|---|
| S.L. | New independent business in Spain, freelancers scaling up, foreign founders without a parent company | Limited to share capital | Min. 3,000 euros capital |
| Subsidiary (S.L. owned by foreign parent) | International group entering Spain with employees, contracts and local clients | Limited to subsidiary assets | Parent company NIF required before incorporation |
| Branch (Sucursal) | Existing foreign company executing a specific contract or testing the Spanish market short-term | Unlimited: parent company fully exposed | No separate legal personality; Mercantile Registry required |
The subsidiary and branch decision involves permanent establishment risk, transfer pricing implications and treaty considerations that require analysis before committing to a structure. Lawants provides this assessment as the first step of every international engagement.
Sociedad Limitada (S.L.)
The S.L. is Spain’s equivalent of a limited liability company. It is the structure used by the overwhelming majority of foreign entrepreneurs, SMEs and international groups entering the Spanish market. Shareholders are liable only up to their capital contribution, and personal assets are protected from company debts in normal circumstances.
Minimum share capital is 3,000 euros, fully paid at incorporation. Since the reform introduced by Ley 18/2022, an S.L. can technically be incorporated with 1 euro of capital, but restrictions on profit distribution apply until the equity reaches 3,000 euros, which makes starting at the standard minimum the practical choice for most cases.
The S.L. is a closed company: shares cannot be freely transferred without the consent of other shareholders and must be notarised. This makes it suitable for stable ownership structures with one or a small number of partners.
Autónomo (Self-Employed)
Operating as autónomo means trading as an individual with no separate legal entity: faster and cheaper to set up, but with unlimited personal liability. For EU citizens registration is straightforward; non-EU nationals need prior work authorisation.
The autónomo route suits freelancers and consultants at an early stage. Once annual profits consistently exceed approximately 60,000 euros, an S.L. typically produces a lower overall tax burden and should be the preferred structure from the outset for anyone planning to scale.
Branch Office vs Subsidiary for International Groups
International companies expanding into Spain often face the branch vs subsidiary decision.
- A branch office (sucursal) is not a separate legal entity: all liabilities extend directly to the parent company. It must be registered at the Spanish Mercantile Registry and appoint a local legal representative, but requires no minimum capital. Branches pay IRNR (non-resident income tax) on Spanish-source income at rules similar to corporate tax.
- A subsidiary is a separate Spanish legal entity, typically an S.L. owned by the foreign parent. It has independent legal personality, limited liability protection for the parent company, and pays Spanish corporate tax (Impuesto de Sociedades) on its worldwide income. The subsidiary structure is generally preferred when the Spanish operation will have employees, significant clients, or contracts, as it provides cleaner liability separation and greater credibility with local partners and banks.
How to Set Up a Business in Spain as a Foreigner: Step by Step
The procedure follows a fixed sequence. The critical variable is not the number of steps but managing the parallel processes correctly: NIE applications for individual shareholders, NIF for foreign corporate shareholders, and the notarial power of attorney must all be coordinated so that nothing blocks the next step.
Step 1. Corporate Structure and Pre-Incorporation Analysis
Before any administrative step, the founding structure must be defined: S.L. or branch, single shareholder or multiple, individual or corporate shareholder, resident or non-resident director.
Each of these choices has tax implications for both the Spanish company and the foreign parent or founder. This is the phase where Lawants adds the most value, and the one most often skipped by founders who later need to restructure at significant cost.
Step 2. NIE for Individual Shareholders and NIF for Foreign Corporate Shareholders
Every individual shareholder and director must obtain a NIE (Número de Identificación de Extranjero), the Spanish tax identification number for foreign nationals.
- For EU citizens, this can be obtained through the Spanish consulate in the home country or directly in Spain.
- For non-EU nationals, the process depends on immigration status.
When the shareholder is a foreign legal entity (a US LLC, a UK Ltd, an Italian S.r.l., a Canadian corporation, a holding company), that entity must obtain its own Spanish NIF (Número de Identificación Fiscal) from the Agencia Tributaria before incorporation. This is a separate procedure from the individual NIE and is the single most frequent source of delays in international incorporations.
