How to Start a Business in Malaga as a Foreigner

🌞 Why Start a Business in Malaga?

Malaga is booming as both a startup hub and tourist economy. Its mix of digital nomads, investors, and entrepreneurs makes it ideal for launching new businesses in Spain.

✅ Costa del Sol business & tourism hotspot
✅ Popular with UK, Nordic, Dutch, and German expats
✅ Growing tech scene in Malaga TechPark
✅ Excellent weather and quality of life
✅ Lower costs than Madrid or Barcelona


🏢 What Legal Structure Should You Choose?

Entity Type Ideal For
SL (Sociedad Limitada) Most common – limited liability, flexible setup
Autónomo Freelancers and service providers
SA (Sociedad Anónima) Larger enterprises and investors
Branch Office Expansion of foreign company into Spain

💡 For most expats, the SL offers the best balance between protection and flexibility.


📝 Step-by-Step: How to Register a Company in Malaga

1. Get a NIE (Foreigner ID)

You need a NIE to open a company or appear at a notary. We expedite this in Malaga.

2. Certify Your Business Name

Apply via Registro Mercantil Central.

3. Open a Spanish Business Bank Account

Deposit €3,000 minimum capital and get a bank certificate.

4. Draft the Bylaws and Notarial Deed

We handle this locally or remotely via Power of Attorney.

5. Register with the Mercantile Registry of Malaga

This step makes the SL official.

6. Obtain your company NIF (Tax ID)

File with Agencia Tributaria and activate your tax identity.

💡 Our firm can complete the full formation process even if you’re outside Spain.


💶 Taxes When Starting a Business in Malaga

Tax Type Rate or Requirement
Corporate Tax 25% (15% for first 2 years if newly formed)
VAT (IVA) 21%, with exemptions or reductions for some
Freelancer IRPF Progressive (19%–47%)
Withholding Tax 15% for professional invoices (IRPF)

💡 We provide ongoing tax filing, bookkeeping, and quarterly reporting for SLs and autónomos in Malaga.


👷 Hiring in Malaga: Legal Obligations

Hiring staff requires:

  • Registering with Tesorería General de la Seguridad Social

  • Drafting employment contracts compliant with Spanish labor law

  • Monthly employer contributions (~30%)

  • Optional collective bargaining review (by sector)

💡 We handle all HR legalities and set up payroll, contracts, and compliance.


🏢 Business Premises in Malaga

You’ll need a registered business address in Malaga:

Options:

  • Rent office or retail space (Centro Histórico, Soho, Teatinos)

  • Use a coworking space or virtual office

  • Register from home (if zoning allows)

Licensing may be required depending on your activity (Licencia de Apertura).

💡 We handle lease reviews, license applications, and zoning verification.


🛂 Does Business Formation Support Residency?

Yes — starting a business in Malaga may help you qualify for:

  • Self-employment visa (autónomo)

  • Entrepreneur visa (for innovative projects)

  • Digital Nomad Visa (if you’re earning abroad)

💡 We offer bundled business + immigration legal support.


🚀 Top Business Opportunities in Malaga

✔️ Hospitality (cafés, B&Bs, rentals)
✔️ Digital consulting & marketing
✔️ Tech startups in Malaga TechPark
✔️ Real estate services & management
✔️ Health, fitness & wellness


⚖️ Legal Services We Offer in Malaga

✅ Company formation (SL, autónomo, SA)
✅ NIE, NIF, social security & tax registration
✅ Bylaw drafting, notarial signing & POA setup
✅ Tax & accounting compliance
✅ Employment contracts & payroll setup
✅ Immigration support via business route


📞 Start a Business in Malaga with Confidence

Our local legal team helps you open your company in Malaga smoothly — remotely or on-site, in English, and fully compliant with Spanish law.

👉 Contact us today to launch your business in Malaga with trusted legal support.

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