In 2012, retail trade in Spain went through a very difficult time, marked by the closure of commercial establishments and a decline in sales—a 6.8% decrease compared to the previous year. Against this backdrop, the government decided to adopt urgent measures, which were laid out in Law 12/2012. The Spanish Official State Gazette (BOE) itself stated that, at that time, Spain was the European country with the second-highest number of procedures required to set up a business. This led to one of the key measures in Law 12/2012: the elimination of the requirement to obtain an activity license.

Data from the Business Creation Information and Network Center (CIRCE) show that this and other measures have accelerated the pace of business creation; from 2020 to 2024, the number of new businesses in Spain increased each year. The simplification of bureaucratic procedures for starting a retail business is a contributing factor to this momentum. Currently, the activity license exemption still applies to many businesses, which we will delve into in this article.

What’s in this article?

• What is an activity license?
  
• What regulations govern the activity license requirement for Spanish businesses?
  
• Requirements for a business to be exempt from needing an activity license
  
• Examples of license-exempt activities
  
• How to start legally operating a business that doesn’t require an activity license
  
• Frequently asked questions about businesses that don’t need an activity license in Spain
  

What is an activity license?

An activity license is an authorization granted by a municipal council to be able to perform an economic activity in a commercial establishment located within that municipality. Essentially, it certifies that the establishment complies with all applicable regulations for the type of business that is to be operated. This includes zoning and safety regulations, for instance.

To obtain this authorization, a qualified professional must draft an activity plan describing the establishment’s characteristics, in order to confirm that it meets the necessary conditions. This technical document is submitted electronically—as established in Article 14 of Law 39/2015—and can vary slightly depending on the municipality. If the subsequent evaluation by the municipal council is positive, the business receives the license allowing it to open its doors.

Businesses that are not covered by the regulatory annexes of the laws discussed below are required to obtain this activity license to begin operating legally. If your business project is included in the list of exempt activities, you do not need an activity license. Instead, you simply need to process the statement of compliance or prior notification, which certifies that your business activity is innocuous (i.e., it has no environmental, health, or safety impact). This statement—which can vary between the different municipalities—is also processed by the municipal council and greatly streamlines the process of starting a professional activity.

What regulations govern the activity license requirement for Spanish businesses?

In Spain, the legal framework that allows a commercial establishment to operate without needing to apply for an activity license is comprised of several laws.

• Royal Decree-Law 19/2012: In 2012, the Government urgently and provisionally approved Royal Decree-Law 19/2012, which eliminated the need to obtain a prior municipal authorization or license for commercial establishments with a surface area of up to 300 m2.

• Law 12/2012: Seven months after enactment of the royal decree, Law 12/2012 came into force, consolidating the legal framework and providing greater legal certainty.

• Law 14/2013: Law 14/2013 introduced some important changes, such as increasing the maximum permitted surface area to 500 m2 and including new exempt economic activities, such as jewelry stores and food and beverage retailers.

• Law 20/2013: Law 20/2013 once again increased the surface area limit, to 750 m2, a figure which currently remains in force. The law also granted new powers to the country’s autonomous communities; in addition to expanding the establishment size limit if they deem it appropriate—a power which was already included in the original law—it allows them to govern some additional aspects, such as the statement of innocuity.

• Law 18/2022: Also known as the “Create and Grow” (“Crea y Crece”) Law, Law 18/2022 expanded the list of businesses that do not require activity licenses because they are considered innocuous in at least one autonomous community. New additions included cleaning services, delivery services, and the rental of weighing and measuring equipment.

Requirements for a business to be exempt from needing an activity license

Thanks to the exemption from the activity license, selling products or services in a retail establishment is one of the easiest businesses to start in Spain, along with online stores. For a business to enjoy the exemption from this administrative procedure, it must meet the following requirements:

• Be a retailer or provide innocuous services: The annex to Block 56 of Law 12/2012 specifies all of the innocuous retail businesses and services that are exempt from obtaining an activity license. Some examples are stationery stores, laundries, and hairdressers.

• Perform the activity in a permanent establishment: The economic activity must be carried out in a permanent establishment—that is, a facility or workplace such as a shop, office, or warehouse—located anywhere in Spanish territory.

• Respect the surface area limit: The surface area of the establishment cannot exceed the limit of 750 m2. This surface area calculation includes the net floor area intended for display and sales to the public. It does not include the warehouse, restrooms, parking, or other areas specified in the municipal ordinance.

It is important to emphasize that these requirements can vary, since the autonomous communities have the power to introduce changes. For example, the statement of environmental compliance required by the municipal councils of the Valencian Community differs from that of other autonomous communities; it is specifically regulated by Law 6/2014 and allows prospective business owners to quickly start an innocuous activity by simply stating that the regulations are met. In the case of Andalusia, the environmental assessment is governed by Law 7/2007.

It should be noted that statements of compliance and activity licenses are only mandatory for establishments that are open to the public. So if you have a home-based business from which you sell services online from Spain, this procedure is not required.

Examples of license-exempt activities

Let’s look at some of the economic activities that, under Law 12/2012 and subsequent updates in the Create and Grow Law, are currently considered innocuous and, therefore, exempt from an activity license.

