Can I Start a Business in Spain After Brexit? Complete Guide for UK Citizens

Starting a Business in Spain After Brexit, is it Possible? A Legal Guide to Requirements, Steps and Mistakes

Lawants Guide · UK Companies in Spain · 2026

Yes, UK citizens can start a business in Spain after Brexit. The right to incorporate a Spanish company, own shares, and operate commercially in Spain was not affected by Brexit. What changed is the personal status of British nationals: they are now treated as third-country nationals, which introduces visa requirements for those who want to live and work in Spain.

But the question is rarely just “can I?” Most UK entrepreneurs and companies asking this question fall into one of three situations: they want to open a new Spanish company; they want to continue running their existing UK company while living or operating in Spain; or they want to expand their UK business into Spain without physically relocating. Each situation has different legal, tax, and structural implications.

Lawants works exclusively with foreign companies in Spain, with over twenty years of experience supporting UK businesses entering the Spanish market. Every enquiry is reviewed personally by Roberto Bosco, Managing Director, before any recommendation is made.

Lawants · Best Law Firms Spain · Barcelona and Madrid · Over twenty years assisting exclusively foreign companies · Lawyers and accountants under one roof

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Can I Start a Business in Spain After Brexit?

UK citizens can start, own, and operate a business in Spain after Brexit. The corporate law position is clear: there is no nationality restriction on owning shares in a Spanish company, and a Spanish S.L. or S.A. can be 100% owned by a UK individual or a UK company. Brexit did not change this.

What Brexit changed is the personal status of British nationals in Spain. Before December 31, 2020, UK citizens had the same rights as EU nationals: automatic freedom of establishment, no visa requirements, and the right to live and work in Spain without additional authorisation. Since then, UK nationals are treated as third-country nationals.

This means that anyone who wants to physically relocate to Spain to run their business needs a visa. Anyone who wants to remain in the UK and run a Spanish company from there does not need a visa, but needs to understand the tax and compliance implications on both sides.

What did not change after Brexit

Although Brexit introduced new immigration rules, it did not prevent UK citizens or UK companies from establishing and operating a business in Spain. Several of the legal foundations that made cross-border business possible before Brexit remain exactly the same today.

• UK citizens can still own 100% of a Spanish company. There is no requirement to have a Spanish shareholder or local business partner.
• UK companies can still establish Spanish subsidiaries or branch offices. Brexit did not remove the possibility for UK businesses to expand into the Spanish market.
• The UK-Spain Double Taxation Treaty continues to apply. Cross-border income is still governed by the treaty, helping to prevent the same profits from being taxed twice.
• Foreign investment in Spain remains open. UK investors can continue to acquire Spanish businesses, hold shares and carry out commercial activities, subject to the same corporate rules that apply to other non-EU investors.
• The real changes concern immigration and tax structuring. Visa requirements, tax residency, permanent establishment risks and corporate structure have become more important than the simple ability to own or operate a business in Spain.

The practical implication is that the structure of your Spanish business activity, not your nationality, determines what you need.

A UK citizen opening a Spanish subsidiary from London needs no visa and no Spanish residency. A UK citizen moving to Barcelona to run that same company needs a visa and will trigger Spanish tax residency rules after 183 days.

UK Businesses · Spain Entry

Brexit changed the rules. It did not make doing business in Spain impossible.

Whether you are opening a Spanish company, expanding an existing UK business, or relocating personally to Spain, the legal, immigration and tax implications are different in every case. Lawants assists UK entrepreneurs and companies with the complete UK–Spain transition through a single team of lawyers, tax advisers and accountants. Every project is reviewed personally by Roberto Bosco, Managing Director.

Over twenty years advising UK companies and entrepreneurs operating in Spain.

Discuss your UK–Spain project

Roberto Bosco
Managing Director, Lawants
Response within 24 business hours

Setting Up a Business in Spain from the UK

Setting up a Spanish company from the UK is entirely possible without visiting Spain at any stage. The incorporation process for a Spanish S.L. can be completed in full through a notarial power of attorney granted in the UK, with Lawants acting on behalf of the client at every step on the Spanish side. No flights, no consulate appointments in Spain, and no physical signatures required in Barcelona or Madrid. This is the standard remote process Lawants manages every year for the majority of UK companies and entrepreneurs.

