Starting a company in a foreign country always sounds like an odyssey… and Spain is no exception. But if you’re thinking of setting up a Limited Liability Company (Sociedad Limitada or SL) without being a resident, here’s the good news: it’s absolutely possible.
Who can set up an SL in Spain?
Anyone, whether a person or a company, resident or non-resident, can create an SL in Spain. You don’t need Spanish nationality, nor do you need to live in the country. But — and this is important — there are a few steps you can’t skip, and if you’re a foreigner, you’ll likely need a bit more time and patience to get through them.
What do you need?
In a nutshell, you’ll need to:
1. Get a NIE (Foreigner Identification Number).
2. Choose a name for your company and check its availability.
3. Open a bank account in Spain and deposit the minimum share capital (€3,000).
4. Sign the deed of incorporation before a notary.
5. Obtain a provisional tax ID (NIF), and later the final one.
6. Register your company and get it listed with the Spanish tax authorities.
Translation: yes, there’s paperwork, especially if you’re not physically in Spain. But the good news is, many of these steps can be handled by a legal representative (power of attorney) or even remotely with an advisor.
What about taxes?
Here’s where things get interesting: even if you don’t live in Spain, your SL will still be taxed here.
You’ll need to comply with obligations such as corporate income tax, VAT (if applicable), and
keeping proper accounting records.
And if your administrator is also a non-resident, there might be fiscal residence implications, meaning you’ll need to pay close attention to where your company is considered a tax resident.
To sum up, starting an SL in Spain without being a resident is neither impossible nor prohibitively difficult, but it does require solid planning and expert guidance.
Your best move? Surround yourself with professionals who know the system and can help you avoid common mistakes.
Spain remains an attractive gateway to the European market, and the SL structure is flexible and accessible, a great option for both entrepreneurs and foreign companies looking to set up shop here.
Complicated? Not really, especially if you get in touch with MDG Advisors.
Sandra Gámez Chaves