Starting a business in

Starting a business in Spain as a Swede involves both opportunities and a regulatory framework that differs from Sweden’s. The choice of company structure, tax residency, registrations, and contacts with the authorities need to be handled correctly from the outset to avoid future legal and tax issues.

We help individuals and companies establish operations in Spain, with a focus on the right structure, compliance, and long-term sustainability.

What does it mean to start a business in Spain?

There are several ways to operate in Spain. The most common options are:

• Autónomo (sole proprietorship) – you run the business as an individual
• Sociedad Limitada (SL) – a Spanish limited company with its own legal liability
• A Swedish company operating in Spain – for example via a branch (sucursal), subsidiary, or in some cases a permanent establishment

Your choice affects, among other things, taxation, personal liability, administrative requirements, and opportunities for expansion. Which structure is suitable depends on your actual business, where it is carried out, and your tax situation.

What we help you with

We provide advice and practical support throughout the process:

• Analysis of your situation (residence, business, goals)
• Choice of company structure and setup in an international context
• Preparation of necessary documents and powers of attorney
• Application for NIE (for individuals) and registration with Spanish authorities
• Tax registration, for example via Modelo 036
• Company registration (for SL: notary and Registro Mercantil)
• Guidance on VAT (IVA) and reporting obligations
• Setting up bookkeeping and ongoing reporting
• Coordination between Swedish and Spanish operations

Registration – key differences

Autónomo (self-employed)

• Registration in the censo de empresarios with Agencia Tributaria (usually via Modelo 036/037)
• Registration with Seguridad Social (social security)
• Covered by an income-based system for social security contributions
• No separate legal entity is formed – the business is run in your own name and with personal liability

Sociedad Limitada (SL)

• Formed through a notarised deed (escritura pública)
• Registered in Registro Mercantil
• Assigned a Spanish tax number (NIF)
• Separate legal entity with limited liability
• Requires share capital – at least €1 – For capital below €3,000, special creditor protection rules apply, including restrictions on dividends and requirements to build up reserves

Taxes and contributions

Company (Sociedad Limitada – SL)

• Corporate income tax (Impuesto sobre Sociedades), normally 25%
• Newly established companies may, under certain conditions, be subject to a reduced tax rate (usually 15% during the first profitable years)
• Obligation to file tax returns and annual accounts in accordance with Spanish accounting and tax rules

Autónomo (self-employed)

• Taxation via personal income tax (IRPF), with progressive tax rates
• Obligation to submit ongoing returns (e.g., quarterly)
• Social security contributions to Seguridad Social are based on declared net income under an income-based system

VAT (IVA)

• Regulated by Spanish VAT legislation (Ley del IVA)
• In Spain there is no general turnover threshold—registration is normally required from the start when carrying out economic activity
• Obligation to report VAT on an ongoing basis (usually quarterly), depending on the business and registration

International aspects

Tax residency

Determines in which country you are subject to unlimited tax liability. Under Spanish law, you are normally considered tax resident in Spain if you:

– spend more than 183 days per year in Spain,

– have the centre of your economic interests in Spain, or

– have family (spouse and minor children) living in Spain

The assessment is made based on an overall evaluation of all circumstances.

Double taxation

Sweden and Spain have a double taxation treaty that limits how both countries may tax the same income. National legislation first determines tax liability, while the treaty allocates or restricts taxing rights between the countries.

An incorrect structure or lack of planning can lead to taxation in multiple countries, for example if a permanent establishment arises in Spain or if tax residency is assessed differently in each country.