How to start a Business in Spain
Among the many immigrants choosing to relocate to Spain, a significant number are registering their own businesses in the country. This growing group of entrepreneurs includes a rising number of Polish nationals. In fact, according to the “Relocations 2024” report by Clicktrans, Spain was the second most popular relocation destination for Poles last year. More and more Polish citizens are launching their ventures in this part of Europe, with Polish entrepreneurs now active in nearly every sector of the Spanish economy.
In this article you’ll find:
- Self-Employment in Spain
- Partnerships and Sole Proprietorships in Spain
- Limited Liability Companies in Spain
Immigrants—including Poles—are increasingly eager to start and run their own businesses in Spain. Spanish regulations, which are quite similar to those in Poland, make this process more accessible. Moreover, as members of the European Union, Polish citizens are not required to apply for residence or work permits in order to run a business. However, before getting started, one must obtain an NIE number (Número de Identificación de Extranjero), which serves as a foreigner’s tax identification number in Spain, and register as a sole trader (autónomo). During registration, officials may request an identity card and/or passport, a Spanish phone number, and payment of a registration fee. Importantly, this process also applies to those planning to work as freelancers.
Self-Employment in Spain
Self-employed individuals in Spain—known as autónomos—must register with both the Spanish tax office and the country’s social security system. Most freelancers and self-employed workers are required to submit two types of quarterly tax returns: IVA (VAT) and IRPF (personal income tax). In addition to obtaining an NIE and registering their activity, autónomos are obligated to pay monthly contributions toward health insurance and social security.
Citizens of the EU or Switzerland can freely register as freelancers or self-employed individuals in Spain without any additional restrictions. Nationals of other countries may need a visa, a long-term residence permit, and a work permit in order to legally operate a business.
Partnerships and Sole Proprietorships in Spain
One of the simplest and most cost-effective ways to start a business in Spain is to choose a non-incorporated structure. Entrepreneurs can operate as sole proprietors (empresa individual) or form a partnership (sociedad civil). These structures come with minimal investment requirements and fewer formalities, making them attractive options for first-time business owners. However, in these cases, the owners are still classified as autónomos, meaning they are personally responsible for their tax obligations and bear full financial liability for their business activities.
Limited Liability Companies in Spain
Limited liability companies are another popular option among Polish entrepreneurs in Spain, especially for those seeking more favourable tax treatment or protection from personal liability. The most common form is the sociedad limitada (S.L.). This business structure shields owners from personal financial liability, but also involves stricter requirements such as comprehensive accounting, quarterly and annual tax filings, and the need for a dedicated business bank account.
Given the various legal and tax implications of starting a business in Spain, it’s strongly recommended to consult a local tax advisor. A qualified professional can help you choose the most suitable business structure, guide you through the necessary paperwork, and ensure compliance with all Spanish regulations.