The NIF of the foreign corporate shareholder: the document that blocks most international incorporations
“We have been trying to get the NIF for our US LLC for three months.” This is one of the most common situations Lawants encounters when clients arrive after attempting the process with other firms.
When the shareholder of the new S.L. is a foreign company, obtaining a Spanish NIF for that entity requires Form EX-15, jurisdiction-specific documentation from the home country, and a representative with a Spanish NIE. The process requires direct coordination with the Agencia Tributaria.
Firms without international experience stall here for months: incomplete documentation, wrong forms, no structured workflow with the Agencia Tributaria. The result is delayed incorporation, accumulating operational costs, and missed market windows.
Over twenty years of structured workflow for international incorporations. Direct coordination with the Agencia Tributaria and Mercantile Registry. Only the strictly necessary documentation, no back-and-forth.
Timeline in days, not months.
Step 3. Power of Attorney for Remote Incorporation
The notarial power of attorney (Poder Notarial) is the instrument that makes remote incorporation possible.
Signed before a notary in the founder’s home country, it authorises a representative in Spain to act on behalf of the founder for all incorporation steps: signing the deed before the Spanish notary, filing with the Mercantile Registry, and completing tax registrations with the Agencia Tributaria.
The power of attorney must specifically authorise each act required for the incorporation of an S.L. A generic power of attorney will be rejected by the Spanish notary.
Lawants prepares all powers of attorney in bilingual format (English and Spanish) as standard, assessing the apostille requirement case by case.
Step 4. Company Name Reservation
A Certificado Negativo de Denominación Social must be obtained from the Registro Mercantil Central in Madrid before the notary appointment. Up to three name options can be submitted in order of preference.
The certificate is usually issued within 48 hours and is valid for six months.
Step 5. Opening a Business Bank Account in Spain
The S.L. requires 3,000 euros of share capital.
Under current Spanish law, shareholders can declare the capital contribution directly in the deed of incorporation without providing a bank certificate to the notary, although a Spanish bank account remains necessary for company operations.
Opening a Spanish business bank account is one of the most practically challenging steps for foreign founders. It cannot be substituted by a foreign account: the company must have a Spanish account in its own name to pay taxes, contribute to Seguridad Social, manage payroll and receive client payments.
Some banks have developed remote onboarding procedures for EU nationals. For non-EU nationals and foreign corporate shareholders, the process typically requires more documentation and in some cases an in-person visit. Lawants coordinates bank selection based on the client’s profile and manages the onboarding process, which must be initiated in parallel with other steps, not after the company is registered.
Yes. A Spanish company account is required for operational purposes: payroll, tax payments, supplier transactions. It cannot be substituted by a foreign account. For founders whose company will be managed remotely from abroad, Lawants coordinates the selection and onboarding with institutions that have established procedures for international clients.
Step 6. Notary Deed and Mercantile Registry
The representative acts before the Spanish notary using the power of attorney. The deed of incorporation is signed and the company is legally constituted from that moment.
A provisional NIF is issued within 24 hours, enabling the company to invoice immediately. Registration with the Mercantile Registry is completed within approximately two to three weeks, after which the company bank account is fully unlocked.
Step 7. Tax Registration, VAT and VIES
The company files Modelo 036 with the Agencia Tributaria to activate its definitive NIF and register for IVA (Spanish VAT).
If the company will conduct intra-EU transactions with VAT-registered entities, registration in the VIES system is required. In Spain, VIES registration triggers an inspection procedure: an AEAT officer visits the registered address to verify the company’s actual activity.
This step requires active management in the weeks following incorporation and is one of the post-incorporation services where Lawants’ presence in Spain makes a concrete difference.
Step 8. Digital Certificate and Full Operability
The Spanish digital certificate (certificado digital) is required for all electronic interactions with public authorities: tax filings, Mercantile Registry submissions, Agencia Tributaria communications and Seguridad Social procedures.
It is not equivalent to an email signature or a qualified electronic signature in other jurisdictions: it has broader legal functions and is mandatory from day one of operations. Lawants obtains the digital certificate as part of the incorporation service.
Understanding the process is useful. Coordinating it is what matters.
