How to Start a Business in Tenerife as a Foreigner – Company Formation & Freelancer Setup

🇪🇸 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

  1. Get NIE (Número de Identidad de Extranjero)

  2. Reserve company name via Mercantile Registry

  3. Open business bank account in Tenerife and deposit €3,000

  4. Draft company bylaws

  5. Sign notarial deed of incorporation (in-person or via POA)

  6. Apply for CIF (tax ID) with AEAT

  7. Register activity with Modelo 036

  8. 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:

  • NIE + Modelo 036 or 037

  • Register with RETA (Social Security)

  • Optional VAT and intra-EU trade registration

  • Start issuing invoices in 1–3 business days

  • 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:

  • Coworking spaces (Santa Cruz, La Laguna)

  • Rented offices or shopfronts

  • 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

  • Cafés, surf schools, boutique hotels

  • Wellness studios and yoga retreats

  • Language academies or coworking spaces

  • E-commerce with EU fulfillment

  • 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.

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