Setting up a business in Spain: types of company and what you need in 2026

Updated: October 2026

Whether you want to work as a freelancer, open a shop or bar, or run your international business from Spain, the first decision is the legal form. It affects your liability, your taxes, your paperwork and how much it costs to get started. This guide gives you an overview of the main business forms in Spain, what you need as a foreigner and the steps to get going. For a detailed comparison of the two most common choices, read our guide autónomo or SL company?

The main business forms in Spain

Autónomo (self-employed)

The simplest way to start. You register as self-employed with the tax office and Social Security and trade in your own name. There is no minimum capital, but you are personally liable for the debts of your business with all your assets. Most freelancers, consultants, tradespeople and small shop owners start this way. See our step-by-step guide to registering as autónomo in 2026.

Sociedad Limitada (SL)

The most common company form in Spain, similar to a private limited company or ApS. The company is a separate legal person, and as a rule the partners’ liability is limited to the capital they put in. Since the 2022 “Crea y Crece” reform, an SL can be set up with a minimum share capital of €1. While the capital is below €3,000, part of the profits must be set aside as a reserve until that level is reached, and in a liquidation the partners can be held liable for the difference up to €3,000. An SL with a single partner is called an SLU (Sociedad Limitada Unipersonal).

Sociedad Anónima (SA)

The public limited company, used for larger businesses and companies that want to raise capital from many shareholders. The minimum share capital is €60,000, of which at least 25% must be paid in when the company is set up. For most newcomers starting a small business, an SL is the better fit.

Sociedad civil and comunidad de bienes

Simple partnerships between two or more people, often used by small family businesses or two partners sharing a shop. They are easy and cheap to set up, but the partners are personally liable for the debts, and each partner is usually registered as autónomo.

Other forms

• Branch (sucursal) of a foreign company: your existing company abroad opens an office in Spain. The branch has no separate legal personality, so the parent company is liable.
• Subsidiary: your foreign company sets up a Spanish SL or SA that it owns. The Spanish company is a separate legal person.
• Cooperatives, worker-owned companies (sociedad laboral) and professional companies: special forms with their own rules, used in specific sectors.

Quick comparison

Form	Minimum capital	Liability	Typical use
Autónomo	None	Unlimited, personal	Freelancers, trades, small shops
SL / SLU	€1 (reserve rules below €3,000)	Limited to capital, as a rule	Most small and medium businesses
SA	€60,000 (25% paid in)	Limited to capital	Larger companies, many shareholders
Sociedad civil / comunidad de bienes	None	Unlimited, personal	Small partnerships
Branch of a foreign company	None in Spain	The parent company	Existing foreign businesses

How much tax does a company pay?

An autónomo pays income tax (IRPF) on the profit at the normal progressive rates, plus a monthly Social Security contribution. A company pays corporate tax (Impuesto sobre Sociedades) on its profit. According to the Spanish Tax Agency, the rates for tax periods starting in 2026 are:

• General rate: 25%.
• Micro companies (net turnover under €1 million): 19% on the first €50,000 of profit and 21% on the rest.
• Small companies (entidades de reducida dimensión): 23%.
• Newly created companies: 15% in the first tax period with a positive tax base and the following one, with some exceptions, for example if the activity was carried out before by the owner or a related company.

Which form pays less depends on your profit, what you take out as salary or dividends and your personal situation. Ask a gestor or tax adviser to run the numbers before you decide.

What you need as a foreigner

• NIE: every owner and director needs a foreigner identity number. See how to get your NIE.
• The right to work in Spain: EU citizens can start a business freely. Non-EU citizens need a residence permit that allows self-employment or running a business, for example a permit for self-employed work or one of the routes in our overview of visas and residence permits.
• Digital certificate or Cl@ve: almost all registrations and tax returns are done online. Read how to get a digital certificate and Cl@ve.
• Social Security number: needed to register as autónomo or as a director. See our guide to the NUSS.
• A Spanish bank account: for the share capital of a company and for your business payments. Compare options in business bank accounts for autónomos.

Setting up an SL step by step

1. Reserve the company name with the Registro Mercantil Central.
2. Open a bank account in the company’s name and pay in the share capital.
3. Sign the deed of incorporation and the articles of association at a notary.
4. Get the company’s tax number (NIF) from the Tax Agency.
5. Register the company in the commercial register (Registro Mercantil) of the province where it has its address. Registration gives the company its legal personality.
6. Register the directors with Social Security and the company for taxes (census declaration).
7. Get the licences your activity needs from the town hall, for example an opening licence or a declaración responsable for premises.

An SL can also be set up online through the government’s CIRCE system with a single electronic document (DUE). The Entrepreneur Service Points (PAE) help with this for free. In practice, most newcomers use a gestor or lawyer, who handles the steps and the notary appointment. Costs depend on the notary, the registry and your adviser, so ask for a fixed quote before you start.

After you start

• File VAT (IVA) and income or corporate tax returns on time, usually every quarter.
• Keep proper accounts. A company must also file annual accounts with the commercial register.
• Check whether you need insurance, for example liability insurance for your activity.
• Make your business easy to find for the international community on the Costa del Sol: list your business on NewInSpain – the first month is free.

Useful links

• Spanish government: setting up a company
• Tax Agency: corporate tax rates (Spanish)
• Autónomo or SL company?
• Registering as autónomo in 2026

FAQ: setting up a business in Spain

What is the minimum capital for an SL in Spain?

€1 since the 2022 reform. While the capital is below €3,000, part of the profits must be set aside as a reserve, and partners can be liable for the difference up to €3,000 if the company is liquidated.

Can a foreigner own a company in Spain?

Yes. Owners and directors need a NIE. To work in the business yourself, non-EU citizens also need a residence permit that allows it.

Should I start as autónomo or set up an SL?

Many people start as autónomo because it is quick and cheap, and move to an SL when profits grow or they want limited liability. Compare both in our guide autónomo or SL company.

Disclaimer: This article is general information, not legal or tax advice. Rules and rates change – check with a gestor, lawyer or tax adviser before you decide.