A Guide to Setting Up a Company in Spain 2026: A Step-by-Step Handbook

As the European Union's fourth-largest economy, Spain is an appealing place for entrepreneurs to set up a business. Access to the EU market, low capital requirements and relatively simple bureaucratic processes make Spain ideal, especially for entrepreneurs operating in the technology and service sectors.

In this guide, we cover the outline of the process of setting up a Sociedad Limitada (SL) — a limited company — in Spain, the steps involved and the points to watch.

---

Why Set Up a Company in Spain?

The main reasons entrepreneurs choose Spain:

• Access to the EU market: reaching 450 million consumers with a single company
• Low capital: a minimum of €3,000 capital is enough for an SL
• Limited liability: your personal assets are protected from the company's debts
• A start-up ecosystem: special advantages for technology companies under the 2023 Startup Act
• Quality of life: the chance to live in Europe with a residence permit

---

Types of Company: Which One Suits You?

There are three main types of company for foreigners in Spain:

Type	Abbreviation	Min. Capital	Liability	Who It Suits
Sociedad Limitada	SL	€3,000	Limited	SMEs, start-ups, e-commerce
Sociedad Anónima	SA	€60,000	Limited	Large-scale companies
Autónomo	-	None	Unlimited	Freelancers, consultants

The great majority of entrepreneurs choose the SL. With its low capital requirement, limited liability and corporate image, it's the most balanced option.

---

The Steps to Setting Up a Company in Spain

There are 8 basic steps to complete to set up an SL. The whole process takes an average of 4–8 weeks.

1. Obtaining the NIE (Foreigner ID Number)

The NIE is the identification number foreigners need for every official procedure in Spain. It is compulsory for everything, including opening a bank account, setting up a company and signing a tenancy agreement.

You can apply at the Spanish consulate in your country or in Spain. The process takes between 2 and 6 weeks depending on where and when you apply. At Mi Casa Europa, we apply for the NIE (Foreigner ID Number) on your behalf, both from abroad and from Spain.

2. Reserving the Company Name

Whether you are going to set up your existing company under the same name or are considering a new name, you need to confirm that your company name is unique across Spain. For the name of your new company to be set up in Spain, at Mi Casa Europa we apply to the Central Commercial Registry (Registro Mercantil Central) on your behalf. During the application process, we pay attention to the general rules and, most importantly, to proposing 5 alternative names.

The approved name is valid for 6 months; the company formation must be completed within this period.

3. Opening a Bank Account and Depositing the Capital

To set up an SL, a minimum of €3,000 capital must be deposited into a bank account in Spain. The bank issues the capital deposit certificate (certificado de depósito) needed for the notary procedures.

Opening a bank account for foreigners can be complicated at some banks; the NIE and additional documents are requested. At Mi Casa Europa, we choose the most suitable bank for you, manage the account-opening process and ensure your capital deposit documents are prepared in full.

4. The Notary Procedures (Escritura de Constitución)

The company's deed of incorporation is signed before a notary. At this stage, the company's purpose, management structure, capital distribution and the provisions of the articles of association are set out.

All shareholders must be present before the notary in person or grant a legal power of attorney. At Mi Casa Europa, together with our Spanish business partner, we arrange your notary appointment, prepare all your formation documents in Spanish and are by your side during the notary procedures to ensure the process is completed smoothly.

5. Obtaining the Tax Number (CIF)

After the notary procedure, the company's tax number is obtained by applying to the Spanish Tax Agency (Hacienda). This number is compulsory for all commercial and tax procedures. At Mi Casa Europa, together with our business partner, we quickly complete your tax number application and ensure your company's tax affairs are set up correctly.

6. Registration With the Commercial Registry

For the company to acquire legal personality, it must be registered with the local Commercial Registry (Registro Mercantil). Once this registration is complete, the company can officially begin operating. At Mi Casa Europa, together with our business partner, we carry out your commercial registry registration and follow up the process of your company acquiring legal personality.

7. Social Security Registration

As a company director, registration with the social security body (Seguridad Social) is compulsory. Even if no employees are taken on, directors are obliged to pay monthly contributions under "autónomo" status.

This is one of the steps entrepreneurs most often overlook, and delays can lead to serious penalties. At this stage, we follow up to ensure your registration with the social security body (Seguridad Social) is done in the most correct way.

8. Municipal Licences (If Required)

If a physical business premises is to be opened, an activity licence must be obtained from the relevant local council. For companies operating online, a virtual office (domiciliación) service is sufficient.

---

A Summary of Costs and Timescale

Item	Estimated Cost
Official fees and charges	€200–400
Notary costs	€150–300
Minimum capital	€3,000
Professional advice	€500–1,500
Total	€3,850–5,200

Timescale: 4–6 weeks with professional support, 8–12 weeks or longer on your own.

