🇪🇸 Why Foreigners Start Businesses in Madrid
Madrid is the economic capital of Spain, with strong international connections, top legal infrastructure, and a growing expat founder community.
âś… Best location for B2B services, tech startups, and finance
âś… Strong demand for legal, consultancy, and remote businesses
âś… Direct access to embassies, regulators, and tax offices
âś… Well-developed visa support and legal systems for foreigners
Whether you’re launching a one-person SL or a tech venture with employees, Madrid offers excellent legal and logistical advantages.
🧾 Steps to Start a Business in Madrid
1. Choose a Business Structure
| Structure | Best For |
|---|---|
| AutĂłnomo | Freelancers, solopreneurs |
| Sociedad Limitada (SL) | Most foreign-owned companies |
| Subsidiary / Branch | Expanding existing international firms |
đź’ˇ SL companies are preferred by foreign entrepreneurs for limited liability, visa eligibility, and tax optimization.
2. Get a NIE (Foreigner Identification Number)
A NIE is mandatory for all company shareholders and directors.
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Apply at Madrid’s police stations or Spanish consulate abroad
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Requires a valid reason (e.g. forming a company)
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Can be obtained via Power of Attorney if you’re abroad
We handle NIE applications and POA legalization from start to finish.
3. Reserve Your Company Name
Request a unique company name (nombre social) through the Registro Mercantil Central (RMC).
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Submit up to 5 name options
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Approval takes 2–4 business days
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Valid for 3 months, renewable
4. Open a Business Bank Account in Madrid
To form an SL, you must deposit the minimum share capital (€3,000) and obtain a certificado bancario.
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We work with BBVA, Sabadell, CaixaBank, and Bankinter in Madrid
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You can open the account remotely via Power of Attorney
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The capital remains blocked until incorporation is finalized
5. Sign the Company Deed Before a Notary
Once the share capital is deposited, sign the escritura pĂşblica before a Madrid notary.
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Can be done in person or via POA
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Includes company bylaws, shareholder details, and directors
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Notaries in Madrid are familiar with foreign incorporations
6. Register with Tax Authorities and Mercantile Registry
After notary signature:
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Apply for CIF (company tax ID) with AEAT
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Submit documents to the Registro Mercantil de Madrid
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Register for VAT, withholdings, and social security if applicable
đź’Ľ Business Visas for Madrid-Based Companies
| Visa Type | Ideal For |
|---|---|
| Entrepreneur Visa | Tech or innovative startups |
| Digital Nomad Visa | Remote entrepreneurs/freelancers |
| Non-Lucrative Visa | Passive owners managing from abroad |
| Investor Visa | Those investing in Spanish companies |
We offer company formation + visa application as a bundled legal service.
❌ Mistakes to Avoid
â›” Using a personal bank account for business
â›” Signing a commercial lease before checking licenses
â›” Ignoring local IAE obligations (Madrid City Tax)
â›” Not registering with AEAT even with no income
â›” Failing to file annual corporate tax returns
🧑‍💼 Our Madrid Business Formation Services
Borderless Lawyers provides:
âś… NIE applications and POA setup
âś… SL incorporation from A to Z
âś… Bank account and notary coordination in Madrid
âś… CIF registration and Mercantile Registry filings
âś… Immigration support and visa processing
đź“ž Launch Your Madrid Business with Confidence
We help foreign entrepreneurs build legal foundations for successful companies in Madrid — from abroad or on-site.
👉 Contact us today to start your business in Madrid with legal support.