Doing business in Spain

Spanish company law is set out in the Capital Companies Act, with notaries and the Mercantile Register central to formation. Tax is administered by the State Tax Administration Agency (AEAT), while the Basque Country and Navarre have their own regimes and the Canary Islands use IGIC instead of VAT. As an EU member, Spain applies EU customs, data protection and sanctions law. Several official Spanish sites could not be reached run, so a number of areas rely on secondary sources or remain open.

Key facts

Corporate income tax

25% general

VAT

21% standard

Main entity form

SL, minimum capital EUR 1 (conditions below EUR 3,000)

Foreign ownership

Generally after-the-event declaration (Form D-1A); some investments need prior authorisation

Capital movement

Free within the EU; some non-EU transfers reported

Data protection

GDPR

New York Convention

Party since 1977

Minimum wage (2026)

EUR 1,221 a month x 14 payments

Most foreign investors use an SL, which can be formed with EUR 1 capital, or set up a branch. Formation is by notarial deed and registration in the Mercantile Register, and foreign investments are usually declared to the Foreign Investment Registry after the event.

Key facts

• An SL can have capital of EUR 1, but below EUR 3,000 20 percent of profits must go to the legal reserve and shareholders are jointly liable on liquidation for any shortfall up to EUR 3,000.

• An SA needs at least EUR 60,000 capital.

• The company exists only once registered; file the deed within two months.

• Declare the investment on Form D-1A within one month; investments from tax havens need a prior declaration.

• A branch is formed by notarial deed and registered, and companies must report beneficial owners holding more than 25 percent.

Who handles this in SpainSetting up and running a companyContracts and commercial law

Corporate income tax is 25 percent, with lower rates for new companies and micro-enterprises. VAT is 21 percent, outbound payments generally bear 19 percent withholding, and branch profits remitted outside the EU are also taxed. Figures come from a secondary source because Agencia Tributaria pages could not be retrieved.

Key facts

• Budget for 25 percent corporate tax; new companies pay 15 percent for two profitable periods.

• Micro-enterprises under EUR 1 million turnover pay 19 percent on the first EUR 50,000 and 21 percent above it for periods starting in 2026.

• Standard VAT is 21 percent with 10 and 4 percent reduced rates.

• Dividends, interest and royalties to non-residents generally bear 19 percent withholding (royalties up to 24 percent), with EU exemptions; branch remittances outside the EU bear 19 percent.

• Prepare a Master File and Local File; groups above EUR 750 million file a country-by-country report.

Who handles this in SpainTax and structuringAccounting and annual filings

The 2026 minimum wage is EUR 1,221 a month in 14 payments. Employees have at least 30 calendar days of holiday, and employer social security costs are significant. Non-EU staff need a work permit.

Key facts

• Set pay at or above EUR 1,221 a month in 14 payments (EUR 17,094 a year) for 2026.

• Plan for 30 calendar days of paid holiday and a usual 40-hour week.

• Budget employer social security of around 29.90 percent of salary plus an accident premium.

• Non-EU employees need a work permit; EU citizens do not.

Who handles this in SpainEmployment, payroll and immigration

Sector licensing, public procurement and real estate rules could not be sourced run. What was confirmed is that some foreign investments need prior authorisation and that corporate tax incentives exist for R&D and job creation.

Key facts

• Check whether the investment falls within the categories that need prior authorisation before closing.

• Corporate tax deductions are available for R&D, audiovisual production and job creation.

Who handles this in SpainLicences, permits and regulators

Capital moves freely within the EU, with reporting of some transfers outside it. Banks ask for registry, constitutional and tax documents when opening company accounts.

Key facts

• Intra-EU capital movements are unrestricted; check reporting duties for some non-EU transfers.

• Have a Commercial Register certificate, articles and tax number ready for account opening.

• Foreign entities' legal representatives need a Spanish NIF.

Who handles this in SpainBanking and capitalPayments and currency

Spain applies EU customs law. Importers need an EORI number, non-EU imports bear duty and import VAT, and listed dual-use exports need authorisation.

Key facts

• Customs law is the EU Union Customs Code.

• Obtain an EORI number from the Spanish customs authority before the first customs operation.

• Budget for customs duty and import VAT on non-EU imports.

• Check Annex I to the EU Dual-Use Regulation before exporting technology.

Who handles this in SpainCustoms, trade and export controls

The GDPR applies. Spain had not fully notified transposition of NIS2 according to the European Commission's page, and the Verifactu invoicing-software obligation has been deferred to 2027.

Key facts

• GDPR obligations apply in full.

• Transfers outside the EU are simplest to adequacy countries, including certified US companies.

• NIS2 transposition was incomplete per the Commission's 7 May 2025 reasoned opinion; monitor the national law.

• Verifactu-compliant invoicing software is required from 1 January 2027 for corporate taxpayers.

Who handles this in SpainData protection and cyber

Spain is part of the Madrid and PCT systems, and the OEPM is the national office. A patent box reduction is available for qualifying income.

Key facts

• Trademarks can be extended to Spain through the Madrid Protocol, in force since 1995.

• PCT applications can enter the Spanish national phase; Spain joined in 1989.

• National filings go to the OEPM.

• Patent box relief may reduce taxable income from qualifying IP.

Who handles this in SpainTrade marks, patents and brands

Spanish merger control, foreign investment screening and insolvency rules could not yet be confirmed from official sources run. Only the pending EU-level revision of FDI screening was confirmed.

Key facts

• The EU is revising its FDI screening framework to require every member state to screen; formal adoption was pending.

• Some foreign investments need prior authorisation in Spain.

Who handles this in SpainBuying, selling and investing

Anti-bribery, corporate criminal liability, whistleblowing and AML rules could not yet be confirmed from official sources run. EU sanctions apply and are enforced nationally.

Key facts

• Screen counterparties against EU sanctions; national authorities enforce them.

• Beneficial ownership reporting applies to all companies.

Who handles this in SpainAnti-bribery, sanctions and compliance

Spain is a New York Convention state and recognises EU judgments without special procedure. A mediation law applies to civil and commercial matters, and labour claims require a prior conciliation attempt.

Key facts

• Foreign arbitral awards are enforced under the New York Convention, in force since 1977.

• EU member state judgments are recognised and enforceable without a declaration of enforceability.

• Mediation is governed by Law 5/2012; employment claims need a prior conciliation or mediation certificate.

Who handles this in SpainDisputes and arbitration