By
October 20, 2026
Can a non-resident set up a company in Spain?
Yes, a non-resident can set up a company in Spain. Spanish law generally allows foreign individuals and businesses to establish and own Spanish companies without being required to live permanently in the country.
Both European Union (EU) and non-EU citizens can establish businesses in Spain, subject to applicable identification, registration, investment, and regulatory requirements.
For international entrepreneurs, foreign investors, and established businesses seeking to expand into Europe, incorporating a company in Spain can provide access to the European Union single market, a developed commercial infrastructure, and opportunities for international trade.
However, non-resident company formation in Spain involves several important considerations, including obtaining a foreign identification number, choosing the appropriate legal structure, registering the company, meeting tax obligations, and arranging suitable business banking services.
This guide explains how to register a company in Spain as a non-resident, the documents required, the potential costs, and the key legal and financial considerations.
Yes. Foreign entrepreneurs can generally establish and own a Spanish company even if they live in another country.
Spain does not impose a general residency requirement on shareholders of ordinary Spanish limited liability companies.
This means that an individual living outside Spain can potentially establish a company for activities such as:
Non-residents can also establish companies with a single shareholder, subject to the relevant incorporation requirements.
Although living in Spain is not generally required to own a company, the business must still comply with Spanish corporate, accounting, taxation, and reporting obligations.
Company ownership and the right to reside or work in Spain are separate legal matters.
Yes. In most ordinary business sectors, foreign individuals and companies can own 100% of a Spanish limited liability company.
A Spanish shareholder or business partner is generally not required.
This makes Spain an option for entrepreneurs seeking to establish a European company while maintaining full ownership and control.
Foreign investors can potentially:
Certain sectors and investments may be subject to foreign investment screening, authorisation, reporting, or other restrictions.
Entrepreneurs should confirm whether their intended activities require additional approvals.
Spain offers several legal structures for entrepreneurs and foreign investors.
The most suitable option depends on the nature of the business, ownership arrangements, liability considerations, taxation, and long-term objectives.
The Sociedad Limitada, commonly abbreviated as S.L., is one of the most frequently used structures for privately owned businesses in Spain.
It is often suitable for non-resident entrepreneurs establishing small or medium-sized businesses.
Its main characteristics include:
A Spanish S.L. can generally be incorporated with a minimum share capital of €1, although additional legal safeguards apply while the capital remains below €3,000.
A Sociedad Anónima is generally more appropriate for larger businesses or companies requiring more complex capital and shareholder arrangements.
It is subject to different capital and corporate governance requirements.
An existing foreign company may establish a branch in Spain to conduct business activities.
Unlike a subsidiary, a branch does not normally have a separate legal personality from its foreign parent company.
An overseas business can establish a separately incorporated Spanish company that is wholly or partly owned by the foreign parent.
This structure may be suitable for businesses expanding into Spain or the wider European market.
For many non-resident entrepreneurs seeking a separately incorporated business, an S.L. is a practical structure to consider.
Non-residents must complete the applicable legal and administrative procedures before establishing a Spanish company.
Requirements can vary depending on the company's structure, shareholders, directors, and activities.
The main requirements generally include:
Foreign individuals who need to complete certain economic, professional, or legal transactions in Spain may be required to obtain a Número de Identidad de Extranjero (NIE).
The NIE is an identification number used in various Spanish administrative and legal procedures.
Foreign shareholders and directors may need an NIE for company incorporation and related formalities.
The NIE does not provide residence or work authorisation.
The proposed company name must comply with Spanish naming requirements.
For a limited liability company, entrepreneurs generally need to obtain a certificate confirming the availability of the chosen name from the Central Commercial Registry.
A Spanish company must have an appropriate registered office.
The registered office is relevant for corporate registration, official communications, and certain administrative matters.
The address must comply with applicable legal requirements.
A registered office should not be confused with a director's personal residence or the company's tax residence, which may involve additional considerations.
A Spanish S.L. can generally be formed with share capital starting from €1.
However, companies with capital below €3,000 are subject to special legal rules designed to protect creditors.
Entrepreneurs should consider whether the minimum capital is sufficient for their intended business activities.
Company incorporation typically involves preparing information and documentation relating to:
Foreign documents may require translation, legalisation, or an apostille, depending on their origin and intended use.
A Spanish limited liability company is generally incorporated through a public deed executed before a notary.
Non-resident shareholders may be able to appoint an authorised representative through an appropriate power of attorney.
