Starting a Business · Spain
Starting a business in Spain: foreigner's guide (2026)
Spain shaded by its starting a business status
Spain permits 100% foreign ownership in most sectors with no local-partner requirement, and recent legislative reforms (Law 18/2022 and the 2022 Startup Law) have cut the minimum share capital for an SL to €1 and reduced core registration to as little as 72 hours via the online CIRCE/PAE system. The principal friction for non-EU founders is obtaining the NIE (foreigner identification number), which can take 1–4 weeks, and prior authorisation is required only for acquisitions in defined strategic sectors under Royal Decree 571/2023.
Key points
Spain imposes no restriction on foreign shareholding in standard sectors — non-EU nationals may own 100% of an SL or SA with no local partner. Prior authorisation from the Ministry of Economy is required only for investments in strategic sectors (critical infrastructure, defence, telecoms, energy, health) under Royal Decree 571/2023; investments in companies with annual turnover below €5 million are exempt from that screening.
Law 18/2022 ('Crea y Crece'), in force since October 2022, reduced the minimum capital for an SL from €3,000 to €1. Founders who start below €3,000 must allocate at least 20% of annual net profit to a legal reserve until it reaches €3,000; shareholders are jointly and severally liable up to that €3,000 threshold in insolvency.
All non-Spanish natural persons involved in incorporation must hold a Número de Identificación de Extranjero (NIE) to sign notarial deeds, open bank accounts, and register with tax and social-security authorities. Applications can be filed in Spain (typically 1–2 weeks) or via a Spanish consulate abroad (several weeks); formation may proceed by power of attorney during this period.
The state-run CIRCE telematic system, accessed through Entrepreneur Service Points (PAEs), allows end-to-end digital formation of an SL. The Central Mercantile Register issues a name-clearance certificate within 6 hours; the Mercantile Register completes registration within 6 business hours of receiving the notarised deed (when standard bylaws are used). Total elapsed time from completed documents to registered company can be under 72 hours.
The standard SL formation sequence is: (1) obtain NIE; (2) reserve company name at the Registro Mercantil Central; (3) deposit share capital in a Spanish bank account; (4) sign notarial deed of incorporation; (5) register with the Mercantile Registry and obtain NIF from Agencia Tributaria via CIRCE; (6) register with Social Security (CCC). Steps 2–6 can all be handled digitally via a PAE or by a local representative. In-person/manual route typically takes 2–6 weeks.
Law 28/2022 (in force from January 2023) grants qualifying innovative startups a reduced corporate tax rate of 15% for the first four profitable years (versus 25% standard), accelerated VAT refunds, and deferred tax/social-security payments for two years post-incorporation. Foreign founders relocating to Spain can access a modified 'Beckham' regime taxed at a flat 24% on income up to €600,000, and a Digital Nomad Visa is available for non-EU remote workers.
Timeline - major decisions & events
Spain published the implementing regulation for the e-invoicing obligation embedded in the Ley Crea y Crece (Law 18/2022), requiring structured electronic invoices for all B2B transactions. Large companies (turnover > €8M) must comply within one year of the forthcoming ministerial order; all remaining businesses within two years, with penalties up to €10,000 per infraction.
Agencia Tributaria ↗Less than one year after opening the certification portal, Spain's national innovation agency ENISA reached 1,000 certified empresas emergentes, unlocking a 15% corporate tax rate, tax-payment deferrals, and fee waivers on incorporation. Madrid (509) and Barcelona (466) accounted for the majority of certifications.
Ministerio de Industria y Turismo ↗The Ministry of Industry officially launched the ENISA certification process for emerging companies, operationalising the Startups Law. Certified startups gain a 50% investor-deduction rate (capped at €100,000), reduced administrative fees, and access to a dedicated regulatory sandbox framework.
Ministerio de Industria y Turismo ↗Spain's landmark Startups Law — the first dedicated emerging-company statute in Europe — entered into force, introducing a 15% reduced corporate tax for the first four profitable years, a Digital Nomad Visa, regulatory sandboxes, and a single-step online company formation procedure for qualifying startups administered by ENISA.
Boletín Oficial del Estado (BOE) ↗Approved standardised model bylaws (estatutos-tipo) for limited liability companies, enabling notarisation within 12 business hours and Mercantile Registry inscription within 6 hours for SLs using the standard deed. Also created a company-name reservation pool (Bolsa de denominaciones sociales) to eliminate one of the main formation bottlenecks.
Boletín Oficial del Estado (BOE) ↗Created the Emprendedor de Responsabilidad Limitada (ERL) status, allowing sole traders to shield their primary residence (up to €300,000) from business debts without forming a company, and expanded CIRCE for faster telematic incorporation. Also introduced Spain's Entrepreneur Visa and Investor Residence Permit to attract foreign founders and capital.
Administración General del Estado ↗Unified Spain's fragmented corporate statutes — including the 1989 SA law, the 1995 SRL law, and the 2003 SLNE provisions — into a single Ley de Sociedades de Capital. This text became the definitive legal foundation for all Spanish companies and is the statute that all subsequent reforms (2013, 2022) directly amended.
Boletín Oficial del Estado (BOE) ↗Established CIRCE (Centro de Información y Red de Creación de Empresas), Spain's unified electronic window that consolidates 25+ administrative forms into a single Documento Único Electrónico (DUE) routing data simultaneously to the Tax Agency, Social Security, and Mercantile Registry. CIRCE remains the backbone of online company creation in Spain to this day.
Administración General del Estado ↗Spain - other topics
Last verified 5/24/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →