In 2025, the registration of foreign self-employed workers set a record for three consecutive months: in May, the figure was 484,062, up 6.5% year on year; in June, it reached 486,894; and in September it reached 490,710.

Additionally, it is worth noting that the year-on-year increase in these workers in the professional, scientific, and technical fields has been 17.7%. In the Information and Communication Technology (ICT) sector, it has been close to 32%. These statistics reflect a particularly notable surge among qualified experts and confirm Spain’s strong appeal for entrepreneurial migrants. In this guide, you will find the legal requirements and steps to start a business in Spain as a foreigner.

What’s in this article?

• Can a foreigner create a company in Spain?
  
• Requirements to start a business in Spain as a foreigner
  
• Legal procedures to start a business in Spain as a foreigner
  
• Tax obligations when starting a business in Spain as a foreigner
  
• How to receive payments in Spain as a foreigner
  
• FAQs about starting a business in Spain as a foreigner
  

Can a foreigner create a company in Spain?

Yes, foreigners can create a company in Spain. In fact, the country’s legal framework favors international entrepreneurship with regulations such as the law promoting the startup ecosystem and the law supporting entrepreneurs and their internationalization. These measures have made those from abroad increasingly relevant in the Special Regime for Self-Employed Workers (RETA): in June 2025, they accounted for 88.3% of the growth in independent work.

Furthermore, Spain has Entrepreneurship Service Points (PAEs) that provide resources to facilitate the company creation and offer active, personalized advice. This means they not only explain to foreigners how to create an entity, but also help them complete part of the process.

Requirements to start a business in Spain as a foreigner

When launching a business in Spain, both Spanish nationals and foreigners are required to meet a set of baseline conditions. For example, you must have an identification number—in the case of those from abroad, the Foreigner’s Identification Number (NIE)—and be of legal age or, failing that, be a legally emancipated person.

In addition to those general obligations, other requirements apply to setting up a business in Spain as a nonresident, which vary depending on the place of origin. Thus, European citizens face fewer formalities to meet than non-European Union nationals. Let’s see what applies in each situation:

Non-EU foreigners

Individuals who do not reside in the EU, the European Economic Area (EEA), or Switzerland, and who wish to run their own business in Spain, are required to meet the conditions below:

• Legally residing in Spain, which entails meeting the following points:

  • Holding a valid residence permit
    
  • Not having an expired residence permit without requesting renewal within the legal period of three months
    
  • Not remaining in the country longer than allowed without submitting an extension request
    
  • Working exclusively with a permit
    

• Not being banned from entering Spain.

• Not being listed as “inadmissible” in regions with which Spain has an agreement, that is, not representing a threat to public order, public safety, or national security.

• Not holding a criminal record in Spain or in any country where they lived during the last five years for conduct defined as a crime under Spanish law.

• Respecting the period for not returning to Spain after leaving voluntarily and signing a nonreturn document. This prohibition period varies according to the type of nonreturn document signed. For instance, foreigners who receive a single advance payment for unemployment benefits accept a nonreturn period of three years, as established by Article 2 of Royal Decree 1800/2008.

• Demonstrating the experience, professional qualifications, or membership in relevant associations required to perform the intended activity of the business.

• Proving financial solvency and showing that they have the funds needed to make the planned investment.

• Providing an estimate of the jobs to be created, including self-employment for entrepreneurs from abroad.

EU foreigners

Citizens from any EU, EEA, or Swiss state who want to establish a business in Spain must prove that they all meet legal conditions to form a company or engage in other commercial activities in the country. If their stay in Spain to open or manage the operation exceeds three months, they are required to obtain the European Union Citizen Registration Certificate. To do this, applicants complete registration in the Central Register of Foreigners using Form EX-18.

Thanks to the agreements on freedom of establishment and freedom to provide services in the EU, which in Spain are mainly regulated by Royal Decree 240/2007, the administrative path is significantly simpler for EU nationals.

Legal procedures to start a business in Spain as a foreigner

The legal protocols to start a business in Spain are very similar for all nonresidents. We have prepared a guide with the most relevant steps:

• Obtain the NIE
  The NIE is required to complete most procedures. To obtain it, go to the General Directorate of the Police, a police station, or an immigration office. If you are abroad, go to the nearest Spanish consulate; the complete list appears on the website of the Ministry of Foreign Affairs, European Union, and Cooperation.

• Apply for a temporary residence permit
  If you are going to work for the company and are a non-EU foreigner, you will need an initial temporary residence and self-employment work permit. To apply, complete Form EX-07 and pay the applicable fees using Form 790.

• Submit the activity license or the statement of compliance
  This step is mandatory if the new venture will operate in a physical store. Depending on the business and location, applicants could be asked to apply for an activity license or submit a statement of compliance. If, in particular, the premises have a surface area exceeding 750 square meters, an activity license is necessary from the government offices of the municipality where the site is located—remember that, if renovations are required, a building permit must be secured before work begins. When a business does not need an activity license, the owner only files for a statement of compliance: a declaration that certifies that the commercial operation is harmless, meaning it does not cause any environmental, health, or safety impact.

• Choose the legal formation of the business
  When starting a business in Spain as a nonresident, you can register as self-employed or form an entity. While the processes for registering as an independent worker are simpler, creating a limited liability company (SL) could be a better option in specific situations. Despite the greater administrative and accounting burden of SLs, this format offers greater privacy than self-employed workers (autónomos), who must operate under their full names rather than the company’s. It can also have a lower overall tax burden if profits exceed approximately €60,000 per year.

