🇪🇸 Why Start a Business in Tenerife?
Tenerife offers one of Spain’s most favorable business environments:
✅ Low corporate tax rate via ZEC (Zone Especial Canaria – just 4%)
✅ Thriving tourism and hospitality sector
✅ Growing interest in digital nomad services and e-commerce
✅ Popular for wellness, language schools, retail, and real estate
✅ Access to EU grants and simplified setup for foreign investors
🏢 Business Structures in Tenerife
| Business Type | Ideal For | NIE Required |
|---|---|---|
| SL Company | Hospitality, property, commerce | ✅ Yes |
| Freelancer (Autónomo) | Services, creatives, consultants | ✅ Yes |
| Branch or Subsidiary | Foreign company expanding into Tenerife | ✅ Yes |
📌 Not sure which one is right for you? We advise based on liability, taxes, and flexibility.
🧾 Steps to Set Up an SL Company in Tenerife
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Get NIE (Número de Identidad de Extranjero)
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Reserve company name via Mercantile Registry
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Open business bank account in Tenerife and deposit €3,000
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Draft company bylaws
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Sign notarial deed of incorporation (in-person or via POA)
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Apply for CIF (tax ID) with AEAT
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Register activity with Modelo 036
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Register with Mercantile Registry of Santa Cruz de Tenerife
✅ We handle the full process — including remote setup via Power of Attorney.
👨💻 Freelancer Setup (Autónomo) in Tenerife
For service-based entrepreneurs and creatives:
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NIE + Modelo 036 or 037
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Register with RETA (Social Security)
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Optional VAT and intra-EU trade registration
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Start issuing invoices in 1–3 business days
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Benefit from tarifa plana (flat €80/month SS contribution for 12 months)
💼 We handle all registrations and give you invoicing templates in Spanish.
🏠 Fiscal Address in Tenerife
You must register your business at a legal fiscal address. Options include:
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Coworking spaces (Santa Cruz, La Laguna)
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Rented offices or shopfronts
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Virtual offices (legal for SL & freelancers)
📌 We offer fully compliant virtual offices that meet AEAT and registry standards.
🌐 Remote Company Setup – No Travel Needed
Using a notarial Power of Attorney, you can:
✅ Apply for NIE and digital certificate
✅ Open a bank account in Spain
✅ Sign the notarial deed of formation
✅ File all registrations and declarations
We’ve helped dozens of foreign clients launch without visiting Spain.
🧠 Popular Business Ideas in Tenerife
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Cafés, surf schools, boutique hotels
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Wellness studios and yoga retreats
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Language academies or coworking spaces
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E-commerce with EU fulfillment
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Tour guides, real estate, or diving businesses
Tenerife’s tax incentives and lifestyle appeal attract founders year-round.
❌ Mistakes to Avoid
⛔ Starting business without NIE or tax registration
⛔ Using residential address without activity license
⛔ Missing deadlines for company filings
⛔ Registering the wrong business activity (epígrafe)
⛔ Not complying with ZEC or local tax requirements
🧑💼 Our Services in Tenerife
Borderless Lawyers offers:
✅ Full company formation or freelancer registration
✅ NIE, CIF, Modelo 036/037 filing
✅ Notary appointment setup (or POA drafting)
✅ ZEC consultation and low-tax guidance
✅ Virtual address and accounting setup
✅ Ongoing compliance and payroll support
📞 Ready to Start a Business in Tenerife?
We handle everything — from NIE to notary — with English-speaking legal experts.
👉 Contact us today to legally start your Tenerife business with confidence.