Choosing a Structure
Most foreign entrepreneurs and investors set up as a Sociedad Limitada (SL), Spain's equivalent of a private limited company, though sole trader (autónomo) status or a branch of an existing foreign company can make more sense depending on your plans. We talk through what you're actually trying to do before recommending a structure.
What the Process Generally Involves
- Obtaining a NIE for each foreign shareholder or director, if they don't already have one
- Reserving the company name with the Central Commercial Registry
- Drafting the company's articles of association
- Signing the incorporation deed before a notary
- Obtaining the company's tax ID (CIF/NIF) and registering for the relevant taxes
- Registering the company at the Commercial Registry (Registro Mercantil)
- Opening a Spanish business bank account and depositing share capital
Ongoing Obligations
Once the company is formed, there are ongoing bookkeeping, tax filing and annual accounts obligations. Many of our clients ask us to coordinate with a local accountant (gestoría) so nothing gets missed once the company is up and running.
Investing Through a Company vs. Personally
If you're planning to buy property or invest in Spain, whether to do so personally or through a company changes the tax and liability picture. We look at your specific plans — see also our page on tax advice — before recommending an approach.