🌅 Why Start a Business in Mallorca?
Mallorca is not just a holiday destination — it’s a strategic place to run a high-value business, especially in the real estate, hospitality, wellness, and tourism sectors. With strong international demand and a stable economy, it’s ideal for entrepreneurs and investors.
✅ Popular with Northern Europeans, UK, and German entrepreneurs
✅ Year-round tourism & international lifestyle
✅ Stable real estate market and luxury demand
✅ Strong local infrastructure (airport, port, logistics)
✅ English-speaking support and service ecosystem
🏢 Best Company Structures in Mallorca
| Business Type | Best For |
|---|---|
| SL (Sociedad Limitada) | Most common for small/medium business – flexible & limited liability |
| Autónomo | Freelancers, independent professionals |
| SA (Sociedad Anónima) | Larger-scale ventures or holding companies |
| Branch/Subsidiary | Expansion of foreign companies |
💡 Most foreign entrepreneurs choose to form an SL due to tax efficiency, protection, and scalability.
📝 Step-by-Step: Registering a Company in Mallorca
1. Get a NIE (Foreigner ID)
You must have a NIE to open a business in Spain. We arrange NIE appointments in Palma and surrounding areas.
2. Request a Company Name Certificate
Apply through Registro Mercantil Central.
3. Open a Corporate Bank Account
Deposit the €3,000 share capital and get a bank certificate for incorporation.
4. Draft the Bylaws & Sign the Notarial Deed
This can be done in Mallorca or remotely via Power of Attorney.
5. Register with the Mercantile Registry (Palma)
Once filed, your company is legally formed.
6. Obtain a NIF (Company Tax ID)
File with Agencia Tributaria and activate your tax identity.
💡 Our firm handles everything — including remote setup and bilingual documentation.
💶 Taxation for Businesses in Mallorca
| Tax Type | Rate / Notes |
|---|---|
| Corporate Tax (SL) | 25% (15% for first 2 years) |
| VAT (IVA) | 21% standard; tourism/hospitality at 10% |
| Tourism Tax | Applies to hotels/rentals (balearics-specific) |
| Withholding Tax | 15% on freelance invoices |
💡 We also handle special tax cases like vacation rental VAT, ITP, and tourism-related levies.
👥 Hiring Staff in Mallorca
To legally employ workers:
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Register with Tesorería General de la Seguridad Social
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Sign employment contracts in line with Spanish labor law
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Pay employer contributions (~30%)
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Manage payslips, tax withholdings, and reporting
💡 We offer full HR legal services and payroll administration for businesses in the Balearics.
🏢 Business Address & Licensing in Mallorca
To open a company, you need a registered address:
Options:
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Lease a retail space, office, or studio (Palma, Sóller, Pollensa)
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Use a virtual office for non-retail operations
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Home-based registration is allowed for some service activities
You may also need:
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Licencia de Apertura (Opening License)
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Tourist Rental License (for accommodation businesses)
💡 We handle real estate lease review, licensing applications, and zoning checks.
🛂 Does Company Formation Help with Residency?
Yes — company formation in Mallorca can lead to:
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Self-employment residency (autónomo)
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Entrepreneur Visa for innovative businesses
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Digital Nomad Visa (if your clients are abroad)
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Investor Residency for those investing in businesses or real estate
💡 We offer combined business + immigration legal support.
🚀 High-Demand Business Sectors in Mallorca
✔️ Vacation rentals and property management
✔️ Wellness, fitness, and retreat businesses
✔️ Luxury services (events, yacht charters, concierge)
✔️ Boutique hospitality and food/beverage
✔️ Real estate agencies and relocation services
⚖️ Our Legal Services in Mallorca
✅ SL formation, autónomo setup
✅ NIE, NIF, tax and social security registration
✅ Drafting of bylaws, POA, and notarial deed
✅ Accounting, tax compliance, and payroll
✅ Tourist licensing and business permits
✅ Residency support via business creation
📞 Ready to Start a Business in Mallorca?
Whether you’re opening a vacation rental company, real estate agency, or boutique business — our English-speaking lawyers are here to help you launch legally.
👉 Contact us now to start your company in Mallorca — the right way, from day one.