How to Open a Textile Business in Spain?: Process & Opportunities

Introduction

Spain is one of the most profitable markets in Europe for textile businesses. With a rich history in textile manufacturing, a strong infrastructure, and access to global markets, Spain provides excellent opportunities for entrepreneurs looking to invest in the textile industry.

Whether you want to start a clothing brand, textile manufacturing unit, or fabric wholesale business, this guide will walk you through everything you need to know about opening a textile business in Spain.

From business registration and legal requirements to market potential and tax benefits, let’s explore why Spain is the perfect location for your textile venture.

Why Choose Spain for Your Textile Business?

1. Gateway to Europe and Beyond

Spain’s strategic location makes it an excellent entry point not only to the broader European region but also to Latin American and African markets. This geographical advantage offers significant strategic benefits for global trade, allowing businesses to expand their reach beyond Spain.

2. Best Ports in Europe

Spain boasts some of Europe’s busiest ports, including the Port of Valencia—the Mediterranean’s largest container hub. This robust infrastructure facilitates seamless global trade, driving Spain’s thriving textile and apparel industry, which recorded $14.6 billion in exports in 2023.

3. VAT Benefits

Textile and apparel businesses exporting goods outside the EU are exempt from VAT, reducing costs and improving competitiveness. This tax advantage makes Spain an attractive destination for textile entrepreneurs.

4. Rich Textile Heritage

Spain has a long history of textile production, particularly in regions like Catalonia, Valencia, and Galicia. This heritage has fostered a skilled workforce and a deep understanding of the textile industry, making it easier for new businesses to find talent and expertise.

Lucrative Business Models in Spain’s Textile Industry

Entrepreneurs can explore various business models within Spain’s textile industry:

• Sustainable Fashion Brand – Tap into the growing eco-friendly clothing market.
• Textile Manufacturing – Produce garments, fabrics, and accessories.
• Fabric Import & Wholesale – Supply high-quality fabrics to fashion designers and retailers.
• Digital Print & Custom Clothing – Offer personalized textiles for businesses and individuals.
• Technical Textiles & Smart Fabrics – Enter the high-tech textile industry with innovative materials.

How to Open a Textile Business in Spain?

Once you have selected your business structure, follow these steps to legally establish your textile business in Spain:

Step 1: Select a Legal Structure

Choosing the right business structure is crucial for setting up a textile business in Spain. The most common options include Sociedad Limitada, a representative office or a subsidiary company. 

Step 2: Choose a Unique Business Name: 

Once you have selected your business structure, and get approval from the Central Commercial Registry (Registro Mercantil) to ensure the name is available and compliant.

Step 3: Obtain a NIE (Foreign Identification Number): 

This is mandatory for non-resident entrepreneurs and investors to register a business in Spain.

Step 4: Register with the Commercial Registry: 

Submit company details, articles of association, and proof of initial capital investment.

Step 5: Obtain a Tax Identification Number (NIF): 

This number is required for tax compliance, invoicing, and business transactions.

Step 6: Register for Social Security: 

Business owners and employees must register with the Social Security System (Seguridad Social) to comply with labor regulations and benefits.

Best Textile Companies in Spain

Spain has several leading textile companies known for their innovation and quality production:

• Inditex Group – Parent company of Zara, Massimo Dutti, and Bershka.
• Textil Santanderina – Specializes in sustainable and technical fabrics.
• Hilaturas Ferre – Focuses on eco-friendly recycled yarns.
• Manuel Revert & Cia – Known for home textiles and interior fabrics.
• Piacenza Cashmere Spain – High-end luxury textile manufacturer.

Textile Business Opportunities in Spain for Foreign Entrepreneurs 

1. Tender Opportunities

Spain offers various tender opportunities in the textile and garment sector. These include the supply of textiles, uniforms, personal protective equipment (PPE), and services related to textile waste management. Platforms like Global Tenders, TendersOnTime, and Tenders Electronic Daily provide access to these opportunities.

2. Events and Exhibitions

Participating in textile expos and trade shows is a great way to network and showcase your products. Key events include:

• Barcelona Textile Expo 2025: Held at Fira Barcelona from June 2–4, 2025.
• ITF Intertex Spain 2025: Held in Madrid from November 25–27, 2025.
• MOMAD: Spain’s leading fashion, footwear, and accessories trade show, held twice a year at IFEMA Madrid.

3. Key Textile Hubs

Spain has several key textile hubs that offer excellent opportunities for entrepreneurs:

• Catalonia: Accounts for 30% of total textile exports and is home to global brands like ASICS, Louis Vuitton, and Nike.
• Valencia: Specializes in technical and home textiles, with a rich history in cotton and silk production.
• Galicia (A Coruña): Headquarters of Inditex, making it a global leader in the fashion and textile industry.

Conclusion

Setting up a company in Spain is simple, as long as you have all of the essential documentation. Each document, from evidence of investment to Articles of Incorporation, is critical to ensure that your organization is legally compliant and operational. Once your company is formed, the documents you get will serve as the foundation for your firm’s legal and financial operations.

If you’re ready to take the next step and set up a company in Spain, make sure to gather all the required documents and seek professional assistance if needed. With the right preparation, you’ll be well on your way to establishing a successful business in one of Europe’s most dynamic markets.