Retail

As long as they are carried out in establishments of up to 750 m2 and do not involve the handling of hazardous products or products that could harm health or the environment, many retail activities are exempt from an activity license. The annex of Law 12/2012 includes an extensive list of activities, including the following:

• Stationery stores and bookstores
  
• Clothing, footwear, and accessories stores
  
• Gift or decor stores
  
• Toy stores
  
• Mobile phone and electronic accessory stores
  
• Homeware stores
  
• Sale of sporting goods
  

Professional services

In addition to retail, the activity license exemption also applies to certain professional services. Although Law 12/2012 already included some examples (such as real estate development), the Create and Grow Law expanded the list:

• Tax, labor, or accounting consulting firms
  
• Business, marketing, or technology consulting firms
  
• Architecture, design, or engineering firms
  
• Translation agencies
  
• Courier services
  

Food

As long as the product is not produced on-site and complex food handling is not involved, some food businesses might also qualify for the activity license exemption:

• Fruit and vegetable stores
  
• Specialized food stores (e.g., ecological, gourmet, or international products)
  
• Bakeries without a workshop
  
• Bulk coffee, tea, or infusion shops
  
• Nut, sweets, or chocolate stores
  
• Retail sale of salted fish, such as cod
  

Personal services

Personal services have traditionally been exempt from an activity license, as they are businesses that can easily prove their innocuity. This category is explicitly established in the annex to Law 12/2012, containing the following examples:

• Hairdressers and barbershops
  
• Beauty centers (without medical equipment)
  
• Laundries and dry cleaners
  
• Photography centers
  
• Copy shops
  
• Repair and production of custom footwear (provided the footwear isn’t considered a medical device)
  
• Tailors
  

How to start to legally operate with a business that doesn’t need an activity license

Businesses that don’t require an activity license are much easier to start, but they must comply with other bureaucratic requirements. To help you in this process, here are the steps you’ll need to follow:

• Verify that your business is exempt
  Review the annex to Block 56 of Law 12/2012 to verify that the economic activity you will carry out in your business is included in the list of exemptions.

• Choose the establishment
  When choosing an establishment for your business, make sure it doesn’t exceed 750 m2 of net floor area intended for display and sale of your product to the public. You should consider two important aspects: the flow of potential customers and direct competition in the area. In general, make sure the area has good foot traffic and isn’t overcrowded with businesses in a similar category, as this can make it difficult to set your business apart. The latter can pose a challenge: in the 2023 Domestic Trade Indicators Notebook (Cuaderno de indicadores de comercio interior), the Ministry of Economy, Commerce, and Business indicated that there were 543,658 retail stores in Spain.

• Go to the relevant municipal council office
  As previously discussed, autonomous communities can introduce regulatory changes that are important to keep in mind. It can be helpful to contact the municipal council office in the city where your establishment is located. They will explain any requirements other than those established by national law, and they will definitively confirm that your business is exempt.

• Submit the statement of innocuity
  The municipal council office will also provide you with the guidelines and requirements for completing and submitting the statement of compliance or prior notification, which varies by council. With this statement, the businessperson confirms that the business’s establishment meets the conditions established in the current legal framework, as specified in Article 4 of Law 12/2012.

• Fulfill your tax obligations
  To fulfill your tax obligations, you will need to complete three steps:

  • Form a limited liability company (SL) or register as a self-employed person by filling out form 036 of the Spanish Tax Agency.
    
  • Indicate what type of professional activity you will carry out with the corresponding economic activities tax (IAE) category.
    
  • Request a value-added tax (VAT) taxpayer certificate to fulfill the obligation to collect this tax, which you must return to the Spanish Tax Agency through your quarterly VAT return using form 303.
    

• Contract services
  In order to operate in the establishment, you will need to contract several services, such as water and electricity supply, security systems, internet connection, a point-of-sale (POS) terminal, and a card terminal. If you wish to accept card or e-wallet payments without using bank-issued devices, you can opt for a bankless card terminal, such as those offered by Stripe Terminal.

• Connect your store with a payment gateway
  If you don’t want to limit your activity to in-person sales, you can create an online store in Spain. To accept online payments, it is key for the ecommerce store to include a payment gateway that is easy to use, secure, and complies with current legislation, such as the PCI standard. For example, Stripe Payments is a modern payment platform that allows online and in-person payments to be accepted with the methods preferred by your customers, such as Apple Pay, Google Pay, and even options for payments in installments if the average amount of your sales is high.

FAQs about businesses that do not need activity licenses in Spain

When does an activity license expire if the business is inactive?

Typically, an activity license expires after a six-month period of inactivity, while a statement of compliance or prior notification normally expires after one year of inactivity. Bear in mind that these terms can vary depending on the municipal ordinance.

How can I know if an establishment has an activity license?

To determine if an establishment has an activity license consult the files on zoning licenses that municipal councils make available to their citizens. In some cases, this service is available online, such as with CONEX in Madrid. If your municipal council doesn’t offer this procedure online, request the activity license certificate in person.

Are the activity license and the opening license the same?

The terms “activity license” and “opening license” do not apply to businesses exempt from municipal authorization for their operations, as Royal Decree-Law 19/2012 replaced them with a single procedure: the statement of compliance or prior notification. However, in the case of economic activities that do require authorization, the opening license and the activity license are separate permits: the former evaluates renovation work, while the latter assesses general conditions, such as accessibility and cleanliness. Therefore, if the activity requires municipal authorization, both licenses must be obtained to open a business.

Are there businesses that need licenses even though they are retailers?

Yes, some retailers need licenses. An activity license is mandatory for any business that might compromise the health, public safety, environment, or historical and artistic heritage of the municipality where the economic activity takes place—for example, a taxidermy workshop. It is also mandatory for retail businesses whose establishments occupy a public space, such as a street stall in a square.