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Company formation Spain

Since there have been no problems for EU nationals residing or working in Spain since 1992, foreign companies and investors have completely liberalized themselves.

Spain lies in the south-west of Europe and runs from the Pyrenees in the north to the straits of Gibraltar in the south. It covers an area of nearly 195,000 square miles, and consists of 50 provinces in 17 autonomous regions.

The Spanish mainland has at its heart the Meseta Central (“Inner Plateau”), which is surrounded by mountains. The Balearic and the Canary Islands, the two autonomous cities of Ceuta and Melilla in North Africa, and the Islas Chafarinas, Penon de Alhucemas and Penon de Velez de la Gomera off the coast of Morocco make up the remainder of Spain as a whole.

Spain has borders with Portugal, France, Andorra, Morocco and the British province of Gibraltar.

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To avoid mistakes as you set up your new company, it is essential to seek advice. We would be happy to provide you with the best advice on how to set up your company abroad. We are offering you a short, intial, free and non-binding consultation via email. It will go a long to way to help you setup your company the right way.

International Taxes
Tatjana Lintner

Key account manager at W-V Law Firm LLP

+44 2080783389 069 2475630-68 [email protected] Mo - Fr 09.00 till 17.00 CET
International Taxes
International Taxes
Tatjana Lintner

Key account manager bei W-V Law Firm LLP

International Taxes
+44 2080783389 069 2475630-68 [email protected] Mo - Fr 09.00 till 17.00 CET

Limited Liability Company (S.L.)

The Limited Liability Company (Sociedad Limitada) is an autonomous legal entity and its shareholders are not personally liable for any debts. In order to set up a Sociedad Limitada, share capital of at least EUR3,000 is required. Articles of corporation must be drafted and notarised, and the company must register with the Commercial Registry (Registro Mercantil).

An individual may set up a Sociedad Limitada on their own; the maximum number of shareholders is 50.


Advantages of the SL

– Limitation of liability on capital stock thus no liability on private assets
– cheaper tax rate with high profits


Limited Company (SA)

An SA requires start-up capital of EUR60,000, of which a minimum of 25% must be paid into a bank account. How the remainder of the required capital will be paid must be clearly explained in the company documents. There is no maximum number of shareholders for an SA and its shareholders are not personally liable. The shareholders or their representative must sign all necessary documents in front of a notary.

The stock of an SA may be floated on the Spanish stock exchange, subject to securities law.

The sociedad anonima, S.A. is like the German stock corporation. A sum of 65,000 euros must be deposited as the minimum share capital.


Advantages of S.A.

– Liability is limited to the deposit
– Buying and selling shares possible


Sociedad Unipersonal

The sociedad unipersonal is the sole proprietorship or one-man society. The shareholder is liable for the capital invested in the company. The headquarters of sociedad unipersonal must be in Spain. In this form of society, it is important that in the company name the addition must be unipersonal listed. Only then is it immediately apparent that it is only a shareholder.
Since the foundation is carried out by a notary, it must be proven that the founding capital has been paid into the business account.



Corporations, ie the Spanish GmbH and the Spanish corporation are taxed at 35% according to Spanish corporation tax law on the profits.
Within a timeframe of 7 years profits and losses can be compensated. Furthermore, all companies are subject to trade tax. The trade tax is a fixed, annual tax amount, which depends on the place of the company and the company activity.


The biggest advantages of Spain are

  • - Tax benefits
  • - Above-average growth rate
  • - EU member
  • - Spain is the second largest recipient country for subsidies (grants)


The biggest mistakes when starting a company abroad

Not all topics related to founding a company abroad are always free of prejudices and false information that have prevailed over the years. We give you an overview of the most important questions about founding a company abroad.

International Taxes
Founding a company abroad as a citizen of another country is legal?
Founding a company abroad as a citizen of another country is legal?

Yes, in most countries foreigners can be sole shareholder of a local entity.

International Taxes
Do you have to live in the country where you start a company?
Do you have to live in the country where you start a company?

