I
Spain

Spain

Company Formation in Spain

Spain

Formation Time
1–3 weeks
Min. Capital
€1 (SL - Ley Crea y Crece)
Corporate Tax
25% standard / 15% startup rate
Foreign Ownership
100%

Overview

Spain is the European Union's fourth-largest economy, offering an exceptionally dynamic business landscape with world-class technology hubs in Madrid and Barcelona. Under the progressive Create and Grow Law (Ley Crea y Crece) and the revolutionary Spanish Startup Law (Ley de Startups), Spain has significantly modernized company formation, allowing a Sociedad Limitada (SL) to be formed with just €1 in capital. Innovative startups benefit from a reduced 15% corporate tax rate for up to four years, while foreign founders, digital nomads, and key executives moving to Spain can access the lucrative Beckham Law tax regime, capping personal tax on Spanish employment income at a flat 24% with zero Spanish tax on worldwide investment income.

EU's 4th largest economy
15% corporate tax for startups
Beckham Law 24% flat tax
€1 capital under Ley Crea y Crece
96 double tax treaties

Why Choose Spain

1

EU's 4th largest economy with 48 million consumers and cultural gateway to Latin American markets

2

Reduced 15% corporate tax rate for certified startups during their first 4 profitable years

3

Beckham Law — 24% flat personal tax rate for foreign founders and executive hires up to €600,000

4

€1 minimum statutory share capital under the Create and Grow Law (Ley Crea y Crece)

5

World-renowned startup ecosystem in Barcelona and Madrid with active venture capital hubs

6

Spain Digital Nomad Visa providing renewable 3-year European residency for remote professionals

7

Over 96 bilateral double taxation avoidance treaties worldwide

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
SL (Sociedad Limitada - Private Limited Company)100%1 sole administrator (Administrador Único)€1 (recommended €3,000 for standard capital)25% standard CIT; 15% for certified innovative startups for up to 4 yearsTech startups, SaaS, digital services, e-commerce, consulting, retail
SA (Sociedad Anónima - Public Corporation)100%Board of directors€60,000 (minimum 25% paid up at incorporation)25% corporate taxLarge commercial enterprises, investment holding vehicles, prospective public listings
Branch of Foreign Company (Sucursal)100%1 legal representativeNone25% corporate tax on Spanish-attributable branch profitsMultinational companies establishing direct commercial branch offices in Spain

Step-by-Step Formation Process

1

Obtain Spanish NIE Numbers

1–2 weeks

Process NIE numbers for all foreign directors and shareholders via Power of Attorney.

2

Name Reservation Certificate

3–5 days

Obtain official name certificate from Central Mercantile Registry (RMC).

3

Capital Deposit & Bylaws Preparation

2–4 days

Open bank account for capital deposit and prepare company bylaws (estatutos).

4

Execution of Notarial Deed (Escritura Pública)

1 day

Sign deed of incorporation before a Spanish notary public via PoA.

5

Mercantile Registry & Definitive CIF

1–2 weeks

Register deed with Mercantile Registry (Registro Mercantil) and obtain permanent CIF from AEAT.

Costs & Fees

Government / License FeeEUR 400+
Our Service FeeUSD 3,500 – 5,000
Annual RenewalUSD 2,500+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Spanish commercial banks (CaixaBank, BBVA, Santander, Sabadell) provide full corporate facilities once the provisional or definitive CIF is issued. Modern European digital business banks (Qonto, Revolut Business) provide faster digital onboarding.

Account Opening Time
1–2 weeks (Digital / Qonto); 2–4 weeks (BBVA / Santander)
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

CaixaBankBBVABanco SantanderBanco SabadellQonto SpainRevolut Business

Tax Overview

Corporate Tax
25% standard corporate rate; 15% reduced startup rate for the first 4 profitable tax periods under the Spanish Startup Law
Personal Income Tax
19% to 47% progressive rate; 24% flat rate under the Beckham Law on income up to €600,000
VAT / Sales Tax
21% standard IVA rate (reduced rates of 10% and 4% for hospitality and basics)
Capital Gains Tax
Included in standard CIT; 95% exemption under Participation Exemption on qualifying holdings (5%+ stake held 1+ year)
Withholding Tax
19% standard dividend withholding tax (reduced under EU Parent-Subsidiary Directive and tax treaties)
Double Tax Treaties
96 countries

Beckham Law enables incoming founders and employees to be treated as non-domiciled tax residents, exempting foreign investment income and foreign dividends from Spanish taxation for up to 6 years.

Visa & Residency

Spain Digital Nomad Visa

3 years, renewable up to 5 years (leads to permanent residency)

For remote entrepreneurs and employees earning at least 200% of Spanish minimum wage (~€2,600/month)

Entrepreneur Visa (Ley de Emprendedores)

3 years, renewable

For founders launching an innovative, scalable enterprise endorsed by ENISA

Golden Visa (Residency by Investment)

Renewable residence permit

Real estate or corporate capital investment pathway

Family visa: AvailableProcessing: 4–8 weeks

Frequently Asked Questions

What is the Beckham Law in Spain and how does it benefit startup founders?
The Beckham Law (Special Expatriate Tax Regime) allows foreign entrepreneurs, executives, and highly skilled professionals moving to Spain to be taxed as non-residents for up to 6 years. Under this regime, Spanish employment and executive income is taxed at a flat rate of 24% (up to €600,000) instead of progressive rates up to 47%. Crucially, worldwide investment income, foreign dividends, and capital gains outside Spain are 100% exempt from Spanish tax.
What is the minimum capital required for a Spanish SL (Sociedad Limitada)?
Under Spain's Create and Grow Law (Ley Crea y Crece), an SL can legally be established with a minimum capital of just €1. However, until the company accumulates reserves equal to €3,000, 20% of annual profits must be allocated to legal reserves. For commercial and banking credibility, depositing standard capital of €3,000 is still widely recommended.
What is an NIE number and why is it mandatory?
An NIE (Número de Identificación de Extranjero) is an official personal tax identification number issued by the Spanish National Police to foreign citizens. Every foreign director, shareholder, and beneficial owner must obtain an NIE before signing the Deed of Incorporation before a notary. Incorp International obtains NIE numbers remotely on your behalf via Power of Attorney.
How does Spain's Startup Law (Ley de Startups) benefit tech companies?
The Spanish Startup Law provides certified innovative startups with a reduced corporate tax rate of 15% (instead of 25%) for the first four profitable tax years. It also increases the tax exemption for employee stock options from €12,000 to €50,000 annually, defers tax payment deadlines without interest, and streamlines access to the Spanish Digital Nomad Visa.
Can a Spanish company be formed 100% remotely?
Yes. By executing a specialized Power of Attorney (Poder Notarial) apostilled in your home country, Incorp International manages the entire process remotely—from securing your NIE numbers and reserving the company name to signing the notarial deed and registering the company with the Mercantile Registry.
What are the ongoing accounting and tax compliance obligations in Spain?
A Spanish SL must maintain official accounting books in accordance with the Spanish General Accounting Plan (PGC), submit quarterly VAT declarations (Modelo 303), quarterly withholding declarations (Modelos 111/115), file the annual Corporate Income Tax return (Modelo 200), and deposit its annual financial accounts with the Mercantile Registry.