• Incorporate the business
  To formalize an independent operation as a self-employed individual, register as one by filling out the Spanish Tax Agency (AEAT) Form 036, where you must indicate the Tax on Economic Activities (IAE) category for the chosen activity. If you choose to incorporate a company, this can be done through the Information Center and Network for Business Creation (CIRCE). In this scenario, the steps include submitting the Single Electronic Document (DUE), registering the firm in Spain, processing the registration in the Commercial Registry, and obtaining the permanent tax identification number (NIF).

Note: All documents written in a foreign language must, where necessary, be authenticated in advance and accompanied by a sworn translation into Spanish or another official language, as established by Article 15 of Law 14/2013.

Tax obligations when starting a business in Spain as a foreigner

Once the legal procedures to start a business in the country as a nonresident are completed, several tax obligations apply. Here are some of the most important ones:

Managing VAT

When operating in Spain, you will have to collect this indirect tax, so obtaining the certificate of value-added tax (VAT) taxpayer status is necessary. The standard VAT rate is 21%, but certain products or services are subject to a reduced or super-reduced rate.

Regardless of the percentage charged, the amount collected must be remitted to the AEAT by filing the quarterly VAT return using Form 303.

Issuing invoices

Issuing invoices for each sale is a key condition. With software, invoice processing can be automated, provided it complies with the provisions of the anti-fraud law and the Create and Grow Law.

Under the anti-fraud law, the AEAT ensures that point-of-sale (POS) terminals prevent off-the-books accounting and the alteration of the business’s financial data. For its part, the Create and Grow Law requires the operation to use a legally valid electronic invoicing system. Among other requirements, the software must be compatible with the VERI*FACTU system, which allows the AEAT to automatically receive all issued invoices, and must register the collection at the same time the payment is processed.

One of the tools compatible with VERI*FACTU and the various European regulations is Invopop, an electronic invoicing solution developed in Spain that automates invoice issuance and management when Stripe Payments is used to process your online sales. From the Stripe App Marketplace, you can access this and many other solutions that integrate easily with your payment platform.

Paying the IRNR

If an individual qualifies as a nonresident taxpayer, they are subject to nonresident income tax (IRNR) rather than personal income tax (IRPF). The forms filed and the rate applied depend on whether operations take place through a permanent establishment in Spain or not, as explained below:

• Nonresident foreigner without a permanent establishment
  You are required to fill out Form 210. The following tax rates apply, based on place of residence:

  • The EU, Iceland, and Norway: 19%
    
  • Liechtenstein: 19%
    
  • Other countries: 24%
    

• Nonresident foreigner with a permanent establishment
  You are required to fill out Form 200 or, if installments are made, Form 202. The tax rate is 25%, no matter the jurisdiction of residence.

How to receive payments in Spain as a foreigner

If operations in Spain take place as a self-employed worker, income can be received directly into an account in your home nation. When the account sits within the Single Euro Payments Area (SEPA), only the IBAN is required, since Regulation (EU) 260/2012 prohibits differentiating accounts by the member state they belong to. Conversely, if it operates outside the SEPA, you will likely need to supply the BIC or SWIFT code as well.

To choose the most suitable payment platform, it is worth considering factors such as security, compatibility with customers’ preferred payment methods, and integration with the rest of the technology stack. Stripe Payments, for example, supports more than 100 payment methods and holds the industry’s strictest security certifications. On top of that, you can accept payments from customers in 195 countries, and with Stripe Tax, VAT on your sales is automatically calculated and collected, making your tax returns much easier to file.

Bear in mind that receiving payments as a foreigner entails slightly more complex fiscal obligations than for Spanish citizens, and that your country’s account might not be compatible with the payment system used by Spanish government agencies. To illustrate, to pay Social Security contributions by direct debit, the bank needs authorization as a collaborator—the complete list is available on the Social Security Electronic Office website. On the other hand, payment of the IRPF can be made by direct debit through a financial institution that belongs to a SEPA bank, regardless of whether it appears on the list of collaborating institutions.

It is also important to remember that if profit from the home venture is transferred to the home jurisdiction, additional taxes could apply. For instance, if you are not a resident in Spain—although the business has a permanent establishment in the country—and you want to make transfers of funds abroad, supplementary IRNR could be due. This 19% rate won’t apply to income sourced in the EU unless the jurisdiction qualifies as a tax haven or is subject to a double taxation regime.

FAQs about starting a business in Spain as a foreigner

Is it mandatory to appoint a tax representative when starting a business in Spain as a foreigner?

Appointing a tax representative is only mandatory if you manage your business in Spain through a permanent establishment and you do not reside in the EU or in a place of the EEA that has fiscal agreements with Spain. In these cases, the tax representative takes responsibility for paying the taxes applicable to the activity being established.

Are there any grants available for foreigners who want to launch a business in Spain?

Along with the grants for starting a business in Spain intended for Spanish citizens who wish to become entrepreneurs—which foreigners can access on equal terms if they meet the conditions of each call for applications—there are specific grants for entrepreneurs from abroad. For example, the Invest in Andalusia program provides funding to international enterprises seeking to establish themselves in the autonomous community. At the same time, the Galician Institute for Economic Promotion offers grants to unemployed nonresidents who undertake their own project as self-employed professionals. To find a grant you can take advantage of to launch a venture in the country as an individual from abroad, we recommend using Plataforma PYME’s search engine for public grants and incentives.

Is it possible to create a company in Spain without speaking Spanish?

Yes, forming a company is possible without being proficient in the language as long as the core conditions are met and legal protocols are completed. Some steps require extra documentation, including the submission of the DUE; however, these documents might be in a foreign language, provided they contain a sworn translation into Spanish or another official language of the autonomous communities, such as Basque, Catalan, or Galician. Moreover, some of the forms that must be completed as part of the procedure to start a business are available in languages ​​other than the official ones, including the residence permit application, which has versions in English, French, German, and Russian.