Starting a business in Spain — the complete 2026 guide for foreigners

Spain has become an increasingly attractive location for entrepreneurs and business founders, particularly since the 2023 introduction of the Startups Law. DNV holders have the right to work both as employees and as self-employed individuals in Spain — which means the question of how to structure your business activity is one you may face soon after arriving.

This guide explains every option available to foreigners starting a business in Spain in 2026, from the simplest autónomo registration to forming a full limited company, with accurate costs and step-by-step guidance throughout.

EU nationals vs non-EU nationals — do the rules differ?

For practical business formation purposes, EU and non-EU nationals follow the same registration process for autónomo and company formation. The key difference lies in the underlying right to work in Spain.

EU and EEA citizens have the right to work and run a business in Spain without any visa. They must register their residency (through the Registro Central de Extranjeros) but face no immigration hurdle.

Non-EU nationals require a visa that permits self-employment or company activity. The Digital Nomad Visa specifically authorises both employed and self-employed activity for remote workers. Holders of the DNV can register as autónomo from the moment their visa is approved. Non-EU nationals without a DNV or other relevant visa cannot legally register as autónomo — this is a hard legal requirement, not an administrative technicality.

Business structures available in Spain

Spain offers several business structures for foreigners. The three most relevant for DNV holders and expat entrepreneurs are autónomo, Sociedad Limitada (SL), and Sociedad Limitada Unipersonal (SLU).

Autónomo (sole trader)

Autónomo is the Spanish equivalent of sole trader status. It is the simplest and fastest structure to set up — registration can be completed in a single day. There is no minimum capital requirement, no notary, and no Companies Register. You register with the Agencia Tributaria (tax authority) and Seguridad Social (Social Security) and begin trading immediately.

The downsides: unlimited personal liability (your personal assets are exposed to business debts), and income is taxed under IRPF (personal income tax) at progressive rates that reach 47% for higher earners. Autónomos also pay quarterly Social Security contributions regardless of whether they are making a profit in that period.

Autónomo is the right choice for solo freelancers, consultants, and service providers at the early stage of their business, or where income is modest and a company structure would add unnecessary complexity.

Sociedad Limitada (SL) — limited company

The SL is Spain's equivalent of a private limited company. It requires a minimum share capital of €3,000, which must be fully paid up at incorporation. Unlike some European jurisdictions, Spain does not permit deferred payment of share capital — the full €3,000 must be deposited in a bank account before the notary will execute the deed of incorporation.

An SL pays corporate income tax (Impuesto sobre Sociedades) at the standard rate of 25%. Newly incorporated companies benefit from a reduced rate of 15% for the first two profitable tax years. This compares favourably to the top IRPF rate of 47% that higher-earning autónomos face.

Directors and shareholders of an SL take income through salary (subject to IRPF and Social Security) and/or dividends (subject to capital gains tax at 19–28%). The optimal structure between salary and dividends depends on your individual circumstances and requires advice from a qualified gestor or tax adviser.

Sociedad Limitada Unipersonal (SLU) — single-member limited company

The SLU is simply an SL with a single shareholder. The formation process and legal requirements are identical to the SL. It is the appropriate structure when you are the sole founder and owner of your business. There is no practical difference in terms of formation cost or tax treatment.

Registering as autónomo — step by step

The autónomo registration process is straightforward but involves two separate registrations:

1. Register with the Agencia Tributaria — submit Form 036 or Form 037 (simplified) to declare you are commencing economic activity. You will specify your activity code (epígrafe IAE) which determines your tax obligations. This can be done online via the Agencia Tributaria website or in person at your local tax office.
2. Register with Seguridad Social (RETA) — submit Form TA0521 to register under the Régimen Especial de Trabajadores Autónomos. This must be done within 30 days of starting your activity. Your monthly Social Security contribution quota is now calculated based on your actual net income under the 2023 reforms.
3. Register for IVA if applicable — if your activity is subject to IVA (VAT), you will need to file quarterly IVA returns (Form 303) and an annual summary (Form 390). Most business activities are subject to standard IVA at 21%, though reduced rates of 10% and 4% apply to specific goods and services.
4. Open a separate bank account — not legally required for autónomos but strongly recommended for clean accounting and tax compliance.
5. Engage a gestor — a Spanish gestor (administrative adviser) will handle your quarterly tax filings (IRPF prepayments, IVA returns) and annual returns for a monthly fee of approximately €50–100. For most autónomos, a gestor is essential.

