Spain
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Spain.
Foreign Ownership Eligibility
Spain welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- No citizenship or residency requirement for any entity type (SL, SA, SLNE, Autónomo)
- Foreign investors can form a company fully remotely through Punto de Atención al Emprendedor (PAE)
- No requirement to have a Spanish address (can use virtual office for €100–€300/year)
- Founder does not need to be physically present in Spain to incorporate or operate the company
- All company filings, communications, and management can be handled electronically
- Bank account opening requires proof of company registration (Mercantile Registry) but can be done online or in-person
Ownership
100% Foreign OK
Formation
100% Remote
Note
Foreign nationals planning to reside in Spain for extended period (beyond 90 days) need appropriate residence visa or visa waiver eligibility
Tax at a glance
Spain Tax Overview
25%
Corporate Income Tax (Impuesto sobre Sociedades) standard
Fact sheet section 3
15% on first €300,000 of profit
CIT reduced rate (SMEs)
Fact sheet section 3
19% for startups in first 2 years with R&D activities
CIT startup rate
Fact sheet section 3
21%
VAT standard rate
Fact sheet section 3
10% (some goods/services); 4% (essential goods)
VAT reduced rates
Fact sheet section 3
45%
Personal Income Tax (IRPF) top bracket
Fact sheet section 3
19%
Dividend withholding tax
Fact sheet section 3
27%–45% (depends on holding period; long-term rates lower)
Capital gains tax
Fact sheet section 3
6%–10% (varies by region)
Real property transfer tax (ITP)
Fact sheet section 3
0.5%–1% (varies by document type)
Stamp duty
Fact sheet section 3
~30.6% of payroll
Employer Social Security contributions
Fact sheet section 3
Pros & cons
Advantages & Considerations
Key Advantages
Low minimum capital: SL and SLNE require only €3,000; SA requires €60,000 — lower than many EU peers
Fastest formation available: SLNE can be formed in 24 hours online, fully remotely — ideal for rapid market entry
Favorable startup tax regime: SME reduced rates (15% on first €300K), startup exemptions available for R&D-focused companies, innovation tax credits
Large consumer market: 47M population + gateway to Latin America (200M+ Spanish speakers); strong business ecosystem
EU membership benefits: Access to single market, SEPA payments, no trade barriers, freedom of movement for workers
Entrepreneur-friendly policies: Multiple visa options including startup visa and digital nomad visa; government support for entrepreneurs via PAE
Strong labor protection & Social Security: Well-developed employment law; employee protections reduce business uncertainty
World-class infrastructure: Excellent broadband, transportation, logistics networks connecting to Europe and Africa
Tech ecosystem: Growing startup scene in Madrid, Barcelona, Valencia; venture capital availability increasing
Lower cost of living than Northern Europe: Operational costs lower than UK, Germany, Scandinavia for comparable services
Considerations
Complex labor law: Spanish employment law is worker-protective with strict termination rules, making headcount decisions costly and difficult
Bureaucratic administrative burden: Despite SLNE speed, ongoing compliance (accounts filing, tax returns, registry updates) requires professional help
Social Security contributions high: Employer contributions (~30.6% of payroll) are among Europe's highest, significantly increasing labor costs
Language barrier: Most official processes in Spanish; non-Spanish speakers require translator or professional support (€300–€600 annually)
Regional fragmentation: Different rules for Basque Country, Catalonia, Andalusia for labor, taxes, real estate — adds complexity for multiregional operations
VAT at 21% standard rate: High compared to other EU countries; reduces competitiveness on pricing
Commercial disputes slow: Spanish court system is known for lengthy commercial litigation (2–4 years average); arbitration is preferred but adds cost
Annual accounts publication mandatory: Unlike some countries, accounts must be publicly registered in Mercantile Registry — privacy is limited
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Prepare company documents
Check business name availability
File via PAE or Gestorías
Obtain NIF (Tax ID)
Mercantile Registry approval
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Spain requires minimum €3,000 capital for SL and SLNE (must be paid in full). SA requires €60,000. Employer social security contributions (~30.6% of payroll) are among Europe's highest. Annual compliance requires professional accounting help (€500–€1,500+).
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Spain setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Spain. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| CaixaBank | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Banco Bilbao Vizcaya Argentaria (BBVA) | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Santander | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Sabadell | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Banco Sabadell | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Deutsche Bank | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| ING | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Rabobank | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| BNP Paribas | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Citi | Traditional bank | Low (Visit Required) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| N26 | Fintech | High (Remote) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Wise | Fintech | High (Remote) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
| Revolut (limited business account support); Bizum for domestic payments | Fintech | High (Remote) | 1–3 days (online); 5–7 days (in-person branch) • €0–€30/month (depending on transaction volume and account type) • €0 (varies by bank; some no minimum; premium accounts €5,000+) • Available through all banks; EUR is base currency |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual Accounts (to Mercantile Registry) | Ongoing | Within 3 months of fiscal year end (max 6 months); required for SL, SA; micro-enterprises may file simplified accounts |
Corporate Income Tax Return | Ongoing | By July 1 following tax year; electronic filing mandatory (Presentación Telemática) |
VAT Returns | Ongoing | Monthly, quarterly, or annually (depends on company status); small businesses may file annually |
Payroll tax returns | Ongoing | Monthly (by 20th of following month); required for companies with employees |
Annual shareholders' meeting (SA) | Ongoing | Within 6 months of year end; required for SA; must document and file minutes |
Accounts publication (BORME) | Ongoing | Publication in Official Gazette; costs €40–€80; mandatory registration |
Accounts retention | Ongoing | 6 years minimum (after final submission) |
Books & records | Ongoing | Daily accounting records required (libros de contabilidad); invoices, payment documentation (6-year retention) |
Audit threshold | Ongoing | Mandatory if: revenue > €2.4M, assets > €1.2M, or employees > 50; smaller companies exempt |
Frequently Asked
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