Foreign individuals aspiring to launch a business in Spain embark on a remarkable journey, one that often commences with obtaining a Residence and Self-Employed visa. However, for those who already hold permanent residence, the process becomes streamlined, necessitating only compliance with the same requisites as native Spaniards.
If you are considering delving into the Spanish business landscape as a self-employed professional or envisioning the creation of your own company, it is imperative to acquaint yourself with the essential tips and requirements. These key considerations will be your compass as you navigate the complexities of establishing a business in Spain.
For expert guidance and invaluable insights into your business endeavor, don’t hesitate to get in touch with us at MySpanishResidency.com. Our specialized immigration law team is here to support and empower your entrepreneurial aspirations in Spain
Requirements to start a business if you are a non eu citizen.
First of all, obviously not being a citizen of an EU state, European Economic Area or Switzerland, as the relevant regime would apply.
- Not having a criminal record in Spain in any of the crimes covered by the Spanish code, as well as in the other countries in which the interested party has resided.
- Not being in an irregular situation in the country. Meaning, not to have the entry prohibited, not to appear as rejectable in Spain or any of the territories with which there are agreements in this area, as well as to be outside the period of commitment not to return to Spain after returning voluntarily to the country of origin.
- Have the necessary professional qualifications or accredited experience to carry out your specific activity, as well as, where appropriate, professional membership.
- Be able to justify the ability to cover the investment planned for the implementation of the project, as well as express whether there is the possibility of generating new jobs in Spain.
- Proof that you have the economic capacity to support yourself as well as the expenses deducted from the development of your professional activity.
- Comply with current regulations regarding the specific requirements for each type of business.
Non-EU immigrants intending to set up and start up a business in Spain may obtain a visa allowing them to stay in Spain for a maximum period of one year, provided that the reason for this stay is to manage the procedures prior to setting up a business and developing an entrepreneurial activity. An entrepreneurial activity will be understood to be one that is of an innovative nature with special interest for Spain and for this purpose has a favourable report from the Commercial Office where the investor submits the visa application.
Requirements to start a business if you are a EU citizen.
Fortunately for you, if it is your case, the current agreements between the EU member countries and the territories included in the European Economic Area, state that:
- Every EU citizen has the right to: set up his or her own business (even as sole proprietor) in any EU country (or Iceland, Norway or Liechtenstein).
- Create a branch or subsidiary of an existing company that has its registered office in the EU and is already registered in an EU country.
How to start a business in Spain as an expat
Once it is clear to us that we meet the requirements mentioned in the previous section, the immigrant intending to create a company in Spain will have to present the following documentation, attaching the original copy of each procedure translated into Spanish or co-official language of the territory, at the Spanish Consular Office corresponding to his country of residence.
1. Printed in duplicate of application EX-07, correctly completed and signed.
2. Complete copy of the valid passport or travel document with a minimum validity of four months.
3. In the case of creating a company whose activity is of a retail commercial nature, in a permanent location with a surface area equal to or less than 300 square meters, you must present the declaration of responsibility or previous communication, as well as the proof of payment of the corresponding tax. More information about its regulation, here.
4. In the rest of the activities not included in the previous epigraph, it will be necessary to accredit the list of authorisations and/or licences required to start the activity, indicating the state of the procedures for its attainment, including, if there are any, certifications of application to bodies.
5. Proof of labour qualification and professional qualification, legally required for the exercise of the profession.
6. Demonstrate own investment capacity to face the project or economic guarantee by a financial institution or similar.
7. Business plan that includes the nature of the company, characteristics, sources of financing, capacity to generate employment, projection of the activity and, in short, viability of the project.
8. Payment of residence and work fees: from the moment of validation of the application process, to be paid in a period of 10 working days:
- Form 790 code 052, section 2.1 for the initial temporary residence authorisation. It costs around 10’50 euros.
- Form 790 Code 062, filling in section 1.5 in reference to “self-employed work authorisations”: 195.88 euros.
9. Accreditation demonstrating the nullity of criminal records in the countries of residence of the last five years, issued by institutional bodies of these territories.
10. Medical certificate.
11. Proof of having paid the 60 euro visa fee.
Choosing a legal structure for your business in Spain
The rules and considerations around starting a business in Spain vary depending on the scope of your plans. The main types of business legal structure are as follows.
Individual entrepreneur (self-employed): one partner.
A self employed worker is person who habitually, personally, directly, on his own account and outside the scope of the management and organisation of another person, carries out an economic or professional activity on a lucrative basis.
They may or may not be employed by others. Its taxation is mainly regulated through the IRPF (Personal Income Tax).
- Initial capital: none required.
- Responsibility: the sole partner is responsible with all his goods. If the businessman is married, the responsibility derived from his activity could reach his spouse, reason why to know the situation it is necessary to take into account the economic regime that governs the union and the own nature of the goods.
Solo Trader
It is one of the novelties of the Law of Entrepreneurs and the cheapest way of setting up a business in Spain. It would be the natural person who, with limitation of responsibility under certain conditions, carries out a lucrative economic or professional activity in a habitual, personal, direct, self-employed manner, with or without employees under his or her charge.
- Initial capital: not required.