Forming an SL — step by step

Forming an SL in Spain involves more steps than autónomo registration but is still manageable with professional assistance:

1. Reserve your company name — apply to the Registro Mercantil Central for a certificate confirming your chosen company name is available. This takes 1–3 business days and costs approximately €14.
2. Open a bank account and deposit share capital — deposit the minimum €3,000 in a Spanish bank account opened in the company's name. The bank issues a certificate confirming the deposit, which the notary requires.
3. Draft the articles of association — your lawyer or notary will prepare the Estatutos Sociales (articles of association) and the Escritura de Constitución (deed of incorporation).
4. Execute the deed at a notary — all founding shareholders attend (or are represented by Power of Attorney) to sign the deed before a Spanish notary. Notary fees are approximately €300–600 depending on share capital.
5. Register with the Tax Authority — obtain a provisional CIF (company tax identification number) using Form 036, then the permanent NIF once the company is registered.
6. Register at the Registro Mercantil — submit the deed to the provincial Companies Register within two months of signing. Registration fees are approximately €150–300.
7. Register for Social Security — register the company as an employer and register working directors under the RETA or general Social Security regime as appropriate.

Costs of forming a company in Spain

Spain's Startups Law — benefits for tech entrepreneurs

Law 28/2022 (the Ley de Startups) came into force in January 2023 and significantly improved Spain's offering for technology and innovative businesses. Key benefits include:

• Reduced corporate tax rate — 15% for the first four years of profitable activity (versus the standard 25%), rather than just the first two years under standard rules
• Simplified administrative processes — faster company registration via the Punto de Atención al Emprendedor (PAE) network
• Improved employee stock option treatment — exemptions and deferrals that make stock options more attractive for employee compensation
• Special Digital Nomad Visa provisions — the Startups Law created the specific Digital Nomad Visa route and associated tax measures
• Deferred payment of tax debts — companies can defer tax obligations during early years under certain conditions

To access Startups Law benefits, a company must be formally classified as an empresa emergente (emerging company) by ENISA (Empresa Nacional de Innovación). The classification process involves demonstrating that the company is innovative, less than five years old (or ten years for certain sectors), not yet distributing profits, and not the result of a restructuring of an existing company. ENISA accreditation is a defined process — engage a lawyer familiar with startup law to manage the application.

Tax obligations for autónomos — IRPF, IVA, and Social Security

IRPF (personal income tax)

Autónomos pay quarterly IRPF prepayments (retenciones) via Form 130, based on 20% of their net quarterly profit. The annual IRPF return reconciles these prepayments against actual tax owed. Spain's IRPF rates are progressive: 19% up to €12,450, rising through several bands to 47% on income above €300,000. For many successful autónomos, the effective rate sits between 30–40%, which is why the corporate tax rate via an SL can be more attractive at higher income levels.

IVA (value added tax)

Most business services are subject to IVA at the standard rate of 21%. As an autónomo or SL, you charge IVA on your invoices, collect it from clients, and remit it to the Agencia Tributaria quarterly via Form 303. You also reclaim IVA paid on business expenses. IVA is effectively a pass-through — it does not affect your profitability, but failing to manage it correctly leads to penalties.

Social Security for autónomos

Since January 2023, autónomo Social Security contributions under the RETA are income-based rather than flat. Monthly contributions range from approximately €200 for those with low net income to approximately €590 for those earning above €6,000 per month net. These contributions provide access to Spanish healthcare, sick pay after day 4 of illness, maternity and paternity provisions, and pension accrual.

Autónomo vs SL — which is right for you?

The choice between autónomo and SL typically comes down to income level, liability concerns, and long-term business plans:

• Income below ~€40,000/year — autónomo is usually more efficient. The administrative overhead of an SL (annual accounts, corporate tax returns, accounting requirements) often outweighs the tax benefit at lower income levels.
• Income above ~€60,000/year — an SL often becomes tax-efficient. Corporate tax at 25% (or 15% for new companies) combined with strategic salary and dividend planning can produce a better net outcome than autónomo IRPF.
• Liability exposure — if your business involves significant contractual commitments, client liability risks, or employing staff, an SL provides important personal asset protection that autónomo status does not.
• External investment — if you are building a business that will seek investment, an SL is the only appropriate structure. Investors cannot take equity in an autónomo business.