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Spain at a glance
Spain is an EU member state with its own national company forms and registration rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet.
Company types in Spain
- SL (Sociedad Limitada) The limited liability company and by far the most common vehicle for founders. Liability is limited to capital contributed; minimum capital is EUR 1 since the 2022 Crea y Crece reform.
- SA (Sociedad Anonima) A public limited company for larger ventures or raising capital. Minimum capital EUR 60,000, with at least 25% paid up.
- Autonomo (self-employed) The simplest route for solo founders: the individual trades in their own name with unlimited liability; registration is fast.
Company formation in Spain: key facts (last reviewed July 2026)
- Corporate tax
- General corporate income tax is 25%. Newly created companies pay a reduced 15% for the first profitable year and the next. Certified startups under the Startup Law get 15% for up to four profitable years. Micro and small entities have their own slightly reduced bands.
- VAT rate
- Standard VAT (IVA) is 21%, with reduced rates of 10% and 4%.
- Dividends & payroll taxes
- Dividends are taxed on the savings scale, starting at 19% and reaching 28% at the top. Personal income tax peaks around 47% depending on region, and employer social security adds roughly 30% up to the ceiling. The Beckham regime can hold a relocating founder's salary tax at 24%.
- Minimum share capital
- SL: EUR 1 since the Crea y Crece reform (in force since October 2022), down from EUR 3,000. While capital plus reserves stay below EUR 3,000, the SL must allocate 20% of annual profit to a legal reserve. An SA needs EUR 60,000, with at least 25% paid up.
- Setup time
- Roughly 1 to 3 weeks once documents are ready. The SL incorporation itself (name reservation, notarial deed, registry filing, tax registration) typically runs 6 to 10 working days; obtaining the applicable tax identification and foreign documents can extend that timeline. Confirm whether an NIE or an eligible NIF M route applies before planning the signing.
- Remote setup
- Yes. Non-residents can incorporate, own and direct a Spanish SL entirely from abroad by granting a notarial power of attorney to a local representative. Confirm each shareholder and director's applicable Spanish tax identification, usually an NIE, and whether the NIF M route can be used while an NIE is unavailable.
- Director / residency
- No residency or nationality requirement; non-residents can be directors and shareholders without a residence permit. Foreign individuals need the applicable Spanish tax identification, usually an NIE. The tax authority can assign a NIF M where an individual does not yet have an NIE, temporarily if an NIE is required or definitively where it is not. Confirm the accepted identification and any subsequent NIE obligation for your role with the notary. Foreign corporate shareholders need a Spanish NIF.
- Banking options
- For an SL cash formation, a bank deposit certificate is one way to prove the contribution. Article 62(2) also permits founders to declare in the deed that they are jointly liable to the company and its creditors for the reality of those contributions, without separate deposit proof. Agree the route with the notary. Capital must still be contributed; the declaration does not waive the contribution. Confirm company account eligibility, ownership checks and payments with the chosen provider. Approval and timing are case-specific.
- Our formation service
- from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit.
The SL is the default vehicle, and the 2022 Crea y Crece reform cut its minimum capital from EUR 3,000 to EUR 1. The Startup Law grants certified startups a 15% corporate tax for up to four profitable years, plus a special tax regime and a digital-nomad visa. Spain is inside the EU single market and a common gateway to Latin America.
How to register a company in Spain
Step by step, this is how a Spain formation actually runs:
- Arrange the applicable Spanish tax identification. Foreign individuals usually use an NIE. Confirm with the notary and tax authority whether a NIF M can apply while an NIE is unavailable and whether a later NIE remains required. Foreign corporate shareholders need a Spanish NIF.
- Name certificate and capital evidence. Reserve the name with the Mercantile Registry. For an SL, agree a cash contribution proof route with the notary: a bank certificate or the founders' joint-liability declaration under Article 62(2). The EUR 1 minimum and creditor-protection rules below EUR 3,000 still apply.
