Spain has established itself as one of Europe's most attractive destinations for entrepreneurship. Its strategic location as a gateway between Europe, Africa, and Latin America, coupled with a high quality of life, attracts international investors and professionals every year. However, the Spanish bureaucratic system can be complex for those unfamiliar with local regulations.
Crucial questions often arise at the start of a project: Is it possible to set up a company without Spanish nationality? What type of visa is required to operate? What are the immediate tax obligations?
At Royser Consulting, our goal is to provide clarity and legal certainty for your investment. In this guide, we detail the essential steps to transform your business idea into a legally and fiscally viable reality in Spain.
1. Prior legal requirements: Immigration documentation
Before starting any economic activity or invoicing, it is essential to regularize the entrepreneur's immigration status. Without these preliminary procedures, it is not possible to operate legally. Proper planning regarding immigration matters is the foundation of any company founded by international citizens.
The NIE (Foreigner's Identity Number)
The NIE is the essential document for any financial transaction in Spain. It is a personal, unique, and exclusive number assigned to foreigners by the government. It is mandatory for opening a bank account, signing a public deed before a notary, or registering with the Tax Agency.
- Citizens of the European Union: The process is faster, requiring the application for the Certificate of Registration of Union Citizen.
- Non-EU citizens: They must provide documentary justification for the reason for the request (economic, professional or social interests) in order for the number to be assigned to them.
Residence and Self-Employment Work Permit
Obtaining a NIE (Foreigner Identification Number) allows you to carry out financial transactions, but it does not automatically authorize you to work. If you are a non-EU citizen and wish to run your own business, you will generally need to apply for a temporary residence and work permit for self-employment.
For this authorization to be approved, the administration will require:
- A complete and viable business plan.
- Accreditation of the professional qualification required for the activity.
- Demonstration of sufficient financial capacity for initial investment and maintenance.
Important note: The Entrepreneurs Act offers alternative pathways, such as the Entrepreneur Visa, which typically has shorter processing times. If you have any questions about which immigration route best suits your profile, we recommend consulting our Immigration services to ensure the success of the application.
2. Define the legal structure: Self-employed or company?
Once the administrative situation is resolved, it is necessary to define the legal structure of the business. In Spain, the two most common structures are the sole proprietor (self-employed) and the Limited Liability Company (SL).
Register as self-employed
It is the fastest option and has the lowest initial management costs. It implies that the individual carries out the economic activity in their own name.
- Advantages: Registration procedures are virtually immediate and there is a lower monthly administrative burden.
- Disadvantages: Unlimited liability. The entrepreneur is liable with their present and future personal assets for the debts generated by the business.
Forming a Limited Liability Company (SL)
This is the recommended option for projects with growth potential or when there are multiple partners. Current regulations allow for incorporation with reduced capital under the Creation and Growth regime, although subject to specific legal reserve requirements.
- Advantages: It limits liability to the capital contributed, protecting the personal assets of the partners, and offers a more solid commercial image to suppliers and financial entities.
- Disadvantages: It requires a public deed before a notary, registration in the Commercial Registry and stricter accounting in accordance with the General Accounting Plan.
To choose the most efficient option, it is vital to perform a preliminary tax simulation. In our department of Consulting services for SMEs and the self-employed We study your case to determine which model optimizes your tax burden.
3. Mandatory tax and labor procedures
With the assigned NIE and the legal form decided, the next step is regularization before the Tax Agency (Hacienda) and Social Security.
- Registration with the Tax Office (Forms 036/037): This is the census declaration used to inform the tax authorities of the start of business activity. The correct Economic Activities Tax (IAE) code must be selected, and the corresponding tax obligations (VAT, Personal Income Tax, Corporate Income Tax, etc.) must be declared.
- Registration with Social Security (RETA): There is a regulatory deadline (currently 60 days before the start of activity) to communicate the registration in the Special Regime for Self-Employed Workers.
- Digital Certificate: It is indispensable in today's business environment. The relationship between businesses and the Spanish public administration is almost exclusively electronic. You will need to obtain your digital certificate to receive electronic notifications and submit your quarterly and annual tax returns.
4. Logistics and Mobility: Vehicle Management
Many businesses require mobility solutions. Whether you've imported your personal vehicle when moving or are planning to acquire a commercial fleet in the company's name, the administrative management must be flawless.
- Driving license exchange: Depending on your country of origin and the existence of bilateral agreements with Spain, you will need to exchange your license or, in some cases, obtain a new one.
- Registration of foreign vehicles: If you establish your residence in Spain, you have a limited time to register your vehicle with Spanish plates and pay the corresponding Registration Tax.
From our area of vehicle paperwork management, We take care of transfers, registrations and traffic reports, allowing you to focus your efforts on the operation of the business.
5. The importance of professional advice
Starting a business in a new country presents significant challenges. A mistake in completing a tax form or missing deadlines in immigration matters can result in financial penalties or the suspension of business operations.
Business success depends not only on a good business idea, but also on impeccable legal execution. Having a local partner who is an expert in both immigration law and tax and commercial regulations provides the necessary security to operate with peace of mind.
Ready to start your business in Spain?
At Royser Consulting, we act as your strategic partner, simplifying administrative processes so you can focus on growing your business.
If you need assistance with visa processing, company formation, or recurring accounting and tax management, our multidisciplinary team is at your disposal.
Contact information:
- Address: Cortina Street 16, Vilafranca del Penedès 08720, Barcelona
- Phone: 616 779 821
- E-mail: info@royserconsulting.com
For personalized attention, you can request a meeting through our web form:
