Spain
25% (15% for first two profitable years of new companies)
Corporate Tax
2–4 weeks
Setup Time
€3,000 (SL)
Min. Capital
100%
Foreign Ownership
#30
Ease of Business
Spain is one of Europe's largest economies and offers a compelling combination of market size, lifestyle, and talent. The SL (Sociedad Limitada) is the default structure for founders — it requires €3,000 minimum capital, can be formed with a single shareholder, and provides full limited liability. The standard 25% corporate tax rate is above the EU average, but new companies enjoy a 15% rate for their first two profitable years. Spain's real draw for foreign founders is the Beckham Law, which lets qualifying new residents pay a flat 24% personal income tax for up to six years. Combined with the digital nomad visa and strong connections to Latin American markets, Spain suits founders who want to live well while building a business with EU and LatAm reach.
- Founders targeting the Spanish-speaking world and Latin American markets
- Digital nomads and remote workers using the digital nomad visa
- Expats qualifying for the Beckham Law flat 24% personal tax rate
- Tech startups leveraging Barcelona and Madrid ecosystems
- Companies needing a large EU domestic market with strong consumer demand
- Freelancers and consultants wanting a structured EU entity
- Businesses seeking a gateway between Europe and Latin America
Spain's autonomo (self-employed) regime applies mandatory social security contributions to company directors and managing partners, starting at approximately €300/month and scaling with income. This is a fixed cost regardless of company profitability and catches many foreign founders off guard. The Beckham Law has strict eligibility windows — you must apply within six months of registering as a Spanish tax resident, and not have been a Spanish tax resident in the prior five years. Missing the window means paying standard progressive rates (up to 47%).
At a Glance
Available Business Structures
Cost Snapshot
Tax Overview
Banking Reality Check
Timeline: 1–3 weeks
Spanish banks (Santander, BBVA, CaixaBank, Sabadell) require an in-person visit for business account opening. Non-residents need their NIE, passport, company incorporation documents, and proof of address. Some banks request a business plan or evidence of economic activity in Spain. Digital banks (Revolut Business, Wise) can act as interim solutions. Banking is smoother once the company is registered in the Registro Mercantil and has a definitive CIF.
Visa & Immigration
Spain offers a Digital Nomad Visa (Ley de Startups, effective January 2023) for non-EU remote workers employed by or contracting with non-Spanish companies. Applicants must demonstrate that no more than 20% of their income comes from Spanish companies and meet minimum income requirements. The visa grants residency for up to five years. The Beckham Law (Regimen Especial de Trabajadores Desplazados) allows qualifying new tax residents — including employees and company directors — to opt for a flat 24% personal income tax rate on Spanish-source income for up to six years, with foreign income generally exempt. Spain's Entrepreneur Visa targets non-EU founders of innovative businesses endorsed by ENISA. The Golden Visa programme for real estate investors was discontinued in April 2025.
Free Zones & SEZs
4 free zones available
Common Mistakes
Missing the Beckham Law application window
Fix: You must apply for the Beckham Law (Regimen Especial) within six months of your Spanish social security registration. The clock starts when you register, not when you arrive. Engage a tax advisor before relocating so the application is filed immediately upon registration. Missing this deadline means you cannot access the flat 24% rate and will pay progressive rates up to 47%.
Underestimating autonomo social security costs
Fix: Company directors who are also managing the business must register as autonomo and pay mandatory social security contributions. The new income-based system (from 2023) starts at around €300/month for low earners and scales up significantly. Factor this into your cost planning — it applies even if the company is not yet profitable.
Expecting fast incorporation like the UK or Estonia
Fix: Spanish company formation requires a notarial deed, capital deposit certification, and registration with the Registro Mercantil. The process typically takes 2–4 weeks and cannot be done entirely online. Plan for this timeline and start the NIE process well in advance if you are a non-resident.
Assuming Spain has no withholding tax on dividends to non-residents
Fix: Spain applies a 19% withholding tax on dividends paid to non-resident shareholders. This may be reduced under double tax treaties or eliminated within the EU Parent-Subsidiary Directive (for qualifying EU parent companies holding at least 5% for over one year). Structure your shareholding and jurisdiction carefully to minimise dividend leakage.
Frequently Asked Questions
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.