Opening a company in Spain
Spain has a well-deserved reputation as a land of low-cost opportunities for foreign investors, but bureaucratic requirements are stringent. Contact us to ensure a great start for your new Spanish company and to learn more about opening a company in Spain .
What are the main types of companies in Spain?
The two most popular forms of Spanish companies are:
- Joint stock company (SA)
- Limited Liability Company (SL)
What are the main characteristics of a joint stock company?
- It is the standard structure for large companies
- The minimum share capital of €60,101.21, of which at least 25% paid up
- The minimum number of shareholders is one
- Annual review required, depending on company size
What are the main characteristics of a limited liability company?
- Typical structure of small and medium-sized companies
- The minimum share capital is €3,005.06, to be paid in full
- The minimum number of shareholders is one
- Annual review is not required
What other types of companies exist in Spain?
Other corporate structures, less common but equally valid, are the following:
- Sole operator – one owner with unlimited liability
- Joint ownership – two or more owners with unlimited liability
- General or limited partnership
- Branch or representative office
Is it complicated to open a business in Spain?
Spain has a well-deserved reputation for bureaucratic inefficiency, and while this situation has improved since the business climate has become more liberal, professional advice remains absolutely essential when setting up a company in Spain. We have a team of experts in the Spanish market, so don’t hesitate to contact us for any information.
How much is the corporate tax?
Corporate tax in Spain is quite high, although there are benefits for small businesses. The full rate is 35%, but small businesses pay 30% on their first €90,152 of profits. (Smaller companies are defined as those with an annual turnover of less than €3 million.)
Why invest in Spain?
Is it easy to hire staff in Spain?
The long-term economic boom has put pressure on the labor market, but unemployment remains relatively high. However, hiring is rarely a problem for foreign companies seeking local staff. The workforce is well-educated and flexible, labor costs are low, and recruitment agencies are available throughout the country. For more information, contact us and we’ll be happy to connect you with our local recruitment network.
What is the regulatory framework for those wishing to open a business in Spain?
In line with standard EU practice, companies are required to register and submit annual accounts to regulatory authorities. Annual financial statement auditing is mandatory for large companies. There are very few controls on foreign investment, apart from restrictions on non-EU residents in certain strategic sectors such as telecommunications. The labor market, however, is subject to stricter regulations. The working week is limited to a maximum of 40 hours, and companies must provide six weeks of annual leave to all workers.
Are there financial incentives available for foreign investors wishing to set up a business in Spain?
Spain offers a wide range of incentive programs, many of which are funded by the EU. These include regional incentives for investment in less developed areas of the country, measures to encourage investment in specific sectors, and tax breaks aimed at reducing youth unemployment.
Opening a bank account in Spain
What are the banking services like?
It’s said that Spain has more banks than any other EU country. There are two reasons for this. First, there are a plethora of regional banks, and second, Spain’s economic boom has been a magnet for international financial institutions. While finding a bank is easy, opening an account is much more difficult. We’ll be happy to handle the paperwork for you, leaving you more time to focus on your business.
How can I get more information about company formation in Spain?
Our Spanish company formation service will be happy to help you start your business in Spain. For further details on how to open a company in Spain, please contact us .