No you can set up a company anywhere in the world, as long as the country in question allows you, as a foreigner, to acquire shares in local companies. If this is not the case, trustees can be used. Freedom of establishment applies within the European Union. However, it is important that the management takes place locally, in the country in which the company is registered. In addition, a permanent establishment must be set up. Without this, a German tax office will not recognize the company and, in the worst case, would demand back payment of corporate and trade taxes plus late payment penalties. We rent you a real office and set up a permanent establishment that meets all requirements without a doubt. In addition, we have real managing directors who run companies in the home country and are resident there.

International Taxes
Problematic law firms: closure is made more difficult
Problematic law firms: closure is made more difficult

Some law firms tie clients with gag contracts and apply pressure when the client wants to close their business. If you are a client of a law firm that has set up a legally unsound company for you, you make yourself vulnerable to blackmail. Because in the event of a tax problem, law firms without a license are not bound by a duty of confidentiality.

International Taxes
Changing offices is made more difficult
Changing offices is made more difficult

We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. Switching to us is then often made more difficult. So horrendous final bills are made, which have to be paid before a change is possible. Therefore we have developed a trust principle. If you are not satisfied with us and want to switch, you can do so at any time. You will receive the necessary documents (resignation letter) from us in a standardized form after the foundation. This protects you from unexpected costs and you are free to go to another law firm at any time. So far we have not lost a client to another law firm.

International Taxes
Privacy Policy/Office Location
Privacy Policy/Office Location

Your accounting documents are safe with us. In addition, all electronic data is only stored in encrypted form and apart from us, who are bound by professional secrecy, no one has access. All accounting documents are also only stored locally. Neither authorities nor hackers can access this data.

International Taxes
No taxes?
No taxes?

There are certainly locations in the world that do not charge any taxes to companies and private individuals or only charge a very low flat-rate tax. However, this can rarely be used without a corresponding change of residence. If you are resident in Germany, the relevant double taxation agreement is decisive. Providers who promise otherwise will tempt you into tax evasion, which is usually severely punished if discovered. We advise you not to set up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in Germany can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous account or company no longer exists.

We comply with the following code:

  • - Legally secure foundations
  • - No unexpected(hidden) costs
  • - No false promises
  • - Finding the right solution by focusing on your requirements

With this strategy, we have been on the market since 2013 and have not disappointed any customer so far. And we prioritize it in keeping that way. We strive to ensure that every client is satisfied and does not take risks with the solutions we provide for them, but only exploits legal opportunities. Starting a company that involves doing real business is more costly than a letterbox company, but it is the only way to save on taxes without risking legal action.



Spain has been a member of the EU since 1986. This was followed by above-average growth due to the high transfer payments / subsidies from the EU Argrarfonds, the Regional Fund and the Cohesion Fund. Spain is the second largest beneficiary of subsidies to Poland.


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We can give you advise on choosing right jurisdiction for your business. Contact us today.

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International Taxes

Why Spain?

  • - Very good accessibility
  • - The euro as currency
  • - The lifestyle
  • - The climate
  • - The culture


Tax difference between Germany and Spain

A direct tax comparison shows that founding a company in Spain can be more advantageous than in Germany.

  German GmbH spanish company Offshore companies (no business in Spain)
Corporate Tax 15.825% including solidarity surcharge -if the turnover is less than €5,000,000.00 and the company has fewer than 25 employees, the first €300,000.00 of the profit is taxed at 20% and the remaining profit at 25%
- From a turnover of €5,000,000.00, the first €300,000.00 are taxed at 25% and the rest at 30%
- From a turnover of €10,000,000.00, the entire profit is taxed at 30%
Trade Tax National average rate 2010 435% N/A N/A


Company formation Spain - That's how it works

Establishing a company in Spain is easy and the founder does not have to travel extra. For the foundation only a certified ID or passport copy and a power bill is needed. Depending on the choice of bank also a short CV or bank reference.


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