Have you ever wondered how much it really costs to start a business in Spain? Not just the legal fees, but the actual financial expenses required to turn your entrepreneurial dream into reality? Spain, one of Europe’s most dynamic business hubs, attracts thousands of foreign investors every year—yet many underestimate the true cost of setting up.
From company registration and legal paperwork to office space and tax obligations, the expenses can quickly add up. For instance, did you know that setting up a Sociedad Limitada (SL), the most common business structure in Spain, requires a minimum share capital of €3,000? And that’s just the beginning. Between notary fees, commercial registry charges, and ongoing tax liabilities, getting a clear financial roadmap is crucial before successfully incorporating your business in Spain.
This article breaks down the real cost of starting a business in Spain—so you can plan ahead, make informed decisions, and ensure a smooth launch without unexpected financial surprises.
Cost To Start a Business in Spain as a Sole Proprietor
A sole proprietorship in Spain is one of the easiest business structure and is the least expensive.
The only things you’ll have to cover are:
- Your work visa or business permit (if required)
- Materials and tools used in your trade
- A commercial premises or office (if applicable)
- A professional association membership (if applicable)
- Accounting assistance if you need assistance with making your tax return personal
- Service for Merchants for those who sell items on the internet
Once you have registered as a self-employed (or sole trader), you’ll be responsible for the following:
- Tax on personal income
- VAT (IVA) an additional 21% you’ll be able to add to every invoice.
- Social Security contributions
- Insurance
- Professional association charges
Self-Employed Worker Visas
If you’re a non-EU citizen, you’ll require an employment visa for self-employment work and to start performing business in Spain. EU citizens are welcome to arrive with an application for NIE right away.
Self-employed persons are required to prove that they possess the necessary qualifications and cash to launch their businesses. You can get in touch with our experts to acquire a self-employed visa in Spain.
Cost To Start a Business in Spain as a Limited Company
Limited liability is the most commonly used type of business entity in Spain. However, the cost to start a business in Spain as an LLC requires at least several shares in the firm, which is EUR 3000, and an additional EUR1,500 – EUR2,000 for various notary fees, certificates as well as legal fees, and trademarks.
Even though this is higher than incorporating a business as a sole proprietor in Spain in the form of an autonomous is aware that:
Establishing a sole proprietorship makes the sole proprietor personally accountable for the company’s debts which could result in being unable to access their assets.
The initial capital expenditure required by limited companies may be used to purchase business assets, which means it’s not “money lost.”
Factors that Affect the Company Registration Cost in Spain
If your work requires creating a business this is significantly more expensive than working as a sole proprietor. You can expect the following cost for starting a business in Spain as a foreigner or citizen.
Minimum set-up capital
A minimum investment of EUR 3,000 of capital is needed, but it is a given that you will get the money back if you decide to dissolve the business.
Statutes of the company and deeds
It is among the crucial aspects of establishing an organization that the deeds and statutes define the route for the business and define what you are allowed and not permitted to do.
Notary fees
The constitution is signed by the company in a notary public. You should expect to pay about EUR600 for this service, but higher if the documents are long and complex.
Accounting fees
The following responsibilities will typically be performed by an accountant for a monthly payment:
- Filing Business Tax Returns
- Preservation of records required by law
- Filing annual accounting reports
Costs for Registering your Business
Also, you must create a company with the Registro Mercantile, and it is priced at around EUR250.
License for commercial premises
If your business plans to establish premises and you want to open it, you’ll need an opening license.
The price varies based on the local council, however in Malaga for instance the price range is between EUR400 to EUR800. Expect to pay about EUR500 for the permit for opening a shop or office.
Other costs for setting-up
Like those who set up as self-employed in Spain When you set up an organization, there are certain procedures that you can complete yourself. You can also hire someone else to complete these for you.
The requirements are:
- With the company tax declaration and getting the tax number of the company (CIF to Spanish), you can estimate a minimum of EUR 100.
- Registering your company with the tax office, and receiving an electronic certificate You should expect to pay a minimum amount of EUR50 to avail of these services.
Read More: Spain Intra-Company Transfer Visa
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How to Cover the Cost to Start a Business in Spain?
Ideally, you’ll have a sum of an extra 100,000 euros under your mattress to cover the costs of starting your own business in Spain. In the real world, businesses usually start by borrowing money.
To figure out how much you’ll need it’s crucial to add up your business expenses during the initial few months to ensure that you’ve got enough cash coming in to pay for your expenses, and then begin paying back your loan.
It is also crucial to consider the length of time each expense will last. For instance, a 20-30 year investment in real estate is a good idea if you plan to keep it open for that for a long time. In contrast, it is not advisable to take out a 20-year loan to fund the development of something that will become out of date in the next year and does not have much economic value.
To keep their monthly costs at a minimum, businesses typically rent commercial or business premises offices, instead of investing in real property. This is a smart choice when you’re beginning to get started.
These are the most popular methods of financing a new venture in Spain:
Bank Loan
The majority of banks in Spain lend businesses about 50,000 euros for the time span of 2 to 7 years at fixed rates of interest ranging from 10% and 6%.
Credit Company Loan
If you’re either a freelancer or a sole proprietor you might be able to get a sole-trader credit from a credit institution with less paperwork than a standard business loan.
Family Loan
The borrowing of money from relatives is a common practice in Spain. However, it is important to be aware of how this loan might impact your relationships if you are unable to repay the loan. Consider making a legal agreement for the loan, and then making sure that you secure the loan using some of the personal belongings you own.
Investors
Registered businesses can raise money by promoting their business concept to investors. For this, you’ll require a robust business plan that is well-constructed and a thorough market study. A lot of investors are more comfortable investing when you have a solid client base and a successful track history.
Shareholders
The initial investment to begin your own business can be made by a variety of individuals rather than one. Based on the number of shareholders your company has, each shareholder could contribute to the company with a portion of its capital, with the ownership share divided according to.
Conclusion
While starting a business, entrepreneurs often face significant expenses. Therefore, having knowledge about the costs involved can help entrepreneurs estimate the average amount they may require when forming a company in Spain. This information can further assist entrepreneurs in determining whether their budget can sustain the long-term growth of their firm in Spain.
If you’re considering setting up an LLC, you might expect to pay a minimum of 1000 euros for the administrative costs for your start-up in addition to your taxes. However, you may be required to pay additional fees for gathering documents, opening a bank account, and so on.
Get expert assistance with the cost to start a business in Spain from our specialists from OnDemand International. Our specialists will provide you with the necessary details and help you set up your firm in Spain. Contact us today.
FAQ’s
Anyone who wishes to form a limited company in Spain will need to deposit an amount of at least Euros 3000 in a Spanish banking account.
The process generally takes approximately 4-6 weeks once shareholders have received the NIE and to be a shareholder, each shareholder will require an identification number from a foreign country (NIE).
The standard CIT tax rate for Spain is 25%. Other tax rates are also possible following the kind of business that is taxed, as well as the kind of business. Resident businesses are taxed on their worldwide earnings.
Absolutely! With guidance from our OnDemand International experts, you can complete business incorporation in Spain in as little as 2 weeks.
