UK → Spain Business Setup

    UK Companies Setting Up in Spain

    Brexit-proof your EU market access. Establish a Spanish subsidiary to maintain seamless operations across the European single market with full compliance.

    Post-Brexit Reality: UK companies are now third-country entities. A Spanish subsidiary restores full EU single market access and service passporting rights.

    Post-Brexit Factors

    Key Considerations for UK Investors

    Lost EU Passporting

    UK companies can no longer freely provide services across the EU. A Spanish entity restores this access.

    90-Day Schengen Rule

    UK nationals are now limited to 90 days in any 180-day period without a visa. Plan accordingly.

    Work Permit Requirements

    UK nationals now need work permits to be employed in Spain. Directors can remain non-resident.

    Ltd vs. SL Comparison

    Similar liability protection, but different capital requirements (£1 vs €3,000) and governance rules.

    VAT/IVA Implications

    UK VAT doesn't cover EU sales post-Brexit. Your Spanish entity needs separate IVA registration.

    Data Protection

    UK-EU data transfers now require additional safeguards. A Spanish entity simplifies GDPR compliance.

    Immigration Requirements

    Visa & NIE Requirements for UK Citizens

    NIE (Tax ID Number)

    • Required for all shareholders and directors
    • Apply at Spanish consulates in UK (London, Manchester, Edinburgh)
    • Processing time: 2-3 weeks
    • Can also be obtained in Spain with appointment

    Visa Options

    • Short visits: 90/180 days visa-free
    • Digital Nomad Visa: remote workers earning €2,000+/month
    • Entrepreneur Visa: for innovative business projects
    • Work Visa: if employed by Spanish company

    Withdrawal Agreement Rights: UK nationals who were legally resident in Spain before 1 January 2021 retain their right to live and work in Spain under the Withdrawal Agreement protections.

    Double Taxation Prevention

    UK-Spain Tax Treaty Benefits

    The UK-Spain Tax Treaty (2013) remains fully in force post-Brexit, providing important protections against double taxation for cross-border business activities.

    Income TypeStandard RateTreaty RateConditions
    Dividends19%10-15%10% if 10%+ ownership
    Interest19%0%Full exemption at source
    Royalties19%0%Full exemption at source
    Capital Gains19%Usually 0%Taxed in residence country
    Strategic Advantages

    Why UK Companies Choose Spain

    EU Market Restoration

    Regain full access to 450M consumers and service passporting rights

    Same Time Zone

    GMT+1/GMT+2—minimal disruption to UK business hours and team coordination

    English Proficiency

    Strong English language skills in business community, especially Barcelona/Madrid

    Established UK Links

    Strong bilateral trade relationship and familiar business culture

    Cost Advantages

    Lower operational costs than UK while maintaining EU standards

    Stable Legal System

    Civil law jurisdiction with strong property rights and contract enforcement

    Process Overview

    Timeline for UK Investors

    Phase 12-3 weeks

    NIE Application

    Apply through Spanish consulate in London, Manchester, or Edinburgh

    Phase 21-2 weeks

    Document Preparation

    Apostille UK documents, prepare bylaws, arrange capital deposit

    Phase 33-5 weeks

    Incorporation

    Notarization, Commercial Registry filing, obtain CIF/NIF

    Phase 41-2 weeks

    Operational Setup

    Bank account activation, IVA registration, payroll configuration

    Total estimated timeline: 6-9 weeks from initial engagement to operational status. UK proximity allows for faster document processing compared to other third countries.

    Common Questions

    FAQ for UK Investors

    Post-Brexit, UK companies are now treated as third-country (non-EU) entities. This means: UK Ltd companies can no longer freely provide services across the EU; UK nationals need work permits and visas; and the 90-day Schengen limit now applies. However, establishing a Spanish subsidiary restores full EU market access.

    For short visits (under 90 days in any 180-day period), no visa is required. However, if you need to spend extended time in Spain managing your company, you'll need a work visa or consider the Digital Nomad Visa if working remotely. Directors can be non-resident, but operational involvement may trigger tax residency.

    Both are limited liability structures, but with key differences: minimum capital (£1 vs €3,000), director requirements (UK allows corporate directors, Spain requires individuals), annual filing requirements, and tax rates (UK 19-25% vs Spain 25%, with lower rates for small companies).

    Cross-border company migration is complex post-Brexit. It's typically more practical to establish a new Spanish SL and either wind down the UK Ltd or restructure as a UK parent with Spanish subsidiary. We can advise on the most tax-efficient approach.

    The UK-Spain Tax Treaty prevents double taxation through mechanisms like reduced withholding rates (10-15% on dividends vs 19% standard), foreign tax credits, and clear residency tie-breaker rules. It remains in force post-Brexit.

    Post-Brexit, UK VAT registrations don't cover EU sales. Your Spanish company will need its own Spanish VAT (IVA) registration. However, you may be able to deregister from UK VAT if you no longer make UK taxable supplies.

    Yes, but you now need a work permit. Options include: employed worker visa, entrepreneur visa, highly qualified professional visa, or the new Digital Nomad Visa. Those who were resident before January 2021 have protected rights under the Withdrawal Agreement.

    UK nationals working in Spain are now subject to Spanish social security. The UK-Spain Social Security Agreement (signed 2019) allows for some coordination of benefits and pension rights, but you should review your specific situation.
    Get Started

    Ready to Restore Your EU Market Access?

    Our team specializes in helping UK companies navigate post-Brexit complexities. Get a customized roadmap for your Spanish expansion.

    Get in Touch with Our International Team

    Whether you're entering Spain, expanding globally, or need cross-border advisory support, our team is ready to help you navigate your next step.

    Confidential. No obligation. Reply within 1 business day.
    Prefer direct contact? +34 620 273 552 · info@nrro.es

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    Spain Company Setup for UK Companies | NRRO