What Happens on the UK Side (Your Preparation)

The UK side focuses entirely on legalizing your corporate or personal identity for the Spanish authorities. It involves two main requirements depending on your structure:

• The Power of Attorney (PoA): Lawants prepares a bilingual document granting us authority to act at the Spanish notary on your behalf. You must sign this before a UK Notary Public, and it must be legalised with an FCDO apostille (which takes 3 to 5 working days) and a sworn Spanish translation.
• For UK Individuals (NIE Application): If you do not have a Spanish NIE, you must apply via the Spanish Consulate (London, Edinburgh, or Manchester). Post-Brexit reciprocal rules mean UK nationals pay a €80 fee (compared to €9.84 for EU citizens), with processing times ranging between 2 to 4 weeks.
• For UK Corporate Shareholders (Company NIF): If a UK Ltd will own the Spanish company, the Ltd itself must obtain a Spanish corporate NIF via Form EX-15 from the Agencia Tributaria. This step requires a local representative with a Spanish NIE and is historically the most frequent source of delay.

What Happens on the Spanish Side (Lawants Execution)

Once your UK documentation is apostilled and received, Lawants takes over the entire bureaucracy in Spain. We manage the following steps in sequence:

• Digital Certificate: Issuing the digital certificate so you can manage your Spanish tax filings remotely.
• Company Name Reservation: Secured through the Registro Mercantil Central.
• Banking & Capital Coordination: Assisting with the mandatory share capital setup.
• Constitution Deed: Drafting the articles of association and executing the deed before a Spanish notary using the PoA.
• Tax & VAT Activation: Tax registration (Modelo 036) with the Agencia Tributaria, followed by VIES registration (ROI) for intra-EU VAT operations.

Visa Options for UK Citizens Starting a Business in Spain

A visa is required only for UK citizens who intend to physically live and work in Spain. If you plan to incorporate a Spanish company and manage it remotely from the UK, no visa is needed. However, if you plan to relocate to Spain to operate your business, the main residency pathways include:

• Entrepreneur Visa: Designed specifically for innovative or tech-driven business projects. It requires prior approval of the business plan by ENISA (the National Innovation Company) before the residence permit can be granted.
• Self-Employed Visa (Autónomo Visa): The standard pathway for traditional businesses such as consultancies, retail, or professional services. Applicants must present a detailed business plan validated by a competent Spanish trade body.
• Digital Nomad Visa: Available to UK nationals who work remotely for non-Spanish employers or clients. This route is highly relevant for freelancers maintaining a UK client base, as it may grant access to the Beckham Law tax benefits.

Business Structures for UK Citizens in Spain

The two main options for UK citizens starting a business in Spain are the Sociedad Limitada (S.L.) and the Autónomo (self-employed) status. The right choice depends on the scale of the activity, the liability position, and the expected profit level.

For most UK companies and entrepreneurs entering the Spanish market with any expectation of growth, employees, or commercial relationships with Spanish enterprise clients, the S.L. is the appropriate structure. The Autónomo route works for individual freelancers and professionals at lower income levels but offers no liability protection and becomes tax-inefficient above approximately €50,000–60,000 of annual net profit.

A full analysis of the S.L. structure, including the step-by-step incorporation process, is available in the Lawants S.L. company guide.

How to Set Up a Company in Spain as a UK Citizen: Step by Step

The process below applies to a UK citizen or UK company incorporating a Spanish S.L. from the UK, without physical presence in Spain at any stage. The steps on the UK side and the Spanish side run partly in parallel once the documentation is in order.

