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Company Formation & Taxation

Spain
Company Formation & Taxation

1About this service

A Spanish SL (Sociedad Limitada) is the most common company for foreign entrepreneurs and investors. It limits your personal liability, lets you trade across Spain and the EU, and is the base for bank accounts, contracts, import licences and many residence routes.

We handle the whole process: NIE, company name, bank account, notary deed and registration. We then keep the company compliant with accounting, VAT returns, corporate tax and annual accounts. Non-residents can incorporate through a power of attorney, without travelling to Spain.

€1Minimum share capital for an SL (since the 'Crea y Crece' reform)
2–6 weeksTypical time to incorporate
15%Corporate tax for the first two profitable years of a new company

2How it works

  1. Obtain NIE numbers for the shareholders and directors
  2. Reserve the company name at the Central Commercial Registry
  3. Open a Spanish business bank account and deposit the share capital
  4. Sign the deed of incorporation before a Spanish notary (in person or by power of attorney)
  5. Obtain the tax ID (NIF), register at the Commercial Registry and with the Tax Agency and Social Security
  6. Ongoing: bookkeeping, quarterly VAT and tax returns, annual accounts and corporate tax

3Costs & Taxes

Set-up costs (indicative)Notary €300–€600 · Commercial Registry €150–€300 · Legal services €1,000–€2,500
Corporate tax25% standard. 2026 reduced rates: 19% on the first €50,000 and 21% on the rest for turnover under €1M; 23% for turnover under €10M; 15% for the first two profitable years of a new company.
VAT (IVA)21% general, 10% reduced, 4% super-reduced. Returns are filed quarterly.
OtherDividends: 19%–30% for Spanish tax residents; 19% withholding for non-residents, often reduced by tax treaty (India–Spain treaty: 15%). Business Activity Tax (IAE) is exempt below €1M turnover.

4Requirements & Documents

Need help with Company Formation & Taxation?

Talk to our team. We'll explain the options and handle the process end-to-end.

Information is general (updated September 2026) and rules, fees and timelines can change. Please confirm your specific case with us. This page is not legal or tax advice.