Spain at a glance
Spain is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Spain
- SL (Sociedad Limitada) The limited liability company and by far the most common vehicle for founders. Liability is limited to capital contributed; minimum capital is EUR 1 since the 2022 Crea y Crece reform.
- SA (Sociedad Anonima) A public limited company for larger ventures or raising capital. Minimum capital EUR 60,000, with at least 25% paid up.
- Autonomo (self-employed) The simplest route for solo founders: the individual trades in their own name with unlimited liability; registration is fast.
| Corporate tax | General corporate income tax is 25%. Newly created companies pay a reduced 15% for the first profitable year and the next. Certified startups under the Startup Law get 15% for up to four profitable years. Micro and small entities have their own slightly reduced bands. |
|---|---|
| VAT rate | Standard VAT (IVA) is 21%, with reduced rates of 10% and 4%. |
| Dividends & payroll taxes | Dividends are taxed on the savings scale, starting at 19% and reaching 28% at the top. Personal income tax peaks around 47% depending on region, and employer social security adds roughly 30% up to the ceiling. The Beckham regime can hold a relocating founder's salary tax at 24%. |
| Minimum share capital | SL: EUR 1 since the Crea y Crece reform (in force since October 2022), down from EUR 3,000. While capital plus reserves stay below EUR 3,000, the SL must allocate 20% of annual profit to a legal reserve. An SA needs EUR 60,000, with at least 25% paid up. |
| Setup time | Roughly 1 to 3 weeks once documents are ready. The SL incorporation itself (name reservation, notarial deed, registry filing, tax registration) typically runs 6 to 10 working days; obtaining the NIE for foreign founders can push the total to 4 to 6 weeks. |
| Remote setup | Yes. Non-residents can incorporate, own and direct a Spanish SL entirely from abroad by granting a notarial power of attorney to a local representative. Each foreign shareholder and director must first obtain a Spanish NIE tax number. |
| Director / residency | No residency or nationality requirement; non-residents can be directors and shareholders without a residence permit. Every foreign director and shareholder must obtain a Spanish NIE, and foreign corporate shareholders a Spanish NIF, before incorporation completes. |
| Banking options | Share capital is contributed through a Spanish business account, with a bank certificate as proof. Traditional banks include BBVA, Santander, CaixaBank and Sabadell; non-resident account opening can be slow, so many founders use fintech accounts (Wise, Revolut Business) for a quick IBAN alongside a local bank. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
The SL is the default vehicle, and the 2022 Crea y Crece reform cut its minimum capital from EUR 3,000 to EUR 1. The Startup Law grants certified startups a 15% corporate tax for up to four profitable years, plus a special tax regime and a digital-nomad visa. Spain is inside the EU single market and a common gateway to Latin America.
How to register a company in Spain
Step by step, this is how a Spain formation actually runs:
- Get an NIE for each founder. The foreigner identification number is the gating step for non-residents and is easiest through a Spanish consulate or a local representative.
- Name certificate and bank deposit. Reserve the name with the Mercantile Registry; deposit the capital (from EUR 1 for an SL, with creditor-protection strings below EUR 3,000) and get the bank certificate.
- Sign the deed before a notary. Non-residents typically grant a notarial power of attorney so a local representative signs the incorporation deed.
- Register with the Mercantile Registry. Registration usually completes in 1 to 3 weeks; the CIRCE fast-track exists for standard SLs.
- Tax registration. Obtain the definitive CIF/NIF for the company, register for IS (corporate tax) and IVA (VAT) as needed.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Spain costs
Notary and registry together usually cost EUR 250 to 500 for a simple SL, and the NIE process for each non-resident founder adds EUR 100 to 300 when handled by a representative. Monthly accounting for a small SL typically runs EUR 100 to 250. The CIRCE electronic route trims both cost and time for standard setups.
Form your Spanish company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Spain, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Spain
Founders from outside the EU can own and run a Spanish company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Spain up front, so there are no surprises.
Spain fits founders living there (including Beckham-regime movers), businesses with Spanish clients, and teams hiring local talent. For a fully remote non-EU founder the NIE step is the main drag; once past it, the EUR 1 SL is a solid, credible vehicle.
After registration: what Spain expects each year
Annual accounts are approved within six months of year end and filed with the Mercantile Registry the following month. The corporate tax return is due 25 days after the six-month approval window (25 July for calendar years), VAT is quarterly with an annual summary, and small companies avoid audit below thresholds.
Spain and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Spanish company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Spain against other countries, see company formation in Europe.