Open a Real Estate Business in Spain: Legal Setup Guide for Foreign Investors

Why Invest in Spain’s Real Estate Market?

Spain’s real estate sector remains one of the most attractive in Europe due to:

• High foreign buyer activity (residential and commercial)

• Booming short-term rental markets (coastal & urban)

• Strong demand for property development and management services

💼 Whether you’re setting up a real estate agency, investment company, or property management firm, Spain offers a solid legal and tax framework.

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🧾 Types of Real Estate Businesses You Can Start

🧑‍💼 Foreign individuals and companies can fully own and operate these business types.

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🏛️ Legal Steps to Open a Real Estate Business in Spain

1️⃣ Choose Business Structure

Most real estate businesses operate as:

• Sociedad Limitada (SL): Limited liability company – fast setup, low capital (€3,000)

• Sociedad Anónima (SA): Public company – for large-scale investors or developers

2️⃣ Register Your Company

• Reserve a name via Registro Mercantil Central

• Draft bylaws & sign incorporation deed before a notary

• Obtain NIF and register with the Commercial Registry

• Open a business bank account & deposit capital

3️⃣ Obtain Real Estate Activity License (If Required)

Some regions (like Catalonia, Andalusia, Valencia) require:

• Registration in the Real Estate Registry

• Proof of civil liability insurance

• Real estate professionals to hold formal qualifications

📌 Licenses and registration requirements vary by Autonomous Community.

4️⃣ Register for Tax and VAT

• Get a permanent NIF

• Register for IVA (Value-Added Tax) and business activity code (IAE)

• Appoint a fiscal representative if you’re a non-resident

5️⃣ Register with Data Protection Agency (AEPD)

Since real estate firms process personal data, you must comply with GDPR and Spanish data protection law.

6️⃣ (Optional) Register with Professional Associations

• API (Agente de la Propiedad Inmobiliaria)

• Membership can enhance credibility and access to MLS systems

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⚖️ Regulatory Compliance

• Comply with consumer protection laws when advertising or selling property

• Use proper pre-sale contracts (arras) and ensure transparency in commissions and fees

• Keep contracts and payments documented

📄 Standard contracts must comply with Civil Code and urban rental law (LAU).

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🌍 Foreign Ownership & Remote Setup

At Borderless Lawyers, we assist clients from:

• 🇺🇸 USA

• 🇬🇧 UK

• 🇩🇪 Germany

• 🇦🇪 UAE

• 🇦🇷 Argentina

…to open and manage real estate businesses in Spain without needing to be physically present through Power of Attorney (POA) setup.

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🏡 Real-World Case: UK Investor Opens Real Estate SL in Alicante

Scenario: A UK property consultant wanted to expand operations to Spain.
We:

• Registered a limited company remotely

• Secured the Catalonia real estate license

• Handled VAT registration and GDPR filing

• Created bilingual client contracts compliant with Spanish law

✅ The business is now active in sales and long-term rental management.

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💶 Estimated Startup Costs

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🚀 Start Your Real Estate Venture in Spain with Expert Legal Help

From urban agencies to luxury coastal developments, Spain’s property sector is thriving. Borderless Lawyers offers end-to-end legal services to help foreign entrepreneurs start their real estate business with confidence