Creating a Business in Spain: Everything You Need to Know
Spain has become one of the most attractive destinations for entrepreneurship in Europe thanks to its quality of life, competitive costs, and a booming entrepreneurial ecosystem. Madrid, Barcelona, Valencia, and Málaga are internationally recognized hubs. This guide accompanies you at every step of the process.
Step 1: Choose the Legal Form
Self-employed (self-employed worker)
- Minimum capital: none
- Liability: unlimited
- Taxation: IRPF (progressive taxation)
- Ideal for: freelancers, consultants, liberal professions
Limited Liability Company (SL)
- Minimum capital: €1 (since the Startups Law 2022)
- Liability: limited to share capital
- Taxation: Corporate Income Tax (25%, reduced to 15% for the first 2 years)
- Ideal for: startups, businesses with partners, projects with investors
New Business Limited Company (SLNE)
- Simplified version of SL: expedited procedures, up to 5 partners
- Capital: €3,000 to €120,000
Cooperative
- Minimum 3 partners: democratic management
- Tax advantages: reduced rate of 20% on Corporate Income Tax
- Ideal for: collaborative projects, social economy
Step 2: Incorporation Procedures
For self-employed:
- Registration with Tax Authority (forms 036/037) — obtain NIF and declare activity
- Registration with RETA (Social Security) — mandatory within the following 30 days
- Municipal activity license (if applicable)
- Registration in the Mercantile Registry (optional for self-employed)
For Limited Liability Company:
- Negative name certification (Central Mercantile Registry)
- Opening a bank account and depositing share capital
- Public deed before a notary
- Obtaining provisional NIF (Tax Authority)
- Registration in the Mercantile Registry
- Registration with Tax Authority (form 036)
- Registration of partner-workers with Social Security
- Obtaining definitive NIF
PAE and Electronic Incorporation
Through the Entrepreneurship Support Point (PAE) and CIRCE system, it is possible to incorporate an SL online in 48-72 hours with standard deed.
Step 3: Develop a Business Plan
A solid business plan is essential to access financing and public subsidies. It must include:
- Market and competition analysis
- Business model and value proposition
- Marketing and sales plan
- Financial plan for 3-5 years
- Team and organization
With the BoostPro AI business plan generator, you can create a professional plan in minutes, adapted to the requirements of Spanish banks and institutions.
Step 4: Taxation for Entrepreneurs
Self-employed:
- IRPF: quarterly withholdings (form 130), annual return
- VAT: 21% general (10% reduced, 4% super-reduced)
- Self-employed contribution: €80/month (flat rate first year)
Limited Liability Companies:
- Corporate Income Tax: 15% for the first two years (if newly created), then 25%
- VAT: same regime as self-employed
- Withholdings on partners/administrators: IRPF on salaries or invoices
Step 5: Financing and Subsidies
Don't forget to check the available subsidies before launching your project:
- ENISA — participatory loans without guarantees
- ICO — preferential financing
- Digital Kit — digitalization subsidy
- Self-employed flat rate — reduced contribution
- Unemployment capitalization
Use the BoostPro AI subsidies simulator to identify subsidies that fit your profile.
Step 6: Startups Law (Law 28/2022)
The Spanish Startups Law, in force since January 2023, introduces specific advantages:
- Corporate Income Tax reduced to 15% for 4 years
- Stock options: tax exemption up to €50,000/year
- Digital nomad visa: temporary residence for foreign remote workers
- SL with €1 capital
Project Diagnosis
Before launching, validate your project's viability with the BoostPro AI diagnostic questionnaire. In just a few minutes you will get a complete analysis of the strengths and weaknesses of your idea.
Conclusion
Creating a business in Spain in 2026 is more accessible than ever thanks to digitalization of procedures, the Startups Law, and an increasingly broad ecosystem of subsidies. The key to success: good planning and making the most of all available subsidies.