Setting up a company in Spain involves more than signing the incorporation deed. Foreign shareholder registrations, powers of attorney, banking coordination, tax activation, VAT registrations and ongoing compliance requirements must all be aligned correctly.
For more than twenty years, Lawants has assisted foreign entrepreneurs, international investors and multinational groups entering the Spanish market. We coordinate the entire process remotely, providing a single point of contact from structure planning and incorporation through to operational launch.
One team for legal, tax, accounting and employment matters in Spain.
Managing Director, Lawants
Response within 24 business hours
Setting Up a Business in Spain Without Travelling: Is it Possible?
The entire incorporation procedure can be completed remotely. The founder does not need to travel to Spain at any stage of the process.
The power of attorney signed before a notary in the home country is sufficient to authorise a representative to complete all formalities in Spain: notary deed, Mercantile Registry, Agencia Tributaria, bank account opening.
The only step that requires physical presence is signing the power of attorney before a local notary in the founder’s country, typically a single appointment. Everything that follows in Spain is handled by the Lawants team without the founder needing to be present.
“Remote” and “online” are not the same thing in the Spanish context. Online incorporation refers to the CIRCE system, a Spanish government platform that allows certain company types to be incorporated electronically by parties with a Spanish digital certificate. It is designed for founders already in Spain with the technical infrastructure in place.
Remote incorporation means completing the process from abroad via notarial power of attorney, with a representative acting in Spain. This is the standard procedure for foreign founders who are not based in Spain and do not yet have a Spanish digital certificate. It is the route Lawants uses for all international clients.
For a complete guide to remote company formation in Spain, including the ETVE regime, fiduciary director service and the full remote checklist, see Setting Up a Company in Spain Without Travelling.
Does the Incorporation Process Change for EU, US, UK, and Non-EU Founders?
The legal framework for company ownership is the same regardless of nationality. The differences emerge in the immigration layer and in how the shareholding structure is organised.
EU and EEA Citizens
EU and EEA nationals benefit from freedom of establishment and can incorporate a Spanish company without any visa or work permit. The NIE is required for all fiscal and corporate operations and can be obtained through the Spanish consulate in the home country or directly in Spain via a delegated representative.
For stays in Spain exceeding three months, EU citizens must register with the local municipality and obtain the Certificado de Registro de Ciudadano de la Unión. This is separate from the NIE and from any corporate obligations.
US, Canadian and Non-EU Founders
Non-EU nationals can own a Spanish S.L. without any restriction.
The NIE is required for each individual shareholder and director. If the shareholder is a US LLC, a Canadian corporation, a UK Ltd, or any other foreign legal entity, that company must obtain its own Spanish NIF (Form EX-15) before the Spanish notary can proceed with the incorporation deed.
This is the step that most frequently causes delays for US and non-EU founders. The NIF procedure for a foreign corporate shareholder requires documentation from the home jurisdiction, properly apostilled and translated where required, plus a representative with a Spanish NIE to file on behalf of the entity. Without this NIF, the incorporation cannot proceed.
For non-EU founders who intend to live and work in Spain, the appropriate work authorisation must be in place before operating as self-employed. The relevant routes are the entrepreneur visa (for innovative business projects) and the self-employed work visa (for traditional business activities).
For founders who will manage the Spanish company remotely from their home country without relocating, no Spanish immigration document is required beyond the NIE.
UK Founders After Brexit
Since January 2021, UK nationals are treated as non-EU third-country nationals for immigration purposes in Spain. This does not prevent a UK founder from setting up a Spanish company, but it changes the requirements for those who intend to work in Spain.
A UK founder who will not physically work in Spain and will manage the company remotely from the UK faces no immigration requirement. The NIE is still required for the corporate procedure and can be obtained through the Spanish consulate in the UK.
A UK founder who intends to relocate to Spain and work there must obtain the appropriate residence and work authorisation before starting to operate. The main routes are the non-lucrative visa, the entrepreneur visa under Ley 14/2013, or the Digital Nomad Visa under Ley 28/2022 if working remotely for UK clients. Each has specific requirements and timelines that must be planned well in advance.
For a full guide on the specific implications of setting up a business in Spain after Brexit, see Starting a Business in Spain After Brexit.
