Spain is a dynamic and entrepreneur-friendly country that offers endless opportunities for foreign investors and ambitious business owners. For international entrepreneurs seeking not just to expand their ventures but also to secure a future in Europe, Spain provides an attractive pathway: gaining permanent residency through company formation. With its vibrant economy, strategic location in Europe, and high quality of life, Spain has emerged as a top destination for business-minded individuals.
In this article, we’ll dive into the two key routes to obtaining permanent residency in Spain through company formation, unlocking the potential for you and your business to thrive.
Why Choose Spain for Permanent Residency?
Spain’s economic growth and favourable business climate make it an ideal location for entrepreneurs. The country offers access to the European Union (EU) market, skilled labor, and various tax benefits. More importantly, Spain provides pathways for foreign nationals to establish a business and, through their entrepreneurial efforts, obtain permanent residency.
By establishing a business in Spain, not only do you get the chance to expand into the EU, but you can also set yourself on a path toward securing residency for yourself and your family.
There are two primary ways to do this:
- Establish a Sociedad Limitada (SL) Company and Apply for the Self-Employed Visa
- Set up a Representative Office and Apply for the Spain Intra Company Transfer Program
Let’s explore both options in detail.
Two Pathways to Permanent Residency through Company Formation
Here are the two routes to obtain permanent residency through company formation:
1. Establishing a Sociedad Limitada (SL) and Applying for the Self-Employed Visa
A Sociedad Limitada (SL) is one of the most common legal entities in Spain. It is similar to a limited liability company (LLC) and provides flexibility, limited liability protection, and the ability to grow your business. This path is ideal for entrepreneurs who want to establish a business in Spain and operate independently.
Steps to Establish an SL Company
1. Choose and Reserve a Business Name:
Before starting the process, you need to select a unique name for your business and register it with the Central Commercial Registry (Registro Mercantil Central).
2. Obtain a NIE Number
A NIE (Número de Identificación de Extranjero) is a tax identification number needed for all non-Spanish residents who wish to engage in lawful activities in Spain, including starting a business.
3. Open a Business Bank Account
Once you have your NIE number, you will need to open a corporate bank account in Spain and deposit the minimum share capital, which is €3,000 for a Sociedad Limitada.
4. Draft and Submit the Articles of Association
These documents are the governing rules of your company. They must be signed before a notary and submitted to the local commercial registry.
5. Register the Company
After completing the necessary paperwork, you will officially register your company in the local commercial registry.
Ready to register your business quickly and effortlessly? At OnDemand International, we can help you with the process of launching your Sociedad Limitada company within a period of 20 days.
6. Apply for the Self-Employed Visa
Following the registration of your SL company, you can apply for the self-employed visa (Autónomo Visa). This visa allows you to live and work in Spain while operating your own business. Acquiring a self-employed visa in Spain can take around 90-120 days.
At OnDemand International, our team of experts is ready to guide you through the entire process of registering your S.L. company in Spain and seamlessly assist you in securing the Self-Employed visa, ensuring a smooth and successful transition for your business and residency needs. Consult our Spanish experts today.
Benefits of the Self-Employed Visa
- Work independently: As the owner of an SL, you will be in complete control of your business operations in Spain.
- Path to Residency: The self-employed visa allows you to apply for a temporary residency permit, which can eventually lead to permanent residency after five years of continuous residence in Spain.
- Family Reunification: Once you obtain temporary residency, you can apply for family reunification, which would enable your partner and kids to travel to Spain with you.
You are eligible to apply for permanent residency in Spain after residing and working there for five years on a self-employed visa. This gives you the right to reside in Spain indefinitely and enjoy the same rights as Spanish citizens, except for the right to vote.
2. Set Up a Representative Office and Apply for the Spain Intra Company Transfer Program
The second pathway to obtain permanent residency in Spain is by setting up a representative office. This option is ideal for entrepreneurs who already own a business outside of Spain and wish to expand their operations into the Spanish market without fully relocating their headquarters.
A representative office permits you to create a presence in Spain without creating a new legal entity. It can be used for non-commercial activities like market research, client relationships, and promotional activities. Once the office is established, you can apply for the Intra Company Transfer Program to move key personnel from your foreign company to Spain.
How to Establish a Representative Office in Spain as a Foreigner?
1. Register the Representative Office
Begin by registering the representative office in Spain, which requires providing detailed information about the parent company.
2. Appoint a Legal Representative
The parent company must appoint a legal representative in Spain to handle all administrative duties for the representative office.
3. Prepare the Necessary Documents
You’ll need to submit various legal documents to the Spanish authorities, including proof of the foreign company’s existence, the office’s purpose, and financial statements.
4. Apply for the Intra-Company Transfer Visa
Once the office is set up, you can apply for the Intra-Company Transfer Visa. This visa is intended for senior managers, specialists, or professionals who are transferring to Spain to work in the representative office.
OnDemand International’s team of experts can streamline the process, helping you register your representative office in as little as 20 days, followed by facilitating your application for the Spanish Intra Company Transfer Program within the next 20 days.
Benefits of the Intra-Company Transfer Program
- Maintain Business Operations Abroad: This visa permits you to manage or work in your foreign company’s Spanish office without relocating the entire business to Spain.
- Residency Pathway for Key Personnel: The visa enables transferred employees and their families to stay in Spain, with the possibility of acquiring permanent residency after five years.
- Access to the European Market: Expanding your company’s presence into Spain provides access to the wider European Union market, opening doors to new customers and business opportunities.
After five years of working in Spain under the Intra Company Transfer Visa, individuals can apply for permanent residency.
Benefits of Permanent Residency in Spain through Company Formation
- Freedom of Movement within the EU: As a permanent resident of Spain, you are permitted to travel freely within the Schengen Area, which covers 27 European nations.
- Availability of Excellent Medical Care and Education: Spain offers a top-tier public healthcare system and excellent educational institutions.
- Family Benefits: Both the self-employed visa and the Intra Company Transfer Visa offer family reunification, permitting your immediate family members to accompany you in Spain.
- Path to Citizenship: After 10 years of legal residence in Spain, you may become eligible to apply for Spanish citizenship, which comes with additional benefits like the right to vote.
Conclusion
Obtaining permanent residency in Spain through company formation is an excellent opportunity for entrepreneurs looking to expand their businesses and build a life in Spain. Whether you choose to establish a Sociedad Limitada (SL) and apply for the self-employed visa, or set up a representative office and transition to the Intra Company Transfer Program, both options offer a clear path to long-term residency in Spain.
If you’re considering moving your business to Spain or setting up a representative office, OnDemand International is here to guide you every step of the way. From company formation to visa applications, our experts ensure a smooth process for entrepreneurs seeking residency in Spain. Contact our experts to register your business in Spain today.
FAQ’s
Following five years of continuous legal residency in Spain, you can apply for permanent residency. Both the self-employed visa and the Intra Company Transfer Program lead to permanent residency after this period.
To establish an SL, the minimum share capital required is €3,000, which must be deposited into a corporate bank account.
Yes, after legally residing in Spain for five years, you can apply for permanent residency. This applies to both the self-employed visa and the Intra Company Transfer Program.
Yes, if you apply through the Intra Company Transfer Program, you can work for your foreign company’s representative office in Spain while staying in the country.
