Registering a company in Spain

Registering a company in Spain is an interesting and promising option for launching a new commercial project in a developed Eu. The specialists at Imperial & Legal will take care of all the legal and administrative hassles. At your request, we can offer an all-inclusive service package that includes not only business registration in Spain, but also opening a corporate bank account, accounting support, tax advice, and filing mandatory reports.

The main advantages of this jurisdiction for starting and running a business are:

• relatively low costs, especially compared to other European Union countries such as Germany, France, and the Netherlands;
• a developed business environment — availability of qualified personnel, a friendly banking system, start-up hubs in Barcelona, Madrid, Valencia, Malaga and San Sebastian, modern infrastructure, good logistics support;
• well-thought-out corporate legislation — several organisational and legal forms of company registration in Spain, equal rights for foreigners and citizens/residents;
• High quality of life: climate, safety, healthcare, price levels.
• setting up a company in Spain can be a basis for obtaining a residence permit;
• Good reputation.

Who will be particularly interested in registering a company in Spain

There are virtually no restrictions on commercial interests. We can set up a company in Spain that will operate successfully in a wide range of areas, from cross-border trade to structures focused on asset protection and diversification. The tax burden is relatively low. Corporate tax in Spain is only 25%, and PIT (personal income tax) for non-residents is 24%. You can also always take advantage of the provisions of double taxation agreements.

However, registering a company in Spain will be particularly advantageous for certain areas:

Priority tasks for setting up a company in Spain

The jurisdiction has created and maintains the most favourable conditions for business people and investors. Therefore, the goals you set for yourself may vary. Our services for registering a company in Spain do not require the client’s active participation in all legal actions. Therefore, you can focus entirely on planning your business.

Typical goals for registering a business in Spain:

• easy access to the promising European Union market;
• residence permit through business in Spain, in general — a long-term immigration strategy, including alternative tax residency;
• simplified legalisation of international income, creation of a universal tax-transparent cross-border structure that meets the requirements of European anti-money laundering directives 4AMLD (2015), 5AMLD (2018), 6AMLD (2021), AML Package (2024–2025);
• Comprehensive support for turnkey company registration in Spain when you need a working business but don’t have the time to start and set it up.
• creation of effective legal instruments for asset protection and diversification, for example, through holding companies, business structuring, family offices, etc.

Types of companies in Spain

Foreign businesspeople most often choose Sociedad Limitada, the equivalent of a limited liability company (LTD). But this is not the only format. Spanish corporate law provides for several options for starting a new company, each of which is geared towards specific goals and objectives faced by businesspeople.

Permitted legal forms of doing business in Spain:

Features of SL in Spain for small and medium-sized businesses

Foreigners most often choose this format to launch a new commercial project. An LLC in Spain is a standard and universal business tool focused on various models of application, analogous to a Ltd/LLC. In some cases, alternative options may be more preferable. However, the procedure for registering a company in Spain largely depends on the chosen legal form. Therefore, when we first discuss your request, we will be sure to go over all the details of the project. This is the only way to start a business in Spain with a promising future.

Requirements for registering a Sociedad Limitada:

• share capital — €3,000 or €1 for a Sociedad Limitada de Formación Sucesiva, part of the profit must be reserved, there are restrictions on the payment of dividends and the remuneration of administrators/directors;
• from 1 founder, who may be a natural or legal person, citizenship and resident status are irrelevant;
• several management options are available: one director, several joint directors, general/joint directors or a board of directors; the managing person is personally liable in case of violation of applicable law;
• bookkeeping and annual reporting to the Registro Mercantil are mandatory;
• transfer/sale of shares without significant restrictions, but the same transactions with equity interests are strictly controlled; attracting new members is possible, but all legal requirements must be met;
• The personal data of beneficiaries is disclosed to the bank, tax authorities and notary. Nominee services in the traditional sense, as in offshore jurisdictions, are prohibited, but it is possible to engage a third-party administrator/director, provided that this person actually manages/runs the company.

Features of SA in Spain for small and medium-sized businesses

This legal form is most often used to attract third-party investors and go public. The possibility of easy transfer of shares makes Sociedad Anónima the optimal choice when launching stock and holding structures, mergers and acquisitions (M&A) or implementing joint ventures.