• Step 1: Obtain a Spanish NIE or NIF. UK individuals require a Spanish NIE, obtainable through the Spanish Consulate in London, Edinburgh or Manchester. If the shareholder is a UK company, it must first obtain its own Spanish NIF from the Agencia Tributaria using Form EX-15. Both identification numbers must be in place before the incorporation deed can be signed.
• Step 2: Sign a power of attorney in the UK. Lawants prepares a bilingual power of attorney, which is signed before a UK notary public, legalised with an FCDO apostille and accompanied by a sworn Spanish translation. From this point onwards, Lawants can complete the entire incorporation process in Spain without the client travelling.
• Step 3: Reserve the company name. The proposed company name is requested from the Registro Mercantil Central. Approval is typically issued within 48 hours, allowing the incorporation process to move forward.
• Step 4: Draft the articles of association and open the bank account. The company’s constitutional documents are prepared, the share capital is deposited into a Spanish bank account, and all incorporation documentation is finalised before the notarial appointment.
• Step 5: Execute the notarial deed. The deed of incorporation is signed before a Spanish notary by Lawants acting under the power of attorney. A provisional Spanish tax identification number (NIF) is generally issued within 24 hours.
• Step 6: Register the company. The deed is filed with the provincial Registro Mercantil. Registration normally takes two to three weeks, after which the company acquires full legal personality.
• Step 7: Obtain the definitive tax registrations. Following registration, Lawants completes the Modelo 036 filing with the Agencia Tributaria, obtains the definitive NIF, registers the company for VAT and, where appropriate, the VIES (ROI), and activates the digital certificate for remote interaction with the Spanish authorities.

Setting Up from the UK · Remote Incorporation

A Spanish company, opened from the UK, without setting foot in Spain.

Lawants manages the complete Spanish-side process via power of attorney: name reservation, articles of association, bank account, notarial deed, Registro Mercantil, AEAT, VIES and digital certificate. You handle the UK-side documentation; Lawants handles everything in Spain. Roberto Bosco reviews every project personally before any step is taken.

Over twenty years advising UK companies and entrepreneurs operating in Spain.

Start the process from the UK

Roberto Bosco
Managing Director, Lawants
Response within 24 business hours

Running a Business in Spain from the UK

Many UK companies and entrepreneurs want to operate in Spain without physically relocating. The question “can I run a business in Spain from the UK?” has a nuanced answer: it depends entirely on what the business activity in Spain looks like. The legal and tax position is determined by the nature of the Spanish operations, not by where the owner is based.

Selling to Spanish Customers from the UK

A UK company can sell goods and services to Spanish customers without any Spanish legal structure, provided the sales are genuinely remote and do not involve a fixed place of business, employees, or agents in Spain. For digital services and goods sold online, this is straightforward.

The UK company invoices from the UK, receives payment in the UK, and its Spanish exposure is limited to VAT obligations: EU VAT rules require non-EU companies to register for VAT in Spain (or use the EU OSS scheme) once sales to Spanish consumers exceed the relevant threshold.

The position changes the moment the UK company has any physical or commercial presence in Spain. A sales representative based in Spain who habitually concludes contracts on behalf of the UK company creates a dependent agent permanent establishment under the UK-Spain Double Taxation Treaty. At that point, the profits attributable to the Spanish activity are taxable in Spain, and the UK company has registration and compliance obligations with the Agencia Tributaria regardless of whether it has opened a formal Spanish structure.

Employees, Agents, and Physical Presence in Spain

The most common mistake UK companies make when entering the Spanish market is hiring a Spanish employee or engaging a local commercial agent without first assessing the permanent establishment risk. Under Spanish domestic law and the UK-Spain treaty, a dependent agent who habitually exercises the authority to conclude contracts in the name of the UK company creates a taxable permanent establishment in Spain. The consequences are significant: the UK company becomes liable for Spanish corporate tax on profits attributable to that activity, must register with the AEAT, and may face retroactive tax assessments if the PE is identified after the fact.

An independent agent or distributor who acts in the ordinary course of their own business and is not exclusively dedicated to the UK company generally does not create a PE. The practical distinction between dependent and independent agents requires careful legal analysis in each case. Lawants regularly advises UK companies on structuring their Spanish commercial relationships to contain PE risk before it arises.

When Running from the UK Creates More Risk Than Opening a Spanish S.L.

The instinct to avoid opening a Spanish company, to keep everything in the UK entity and manage Spain from London, is understandable. In practice, it frequently produces worse outcomes than a clean Spanish structure. A UK company with unregistered Spanish operations faces retroactive PE exposure, AEAT penalties for late registration, and the complexity of reconstructing years of Spanish accounting to comply.

