Company incorporation for foreigners in Spain
Entrepreneurship without Borders: Guide to Starting a Business in Spain as a Foreigner
- Get the necessary documentation for registration in the Mercantile Registry.
- Advice on obtaining licenses, complying with labor and safety regulations.
- Receive tax support for the taxes you are required to file.
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How to start a business in Spain as a foreigner?
This is a step-by-step process of everything you need to do to start a business in Spain as a foreigner.
Tax Residency
Determining the tax residency of the foreign investor is the initial step, for example, if a foreigner resides in Spain for more than 183 days a year, they will be considered as tax resident and will be taxed on their global income. This directly affects the taxation of the company, since Spanish tax regulations must be complied with. In addition, an identity document must be obtained, such as the NIE, or the CUE and the certification of tax residence in Spain.
Company Registration
The next step is to formalize the creation of the company. An incorporation contract is required, which must be notarized in a notarial deed. In addition, the tax identification of the foreign partners and, in some cases, the designation of a legal representative must be provided. This process involves registering the company with the Mercantile Registry, presenting the Form 036 and Form 037 to declare economic activities and business location, and obtain the digital certificate to facilitate online procedures. In addition, it is necessary to register with the Social Security.
Necessary Documentation
-Write the Bylaws, detailing key aspects such as capital stock.
-Opening a bank account for the deposit of the capital stock and obtaining the corresponding Bank Certificate.
-You must select the appropriate economic activity epigraph, and obtain the NIF.
Additional information to take into account:
- Companies must follow the General Accounting Plan. Expenses and income are accounted for on a Devengo basis. The most relevant expenses may include salaries and social security, office rent, representation expenses, and advertising. As for income, sales of goods or services are recorded.
- Companies created by foreigners are generally subject to the general tax regime. However, some specific activities, such as agriculture, may opt for special regimes.
- Companies must follow Spanish labor regulations. This includes payroll tax withholding and Social Security contributions. It is important to consider the bonuses available for new contracts.
- Occupational safety is a priority. Companies must comply with occupational risk prevention regulations and ensure a safe working environment.
If you start a business in Spain as a foreigner, these are the taxes you must take into account:
- Corporate Tax: The standard rate of corporate tax is 25%. However, there are tax benefits for new companies, such as a 15% reduction in the first three years. Through the Form 200 this tax is declared and must be filed annually before July 25 of the year following the tax year. Not all companies are obliged; those with a turnover of less than 8 million euros may file Form 220.
- VAT (Value Added Tax): In Spain, VAT rates vary. For example, the general rate is 21%, but some goods and services have reduced or super-reduced rates. A company must apply the correct rates and comply with the invoicing rules. The Form 303 is used to file quarterly returns, with filing dates in April, July, October and January of the following year.
- Tax on Economic Activities (IAE): The classification of activities is made through the IAE. For companies created by foreigners, the headings may vary according to the activity.
- Withholdings: Let's suppose that a company hires a foreign supplier, it must withhold a percentage (for example, 24%) of the payments made. This withholding is paid on account of the supplier's tax. Failure to comply with these withholdings may result in penalties.
- If a foreigner has income in Spain and their country of origin, the double taxation agreements avoid double taxation. For example, a treaty may provide that income is taxed only in the taxpayer's country of residence, avoiding double taxation.
What are the deductions, aids, or subsidies when starting a business in Spain as a foreigner?
- Deductions: Tax deductions and benefits are available to encourage investment. For example, the I+D deduction can be applied to expenses related to research and development. In addition, there are regional benefits that vary depending on the location of the company.
- Aids: In some regions, there are grants and subsidy programs for foreign companies. These may include financial support, counseling, and training. Each program has specific requirements and application deadlines.
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Company Incorporation
We help you set up your company-
Incorporation of a Limited Company (SL)
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Company Name Certificate
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Bank certificate of deposit of the capital stock
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Bylaws of the Limited Company
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Coordination with the Notary
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Registration of IAE with the Tax Agency (AEAT)
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Digital Certificates of legal and natural persons.
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Deed of incorporation in the Mercantile Registry. Value € 100 * (additional)
Monthly Consulting for SMEs
Basic
Perfect if you are starting-
Register up to 30 invoices (total, of income and expenses).
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Registration as a corporate self-employed ("autónomo societario")
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Census registration / deregistration.
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Filing of all your SME's taxes**
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Personal account manager with unlimited advice.
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Management of your notifications.
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Online follow-up.
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We will take care of transferring and reviewing the information from your old accountant.
**It does not include the Income Tax Return (Form 100) but as our client you'll get a discount.
Gold
Perfect for the most active-
Register up to 60 invoices (total, of income and expenses).
-
Registration as a corporate self-employed ("autónomo societario")
-
Census registration / deregistration.
-
Filing of all your SME's taxes**
-
Personal account manager with unlimited advice.
-
Management of your notifications.
-
Online follow-up.
-
We will take care of transferring and reviewing the information from your old accountant.
**It does not include the Income Tax Return (Form 100) but as our client you'll get a discount.
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FAQ
General Info
It is possible to start a business in Spain as a foreigner without being a tax resident. The process consists of obtaining the NIE and continuing with the conventional steps mentioned above for the incorporation of a company. In addition, the Transfer Tax and Stamp Duty (ITP-AJD) must be paid.
If you are the employer and you wish to hire foreigners in Spain, you must obtain the identification document, register with the Social Security and comply with labor and tax obligations.
If you are a worker or employee, you must provide a passport, a copy of the employment contract, a medical certificate, a criminal record certificate, a residence and work authorization, and a completed form with a photograph.
Yes, it is necessary to have a physical address in Spain to register the company. It can be a physical or virtual office, but a legally recognized location is required. This is commonly associated with the fiscal address of the company.
Process
Included services:
- Incorporation of a Limited Company (SL), must provide a share capital of 3,000 euros.
- Obtaining the Certificate of Company Name in the Central Mercantile Registry.
- Coordination for obtaining the Bank Certificate of deposit of the share capital.
- Preparation and revision of the Bylaws of the Limited Company.
- Coordination with the notary’s office for the preparation of the deed of incorporation (notary fees are NOT included in our fees. They may vary depending on the city)
- IAT declaration to the Tax Agency (AEAT).
- Registration of the deed of incorporation in the Commercial Registry (registration fee NOT included – 100 € + VAT).
- Procedures for obtaining the Digital Certificate of Legal Person.
Services not included: Notary fees, registration in the Mercantile Registry. Apostilles and/or sworn translations are not included if necessary.
Within a maximum period of one working day we will contact you to indicate the documentation or data we need to provide the service.
The advisor or lawyer assigned to you will contact you directly to start the management process.
Payment
The prices you see in our price section are the final prices (+ 21% VAT to be applied).
Take a look at our terms and conditions.
Yes, you can request the cancellation of the service as long as your agent has NOT started to process your documentation to initiate the procedure. The money will be refunded to your card in less than 14 days.
Take a look at our terms and conditions.
Our
Team
You will always have personalized treatment and direct contact with your agent. You will be able to communicate at any time (as long as it is working hours and about the services you have contracted) by email or telephone, whichever is more convenient for you.
Do you need more information?
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