Quick Overview
To start a business in Spain, you must register as either an autónomo (self-employed) or form a Sociedad Limitada (SL) company. Autónomos pay €80/month Social Security (tarifa plana first year) while SLs require €3,000 minimum capital and cost €500-1,500 to establish. The registration process takes 2-4 weeks and costs €500-2,000 total for autónomos or €3,500-5,000 for SLs. Spain offers the tarifa plana, one of Europe's most generous programs for new entrepreneurs with reduced Social Security rates for the first 3 years.
Key Facts
Timeline
2-4 weeks (autónomo) / 4-8 weeks (SL company)
Cost range
€500-2,000 (autónomo) / €3,500-5,000 (SL)
Required professionals
Gestoría (administrative agency) recommended, lawyer for SL
Key benefit
Tarifa plana: €80/month Social Security for 12 months
Government agencies
Agencia Tributaria (Tax) + Tesorería General (Social Security)
Minimum capital
€0 (autónomo) / €3,000 (SL)
How It Works
Start a Business as a Foreigner in Spain
Spain offers two main paths for starting a business. The autónomo route is for sole traders and freelancers who want to work independently. You register directly with the tax authority (Agencia Tributaria) using forms 036/037 and with Social Security using form TA.0521. This process takes 1-2 weeks and can be done online with a digital certificate. Autónomos have unlimited personal liability but benefit from simplicity and low setup costs. The Sociedad Limitada (SL) path creates a separate legal company with limited liability protection. You need €3,000 minimum capital, a notarized deed (escritura), and registration at the Mercantile Registry (Registro Mercantil). This takes 4-8 weeks and requires professional help. Spain's unique advantage is the tarifa plana program, offering dramatically reduced Social Security contributions (€80/month first year, €85 second year, €200 third year) for new autónomos, making it one of the most entrepreneur-friendly systems in Europe. Both structures require ongoing quarterly tax filings and monthly Social Security payments.
Before you register - choose your business structure
Choose legal structure (autónomo vs SL)
Decide between autónomo (self-employed) or Sociedad Limitada (limited company).
Prepare basic business plan
Document your business model, costs, and revenue projections.
Verify you have NIE (if non-Spanish)
Foreign residents need NIE (foreigner ID number) before any registration.
Official steps to register as self-employed (most common)
Register with Tax Authority (Hacienda)
Submit Form 036 or 037 (simplified) to Agencia Tributaria declaring your activity.
Register with Social Security (RETA)
Enroll in the Special Regime for Self-Employed Workers (RETA) using form TA.0521.
Open business bank account
Separate account for business income and expenses (not legally required but recommended).
Obtain required licenses (if applicable)
Municipal activity license (licencia de actividad) if you have physical premises or certain activities.
Steps to form a limited company instead of autónomo
Reserve company name
Check name availability and reserve at Central Mercantile Registry.
Deposit share capital in bank
Open corporate account and deposit minimum €3,000 share capital.
Sign company deed at notary (escritura)
Notarize company statutes, name directors, distribute shares.
Get company tax ID (CIF)
Obtain provisional CIF from Tax Agency.
Register at Mercantile Registry
Officially register company at provincial Mercantile Registry.
Complete final tax registration
Submit final Form 036 with permanent CIF.
Register administrators in Social Security
Working directors register as autónomos under Régimen Especial.
Regular requirements once you're operating
Pay monthly Social Security
Autónomo contributions paid monthly via direct debit.
Quarterly VAT returns (Modelo 303)
Declare VAT collected and paid each quarter.
Quarterly income tax prepayment (Modelo 130/131)
Advance payment on expected annual income tax.
Annual tax return (Renta - Modelo 100/200)
Final income tax declaration for the year.
Annual accounts and audit (SL only)
Prepare financial statements and deposit with Mercantile Registry.
Start a Business as a Foreigner Costs in Spain (2026)
Optional - can DIY online
Mandatory for autónomos
For online registrations
Depends on municipality and activity
For limited companies only
Minimum for SL (refundable to company)
For limited companies
For limited companies
Handles filings and paperwork
For SL annual accounts
| Service | Cost | Notes |
|---|---|---|
| Autónomo registration (gestoría) | €0-150 | Optional - can DIY online |
| Social Security (tarifa plana year 1) | €80/month | Mandatory for autónomos |
| Digital certificate | €0-50 | For online registrations |
| Activity license (if needed) | €100-800 | Depends on municipality and activity |
| SL: Name reservation | €14 | For limited companies only |
| SL: Share capital deposit | €3,000 | Minimum for SL (refundable to company) |
| SL: Notary deed | €150-400 | For limited companies |
| SL: Mercantile Registry | €120-180 | For limited companies |
| Ongoing: Gestoría (monthly) | €50-150 | Handles filings and paperwork |
| Ongoing: Accountant (annual) | €500-1,500 | For SL annual accounts |
| Total estimate | €500-2,000 first year (autónomo) / €3,500-5,000 first year (SL) | |
*Costs vary by region and whether you use professionals. Madrid and Barcelona typically 20-30% higher. Prices current as of July 2026.
About Lifetti
Social Security rates and tax rules change annually. Lifetti.com updates this guide monthly. For a personalized setup plan or gestoría match, use Lifetti’s Spanish business service.
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