Instructions for easily setting up a business in Spain

A market of opportunities, Spain offers a favorable situation for setting up a business with, in particular, a high unemployment rate and an hourly minimum wage twice as low as in France. Prerequisite, proof of an address in Spain.

1 - Choose the type of business

First of all, have thought about the status (company or independent). Everything will depend on the scope of the activity, the financial resources and the number of participants.

For this, two preliminary questions of a crippling nature: the number of partners and the amount of capital. Indeed, the autonomous status (link to the article on how to work as a freelance) involves only one partner. The company, for its part, involves a minimum capital of € 60,000.

Once these two criteria are defined, the options are clear.

Independent status (autónomo)

The self-employed person must be a permanent resident and tax resident therefore spend at least 183 days per year in Spain and pay his taxes there. If he is not a European resident, he will need to obtain a type C visa.

Its activity must be habitual, regular and its main source of income, but it has no turnover limit.

The formalities are more flexible, he benefits from reduced social contributions the first year. The conditions are more favorable to him than in France.

The SL (sociedad limitada)

The most widely used legal form because it is more flexible, ideal for SMEs.

Liability is limited to the capital which will be at least € 3,000, paid out upon creation and divided into shares where applicable. Movable property can be counted.

The number of shareholders is unlimited.

The SA (sociedad anónima)

More suited to larger companies, it requires a minimum capital of € 60,000, 25% of which is monetary and immediate, while the rest can be divided between monetary, furniture or real estate. This 75% can be contributed in the first five years of the activity. This capital will be divided into shares, the company may be listed on the stock exchange. Non-monetary assets should be appraised by an independent professional. Note that liability is also limited to capital.

Namely that the SA is mandatory in certain sectors such as banking, insurance ...

SA or SL: the formalities costs amount on average to 800 €.

These three options are the most common in Spain. In all cases, a physical address on Spanish soil is imperative whether it is a commercial premises or a private dwelling.

2 - In all cases, the steps to start a business in Spain are clear

Beforehand, you must justify an address in Spain.

Another common condition is obtaining a foreign identification number (NIE) . As a preliminary step, the NIE will be requested for all procedures. It will suffice to make an appointment on the site “ministerio de hacienda y administración pública”.

The self-employed worker has few formalities to complete, all in a few days

● Obtaining the social security number (form TA0521 from the Régimen Especial de Trabajadores Autónomos).      

● Opening of a bank account (compulsory presence on site).      

● Registration with the tax authorities (the Hacienda - form 037).      

● Apply for a commercial activity license from the municipality (gestión tributaria).      

For a company (SA or SL), it will be necessary to follow a precise but simple diagram which here is

● Registration of the company name with the Registro Mercantil Central (French Trade Register). Between 3 and 5 names should be proposed and the RMC will choose according to availability, taking into account your preferences.      

● Registration with the tax authorities (administración tributaria) to obtain the tax identification number. This number will make it possible to invoice VAT and be exempt from it on certain products or services.      

● Opening of a professional bank account (compulsory presence on site) for the deposit of capital and obtaining the bank certificate.      

● Drafting of the articles of association with a notary who will verify the whole and in particular the social and tax domiciliation. It will therefore register the legal form, company name, sector of activity, capital and its distribution between the various partners.      

In all cases, it is strongly recommended to call a notary from the start of the file. In Spain, this is a public official with a legal mission for which the state confers power on him. The costs are regulated there, there is no competition. He will assist you in the constitution of your file and will authenticate the documents, thus reinforcing their authority.

Good to know: the first consultation is free.

Allow two to three months for all of these formalities.

In case of financing need, it is advisable to validate the file before arriving in Spain, the Spanish banks generally requesting that the activity has already started.

3 - And after the creation of your company in Spain?

Once the activity has started, you will only have to make your quarterly tax declaration (VAT declaration). Self-employed workers often do this themselves by filling out Form 303, but be aware that a gestor can do it. It may also take charge of the management of income tax (RENTA).

Monthly social security contributions of 280 € will have to be provided for the self-employed but higher than 300 € for business leaders.

Namely that the wage and employer charges are lower in Spain than in France.

4 - Which organizations can support the process?

As indicated above, the notary, the manager (tax advisor) are very useful partners. But, other organizations also have the mission of supporting business creators.

● CCI: the Chamber of Commerce and Industry in your region      

● CCE: Foreign Trade Advisors (mentoring system with a mentor on site to guide the entrepreneur)      

● TFE: the actors of Team France Export bring together all the useful contacts.      

● Your country's economic mission