Do Foreign Entrepreneurs Need a Visa to Start a Business in Spain?
It depends on whether you intend to live and work in Spain, or manage the company remotely from abroad.
Setting up a Spanish company does not automatically require a visa. What determines the immigration requirement is your nationality and your physical presence in Spain.
EU and EEA Citizens: No Visa Required
EU and EEA nationals have freedom of establishment in Spain. They can incorporate a company, hold shares and work as director or employee without any visa or work permit. A NIE is still required for the corporate procedure. For stays exceeding three months, registration with the local municipality is required, but this is an administrative formality, not an immigration hurdle.
Non-EU Citizens: It Depends on How You Will Operate
A non-EU founder who will manage the Spanish company remotely from their home country without relocating does not need a Spanish visa. The NIE is required for the corporate procedure and can be obtained through the Spanish consulate.
A non-EU founder who intends to live and work in Spain must obtain work authorisation before starting to operate. The three main routes are:
Entrepreneur Visa (Ley 14/2013): for founders with innovative business projects. Requires a business plan assessed by a Spanish economic body. Initial one-year permit, extendable to two years. Suited to tech startups and high-growth ventures.
Self-Employed Work Visa: for traditional business activities. Requires a business plan, proof of funds and professional qualifications. Suited to founders in retail, hospitality, professional services and consultancy.
Digital Nomad Visa (Ley 28/2022): for remote workers and entrepreneurs whose clients are based outside Spain. Provides access to the Beckham Law flat rate of 24% on Spanish-sourced income. Suited to founders relocating while continuing to serve non-Spanish clients.
What is the Cost of Starting a Business in Spain?
The minimum budget for a complete S.L. incorporation by a foreign founder is approximately 5,000 to 6,000 euros, of which 3,000 euros is share capital (not a cost: it remains in the company as working capital).
The remaining 2,000 to 3,000 euros covers government fees, notary costs, and professional services.
| Item | Cost | Notes |
|---|---|---|
| Share capital | 3,000 euros | Remains in the company. Not a fee or expense. |
| Notary and Mercantile Registry | approx. 1,100 euros | Invoiced directly to the NewCo |
| NIE and NIF procedures | Variable | NIF for foreign corporate shareholder billed separately where applicable |
| Professional fees | Variable by structure | Lawants quotes on a fixed-fee basis after preliminary assessment |
| Digital certificate | Included in Lawants service | Required for all electronic interactions with Spanish authorities |
| Optional ongoing services | Monthly fees | Accounting, payroll, domiciliation, fiduciary director |
The lowest upfront cost is not always the most economical option. Delays caused by incorrect powers of attorney, unnecessary apostilles, or the NIF of the foreign corporate shareholder handled without experience frequently cost more than the fee difference between a specialist firm and a generalist one.
Taxes for Foreign-Owned Businesses in Spain
Many international founders are attracted to Spain partly by a tax environment perceived as more favourable than their home jurisdiction. The actual picture depends on structure, residency of the owners, and whether the company qualifies for reduced rates. Here are the key figures for 2026.
Corporate Tax (Impuesto de Sociedades)
The standard rate is 25% on taxable profits. Newly incorporated companies may qualify for a reduced rate of 15% for the first two profitable tax years, subject to conditions: the company must have real economic activity in Spain, must not be part of a pre-existing group, and must not have been incorporated as a mere holding. The 15% rate is confirmed after assessment, not automatic.
VAT (IVA) and VIES
The standard IVA rate is 21%, with reduced rates of 10% and 4% for specific categories. For companies conducting intra-EU transactions with VAT-registered business partners, VIES registration is required to issue invoices without VAT. In Spain, VIES requires a verification inspection by the Agencia Tributaria at the registered address, which must be managed actively in the post-incorporation phase.
Dividends to Foreign Shareholders
Dividends paid by the Spanish S.L. to foreign shareholders are subject to a withholding tax in Spain, with the applicable rate depending on the double taxation treaty between Spain and the shareholder’s country of residence. For EU corporate shareholders, the EU Parent-Subsidiary Directive may provide exemptions for qualifying participations. The dividend flow between the Spanish company and the foreign parent or individual shareholder requires specific analysis for each structure.