A Spanish S.L. opened from the outset costs less to maintain than the compliance burden of an unregistered PE and gives the Spanish operation a legal identity that clients, banks, and suppliers recognise. For any UK company planning more than occasional sales into Spain, the earlier the Spanish structure is in place, the lower the cumulative risk.

When does a UK business start creating a Spanish presence?

These situations do not automatically create a Spanish permanent establishment. They are, however, the circumstances in which the legal, tax and compliance position should be assessed before the activity begins.

Tax Implications for UK Citizens with Business in Spain

The tax position of a UK citizen with Spanish business interests depends on two variables: whether the individual is a Spanish tax resident, and how the Spanish business activity is structured. The interaction between UK and Spanish tax rules is governed by the UK-Spain Double Taxation Treaty, which remained fully in force after Brexit.

If You Are Not a Spanish Tax Resident

A UK resident who owns a Spanish S.L. is taxed in Spain only on the profits of the Spanish company (at 25% IS) and on any dividends distributed from the Spanish company to the UK. Under the UK-Spain treaty, dividends paid by a Spanish S.L. to a UK shareholder are subject to a maximum Spanish withholding tax of 10% (or 15% depending on the shareholding percentage and applicable protocol provisions), with UK credit available for Spanish tax paid. The UK company or individual then accounts for these dividends in their UK tax returns, with credit for Spanish tax withheld. Interest and royalties paid by the Spanish S.L. to its UK parent are similarly covered by the treaty, which generally reduces or eliminates Spanish withholding.

If You Become a Spanish Tax Resident

Once you cross the 183-day threshold or have your centre of vital interests in Spain, you are a Spanish tax resident and subject to IRPF on worldwide income. Dividends from your UK company, salary from any source, rental income, and investment income all fall within the Spanish tax net. The UK-Spain treaty determines which country has primary taxing rights on each category, and the treaty’s tiebreaker provisions determine residency status for treaty purposes when you may qualify as resident in both countries simultaneously. Getting this analysis right before relocating is significantly cheaper than correcting it retroactively.

EORI for UK Companies Trading with Spain

UK companies importing or exporting goods to and from Spain need a Spanish EORI number, as GB-prefixed EORI numbers lost their validity for EU trade after Brexit. A Spanish EORI requires prior Spanish VAT registration and is obtained online through the Agencia Tributaria, with processing of up to ten days. The Spanish EORI number follows the format ES + the company’s Spanish tax identification number. More detail is available in the Lawants EORI guide.

UK-Spain Tax Position · Before You Relocate

Moving to Spain can change the tax position of both you and your UK company.

Spending time in Spain, managing a UK company from Spain, or receiving salary and dividends while resident in Spain can create tax consequences on both sides. The key is to understand the UK-Spain position before relocation, not after the 183-day threshold or effective management issues have already arisen.

Legal, tax and accounting support for UK entrepreneurs moving to or operating in Spain.

Discuss your UK-Spain tax position

Roberto Bosco
Managing Director, Lawants
Response within 24 business hours

Running a UK Company While Living in Spain: Tax Risks

A very common pitfall for UK entrepreneurs post-Brexit is relocating to Spain while attempting to manage and draw income from their existing UK Ltd. Working remotely from a Spanish home for your own UK business triggers two major fiscal milestones that require careful corporate structuring:

• Personal Tax Residency (The 183-Day Rule): If you spend 183 days or more in Spain in a calendar year, you automatically become a Spanish tax resident. This subjects your worldwide income—including salary and dividends drawn from your UK company—to Spanish progressive tax rates (IRPF) of up to 47%.
• Corporate Tax Risk (Place of Effective Management): If the sole director or key decision-maker manages a UK company from a Spanish address, the Spanish tax authorities (Agencia Tributaria) can deem Spain as the company’s “place of effective management”. Under the UK-Spain Double Taxation Treaty, this can expose the UK Ltd’s worldwide profits to Spanish Corporate Tax.

