Spain Company Formation
Company Formation in Spain for Non-Residents Main Characteristics and the basic rules of Company registration in Spain
BRIS Group provides professional Spain company formation services for entrepreneurs and international investors seeking to establish a presence in Southern Europe. Setting up a Spanish Limited Liability Company (Sociedad Limitada – S.L.) offers limited liability protection, access to EU markets, and a favorable business environment for international operations. Our experts manage the full Spain company registration process remotely, including corporate banking support, compliance, and ongoing administration, ensuring your company in Spain is fully compliant and ready for European and global business.
Start your Spain company with BRIS Group today — trusted experts in global incorporation.
A Comprehensive Guide for Non-Residents to Register a Company in Spain
Spain, with its vibrant economy, EU membership, and strong legal infrastructure, has become one of the most attractive destinations for global entrepreneurs seeking to establish a European presence. Although Spain is not an offshore jurisdiction, it provides powerful advantages for international business expansion, tax optimization, and credibilitywithin the European market.
This comprehensive guide explores everything you need to know about Spain company formation for non-residents, including structure types, requirements, timelines, and how our professionals can help you launch your business seamlessly.
Key Highlights of Spain Company Formation
| Feature | Details |
|---|---|
| Legal Framework | Spanish Companies Act & EU Regulations |
| Tax Residency | Resident if managed from Spain |
| Foreign Ownership | 100% foreign ownership permitted |
| Minimum Share Capital | €3,000 (for S.L.) |
| Corporate Tax Rate | 25% standard / 15% for new businesses (first 2 years of profit) |
| EU Access | Full access to the European Union single market |
| Regulatory Body | Mercantile Registry (Registro Mercantil) |
| Average Formation Time | 2–6 weeks |
| Substance Requirements | Physical presence and tax registration required |
Why Choose Spain for Company Formation?
Spain offers a unique balance between regulatory transparency, European prestige, and competitive operational costs. It’s an ideal base for trade, services, and technology businesses aiming to operate across the EU.
Main Advantages Include:
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Full EU Membership ensuring market access and credibility
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Strategic trade location between Europe, Africa, and Latin America
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Stable economy and banking infrastructure
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Modern logistics and transport hubs
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Skilled bilingual workforce
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Attractive tax rate for new businesses (15%)
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No restrictions on foreign ownership or profit repatriation
💡 Expert Tip: Spain’s government actively supports foreign investment — especially in renewable energy, real estate, and tech innovation.
Is Spain Considered an Offshore Jurisdiction?
No. Spain is not an offshore jurisdiction — it is a fully compliant EU member. However, non-residents can still benefit from favorable tax structuring, double taxation treaties, and special economic zones in regions such as the Canary Islands and Madrid Tech Hub.
Types of Companies for Non-Residents in Spain
| Company Type | Description | Minimum Capital | Ideal For |
|---|---|---|---|
| Sociedad Limitada (S.L.) | Private Limited Company (similar to LLC). Limited liability, simple management. | €3,000 | SMEs, startups, consultants |
| Sociedad Anónima (S.A.) | Public Limited Company (similar to PLC). Can issue shares. | €60,000 | Large corporations, investors |
| Branch Office | Extension of a foreign company, not a separate entity. | N/A | Multinational subsidiaries |
| Representative Office | Non-trading liaison office for market research or promotion. | N/A | Companies testing the Spanish market |
Requirements for Spain Company Registration
| Requirement | Description |
|---|---|
| NIE (Tax ID for foreigners) | Required for all non-resident shareholders/directors |
| Company Name Certificate | Issued by the Central Mercantile Registry |
| Bank Account | Must deposit minimum capital before registration |
| Articles of Association | Defines business activity, shareholders, and governance |
| Public Deed of Incorporation | Must be signed before a Spanish notary |
| Registration with Mercantile Registry | Grants the company legal status |
| Tax Number (CIF) | Registered with the Spanish Tax Agency |
| Registered Office | A physical business address in Spain |
| Social Security Registration | Required if hiring staff |
| Licenses & Permits | Specific to your business activity (e.g., retail, import/export) |
Step-by-Step Process for Company Formation in Spain
Step 1: Plan and Choose Your Business Structure
Select the appropriate company type based on your size, funding, and goals.
Step 2: Obtain a NIE (Tax ID for Foreigners)
Each shareholder and director must secure a Número de Identificación de Extranjero (NIE).
Step 3: Reserve a Company Name
Submit a name request to the Central Mercantile Registry to confirm availability.
Step 4: Open a Corporate Bank Account
Deposit the required share capital (minimum €3,000 for an S.L.).
Step 5: Draft and Sign the Articles of Association
A Spanish notary must notarize the founding documents and articles.
Step 6: Register with the Mercantile Registry
This officially incorporates the company and provides your registration certificate.
Step 7: Obtain CIF (Company Tax Number)
Register with the Spanish Tax Agency (Agencia Tributaria).
Step 8: Register for Social Security (if applicable)
Mandatory if you intend to hire employees.
Step 9: Secure Licenses and Permits
Some business activities require municipal or sectoral authorization.
Step 10: Maintain Ongoing Compliance
Annual filings, VAT returns, and accounting reports must be submitted in line with Spanish law.