Beckham Law: Special Tax Regime for Inbound Workers
Individuals who relocate to Spain and become tax residents may qualify for the Beckham Law (Régimen de Impatriados), which taxes Spanish-sourced income at a flat rate of 24% instead of the progressive IRPF scale (up to 47%). The regime applies for up to six years and is available to qualifying employees, directors, entrepreneurs under the Digital Nomad Visa, and in some cases founders relocating with a Spanish company. Eligibility depends on prior residency status and the nature of the Spanish activity. See the full Beckham Law guide for eligibility criteria.
Verifactu: Mandatory Invoicing Compliance from 2027
Spain is implementing Verifactu, a mandatory certified invoicing system that generates a tamper-proof, QR-coded record for every invoice issued and transmits it to the Agencia Tributaria in real time. For S.L.s, the system becomes mandatory from 1 January 2027. Autónomos follow from 1 July 2027. This means that non-certified invoicing software (spreadsheets, Word templates, non-compliant platforms) will no longer be acceptable. Companies setting up in Spain in 2026 should select Verifactu-compliant accounting and e-invoicing tools from the start.
Lawants can advise on compliant solutions as part of the post-incorporation compliance service.
Tax planning for a foreign-owned Spanish company requires more than knowing the rates.
The interaction between Spanish corporate tax rules and the shareholder’s country of residence can significantly affect the overall tax burden of the investment. Dividend distributions, management remuneration, treaty benefits and special regimes such as the Beckham Law should be assessed before the company is incorporated, not afterwards.
Lawants acts as a single point of contact for tax, accounting, payroll and legal compliance, helping foreign-owned Spanish companies remain compliant as they grow.
Initial tax assessments are reviewed directly by Roberto Bosco before recommendations are provided.
Managing Director, Lawants
Response within 24 business hours
Most Common Mistakes Foreign Founders Make When Setting Up a Business in Spain
In our experience with international founders and companies setting up in Spain, the errors that generate delays, unexpected costs and compliance issues are almost always the same. They are not errors of bad faith. They are the result of applying assumptions from other jurisdictions to a system that works differently.
- Not starting the NIF procedure for the foreign corporate shareholder in advance. This is the most frequent cause of delays in non-EU and UK incorporations. The NIF for a US LLC, UK Ltd or other foreign legal entity requires documents from the home jurisdiction, a representative with a Spanish NIE, and direct coordination with the Agencia Tributaria. It must be started at the very beginning of the process, not after the power of attorney is ready.
- Using a generic power of attorney. A power of attorney that authorises “all acts necessary to represent the founder in Spain” will be rejected by the Spanish notary. The document must specifically authorise the signing of the deed of incorporation of a Sociedad Limitada, the filing with the Mercantile Registry and each of the tax registrations. Drafting it correctly the first time avoids weeks of delay from Italy, the UK, the US or wherever the founder is based.
- Requesting apostille when it is not required. For incorporations involving EU founders, apostille is not always mandatory. Requesting it as a default adds two to four weeks to the timeline and costs that are entirely avoidable. Lawants assesses the apostille requirement case by case.
- Incorporating without pre-incorporation tax analysis. The structure of the shareholding, the residency of the director, the nature of the Spanish activity and the relationship with the foreign parent all affect the tax outcome. Correcting a structure after incorporation is significantly more expensive than planning it correctly from the start.
- Leaving the bank account to the last step. Opening a Spanish business bank account for a non-resident founder or a foreign corporate shareholder is the most variable step in the process. Some institutions require additional due diligence, and in some cases in-person verification. It must be initiated at the beginning of the process, in parallel with other steps, not after the company is already registered.
- Not registering for VIES before issuing intra-EU invoices. A Spanish company issuing invoices to EU VAT-registered partners without VIES registration will either charge VAT incorrectly (causing the client to reject the invoice) or issue invoices that will create compliance problems with the Agencia Tributaria. VIES registration in Spain requires an inspection visit and active follow-up.
