How to Open a Business in Spain as a Foreigner: Step-by-Step Guide

Spain offers tremendous opportunities for international entrepreneurs. Whether you’re a freelancer, launching a startup, or expanding a foreign company, Spain’s business environment is dynamic, particularly in tech, tourism, and real estate.

But opening a business in Spain as a foreigner involves bureaucratic steps, legal requirements, and proper tax planning. This guide walks you through the process from A to Z.

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🧭 Business Structures in Spain

Before you register your business, choose the right legal structure:

Most foreigners choose SL companies due to liability protection and flexibility.

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📑 Step-by-Step: How to Open a Business in Spain

Step 1: Get a Spanish NIE Number

You’ll need a NIE (Número de Identidad de Extranjero) to engage in any business activity.

• Apply through a Spanish consulate or in Spain

• Required for tax registration, banking, and contracts

📎 Read: How to get an NIE in Spain

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Step 2: Decide on the Legal Structure

• Freelancer (Autónomo): Easy to register, no capital needed

• SL Company: Requires share capital of €3,000, notary deed, and registry steps

We’ll cover SL formation in depth in this guide.

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Step 3: Open a Business Bank Account

Open a corporate account to:

• Deposit share capital (for SL)

• Pay business expenses

• Receive client payments

You’ll need your passport, NIE, and company name certificate (certificación negativa).

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Step 4: Register the Company Name

Apply for a negative name certificate through the Central Mercantile Registry (RMC) to ensure your company name is unique.

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Step 5: Draft Articles of Association & Sign Deed

A notary will draft and authenticate your Articles of Association and incorporation deed. You must:

• Appoint directors and shareholders

• Specify registered office

• Include bylaws

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Step 6: Register with the Tax Office (Agencia Tributaria)

Get your CIF (corporate tax ID) and register for:

• VAT (IVA)

• Corporate tax (Impuesto de Sociedades)

• Income withholding (if hiring staff)

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Step 7: Register with Mercantile Registry

Within 2 months of signing the notary deed, register the company at the Registro Mercantil Provincial. This legalizes your company status.

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Step 8: Register for Social Security

• Autónomos must register with RETA (Special Regime for Self-Employed)

• SL companies register employees and owners with Social Security

This activates pension, healthcare, and labor compliance.

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Step 9: Get Municipal Business Licenses (If Needed)

Depending on your activity and location, you may need:

• Opening license (Licencia de Apertura)

• Zoning approval

• Health or safety permits

Check with your local Ayuntamiento (City Hall).

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💼 Do I Need a Visa to Open a Business?

✅ EU/EEA citizens don’t need a visa.

✅ Non-EU citizens can:

• Apply for a Self-Employment Visa

• Qualify for the Entrepreneur Visa (Ley de Emprendedores) if launching an innovative business

• Open the company with a business partner who is an EU resident

Read more in our guide to Business Visas in Spain.

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💰 Tax Obligations for New Businesses

• Freelancers pay IRPF (personal income tax) and VAT quarterly

• SL companies pay 25% corporate tax, file annual accounts, and submit VAT returns

Also consider:

• Withholding tax on employee wages

• Business activity tax (IAE) for certain sectors

• Use of invoicing software for compliance

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🧾 Key Documents Checklist

• NIE (personal tax ID)

• CIF (company tax ID)

• Certificación Negativa

• Articles of Association

• Notarial deed

• Proof of capital deposit

• Social Security registration

• Licenses or permits (if applicable)

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🛡️ How Borderless Lawyers Can Help

Our legal team can help you:

• Choose the right structure

• Draft bylaws and incorporation deeds

• Manage tax and labor registration

• Comply with deadlines and licensing

• Represent you with power of attorney if you’re abroad