Tax Mitigation: The Beckham Law

For UK executives and business owners who must relocate to Spain, this high tax exposure can often be mitigated through the special tax regime under Article 93 of the Spanish Tax Law, known as the Beckham Law. Extended under Spain’s Startup Law, it allows qualifying relocating professionals to enjoy a flat tax rate of 24% on Spanish-source income (up to €600,000) for up to six years, shielding foreign asset income from Spanish taxation. You can check the eligibility criteria in our dedicated Lawants Beckham Law Guide.

Lawants Case Study POST-BREXIT EXPANSION · UK CORPORATE SHAREHOLDER

Spanish subsidiary for a UK group: 2 months of post-Brexit administrative delays avoided

Since Brexit, UK companies are third-country entities facing strict tax ID (NIF) protocols in Spain. Lawants optimized a British group’s document workflow, bypassing redundant paperwork loops and ensuring immediate execution.

The Context

A UK-based technology group wanted to open a wholly owned Spanish S.L. subsidiary to protect their EU trade, onboard a local country manager, and invoice European clients. No board members could travel to Spain to manage the legalities.

The Problem

A non-specialized advisor had provided an oversized, bloated document checklist to apply for the UK parent’s Spanish NIF. Over-legalizing and apostilling unnecessary corporate records would have delayed their EU market entry by two months.

The Lawants Solution

01

Surgical review: We stripped out redundant document requests, keeping exclusively what the Spanish notary and Tax Agency (AEAT) require for third-country corporate entities.

02

Single remote POA: Drafted a tailored, bilingual power of attorney executed before a UK notary, valid for both the company NIF application and the final deed signing.

03

100% remote setup: Secured the corporate tax numbers and finalized the notary incorporation in Spain via legal proxy without requiring the client to catch a flight.

04

HR synchronization: Coordinated local employer registration in tandem with the corporate path, meaning the country manager’s contract was active on the launch day.

Results

7 days

To incorporate the S.L. from the moment the correct UK files were received

2 mos

Of operational delays saved by bypassing common yet redundant formal requirements

0

Trips or flights required to Spain for the UK parent company’s board

“Post-Brexit company registration requires deep cross-border expertise. Mapping out exactly what the Spanish Tax Agency esiges from a third-country corporate shareholder prevents weeks of redundant legal and translation expenses, safeguarding your launch window.”

Roberto Bosco — Managing Director, Lawants

For UK companies and holding structures expanding into Spain after Brexit

The mandatory NIF for a UK corporate entity is the step most frequently started too late. Lawants handles the entire international framework in a streamlined manner, securing your corporate vehicle, VIES access, and banking setup 100% remotely.

Deploy your post-Brexit structure with Lawants →

How Lawants Supports UK Companies and Entrepreneurs in Spain

Lawants works exclusively with foreign companies and entrepreneurs operating in Spain. Supporting UK businesses entering the Spanish market has been part of the practice for over twenty years, through the single market era and post-Brexit. The work covers the complete lifecycle: from the initial structure and tax analysis, through incorporation and the administrator and VIES setup, to ongoing compliance, payroll, and accounting. One team, one point of contact, for everything the Spanish operation requires.

Lawants does not offer a one-size-fits-all service. Every UK client situation is analysed individually before any step is recommended, because the right approach for a UK individual relocating to Barcelona is different from the right approach for a UK holding company opening a Spanish subsidiary from London.

Your legal and tax partner in Spain

Starting a business in Spain after Brexit is not more complicated than it looks. It is different from what it was before, and requires the right analysis at the start.

Over twenty years assisting foreign companies in Spain, exclusively, with an integrated team of lawyers and accountants.

Whether you are setting up a new Spanish S.L. from the UK, managing the PE risk of your existing UK company’s Spanish activity, or relocating to Spain and needing to understand the tax implications for your UK business interests, Lawants covers the complete picture from a single point of contact.

First assessment directly from the Managing Director

Roberto Bosco reviews every project personally within 24 business hours. Lawants · Best Law Firms Spain.

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FAQ: UK Citizens Starting a Business in Spain After Brexit

The most frequent questions Lawants receives from UK companies and entrepreneurs considering Spain post-Brexit.

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