---

Choosing an Accountant

Once your company is set up, you need to work with a professional accountant (a gestor or asesor) so that your tax returns are filed regularly and correctly. Choosing a good accountant ensures both legal compliance and financial savings over the long term.

At Mi Casa Europa, we recommend accounting firms to you depending on the city you are in. We should note clearly that, as an independent business development consultancy, we have no commercial agreement with any accounting firm in Spain.

---

Tax Obligations

The basic tax obligations you will face as a company owner in Spain:

Tax	Rate	Return
Corporate Tax	25% (new companies 15%)	Annual
VAT (IVA)	21% (standard)	Quarterly
Salary Withholding	15–24%	Monthly (if there are employees)

Filing tax returns on time and correctly is critically important. Delays and errors can lead to serious financial penalties.

---

A Residence Permit After Setting Up a Company

Setting up a company in Spain does not automatically provide a residence permit. But once your company is actively trading, as a company owner you can apply for an Entrepreneur Visa or a Self-Employment Residence Permit.

Residence permit processes require a separate area of expertise and should be considered independently of company formation.

---

Why Should You Get Professional Support?

Although the process of setting up a company in Spain consists of seemingly simple steps, in practice it involves a number of difficulties:

• The language barrier: official procedures are conducted in Spanish
• Bureaucratic complexity: each body requires different documents and procedures
• Wasted time: appointment times and waiting periods can be long
• The risk of error: incorrect or incomplete applications lengthen the process and lead to extra costs
• Tax compliance: the Spanish tax system is complex; setting it up correctly from day one is critical

At Mi Casa Europa, together with our Spanish business partner, we manage all these processes on your behalf, and we are by your side at every stage, from preparing documents in Spanish to communicating with official bodies. Our experienced consultancy service speeds up your company formation process, prevents errors and saves you both time and money over the long term.

---

Frequently Asked Questions

Q: Can I set up a company in Spain from abroad?

Some steps can be completed remotely, but for the notary procedures and opening a bank account you usually need to be in Spain or grant a power of attorney.

Q: Do I have to speak Spanish to set up a company in Spain?

It's not compulsory, but all official procedures are conducted in Spanish. Getting professional support makes the process considerably easier.

Q: Can I get a residence permit after setting up a company?

Setting up a company does not grant an automatic right of residence, but it is an important step towards applying for an entrepreneur visa. A residence permit is a separate process.

Q: Can I set up a company as a single person?

Yes, a single-shareholder company can be set up as an SLU (Sociedad Limitada Unipersonal).

Q: How long does it take to set up a company in Spain?

On average it can take 6–8 weeks or longer. The time to obtain the NIE and the demand for appointments are the most decisive factors.

Q: How much capital is needed to set up a company in Spain?

A minimum of €3,000 capital is needed for an SL (limited company). This capital must be deposited into a bank account and documented for the notary procedures.

Q: What is the NIE?

The NIE (Número de Identidad de Extranjero) is the identification number for foreigners.

Q: What is the difference between an SL and an SA in Spain?

An SL (Sociedad Limitada) is set up with €3,000 of capital and is suitable for SMEs. An SA (Sociedad Anónima) requires €60,000 of capital and is designed for large companies.

Q: What is the total cost of setting up a company in Spain?

Including official fees, notary costs and the minimum capital, the average cost is around €5,000.

Q: What are the tax rates as a company owner in Spain?

Corporate tax is 25% (15% for the first 2 years for new companies). The standard VAT rate is 21%. Returns must be filed regularly.

Q: Is a visa required to set up a company in Spain?

No special visa is required to set up a company. Citizens of many countries can start the procedures on a visa-free tourist entry of up to 90 days; visa-free access depends on your nationality. For a long-term stay, a residence permit must be applied for separately.

Q: Can I set up a company in Spain with a virtual office?

Yes, a physical office is not compulsory. An official address can be provided with a virtual office (domiciliación) service, and no municipal licence is required.

Q: Will I get a work permit when I set up a company in Spain?

Setting up a company does not automatically provide a work permit. Residence permit processes may require not just that you are an active company owner but also different criteria.

Q: Can I set up a company in Spain with a foreign partner?

Yes, all the shareholders can be foreign nationals. Each shareholder must obtain an NIE and be present at the notary procedures or grant a power of attorney.

Q: How do you open a bank account to set up a company in Spain?

You apply to banks in Spain with your NIE, passport and proof of address. The process can be longer for foreigners at some banks; professional support is helpful.

---

Conclusion

Setting up a company in Spain is a strong option for entrepreneurs who want to open up to the EU market. With the right planning and professional support, the process can be completed in 6–8 weeks.

But matters such as the language barrier, the bureaucratic requirements and tax compliance are areas that are difficult to manage without an experienced adviser. For a successful start, getting expert support from the very beginning of the process provides an advantage in terms of both time and cost.

---

With Mi Casa Europa, you can set up a company in Spain with confidence and manage your business development process with professional support. For any questions, you can reach us through our contact page.