- Underestimating post-incorporation compliance requirements. Quarterly IVA filings (Modelo 303), corporate tax advance payments (Modelo 202), annual accounts deposited at the Mercantile Registry, VIES follow-up, Verifactu compliance from 2027: a Spanish company has ongoing obligations from the first day of activity. Lawants acts as the single point of contact for all of these.
Managing a Spanish Business from Abroad: Post-Incorporation Compliance
Incorporation is the starting point, not the destination.
A Spanish S.L. generates continuous legal and tax obligations regardless of where the shareholders are based. For founders managing their Spanish company remotely from the UK, the US, Italy, or elsewhere, having a single local point of contact that covers all obligations is the practical prerequisite for operational continuity.
Accounting and Tax Filings
The Spanish company files quarterly IVA returns (Modelo 303), makes advance corporate tax payments (Modelo 202), submits the annual corporate tax return (Modelo 200) and deposits Cuentas Anuales (annual accounts) at the Mercantile Registry each year. For companies with intra-EU transactions, additional reporting applies. Missing any of these deadlines generates administrative sanctions.
Payroll and Social Security
If the Spanish company employs staff in Spain, payroll and Seguridad Social contributions must be calculated and filed monthly. Every employment contract must be registered electronically. Lawants manages payroll as a recurring service, including access to a dedicated portal for employees and a monthly bank transfer file for salary payments.
Fiduciary Director and Registered Address
Founders who do not wish to be personally exposed as administrator of the Spanish company, or who need a permanent local administrative presence, can use a fiduciary director, who assumes the role of administrator of the Spanish S.L., acting exclusively in the client’s interest and according to their instructions, and a domiciliation service, which provides a legal and operational address in Spain.
How Lawants Supports Foreign Founders and International Companies Setting Up in Spain
Lawants operates exclusively with foreign entrepreneurs and international businesses in Spain. This is not an international department within a generalist firm: it is the only thing we do, and have done for over twenty years. The implications for a foreign founder are concrete: the problems that arise in international incorporations are not exceptional cases for us, they are the baseline.
When Lawants Is Usually the Right Fit
Lawants works exclusively with foreign entrepreneurs and international companies operating in Spain.
We are typically engaged when:
- a foreign founder wants to incorporate remotely
- a US LLC, UK Ltd or foreign holding company will own the Spanish company
- an international group needs a Spanish subsidiary
- the project requires ongoing accounting, payroll and legal support
- the founders want a single point of contact in Spain
For purely local incorporations with Spanish shareholders and no international component, a local gestor may be sufficient. For cross-border structures, the legal and tax implications usually require specialist support.
Every new client engagement is assessed personally by Roberto Bosco before any procedure begins. The first contact is not a sales call: it is a preliminary review of the project, its structure, and the most efficient path to incorporation and operational compliance in Spain.
Most firms help you incorporate. Few stay with you afterwards.
Lawants supports foreign founders from the first assessment through incorporation, tax registration and ongoing legal, accounting and payroll compliance. As your business grows, we remain the local team coordinating the obligations that arise in Spain, long after the company has been registered.
FAQ: Setting Up a Business in Spain as a Foreigner
The most frequent questions Lawants receives from foreign founders and international companies considering setting up in Spain.
Can a foreigner set up a company in Spain without living there?
Yes. There is no residency requirement to own or administer a Spanish S.L. The entire incorporation process can be completed remotely via a notarial power of attorney signed in the founder’s home country, which authorises a representative in Spain to complete all steps. The only in-person requirement is signing the power of attorney before a local notary in the home country, which is a single appointment. Everything in Spain is handled by the Lawants team.
Can I open a company in Spain online?
Yes and no. Spain has an online incorporation system called CIRCE, developed for founders who are already in Spain and hold a Spanish digital certificate. For foreign founders based abroad, the standard route is not online incorporation through CIRCE but remote incorporation via a notarial Power of Attorney. This is a different process: the founder signs a power of attorney before a notary in their home country, which authorises a local representative to complete all steps in Spain. The result is identical, but the mechanism is different. Lawants uses the Power of Attorney route for all international clients, which is faster and more reliable than CIRCE for non-residents.
How much does it cost to set up a company in Spain as a foreigner?
