Company Formation in Spain

Spain offers a number of significant advantages for foreign investors. Spanish legislation provides special tax regimes and incentives for certain types of activities. The country has signed double taxation avoidance agreements with more than 80 countries, making it a convenient base for international operations. Other advantages include free access to EU markets, a stable economic and political environment, a straightforward and fast business registration procedure, and government support for foreign investment.

With a complete set of documents, company formation in Spain takes from 2 to 6 weeks. Using the electronic CIRCE system and the DUE document can speed up certain stages of the procedure. If a specific business activity requires a licence, timelines may increase. COREDO coordinates all stages of the process, minimising delays and avoiding errors in documentation.

The Spanish tax system provides for several levels of corporate taxation. The standard corporate income tax rate (Impuesto sobre Sociedades) is 25%. For small and medium-sized enterprises with turnover up to EUR 10 million, a transitional rate of 24% applies in 2025, gradually decreasing to 20% by 2028. Micro-enterprises with turnover up to EUR 1 million pay 21% on the first EUR 50,000 of the taxable base. Newly established companies benefit from a reduced rate of 15% during the first two profitable tax periods.

The standard VAT (IVA) rate is 21%, with reduced rates of 10% and 4% for certain goods and services.

Spain does not impose restrictions on the nationality or residency of founders; however, every foreign founder must obtain a NIE. All incorporation documents are executed in Spanish through a local notary. English is used to a limited extent in business dealings, which is why engaging professional intermediaries significantly simplifies the process. Certain types of activities, such as financial services, insurance, and construction, require additional licences.

It is important to note that every Spanish company must have a bank account with a local bank. Opening a corporate account requires presenting a full set of incorporation documents, proof of identity of beneficial owners, and a description of planned activities. Spain has signed double taxation avoidance agreements with more than 80 countries, enabling tax optimisation for international operations and making the country an attractive jurisdiction for holding structures.

An entrepreneur from Eastern Europe planned to establish a trading company for importing agricultural products from Latin American countries through Spanish ports. COREDO specialists helped select the S.L. form with the minimum share capital of EUR 3,005, arranged NIE acquisition through the consulate without the need to travel to Spain, prepared the incorporation documents in Spanish, and carried out notarial execution. Registration at the Registro Mercantil and NIF issuance were completed within 18 business days. After opening a bank account, the client commenced trading operations, using Spanish ports as a logistics hub for deliveries to EU countries.