Requirements for registering a Sociedad Anónima:

• authorised capital — from €60,000; when establishing a company in Spain, at least 25% must be paid in immediately; divided into shares rather than stakes; bearer shares are permitted but rarely used in practice;
• at least 1 founder, who may be a natural or legal person of any nationality and residency status;
• Management through a board of directors; a single administrator scheme is rarely used; strict regulatory requirements apply.
• Reporting requirements are stricter than for SL companies in Spain, with mandatory audits and oversight by the tax authorities and corporate regulator in almost all cases.

Personal taxation in Spain

Financial obligations and fiscal rules depend on the status of the individual. There are two determining criteria: permanent residence in Spain for at least 183 days in the reporting period or the location of the centre of vital/economic interests in the country. The calculation rules are quite complex, so before registering a company in Spain, be sure to discuss possible changes in tax obligations with experienced specialists at Imperial & Legal.

It is possible to legally reduce the financial burden through double taxation treaties (DTT). The concept of a “resident living in the country for less than a full year” does not exist in Spanish tax law.

The following will be taken into account:

• place of residence;
• where the centre of personal/life and economic interests is actually located;
• usual place of residence;
• citizenship.

Personal income tax rates for residents are progressive:

These calculations are approximate, as taxation in Spain is decentralised. Financial obligations consist of three sources: state taxes, regional taxes and municipal taxes. Therefore, an accurate calculation is only possible when linked to the taxpayer’s actual place of residence.

Types of taxes:

• national: part of personal income tax (IRPF), corporate tax, VAT (IVA), non-resident tax;
• regional/autonomous communities: part of personal income tax, inheritance and gift tax, wealth tax may apply;
• municipal/local: property tax (IBI), transport tax (IVTM), business tax (IAE), local fees.

Personal taxation of non-residents (NRIT — Non-Resident Income Tax):

• general personal income tax rate — 24%, for residents of European Union and European Economic Area countries, if there is a corresponding DTT agreement, it is reduced to 19%;
• capital gains from the transfer of assets — 19%, possible reduction of the rate due to DTT;
• tax on dividends in Spain — 19%, royalties — 24%, possible reduction of the rate through DTT;
• Pensions — progressive scale, from 8% to 40%.

Wealth tax in Spain

The tax base is formed on the basis of the net assets of individuals, but not their actual income. Residents pay Impuesto sobre el Patrimonio on property regardless of its actual location, while non-residents pay only on assets located in Spain. The law provides for a minimum exemption threshold of €700,000. An additional deduction of €100,000 can be obtained for real estate if it is used for permanent residence.

Current national rates for amounts exceeding the minimum threshold:

Taxes for companies in Spain

A legal entity is considered a tax resident if it is registered in Spain and its head office or actual office/control centre is located in this jurisdiction. A special case is a company in an offshore or tax haven. In this case, the legal entity becomes a tax resident if the main assets of the structure are physically located in Spain or if business is actually conducted here.

The standard corporate income tax rate in Spain is 25%, which applies to resident companies as well as non-residents with a permanent establishment in the jurisdiction. The main difference lies in the rules for determining the tax base. Residents must include all/worldwide income in it, while non-residents must include only the part that was actually received or transferred to Spain.

Corporate tax in Spain depending on the status of the company:

Special tax conditions apply to micro-enterprises and small and medium-sized enterprises (SMEs).

Rates will gradually decrease from 2025, but they do not apply to joint-stock structures:

• Micro-enterprises (turnover up to €1 million). Preferential rates apply to the first €50,000 of profit. 2025 — 21% + 22%, 2026 — 19% + 21%, 2027 — 17% + 20%.
• Small and medium-sized enterprises (turnover up to €10 million). Uniform rates apply regardless of profit. 2025 — 24%, 2026 — 23%, 2027 — 22%, 2028 and beyond — 21%.

It should be noted that an accurate and long-term analysis of a company’s tax liabilities requires taking into account the European Union High Court judgments of 26 June 2025, as well as several Royal Decree-Laws. These documents may significantly affect fiscal requirements, so before registering a company in Spain, be sure to request up-to-date information from our specialists.

Other corporate taxes:

• VAT in Spain: standard rate — 21%, reduced rate — 10%, super-low rate — 4%;
• on real estate — 3% of the appraised value, only for companies that are residents of tax havens and own real estate in Spain;
• on property transfers — from 4% to 13%, depending on the region;
• stamp duty — from 0.75% to 1.5%, depending on the region;
• capital tax — 1%, paid by shareholders when the authorised capital is reduced or the company is liquidated;
• social security — from 30.5% to 32.5% of the employee’s salary.

