How to Set Up a Company in Spain as a Foreigner
A foreigner can set up a company in Spain without living in the country and while owning 100% of the shares. The usual vehicle is a Sociedad Limitada (SL): you obtain a tax number (NIE or NIF), reserve the company name, deposit the share capital, sign the incorporation deed before a notary, and register with the Commercial Registry — a process that typically takes 4 to 6 weeks.
NRRO (Navarro Tax & Legal) is an independent private law firm. We are not a government agency and are not affiliated with any Spanish public authority. Incorporation filings can also be made directly with the official bodies (Registro Mercantil, AEAT, Seguridad Social), which charge only their official fees.
At a Glance
Company Formation in Spain: The Short Answers
| Question | Short answer |
|---|---|
| Can a non-resident do it? | Yes. 100% foreign ownership is allowed and no Spanish partner or resident director is required. |
| Most common company type | Sociedad Limitada (SL), the Spanish limited liability company. |
| Minimum share capital | €1 since the Ley Crea y Crece (2022), with legal safeguards until reserves reach €3,000. |
| Can it be done remotely? | Yes, through a power of attorney (apostilled and, if needed, with a sworn translation). |
| Typical timeline | 4–6 weeks for EU founders; longer where a non-EU shareholder or corporate shareholder is involved. |
| Main company tax | Corporate Income Tax (Impuesto sobre Sociedades): 25% general rate, 15% for qualifying new companies. |
Information current for the 2026 tax year.
Can a Foreigner Set Up a Company in Spain?
Yes. Both EU and non-EU nationals can incorporate a company in Spain, and they can hold 100% of the shares. Spanish law does not require a local partner or a resident director to form a Sociedad Limitada. The main practical difference is administrative: EU citizens obtain their NIE faster, while non-EU founders may need to apply through a Spanish consulate and, in some cases, hold an appropriate immigration status to work as a director in Spain. Non-resident owners can run the company from abroad and appoint a local representative for tax matters.
What Type of Company Should a Foreigner Open in Spain?
Most foreign entrepreneurs choose the Sociedad Limitada (SL), but three structures are common. The right choice depends mainly on expected turnover and whether a foreign parent company already exists.
| Structure | What it is | When it fits |
|---|---|---|
| Sociedad Limitada (SL) | A separate Spanish limited liability company. | Most new ventures; limits liability to the capital contributed. |
| Branch (sucursal) | An extension of an existing foreign company, not a separate legal entity. | A foreign parent testing the market without a new company. |
| Self-employed (autónomo) | An individual trading in their own name. | A single person with low turnover and no need to limit liability. |
The variable that changes the answer is liability and structure: an SL ring-fences risk in a separate entity, while a branch keeps the foreign parent directly liable for the Spanish activity. For a deeper comparison of every vehicle, see our guide to legal structures in Spain.
What Are the Steps to Set Up a Company in Spain?
The incorporation follows seven sequential steps. Several can be started in parallel to shorten the timeline.
How Long Does It Take to Set Up a Company in Spain?
For EU founders, the full process from first contact to an operational company usually takes 4 to 6 weeks. Two steps drive most of the delay: obtaining the NIE for non-EU individuals (2 to 6 weeks through a consulate) and opening the bank account (often 4 to 8 weeks due to AML/KYC review). A foreign corporate shareholder adds time because its documents must be apostilled and sworn-translated. The notarial deed itself can be signed within days once the name certificate and bank certificate are ready.
How Much Does It Cost to Set Up a Company in Spain?
The out-of-pocket incorporation cost for a standard SL is modest; the share capital is not a fee but recoverable funds that stay in the company. The figures below are orientative ranges for 2026.
| Concept | Estimated cost (2026) |
|---|---|
| Name reservation (RMC) | ~€15–20 |
| Notary fees | ~€60–150 |
| Commercial Registry | ~€100–150 |
| Professional / legal fees | Varies by provider |
| Share capital (recoverable, not a fee) | From €1 (SL) |
Ranges are indicative and should be confirmed for your specific case.
Can I Set Up a Spanish Company Remotely?
Yes. A foreigner can incorporate a Spanish company without travelling by granting a power of attorney to a representative in Spain. If the power of attorney is signed abroad, it must carry the Hague Apostille and, where it is not in Spanish, a sworn translation. The representative can then obtain the NIF, sign the notarial deed, and complete the registration on the founder's behalf. Opening the bank account remotely is the step most likely to require additional identity verification.
What Taxes Will My Spanish Company Pay?
A Spanish company pays Corporate Income Tax (Impuesto sobre Sociedades) on its profits. The general rate is 25%. Qualifying newly created companies are taxed at 15% in the first tax period with a positive base and in the following one. Reduced brackets apply to smaller companies for 2026 (for example, lower rates for micro-enterprises with turnover under €1 million). The company also charges and files VAT (IVA, standard rate 21%) and applies withholdings (retenciones) on payroll and certain payments. A new SL must adopt the certified invoicing system Verifactu from 1 January 2027.
Do I Need a Spanish Resident Director to Form a Company in Spain?
No. Spanish law does not require the director of a Sociedad Limitada to be resident in Spain, and a non-resident can be sole director and sole shareholder. The director does need a Spanish tax number (NIE/NIF). A non-EU national who intends to physically manage the company from Spain may additionally need an appropriate residence and work authorisation, but this is separate from the right to own and direct the company.
Do I Need a Lawyer or Gestor to Open a Company in Spain?
It is not legally mandatory, but most foreign founders use an advisor because the friction points are real. The NIE for non-EU shareholders, the bank account opening under AML/KYC, the sworn translations, and the ongoing tax and accounting obligations (Corporate Income Tax, VAT, Verifactu) are where remote founders most often get stuck. An integrated tax and legal advisor handles the incorporation and the recurring compliance that follows, so the company stays in good standing after day one.
Why NRRO (Navarro Tax & Legal)
NRRO is a Barcelona-based tax, legal, accounting and labour advisory firm that helps foreign entrepreneurs and companies establish and operate in Spain. We combine the four disciplines under one roof, so the same team that incorporates your company also handles its Corporate Income Tax, VAT, payroll and legal compliance afterwards — not just the set-up. We advise clients in English and manage the process end to end, including remote incorporation by power of attorney.
Frequently Asked Questions
Common questions from foreign founders incorporating in Spain.
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This guide provides general information for the 2026 tax year and is not individual tax or legal advice. Rules, rates and costs change; confirm your specific case before acting. Note: Verifactu certified invoicing becomes mandatory for companies from 1 January 2027.
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