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.
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.
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.
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 Type | Standard Rate | Treaty Rate | Conditions |
|---|---|---|---|
| Dividends | 19% | 10-15% | 10% if 10%+ ownership |
| Interest | 19% | 0% | Full exemption at source |
| Royalties | 19% | 0% | Full exemption at source |
| Capital Gains | 19% | Usually 0% | Taxed in residence country |
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
Timeline for UK Investors
NIE Application
Apply through Spanish consulate in London, Manchester, or Edinburgh
Document Preparation
Apostille UK documents, prepare bylaws, arrange capital deposit
Incorporation
Notarization, Commercial Registry filing, obtain CIF/NIF
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.
FAQ for UK Investors
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.
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