The company must complete the required registration procedures with the relevant Commercial Registry.
Tax identification procedures must also be completed.
Depending on the business activities, the company may need to complete registrations relating to corporate taxation, VAT, employment, social security, and sector-specific licensing.
The following steps provide an overview of the process.
Step 1: Select the Legal Structure
Determine whether an S.L., S.A., branch, or another structure is appropriate for the proposed business.
Step 2: Obtain Identification Numbers
Arrange the necessary identification numbers for foreign shareholders, directors, and other relevant parties.
Step 3: Reserve the Company Name
Obtain the required name availability certificate.
Step 4: Prepare the Incorporation Documentation
Prepare the articles of association, ownership details, management arrangements, and other required documents.
Step 5: Arrange Share Capital
Complete the relevant capital contribution procedures and supporting documentation.
Step 6: Sign the Incorporation Deed
Execute the incorporation deed before a Spanish notary, either personally or through an appropriately authorised representative.
Step 7: Complete Registration
Register the company with the Commercial Registry and complete the applicable tax identification formalities.
Step 8: Arrange Business Banking
Apply for a suitable business account to manage company finances and commercial payments.
Step 9: Complete Additional Registrations
Obtain any necessary licences, VAT registrations, social security registrations, or other approvals.
Step 10: Begin Business Operations
Once the relevant legal and operational requirements have been satisfied, the company can commence its intended activities.
Certain company formation procedures in Spain can be completed electronically.
Spain provides digital systems that support company incorporation and administrative registration.
However, the availability of fully remote incorporation depends on the company structure, identification arrangements, notarial requirements, and circumstances of the shareholders and directors.
Non-residents may be able to complete parts of the process through authorised representatives.
A power of attorney can sometimes allow a representative to handle incorporation formalities without the foreign shareholder travelling to Spain.
Nevertheless, not every incorporation can be completed entirely online, and additional identity verification or documentation may be required.
In many cases, a non-resident can establish a Spanish company without personally travelling to Spain.
This may be possible by appointing an authorised representative to complete the required procedures.
Depending on the circumstances, the representative may assist with:
A valid power of attorney may be required.
Foreign powers of attorney may also need translation and authentication.
Although remote incorporation may be possible, financial institutions and certain public authorities may impose separate identity verification requirements.
The total cost of establishing a company in Spain depends on the legal structure, documentation requirements, professional services, and business activities.
For a typical S.L., the legal minimum share capital can be as low as €1, subject to the applicable safeguards.
However, entrepreneurs should budget for additional expenses, including:
Non-resident entrepreneurs may face additional costs if documents must be issued, certified, or translated abroad.
The minimum share capital should not be treated as the full cost of establishing a company.
A company incorporated under Spanish law is generally treated as a Spanish tax resident and is subject to Spanish corporate tax rules.
The applicable corporate tax rate depends on the company's circumstances and the legislation in force.
Certain qualifying companies may benefit from reduced rates or incentives.
Potential tax obligations include:
Non-resident shareholders may also face tax consequences when receiving dividends, salaries, directors' remuneration, or other income.
Double taxation agreements may affect how certain income is taxed.
The location where a company is effectively managed can also create cross-border tax considerations.
Entrepreneurs should obtain appropriate tax advice in Spain and their country of residence before establishing the company.
Yes. A Spanish company owned by a non-resident can generally apply for a business account, subject to the financial institution's eligibility and compliance requirements.
A dedicated business account is important for managing commercial payments, receiving customer funds, paying suppliers, and maintaining financial records.
Depending on the provider, available services may include:
Spain participates in the Single Euro Payments Area (SEPA), allowing businesses with suitable payment accounts to make and receive euro payments across participating countries.
Financial institutions may request:
Non-resident ownership may result in additional verification procedures.
Opening a Spanish company does not guarantee approval for a business account.
A Spanish company does not necessarily need a Spanish-issued IBAN for every business transaction.
Depending on the applicable legal requirements and the services needed, a company may be able to use a suitable euro payment account issued by a financial institution in another SEPA country.
For eligible SEPA payments, businesses should generally be able to use qualifying IBANs from other participating countries without unjustified discrimination based on the IBAN's country code.
However, certain administrative processes, payment arrangements, or financial services may have additional requirements.
Entrepreneurs should ensure that their chosen account supports the company's operational, regulatory, and payment needs.
Yes. Spanish companies can generally appoint non-resident directors.
