How to Start a Company in the Energy Sector in Spain

Why Enter Spain’s Energy Market?

Spain is a leader in renewable energy and a dynamic player in Europe’s transition to clean power. Entrepreneurs and international companies are increasingly investing in:

  • 🔋 Solar and photovoltaic projects

  • 🌬️ Wind farms (onshore/offshore)

  • ♻️ Waste-to-energy technologies

  • 🛢️ Energy distribution and trading

  • 🏭 Clean tech and energy infrastructure

With strong government incentives and EU funding, the Spanish energy sector is primed for sustainable growth—and Borderless Lawyers helps clients build legally compliant, investment-ready companies in this space.


🏢 Legal Structures for Energy Companies

You can operate as a:

  • SL (Sociedad Limitada) – ideal for SMEs and foreign-owned startups

  • SA (Sociedad Anónima) – suitable for large-scale or capital-intensive projects

  • Branch office – for international companies expanding into Spain

📌 Most energy investors choose an SL due to its simplified governance and lower capital requirements (€3,000 minimum).


📝 Step-by-Step Company Formation

1. 🔍 Feasibility Study & Business Plan

Assess:

  • Market demand

  • Available infrastructure

  • Licensing needs

  • Environmental regulations

Borderless Lawyers connects you with technical and local partners for energy-specific viability studies.


2. 🆔 Company Registration

Steps include:

  • Name reservation at the Mercantile Registry

  • Drafting of company bylaws

  • Notary signing and NIE (Foreigner ID) for shareholders

  • Tax registration (CIF) with Agencia Tributaria

  • Opening a corporate bank account

📁 Timeline: 2–4 weeks for full setup


3. ⚖️ Sector-Specific Licensing

Depending on the activity (generation, transmission, distribution, trading), you may need:

  • Authorization from the Ministry for Ecological Transition (MITECO)

  • Connection agreements with grid operators like REE or ENAGÁS

  • Environmental impact assessments (EIA)

  • Land-use permits and construction licenses

🌞 For solar farms >100kW: apply for administrative authorization + environmental and urban compatibility reports.


4. 💶 Energy Sector Tax & Incentives

Spain offers:

  • VAT reductions for clean energy technologies

  • Accelerated depreciation for renewable investments

  • Access to EU and national grants under PERTE ERHA and NextGenEU funds

  • Green bonds and subsidies via IDAE and regional bodies

We guide you in applying for funding, preparing compliant documentation, and maximizing tax benefits.


5. 🧑‍💼 Employment & Contracts

As your project grows:

  • Register workers with Social Security

  • Draft compliant labor contracts

  • Secure insurance and health & safety protocols

⚠️ In the energy sector, subcontracting, land leasing, and EPC (engineering, procurement, construction) contracts must meet strict legal standards. We draft and review all major agreements.


📌 Real-World Example

Client: A UK-based solar investor sought to build a 10MW plant in southern Spain. We:

  • Formed an SL

  • Handled land lease negotiations

  • Secured grid connection and environmental licenses

  • Structured joint venture financing

  • Represented the client before MITECO and regional regulators


📈 Why Work with Borderless Lawyers?

We provide end-to-end legal and regulatory support for foreign and Spanish energy companies:

  • ✅ Business structuring and incorporation

  • ✅ Regulatory licensing and energy compliance

  • ✅ Public-private partnership (PPP) advisory

  • ✅ M&A, JV, and due diligence for acquisitions

  • ✅ Environmental legal risk analysis

🌐 Multilingual legal support | 💼 Industry experience | 🏗️ Project-ready compliance

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