Why Start an IT Business in Spain?
Spain is a growing hub for tech startups, software development, and IT outsourcing, especially in cities like Barcelona, Madrid, and Valencia.
Benefits of opening an IT company in Spain include:
-
💡 Access to EU clients and funding
-
👩💻 Skilled tech workforce and startup ecosystem
-
📉 Competitive operating costs compared to other EU countries
-
🛂 Startup-friendly visa policies for foreign entrepreneurs
🧾 Legal Steps to Register an IT Company in Spain
1️⃣ Choose the Right Legal Structure
Most foreign tech entrepreneurs register a Sociedad Limitada (SL) – similar to an LLC:
-
Minimum share capital: €3,000
-
Limited liability
-
Flexible for solo founders or teams
-
Easy to scale or bring in investors
Alternative: Autónomo (Freelancer) – simpler for solo developers or small-scale operations.
2️⃣ Get a NIE (Foreigner Identification Number)
Every foreign founder must obtain a NIE to incorporate a company, open a bank account, or pay taxes.
📌 We can apply on your behalf, even if you’re outside Spain.
3️⃣ Company Name and Registry
-
Reserve your company name with the Central Mercantile Registry
-
Draft and notarize your company bylaws
-
Register your SL with the Registro Mercantil (Commercial Registry)
📝 The process is streamlined and can be done with power of attorney if you’re not in Spain.
4️⃣ Tax and Accounting Setup
After registration, you must:
-
Obtain a NIF (Tax ID) for your company
-
Register for IVA (VAT)
-
Set up accounting and payroll if hiring staff
-
File quarterly and annual returns
⚠️ IT businesses exporting services to other EU countries may qualify for VAT exemptions under the reverse charge rule.
🧑💻 Hiring & Visas for IT Entrepreneurs
🔹 Hiring Locals or EU Citizens
No special permits required. Follow Spain’s standard employment regulations, contracts, and payroll systems.
🔹 Hiring Non-EU Developers
You’ll need to sponsor work permits or digital nomad visas.
🔹 Tech Founders from Outside the EU
Apply for the Entrepreneur Visa or Digital Nomad Visa to live and work legally in Spain.
📌 We help tech founders and remote-first startups get residence permits tied to their business plans.
💸 Estimated Startup Costs
| Expense | Approximate Cost |
|---|---|
| SL Company Formation (legal+fees) | €1,200 – €2,000 |
| Share Capital (min) | €3,000 |
| Accounting Setup & Tax Filing | €100 – €300/month |
| Office Space (Optional) | €250 – €800/month |
| Legal Advisory (Optional) | Custom packages |
💼 Real Example: U.S. Software Firm Expands to Spain
Case: A U.S.-based SaaS company opened a branch in Spain to access EU clients. We:
-
Registered a Spanish SL
-
Set up VAT and accounting
-
Handled work permits for 2 foreign developers
-
Ensured compliance with GDPR and IP protection
They now operate a fully legal dev team in Barcelona.
⚖️ Legal Compliance for IT Companies
-
🛡️ GDPR: Required for data collection from EU users
-
⚙️ IP & software licensing laws
-
📄 Contract templates for clients and employees
-
🧮 Accurate digital invoicing and VAT compliance
-
🧾 EORI registration if importing/exporting hardware
🚀 Start Your IT Business in Spain with Confidence
Whether you’re launching a remote-first tech company, a software firm, or a digital agency, Spain offers excellent conditions for growth.