Open a Rental and Leasing Company in Spain: Full Legal & Licensing Guide

Why Start a Rental & Leasing Business in Spain?

Spain’s tourism, construction, and logistics industries drive high demand for:

  • Vehicle rentals (cars, vans, scooters)

  • Equipment leasing (tools, construction gear)

  • Property rentals (short-term and long-term)

A rental and leasing business can target:

  • Tourists and expats

  • SMEs and contractors

  • Real estate investors

🌍 Foreign nationals can own 100% of the company.


🏢 Types of Rental and Leasing Companies

Business Type Description
Car & Van Rentals Rent to tourists or businesses (daily/weekly rates)
Machinery/Equipment Leasing Rent tools, lifts, generators, etc., to construction firms
Property Rental Intermediaries Manage vacation or long-term rentals for landlords
Leasing Services Medium- to long-term leasing with buyout options

✅ Each type may require different licenses or registrations.


🧾 Legal Steps to Open Your Rental Business in Spain

1️⃣ Choose a Legal Structure

Most foreign entrepreneurs choose:

  • Sociedad Limitada (SL): Limited liability company

    • Min. capital: €3,000

    • Fast registration and tax efficiency

2️⃣ Register the Company

  • Certify company name with Registro Mercantil Central

  • Draft and notarize incorporation deed

  • Obtain NIF (tax number)

  • Register with Registro Mercantil (Commercial Registry)

📌 Remote registration available via Power of Attorney.

3️⃣ Obtain Sector-Specific Authorizations

Depending on your rental focus:

  • Car rental: Must register fleet with DGT (Traffic Authority)

  • Tourism property rental: Register with Autonomous Community’s tourism department

  • Heavy equipment leasing: May require civil liability insurance and technical inspection certification

⚖️ Ensure contract templates comply with Spanish Civil Code and consumer protection laws.


📜 Operating Contracts & Liability

Rental companies must:

  • Draft clear terms and conditions

  • Include clauses for damages, cancellations, deposits, and late returns

  • Insure rental items for liability, theft, or breakdown

📌 Clients should sign bilingual contracts if targeting non-Spanish speakers.


💶 Tax & Accounting Requirements

  • Register for VAT (IVA)

    • Most rentals charged at 21%

  • Corporate income tax: 25%

  • Annual accounting and submission of:

    • Financial statements

    • Model 200 (corporate tax)

    • Quarterly VAT and income tax withholdings

💼 Use a bilingual accountant for monthly filings.


👷 Hiring Staff

If employing personnel:

  • Register company and employees with Seguridad Social

  • Draft contracts under the Workers’ Statute

  • Respect working hour laws and provide proper insurance

📌 Staff handling machinery or vehicles may require special training.


📍 Office and Location Considerations

  • Car/equipment rentals: Require a storage facility or lot

  • Vacation rental companies: Need a legal address for client meetings

  • Leasing companies: Often operate fully online with back-office only

✅ Ensure business premises comply with local zoning and health/safety rules.


🌍 Real Example: Foreign-Owned Equipment Leasing Company in Valencia

Client: A Dutch entrepreneur wanted to lease forklifts and lifting platforms.
We:

  • Registered an SL company with tax and trade codes

  • Drafted Spanish/English leasing contracts

  • Secured equipment insurance and inspection certifications

  • Managed VAT and accounting setup

✅ Business was operating within 5 weeks.


💰 Startup Costs Overview

Item Estimated Cost (€)
Legal & Incorporation Fees €1,500 – €2,500
Share Capital €3,000 (can be deferred)
Sector-Specific Licensing €500 – €1,000
Insurance (Civil + Liability) €600 – €1,200 annually
Monthly Legal + Tax Compliance €200 – €400/month

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Case study included

🚀 Start Your Rental or Leasing Company with Borderless Lawyers

Whether you’re starting a vehicle hire firm or an equipment leasing operation, Borderless Lawyers handles:

  • Company formation

  • Licensing and registration

  • Rental contract drafting

  • Tax setup and ongoing legal compliance

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