There is no universal requirement for every director of an ordinary Spanish limited liability company to live in Spain.
However, directors must comply with applicable corporate obligations and may need Spanish identification numbers.
Depending on the circumstances, additional requirements may arise concerning:
A non-resident director should also consider whether managing the company from another country creates tax or regulatory obligations outside Spain.
No. A Spanish business partner is generally not required to establish an ordinary limited liability company in Spain.
Foreign entrepreneurs can often establish a company with full foreign ownership.
A single shareholder may own the entire company.
Nevertheless, having local professional support can help with administrative procedures, accounting, tax compliance, and understanding the Spanish regulatory environment.
Establishing a Spanish company can offer several advantages for international entrepreneurs.
A Spanish company can serve customers and businesses throughout the EU, subject to applicable cross-border trading requirements.
Foreign entrepreneurs can generally retain full ownership of their companies without requiring local shareholders.
A Spanish S.L. generally provides legal separation between company obligations and shareholders' personal assets, subject to statutory exceptions.
Spain's location and commercial connections support activities involving European, African, and Latin American markets.
A suitable business account can provide access to SEPA payments and other euro-denominated financial services.
Non-resident shareholders can generally retain ownership while living abroad, although management, tax, and regulatory obligations must still be considered.
A Spanish company can provide a foundation for hiring employees, establishing commercial partnerships, and expanding into additional markets.
Although non-residents can establish companies in Spain, several practical challenges should be considered.
Identification and Documentation
Foreign shareholders and directors may need identification numbers and authenticated documentation.
Business Banking
Financial institutions may apply additional due diligence to companies with non-resident ownership.
Tax Compliance
A Spanish company must meet applicable tax and accounting obligations regardless of where its shareholders live.
Cross-Border Management
Managing a Spanish company from abroad may create tax or regulatory considerations in another jurisdiction.
Administrative Requirements
Incorporation, ongoing filings, and certain business activities may require Spanish-language documentation and professional assistance.
Licensing and Employment
Businesses operating in regulated sectors or employing staff must comply with the relevant Spanish requirements.
Careful planning can help entrepreneurs address these issues before starting operations.
Yes. Foreign individuals can generally establish and own Spanish companies while residing outside Spain, subject to the applicable incorporation and identification requirements.
Yes. Non-EU citizens can generally establish companies in Spain. Certain investments, activities, or individual circumstances may require additional approvals or documentation.
No. Spanish residency is not generally required to own a Spanish limited liability company.
Yes. Full foreign ownership is generally permitted for ordinary Spanish limited liability companies, subject to applicable restrictions.
Foreign individuals involved in company formation commonly need an NIE for relevant legal and administrative procedures. The exact identification requirements depend on their role and circumstances.
In many circumstances, remote incorporation is possible through appropriate electronic procedures or authorised representatives. The precise requirements depend on the incorporation method and documentation.
A Spanish S.L. can generally be incorporated with minimum share capital of €1, although special rules apply while its capital remains below €3,000. Additional incorporation and operating costs still apply.
Yes. Companies with non-resident shareholders can apply for business accounts, although approval depends on the financial institution's eligibility and compliance procedures.
A Spanish company may be able to use a suitable account issued in another SEPA country, depending on the account's capabilities and applicable requirements.
No. Company ownership does not automatically grant Spanish residence or work authorisation. Immigration requirements must be assessed separately.
Yes, in many circumstances. However, cross-border management can create tax, legal, and regulatory considerations in Spain and the country where management activities take place.
A company incorporated under Spanish law is generally a Spanish tax resident and subject to Spanish corporate taxation. Its shareholders' non-resident status does not automatically exempt the company from Spanish taxes.
Yes. Spain generally allows non-resident individuals and foreign businesses to establish and own Spanish companies without requiring shareholders to live permanently in the country.
For entrepreneurs seeking access to the European Union market, international trade opportunities, and a formal European business structure, incorporating a company in Spain can offer several advantages.
A Spanish limited liability company can provide a practical structure for foreign ownership, commercial operations, and long-term business expansion.
However, non-resident company formation requires careful consideration of identification procedures, incorporation documentation, taxation, registered office requirements, and ongoing regulatory obligations.
Arranging suitable business banking and payment services is also an important part of preparing a company for commercial operations.
By selecting the appropriate legal structure, understanding the relevant requirements, and planning financial arrangements in advance, non-resident entrepreneurs can establish a Spanish company and develop business activities in Spain and internationally.
