Incorporate · Europe

Company Formation in Spain

Large EU market with a broad treaty network and a holding-company regime. Review the legal form, tax position, treaty network and indicative cost, then talk to one team that structures it end to end.

Licensed CSP
50+ yrs combined experience
15+ jurisdictions

Corporate tax: 25% general rate
VAT / GST: 21%
Formation: 2-4 weeks
Foreign ownership: 100% permitted
Tax treaties: 95+
Setup cost: USD 2,000 - 5,500

At a glance

Common entity: Limited Liability Company (SL)
Formation time: 2-4 weeks
Setup cost: USD 2,000 - 5,500
Annual cost: USD 2,500 - 6,000
Foreign ownership: 100% permitted
Tax treaties: 95+

Holding companyTradingE-commerceConsulting and servicesManufacturing

Best for

Access to a large EU consumer market
Gateway to Latin America via the ETVE regime
Trading and operating entities in Europe

Less ideal for

Founders wanting the lowest headline tax
Ultra-fast same-week setups

Legal and formation

Legal system	Civil law
Common entity types	Limited Liability Company (SL), Public Limited Company (SA)
Formation timeline	2-4 weeks
Minimum capital	EUR 1 (SL; reserve rules apply below EUR 3,000)
Foreign ownership	100% permitted
Minimum shareholders	1
Minimum directors	1
Local presence	Registered office in Spain required
Public registry	Directors, shareholders and beneficial owners on the mercantile and beneficial-owner registers
Audit	Audit required above statutory size thresholds

Tax profile

Corporate income tax	25% general rate (reduced rate for small and newly formed companies)
VAT / GST	21%
Withholding, dividends	19% (0% under EU or participation exemption)
Withholding, interest	19% (treaty and EU reduced)
Withholding, royalties	19% (treaty and EU reduced)
Capital gains	Within corporate tax; participation exemption of about 95% may apply
Territorial system	No
CFC rules	Yes
Participation exemption	ETVE holding regime gives about 95% exemption on qualifying dividends and gains (5%+ holdings)

Every figure above is indicative. Rates, thresholds, minimum capital, ownership rules and timelines change and vary by activity, licence and structure. They are confirmed with the relevant authority and in a tailored quote before you rely on them. This is general information, not legal or tax advice.

How to set up in Spain

1
Obtain a foreigner tax number (NIE) for shareholders and directors
2
Reserve the company name with the Central Mercantile Register
3
Deposit the share capital and sign the deed of incorporation before a notary
4
Register with the Mercantile Register and the beneficial-owner register
5
Register for tax and VAT, then open a corporate bank account

Banking reality

Spanish banks require the NIE and reasonable substance; onboarding is generally straightforward once documentation is complete, though remote-only opening for foreign owners can be restricted.