Many people believe that to set up a company in Spain, you must have a local partner. The reality is very different: you can create a single-member limited liability company, with just one partner, and that partner can even be a foreigner! You don’t need to be a tax resident or a Spanish citizen to start your business. This means entrepreneurs from anywhere in the world can invest and operate in Spain without unnecessary barriers.
That said, even if you don’t live in Spain, your company will have tax obligations in the country. For example, it must file corporate income tax. Additionally, if it conducts operations with non-residents, such as real estate transactions, you need to consider important details, like the 3% withholding on property sales, to avoid issues with the Spanish tax authorities.
The good news is that creating your company in Spain as a foreigner is completely possible. With the right information and proper tax planning, you can manage your company smoothly and take advantage of all the opportunities the Spanish market offers. You just need to plan carefully and ensure compliance with both the company’s tax obligations in Spain and your personal obligations in your country of residence.