In addition, companies registered in Spain may have fiscal obligations for payments at the regional level. The standard withholding tax is 19%, in some cases there is an increased rate for royalties — 24%, and benefits are available under the provisions of the DTT.

Legal features of doing business in Spain

Control over the activities of legal entities is quite strict but predictable. If a company conducts real business, pays taxes in a timely manner and in full, complies with regulatory requirements and does not use aggressive optimisation methods, it should not encounter any problems.

Basic conditions for economic presence:

• Management. Directors with real powers, preferably residents of Spain or any EU country, decision-making in Spain itself, storage of corporate documentation here.
• Staff. At least 1-2 employees on staff, contracts concluded in Spain, social security contributions paid, no use of nominal services.
• Office. Only a physical address or coworking space, used for regular inspections and communication with banks, tax authorities and government agencies.
• Business operations. There are operating expenses in Spain, a corporate bank account is opened here, and the connection between business functions and tasks, company assets and commercial risks (FAR analysis) can be confirmed.

Taking into account the criteria for real economic presence is particularly critical for holding structures, intellectual property-oriented businesses and financial projects.

Basic/minimum compliance requirements:

• registration and legal address in Spain;
• appointed and registered director;
• basic corporate documentation reflecting current information on business share or stock owners, ownership structure, management decisions, as well as proper financial/accounting records;
• annual reports — balance sheet, profit and loss statement, memoria — must be submitted by 31 July, even if there is no actual commercial activity;
• financial minimum — an account in Spain or any EU country, payments corresponding to commercial activity, all transactions can be documented;
• minimum for ultimate beneficiaries — there is a corresponding declaration, bank KYC has been successfully completed, changes are made to corporate documentation in a timely manner.

Investment residence permit and Spanish citizenship

The Golden Visa programme, which was popular among business people, was abolished in the jurisdiction at the beginning of January 2025. Therefore, if you are interested not only in doing business but also in permanent residence in Spain with the prospect of obtaining citizenship, you need to choose other options. All of them allow you to move with your family. After 5 years, you can obtain a residence permit, and after another 5 years, you can apply for Spanish citizenship.

Current alternatives to the Golden Visa programme:

Stages of registering a company in Spain

Starting a real business in this jurisdiction is quite simple. The procedure is described in detail in two key corporate documents: the Ley de Sociedades de Capital (LSC) of 2010 and the basic Código de Comercio of 1885, the text of which has been amended many times. However, misinterpretation of individual provisions, ignoring important details or errors in the sequence of actions create multiple risks that are difficult to take into account without sufficient experience.

Therefore, if you want to start a business in Spain without any problems, it is best to contact our experienced specialists right away. We offer comprehensive All Inclusive cooperation options, including a range of additional services — opening a corporate bank account, accounting support, tax planning advice, etc.

Please note that the basic set of services does not include a bank account for the company in Spain. To conduct real business, we recommend that you ask our specialists to open a corporate account along with the registration of the legal entity.

Our working principles

Comprehensive support for company registration in Spain is the main principle of our professional work. Our clients do not need to delve deeply into the rules of corporate regulation, the specifics of KYC/AML verification procedures, or the intricacies of the banking system. We take care of all legal and administrative issues, so you can focus on planning your business. An additional advantage is our extensive range of services, which greatly simplifies and accelerates your entry into the Spanish market.

What we offer our clients:

• legal support at all stages of company registration in Spain;
• consultations in a format convenient for you;
• maintenance of corporate documentation;
• accounting services for companies in Spain;
• assistance with tax planning and selection of optimisation methods;
• assistance in obtaining a Spanish business visa;
• post-registration support;
• assistance in opening personal and corporate accounts.

Registering a company in Spain as a non-resident is a step that will allow you to enter the vast and promising market of the European Union. We will help you launch and set up a commercial or investment project tailored to your specific goals and objectives. Corporate law does not restrict the rights of foreigners, so founders and directors in Spain can be from any country.

The jurisdiction provides expanded opportunities for business people to obtain a residence permit. The standard option is a Spanish entrepreneur visa. In fact, this is a long-term residence permit, which can eventually be converted into full residency or citizenship. The time required to register a company in Spain is relatively short for an onshore European jurisdiction.

We will take care of all legal and administrative issues, help you start a new business and open a corporate bank account. Remote company registration in Spain is permitted. For more information and to calculate the cost of implementing a commercial or investment project, please contact the specialists at Imperial & Legal.