Setting up in Spain
Spain is a big market with growing tech hubs and lower costs than Northern Europe. Starting a limited company is cheaper than it used to be. Most of the effort goes into getting the right tax numbers.
Which company form
- Sociedad Limitada (SL): the usual choice for a foreign subsidiary. Since the 2022 reform, it can be set up with as little as €1 of share capital.
- Sociedad Anónima (SA): for larger companies; needs more capital.
- Branch (sucursal): registered in Spain but legally part of the Indian company.
How it goes
- Get a Spanish tax number for each foreign shareholder and director. Individuals need an NIE; the Indian parent company needs a Spanish tax number too.
- Reserve the company name with the central commercial register.
- Open a bank account and pay in the capital.
- Sign the founding deed before a Spanish notary. You can use a power of attorney so you don't have to travel.
- Get the company's tax number (NIF) and register at the commercial register.
- Register for tax and social security before you hire.
With everything ready, an SL usually takes two to six weeks.
Tax
The standard corporate tax rate is 25%. Newly created companies pay a reduced rate of 15% for their first profitable years. Check the current rules with a Spanish tax adviser.
Help on the ground
ICEX-Invest in Spain is the national agency for foreign investors, and regions such as Catalonia, Madrid and Valencia have their own investment offices.
People
Indian managers and specialists usually come through Spain's highly qualified professional route or the EU Blue Card, both decided by the Unit for Large Companies, which tends to be fast. See working in Spain.