- Responsibility: this formula allows self-employed professionals not to have to respond with their personal assets to possible debts generated by their activity, for example, with their habitual residence. However, in practice this restriction is subject to several conditions that must be known, such as, for example, that the value of the home does not exceed 300,000 euros. Undoubtedly, the achievement of the objective for which it was created can be improved.
Limited Liability Company (SRL or SL): minimum one partner
Widely used in Spain. It is the most popular type of commercial society, because it avoids responding with personal patrimony. It divides its share capital into shares, which are indivisible and cumulative. In this way, it is integrated by the contributions of all the partners.
Initial capital: minimum 3,000 €.
Liability: limited to the capital contributed.
If you are overwhelmed by all the paperwork on the way to create your own company, do not worry. You can always count on the help of a business advisor who will provide you with quick solutions and can guide you in your adaptation process as an entrepreneur. Contact us for a consultation!
Foreign companies opening up a branch or subsidiary in Spain
If you have your own company in your country of residence, but are looking to set up a branch or subsidiary in Spain, you will have to follow a different process.
When processing your application, you must provide a series of documents, including the following:
- A copy of the main company’s certificate of incorporation and certificate of good standing
- Notarized power of attorney
- Spanish tax identification number (NIE)
- A member of staff at the Spanish branch to be a resident in Spain, who will agree to be liable for any company debts and tax payments
- While additional branches and subsidiaries don’t need to file accounts on the business register, they must pay income tax and submit quarterly VAT returns through their NIE number.
Some banks and business advisory companies will offer special packages to help you set up the particulars of opening a new branch in Spain.
Recommended: If you are investing in a business in Spain you might be elegible for a Golden Visa. This type of visa grants you permission to reside in Spain after making a substantial investment.
Can I open a business in Spain as a non resident?
Yes, you can open a business in Spain as a non-resident. Many foreign entrepreneurs successfully start a business in Spain by following the necessary legal procedures. Our law firm specializes in helping individuals with starting a business in Spain as a foreigner. We can guide you through the process of setting up a business in Spain, ensuring that all legal requirements are met and that you are compliant with Spanish regulations. Contact us for personalized assistance and to learn more about how to start a business in Spain effectively.
How much money do I need to start a business in Spain?
The amount of money required to start a business in Spain varies depending on the type of business you wish to establish and its scale. Generally, setting up a business in Spain involves costs such as registration fees, legal expenses, and initial capital requirements. For instance, the minimum capital required for a limited liability company (SL) is €3,000. Our experts can provide a detailed breakdown of the costs involved and help you plan your budget accordingly. If you need assistance with opening a business in Spain, don’t hesitate to get in touch with us.
Is it hard to start a business in Spain?
Starting a business in Spain can be a complex process, but with the right guidance, it becomes manageable. There are several steps involved, including registering your business, obtaining necessary permits, and complying with local regulations. As specialists in immigration and business law, we offer expert support in navigating these procedures. Our team is here to simplify the process for you, ensuring that setting up a business in Spain is a smooth and successful endeavor. Contact us for professional advice and assistance tailored to your needs.
Can I move to Spain and start a business?
Yes, you can move to Spain and start a business. In fact, Spain offers various visa options for entrepreneurs and investors. We can help you with the legal aspects of moving to Spain and setting up your business. From obtaining the right visa to ensuring compliance with Spanish business regulations, our firm provides comprehensive support to make your transition and business start-up process as seamless as possible. Reach out to us for expert guidance on how to start a business in Spain and relocate successfully.
Greetings !!
I want to open a limited liability company in spain, as i have a valid schengen student visa ( currently in belgium ) and i want to know full process
Hope to hear soon from you
Hi Luckhshan, one of our lawyers should be in contact with you shortly for open your bussiness in Spain.
Greetings,
Hello ! I have a non-lucarative search for a job visa . Can I change it to autonomo . I am nonEU. Thanks
Hi Lola, one of our lawyers should be in contact with you shortly for your Business in Spain.
Greetings,
Planning set-up a startup in Spain and I am from India
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Greetings
Hi i wish fo register a company in spain i am indian and my partner is spanish citizen can u guide us
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Greetings
Hey I am looking for details regarding setting up a bar business plan with my partner in spain – UK citizens here unsure on the exact processes that I need to follow.
Hi Karl,
one of our lawyers should be in contact with you shortly for your questions about setup a business in Spain.
Greetings
INDIVIDUAL ENTREPRENEUR (SELF-EMPLOYED): ONE PARTNER. or LIMITED LIABILITY COMPANY (SRL OR SL): MINIMUM ONE PARTNER
Hello, I would like to receive some clarity on which type of business type I should choose. I will be arriving in January of 2022 and would like the process to go as smoothly as possible. I will be providing IT Services for companies in need of an Exchange Migration Engineer Specializing in Microsoft 365 and Azure integration with Microsoft 365. Would you mind reaching out to me to discuss how you can assist me with this matter? Thank You
Hi kevin,
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Kind regards
Hi, I’d like to open a business in Spain, more information would be appreciated.
Anthony,
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Regards,
hi, I would like to set up company in Spain, can you provide all the estimated costs? TQ
Linda,
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Regards,
Hello ! I am non EU.I have a non-lucarative search for a job visa permit. Can I change it to self employment . Thanks
Kiana,
one of our lawyers should be in contact with your questions about start a business in spain
Kind regards,