The minimum budget for a complete S.L. incorporation is approximately 5,000 to 6,000 euros, of which 3,000 euros is share capital that remains in the company as working capital. The remaining amount covers notary and Mercantile Registry fees (approximately 1,100 euros, invoiced to the company), NIE and NIF procedures where applicable, and professional fees. Lawants quotes on a fixed-fee basis after a preliminary assessment of the specific structure.
Is 5,000 euros enough to start a business in Spain?
For the incorporation of an S.L. alone, 5,000 euros covers the share capital (3,000 euros) and government and professional fees. It does not cover ongoing operating costs: monthly accounting and tax compliance, payroll if employees are hired, domiciliation, or the fiduciary director service if needed. A realistic planning horizon for the first year of a Spanish S.L. should include 6 to 12 months of operating costs on top of the incorporation budget.
Can a US LLC or UK Ltd be the shareholder of a Spanish S.L.?
Yes. A foreign legal entity can hold shares in a Spanish S.L. with no restriction. Before the incorporation deed can be signed, the foreign entity must obtain a Spanish NIF (Número de Identificación Fiscal) from the Agencia Tributaria using Form EX-15, with jurisdiction-specific documentation from the home country and a representative with a Spanish NIE. This procedure must be initiated at the very start of the process, as it is the most frequent cause of delays in international incorporations.
What is the corporate tax rate for a new company in Spain?
The standard corporate tax rate (Impuesto de Sociedades) is 25%. Newly incorporated companies may qualify for a reduced rate of 15% for the first two profitable tax years, subject to conditions: the company must have genuine economic activity in Spain, must not be part of a pre-existing group, and must not be a mere holding. The applicability of this rate must be confirmed case by case, as it is not automatic.
Do UK nationals need a visa to start a business in Spain after Brexit?
UK nationals are now treated as non-EU third-country nationals for immigration purposes in Spain. A UK founder who will manage the Spanish company remotely from the UK does not need a visa, but does need a NIE for the corporate procedure. A UK founder who intends to live and work in Spain must obtain the appropriate residence and work permit before starting to operate. The main options are the entrepreneur visa (for innovative businesses), the self-employed work visa (for traditional activities), and the Digital Nomad Visa for those working remotely for UK-based clients.
How long does it take to incorporate a company in Spain?
With Lawants, the incorporation procedure from receipt of complete documentation is completed in 7 to 10 working days. The total project timeline depends on the preliminary steps: NIE applications for individual shareholders can take 2 to 6 weeks via consulate; the NIF for a foreign corporate shareholder has variable timing. These steps must be initiated in parallel from the start. For EU founders without a corporate shareholder, the total timeline from first contact to a fully operational company is typically 4 to 6 weeks.
What is Verifactu and does it apply to my Spanish company?
Verifactu is Spain’s mandatory certified invoicing system, which generates a tamper-proof QR-coded record for every invoice and transmits it to the Agencia Tributaria in real time. It becomes mandatory for S.L.s from 1 January 2027 and for autónomos from 1 July 2027. Non-certified invoicing tools (spreadsheets, Word templates, non-compliant software) will not be acceptable after those dates. Companies setting up in Spain in 2026 should select Verifactu-compliant accounting tools from the start.
Do I need business licences to operate in Spain?
It depends on the activity. Incorporating an S.L. does not automatically grant the right to carry out all commercial activities. Certain sectors require specific licences, permits or professional registrations before operations can begin: food businesses need health and safety registrations, physical premises typically require a municipal opening licence (licencia de apertura), regulated professions require credential recognition, and financial services require authorisation from the Bank of Spain or CNMV. The licensing requirements depend on the industry, the type of premises and the region. Lawants advises on sectoral licence requirements as part of the pre-incorporation analysis.
Does starting a business in Spain give you residency?
No, not automatically. Incorporating a Spanish company does not grant residency rights. For non-EU founders who want to live in Spain, the company is a supporting element for a visa application, not a substitute for it. The available routes are the Entrepreneur Visa, the Self-Employed Work Visa or the Digital Nomad Visa, depending on the nature of the business and the founder’s profile. The Golden Visa, which previously allowed residency through investment in real estate, was discontinued in April 2024. EU citizens do not need a residency permit to start or run a Spanish company.
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