Setting up a business

in Spain

Here you will find all the information for the implementation of your company


Setting up a business in Spain

Companies can operate in Spain in different ways: by setting up a Spanish business with its own legal personality (a corporation or limited liability company), through a limited liability entrepreneur (natural person), a branch or permanent establishment, business cooperation agreements or associations with other business owners already established in Spain.

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Labor market

The labor market in Spain is distinguished by its flexibility in terms of hiring and firing. There are several types of contract adapted to the needs of each employer. Third-party service providers such as temporary employment agencies can also be used to hire personnel. Spain has a Social Security system to which both the employer and employees must contribute.

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Spain has an extensive and comprehensive system of aid and incentives, with special emphasis on encouraging employment, regional investment, RDI, specific industrial sectors and SMEs. Aid can also be obtained from the state, the regions and the EU, in addition to a wide range of public institutions that offer financing under favorable terms.

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The main direct taxes in Spain that investors should know are company tax, personal income tax (IRPF) and non-resident income tax; likewise, the main indirect taxes are VAT and Transfer and Stamp Tax (ITP and AJD). This section provides detailed information on the entire Spanish tax system.

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Intellectual property

Spain is known for taking safety measures in terms of intellectual and industrial property. Intellectual Property is born when it is created and does not have to be registered. However, in Spain, the created work can be recorded in the Intellectual Property Register for added protection against third parties. In addition, Spain’s ratification of the most relevant international treaties on Intellectual and Industrial Property guarantees that the rights of foreign companies are protected in Spain and vice versa.

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EU nationals and their family members can live and work in Spain without a work permit. Non-EU foreigners must receive prior official approval in order to live and work in Spain; this can be any of several authorizations in the framework of the Immigration Law and the 14/2013 Entrepreneurs Law, which provide visas and residence permits for investors, entrepreneurs, highly-skilled professionals, training activities, research, development and innovation, and transfers within companies.

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Living in Spain

This section contains all the relevant practical information for living in Spain, from finding schools for children, opening a bank account and accessing the healthcare system, etc.

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