Why Enter the Spanish Construction Market?
Spain’s construction sector remains one of its economic pillars—driven by:
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🏘️ Residential demand from locals and foreign buyers
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🏢 Commercial and hospitality development
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🛠️ Infrastructure projects funded by the EU
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🔨 Renovation and retrofitting of older buildings
📈 The industry is welcoming to foreign investors, subcontractors, and engineering consultants.
🧾 Choose the Right Legal Structure
Common company types for construction businesses:
| Structure | Description |
|---|---|
| SL (Sociedad Limitada) | Ideal for small to medium construction firms |
| SA (Sociedad Anónima) | Required for large-scale public works |
| Branch Office | For foreign parent companies expanding to Spain |
✅ Most startups begin with an SL for limited liability and easier compliance.
📋 Step-by-Step: How to Set Up Your Construction Company
1. 🏢 Decide on Legal Entity
We recommend an SL for flexibility and low capital needs (€3,000).
2. 🔍 Company Name Check
Reserve a unique name with the Central Commercial Registry (Registro Mercantil Central).
3. 🧾 Get a CIF (Tax ID) and NIE
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CIF for the company
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NIE for foreign directors or shareholders
4. 🏦 Open a Corporate Bank Account
Deposit the minimum share capital.
5. 📜 Draft the Company Statutes
Include construction services in the corporate object clause.
6. 🏛️ Sign Before a Notary and Register
Register at the Commercial Registry and obtain full legal status.
🧱 Licenses & Authorizations for Construction Companies
To operate legally in Spain’s construction industry, your company must secure:
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🏗️ Builder’s license (Licencia de Obra Mayor/Obra Menor)
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🔧 Sector-specific licenses for plumbing, electrical, HVAC
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🏛️ Local permits from the city or regional authority
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📄 Health & Safety Plan approved by labor inspectors
📌 You may also need to join the Official Registry of Accredited Companies (REA) for public tenders or subcontracting.
💶 Taxes & Accounting
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🧾 Corporate Income Tax: 25% (standard rate)
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🏗️ VAT (IVA) for construction: 10% or 21% depending on the project type
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📚 Bookkeeping must include cost breakdowns, subcontractor invoices, and material tracking
🧑💼 Appoint a local accountant to comply with Spanish tax and labor reporting rules.
👷 Hiring and Labor Compliance
Construction companies in Spain must:
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📝 Register all employees with Social Security
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📄 Provide employment contracts that meet labor law
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🛡️ Ensure occupational safety training and risk prevention plans
📌 Use Collective Bargaining Agreements (Convenios Colectivos) for wage and work condition benchmarks.
🧑💼 Real Client Story
Client: A UK-based architecture firm expanded into Spain’s Costa del Sol to launch a high-end villa construction business.
📎 We registered their company, obtained subcontractor licenses, and helped recruit a compliant workforce.
⚖️ Borderless Lawyers: Your Construction Legal Partner
We provide full legal and business support for construction entrepreneurs:
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✅ Company registration and REA registration
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✅ Licensing for all trades
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✅ Contract drafting for subcontractors
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✅ Employment and safety compliance
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✅ Tax representation and bookkeeping
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✅ Permit applications and appeals