Timeframe for Company Formation
| Phase | Estimated Timeframe |
|---|---|
| NIE & Name Reservation | 1–2 weeks |
| Notarization & Capital Deposit | 3–5 days |
| Mercantile Registry Registration | 1–2 weeks |
| Tax & Social Security Registration | 1 week |
| Total Average Duration | 2–6 weeks |
Advantages of Forming a Company in Spain
✅ Access to 27 EU member states and European Economic Area
✅ Excellent international reputation
✅ Double taxation treaty network with 90+ countries
✅ 15% startup corporate tax for new entities
✅ Advanced digital infrastructure and logistics
✅ Multilingual workforce and modern banking
Potential Challenges for Non-Residents
❌ Bureaucratic procedures may take longer than expected
❌ Many documents must be in Spanish
❌ Bank account opening can be time-consuming
❌ In-person signatures are required for notarization
🔍 Need advice? Our experts can guide you through each stage of the incorporation process — ensuring compliance, efficiency, and peace of mind.
How BRIS GROUP Professionals Can Help
Our Spain company formation specialists handle every aspect of the process from start to finish — so you can focus on your business goals.
| Service | Description |
|---|---|
| Incorporation Planning | Tailored advice on the most efficient company structure |
| NIE & CIF Registration | Full administrative assistance for tax registration |
| Document Preparation | Drafting and notarization of all legal documents |
| Bank Account Setup | Coordination with Spanish banks for capital deposit |
| Mercantile Registry Filing | Fast and accurate submission of incorporation documents |
| Accounting & Tax Filing | Ongoing compliance and bookkeeping services |
| Registered Office in Spain | Prestigious address and mail handling |
| Employment & Payroll Setup | Registration with Social Security and local employment support |
| Legal & Tax Advisory | Expert consultation for ongoing operations |
Partner with Experts in Spain Company Formation
Spain offers a combination of credibility, growth potential, and EU access — making it one of Europe’s most strategic business destinations.
Our professional team will help you incorporate efficiently, stay compliant, and optimize your tax position — all while handling the complex local formalities for you.
📞 Contact us today to discuss your goals and receive tailored assistance for your Spain company formation. Let us help you establish your European business presence confidently and efficiently
Questions & Answers
What is the Corporation Tax rate in Spain?
The standard Corporation Tax rate in Spain is 25%. Newly created companies benefit from a reduced rate of 15% for their first two financial years. Certain sectors, like oil and gas, may have different rates.
How is Income Tax structured in Spain?
Income Tax in Spain is progressive, ranging from 19% to 47% based on income levels. For 2023, the rates are segmented as follows: 19% for income up to €12,450, 24% from €12,450 to €20,200, 30% from €20,200 to €35,200, 37% from €35,200 to €60,000, and 47% for income above €60,000.
What tax obligations do non-residents have in Spain?
Non-residents in Spain are subject to a flat rate of 24% on their income derived from Spanish sources. This rate is reduced to 19% for EU residents. Non-residents are only taxed on income generated within Spain, including property income, dividends, and capital gains.
What is the VAT rate in Spain?
The standard VAT rate in Spain is 21%. There are reduced rates of 10% and 4% for specific goods and services—such as food, pharmaceuticals, and certain cultural activities. As of October 2023, these rates are applicable, with no recent changes noted.
Are there any tax deductions or credits available in Spain?
Yes, Spain offers various deductions for both residents and non-residents, including deductions for personal and family circumstances, contributions to pension plans, and investment in certain areas. Additionally, specific tax credits are available, which can significantly reduce tax liability.
These key points help clarify the tax landscape in Spain, making it easier to understand obligations and benefits.
Learn more: Visit our Full Company Formation – FAQ page
or contact our tax and company formation team at[email protected]
1. What are the initial steps for forming a company in Spain as a non-resident?
To form a company in Spain as a non-resident, you should first obtain a Número de Identificación de Extranjero (NIE), which is essential for tax purposes. Next, choose your company type (e.g., SL – Sociedad Limitada or SA – Sociedad Anónima) and draft the company statutes. Lastly, register the company with the Mercantile Registry and obtain necessary licenses.
2. Do I need a local partner to establish a company in Spain?
No, non-residents do not necessarily need a local partner to establish a company in Spain. However, having a local representative or legal advisor familiar with Spanish regulations can facilitate the process and help navigate legal requirements.
3. What are the tax obligations for a company in Spain?
Corporations in Spain are subject to corporate tax, which is generally 25% on profits. There may also be other taxes, such as VAT and local taxes. Non-resident shareholders are subject to withholding tax on dividends, typically at a rate of 19%, unless a tax treaty specifies otherwise.
4. How long does it take to register a company in Spain?
The entire process of registering a company in Spain can take between 4 to 8 weeks, depending on the complexity of the business and the efficiency of document preparation. Delays may occur if additional documentation or approvals are required.
5. Are there any minimum capital requirements for forming a company in Spain?
Yes, for a Sociedad Limitada (SL), the minimum share capital requirement is €3,000, while for a Sociedad Anónima (SA), it is €60,000. At least 25% of the share capital must be paid up at the time of incorporation.
This FAQ is designed to clarify common questions about forming a company in Spain for non-residents, ensuring you have the necessary information to start your business successfully.
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Spain
Capital: Madrid
Region: located on the Iberian Peninsula (which it shares with Portugal and Andorra) situated in the southwest corner of Europe
Language: Spanish
Currency: Euro (EUR)
Time Zone: GMT+1
Dial Code: +34
Abbreviations: ES
Helping Your Company Thrive in Spain With us, starting and running a business in Spain will be easy and efficient!
- Full support of the company’s registration in Spain: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.