How to Start a Business in Palma de Mallorca as a Foreigner – Company Formation & Freelance Setup

🇪🇸 Why Palma de Mallorca Is Great for Foreign Entrepreneurs

Palma blends sunny Mediterranean vibes with a high-quality infrastructure that’s ideal for small businesses and remote work:
✅ International tourism and seasonal rental opportunities
✅ Strong expat and English-speaking community
✅ Popular sectors: real estate, hospitality, wellness, tourism, digital services
✅ Excellent co-working spaces and business support network
✅ International airport connecting to major European hubs

Whether you’re launching a tourism agency, setting up a boutique café, or working as a freelance consultant, Palma provides a supportive environment — and you can handle it all remotely if needed.


🏢 Choose Your Legal Structure

Structure Best For NIE Required
Sociedad Limitada (SL) Businesses serving international clients or multiple employees ✅ Yes
Freelancer (Autónomo) Solo professionals, digital nomads, consultants ✅ Yes
Subsidiary/Branch Foreign firms expanding their presence in Spain ✅ Yes

Need help deciding? We assess your long-term plans, expected revenue, liability needs, and operational costs to guide you.


🧾 Setting Up an SL Company in Palma

  1. Apply for NIE (Foreigner ID number)

  2. Reserve company name at the Registro Mercantil Central

  3. Open a business bank account in Palma and deposit €3,000 share capital

  4. Draft and notarize bylaws & Articles of Association

  5. Sign documents at a Palma notary (or use Power of Attorney remotely)

  6. Obtain CIF (company tax ID) from the Agencia Tributaria

  7. Register for VAT and corporate tax via Modelo 036

  8. File with the Registro Mercantil de las Islas Baleares

All steps can be completed remotely if you appoint us as your POA — no travel necessary!


👨‍💻 Becoming a Freelancer (Autónomo) in Palma

Perfect for solo entrepreneurs and online businesses:
✅ Submit Modelo 036 or 037 to AEAT
✅ Choose your tax regime (most opt for direct estimation)
✅ Register with Social Security (RETA)
✅ Start invoicing clients in 1–3 days
✅ Optionally register for VAT and VIES if serving EU clients

We will oversee all filings, help you understand deductible expenses, and maintain your legal compliance.


🏠 Business Address Requirements

Your business will need a fiscal address in Palma. Options include:

  • Residential address (if legally allowed)

  • Coworking or leased commercial space

  • Virtual office solutions with mail receipt and address registration

We help set up compliant address services that satisfy tax and business registry needs.


🌐 Remote Setup Made Easy

Can’t travel to Mallorca? No problem — via Power of Attorney, we handle:
✅ NIE application
✅ Bank account opening
✅ Notary services
✅ AEAT and Registro Mercantil filings
✅ Registered address setup

Everything is managed in English, Spanish, or both — depending on your preference.


💡 Popular Business Types in Palma

  • Holiday rental and real-estate agencies

  • Beach bars, cafés, and restaurants

  • Wellness services (e.g., yoga studios, massage therapists)

  • Digital marketing, design studios, and consultancies

  • Yacht and water sports companies


❌ Common Mistakes to Avoid

⛔ Failing to declare your business activity on time
⛔ Using an informal address or unregistered location
⛔ Choosing the wrong social security or tax regime
⛔ Not filing annual accounts (SL) or quarterly forms (autónomos)
⛔ Operating under English-only contracts (not legal in Spain)


🧑‍💼 How We Help in Palma de Mallorca

Borderless Lawyers handles everything:
✅ NIE, CIF, digital certificate and AEAT registration
✅ SL company formation and bylaws drafting
✅ Autonomous registration and VAT/VIES setup
✅ POA execution and remote procedures
✅ Legal fiscal address, bank account coordination, notary filing


📞 Ready to Launch Your Business in Palma de Mallorca?

From idea to legal operation, we simplify the process so your business can open doors — even from abroad.

👉 Contact us to start your business in Palma de Mallorca with full legal support.

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