Start a Business in Spain: How to Launch Your Own Business as an Expat (2025)

Start a Business in Spain: Spain is quickly becoming a hotspot for international entrepreneurs, thanks to a growing startup ecosystem, favorable tax regimes, and a vibrant quality of life. If you’re an expat considering launching a business in Spain, understanding the legal, administrative, and financial steps involved is key to success.

 

🚀 Why Start a Business in Spain?

Spain offers several advantages for foreign entrepreneurs:

 

• Thriving startup hubs like Barcelona, Madrid, and Valencia
• Strong government support through grants and incubators
• Affordable living and talent pool
• Inclusion in EU funding opportunities

If you’re already planning your move, explore our guide for moving to Spain from the UK, Canada or Australia.

 

📋 Legal Requirements: Business Structures

Foreigners can legally start a business in Spain, but you must first choose the appropriate legal structure:

 

• Autónomo (Freelancer): Ideal for solo entrepreneurs or consultants. Low setup costs but high social security contributions.
• Sociedad Limitada (SL): Equivalent to an LLC. Requires a minimum capital of €3,000 and formal registration.
• Sociedad Anónima (SA): Used by larger businesses and corporations. Requires higher initial capital (€60,000).

For freelancers, check our complete guide to freelancing in Spain.

 

📑 Step-by-Step Process to Launch Your Startup

1. Get your NIE (Foreigner ID Number)
2. Choose your business structure
3. Register the business name (Registro Mercantil Central)
4. Open a business bank account and deposit initial capital
5. Draft articles of association
6. Sign deed of incorporation before a notary
7. Register for taxes with the AEAT (Agencia Tributaria)
8. Register for social security (Seguridad Social)

💡 Startup Ecosystem in Spain

Spain is home to hundreds of accelerators and incubators. Some of the most popular include:

 

• Barcelona Activa
• Wayra (Telefónica)
• SeedRocket
• Lanzadera

Startups in Spain also benefit from co-working spaces, government grants, and tax incentives under the Startups Law (Ley de Startups) introduced in 2023.

 

📊 Taxes and Financial Obligations

Startups benefit from tax breaks, but you should be aware of:

 

• CIT (Corporate Income Tax): Reduced 15% for new companies in the first two years of profitability
• VAT (IVA): Standard rate of 21% on most goods and services
• Social Security Contributions: Mandatory for business owners and employees

🌍 Can Non-EU Expats Start a Business?

Yes, but you’ll need the right visa. Spain offers a Digital Nomad Visa and Non-Lucrative Visa, depending on your income and business activity. If you’re launching a startup, consider applying for a Self-Employed Work Visa.

 

📈 Resources for Expats Starting a Business

Here are some helpful websites:

 

• Emprendedores.es – Spain’s top entrepreneurship magazine
• ICEX – Official Spanish trade and investment agency
• Barcelona Activa – Startup support and guidance

🧭 Final Thoughts

Spain is not just a place to enjoy life—it’s also a solid base to launch and scale your business. With the right preparation and legal support, expats can thrive in the Spanish startup ecosystem.