Setting up a company in Spain as a foreigner is entirely possible and increasingly common. Spain allows non-residents to incorporate businesses, but the process varies depending on your nationality and whether you plan to live and work in the country.
In this guide, you’ll learn how to create a company in Spain, what permits you may need, which legal structures are available and the exact steps required to do it correctly, avoiding delays or compliance issues.
Can a foreigner create a company in Spain?
Yes. Any foreigner can set up a company in Spain, even if they do not live in the country.
However, it’s important to separate two concepts:
- Incorporating a company (a legal and mercantile process)
- Living and working in Spain (an immigration matter)
You can be a shareholder or director of a company in Spain without being a resident. But if you plan to actively work, manage the business or live in Spain, you may need a residence or work permit.
Creating a company in Spain depending on your nationality
EU / EEA citizens
If you are an EU or EEA national:
- You can create a company in Spain without a visa
- You need a NIE (Foreigner Identification Number)
- If you stay in Spain for more than 3 months, you must obtain an EU Registration Certificate
You are allowed to work and manage your company freely.
Non-EU citizens
If you are a non-EU national, you can still incorporate a company in Spain, but working and residing requires authorisation.
The appropriate permit depends on your business profile and plans.
Residence permits for foreigners creating a company in Spain
Entrepreneur residence permit (Startup Law)
This permit is regulated under Spain’s Startup and Entrepreneur framework and is designed for innovative or high-value projects.
Key features:
- Allows you to live and work in Spain
- Initial authorisation valid for 3 years
- Requires approval of a business plan
- The project must show innovation, economic interest or job creation
Note: The business plan is essential and must demonstrate viability, funding and market value.
Self-employment work permit
This option applies to non-EU nationals who want to run a business or professional activity in Spain.
Main points:
- Suitable for non-innovative projects
- Requires proof of economic viability
- Investment and expected income are assessed
- Often used for small businesses or professional services
Types of company you can create in Spain
Choosing the right legal structure is key when creating a company in Spain.
Sole trader (Self-employed)
- No minimum capital required
- Unlimited personal liability
- Taxed through personal income tax
- Suitable for freelancers and small activities
Limited Liability Company (SL)
The most common structure for a company in Spain.
- Minimum capital: from €1
- Liability limited to capital contributed
- Corporate Tax rate: 25%
- VAT registration required if applicable
This structure offers flexibility and legal protection.
Public Limited Company (SA)
- Minimum capital: €60,000
- More complex governance
- Suitable for large businesses or investors
- Shares can be transferred or listed
Branch of a foreign company
- Not a separate legal entity
- Requires documentation from the parent company
- Needs a legal representative in Spain
Step-by-step: how to create a company in Spain
To set up a company in Spain, the usual steps are:
- Obtain a NIE or NIF
- Apply for the negative certificate of company name
- Open a Spanish bank account
- Draft company bylaws
- Sign the incorporation deed before a notary
- Register the company at the Commercial Registry
- Obtain provisional and final Tax ID (NIF)
- Register with the Spanish Tax Agency
- Register with Social Security if applicable
Foreign documentation: legalisation and translation
Documents issued outside Spain may require:
- Apostille of The Hague or consular legalisation
- Official sworn translation into Spanish
This depends on the country of origin and is often required by banks, notaries and registries.
Frequently asked questions
Can I create a company in Spain without living there?
Yes. You can be a shareholder or director without being resident, but working requires authorisation.
Do I need a NIE to create a company in Spain?
Yes. A NIE or tax identification number is required for notarial and tax procedures.
Which company type is best for foreigners?
Most foreigners choose a Limited Liability Company (SL) due to flexibility and limited risk.
Creating a company in Spain as a foreigner is a structured process that combines legal, tax and immigration requirements. Choosing the right company structure and permit from the start saves time and prevents costly mistakes. Professional guidance ensures your company is compliant, viable and ready to operate smoothly in Spain.
If you need personalized assistance, at Entre Trámites we offer management and advisory services on immigration matters. You can contact us through this contact form for us to call you, or if you prefer, you can schedule a free consultation or write to us onWhatsApp.