- Sign the deed before a notary. Non-residents typically grant a notarial power of attorney so a local representative signs the incorporation deed.
- Register with the Mercantile Registry. Registration usually completes in 1 to 3 weeks; the CIRCE fast-track exists for standard SLs.
- Tax registration. Obtain the definitive CIF/NIF for the company, register for IS (corporate tax) and IVA (VAT) as needed.
We can help coordinate documents, address requirements and filings with licensed local counsel. The steps and timing depend on your company and circumstances.
What company formation in Spain costs
Notary and registry together usually cost EUR 250 to 500 for a simple SL, and an NIE application, when required and handled by a representative, can add EUR 100 to 300 per person. Check the accepted tax-identification route and obtain an itemised quote for any representation. Monthly accounting for a small SL typically runs EUR 100 to 250. The CIRCE electronic route trims both cost and time for standard setups.
Plan your Spanish company formation
Tell us where you live and what you are building. Our formation service fee is from around €100 to €200 (estimated). We help you compare structures and prepare a quote with the scope, costs and expected timing. Government charges, capital and ongoing services are separate unless included in that quote.
Get your free planWho can form a company in Spain
Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Spain. The director and residency information above identifies the main formation conditions to review.
Spain fits founders living there (including Beckham-regime movers), businesses with Spanish clients, and teams hiring local talent. For a non-resident founder, confirm the applicable tax identification, signing route and documents before planning a remote formation. A EUR 1 SL still requires funding and ongoing compliance.
After registration: what Spain expects each year
Annual accounts are approved within six months of year end and filed with the Mercantile Registry the following month. The corporate tax return is due 25 days after the six-month approval window (25 July for calendar years), VAT is quarterly with an annual summary, and small companies avoid audit below thresholds.
Plan beyond the registration fee
Use these guides alongside the national rules for your company. The cost and filing examples cover Estonia, Ireland and Portugal.
Spain and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. A national company in Spain is available under existing rules, but a later EU Inc conversion would depend on the adopted law and eligibility. Read how to prepare an EU Inc company, or compare current options in company formation in Europe.
Sources and review scope
Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position.
Topics checked
These dates apply to the named topics. Other figures and indicative service prices have separate review needs.
- SL cash contribution proof and joint-liability declaration Checked . Source 1
- Foreign individual tax identification: NIE and NIF M Checked . Source 1
Reference links
Frequently asked questions
Can a foreigner open a company in Spain?
No residency or nationality requirement; non-residents can be directors and shareholders without a residence permit. Foreign individuals need the applicable Spanish tax identification, usually an NIE. The tax authority can assign a NIF M where an individual does not yet have an NIE, temporarily if an NIE is required or definitively where it is not. Confirm the accepted identification and any subsequent NIE obligation for your role with the notary. Foreign corporate shareholders need a Spanish NIF.
How long does company formation in Spain take?
Roughly 1 to 3 weeks once documents are ready. The SL incorporation itself (name reservation, notarial deed, registry filing, tax registration) typically runs 6 to 10 working days; obtaining the applicable tax identification and foreign documents can extend that timeline. Confirm whether an NIE or an eligible NIF M route applies before planning the signing.
What corporate tax does a company in Spain pay?
The headline summary is 25% (15% startups), with standard VAT of 21%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case.
Can I form a company in Spain remotely?
Yes. Non-residents can incorporate, own and direct a Spanish SL entirely from abroad by granting a notarial power of attorney to a local representative. Confirm each shareholder and director's applicable Spanish tax identification, usually an NIE, and whether the NIF M route can be used while an NIE is unavailable.
What does it cost to form a company in Spain?
Notary and registry together usually cost EUR 250 to 500 for a simple SL, and an NIE application, when required and handled by a representative, can add EUR 100 to 300 per person. Our formation service fee is from around €100 to €200 (estimated). Government charges, capital and ongoing services must be budgeted separately unless the written quote includes them.