Company formation for international founders: legal structure, location, corporate tax and your residence permit, planned together from day one.
Online formation services fill in the paperwork. Nobody tells you whether the location, the shareholder structure or the timing will cost you thousands in tax, or whether your company will help or block your residence permit.
Corporate tax is generally governed by national legislation across most of Spain, but certain territories have distinct tax regimes or special incentives. The best location depends on where your business is genuinely managed and operated, your sector, the applicable tax rules, available grants and your personal residence plans.
Choosing a registered address alone does not make a company eligible for a regional tax advantage.
Eligible newly established companies and branches in the Canary Islands Special Zone (ZEC, Zona Especial Canaria) may pay 4% corporate tax on qualifying taxable income, within statutory limits. It requires an approved activity, genuine operations and effective management in the islands, a locally resident director, and minimum jobs and investment. Traditional retail and hospitality are generally excluded, although some tourism-related services may qualify.
Companies with genuine operations in Ceuta or Melilla may qualify for a 60% reduction in the corporate tax liability attributable to qualifying income earned there (50% until 2025). This is a reduction of the tax, not a 60% rate. It applies to eligible tax periods beginning in 2026, subject to statutory conditions and territorial income rules.
Each has its own corporate tax law, rates and definition of a small business. Basque territories: generally 24%, with 20% for qualifying small businesses. Navarre: generally 28%, with reduced rates for qualifying small businesses (23%) and microenterprises (19%). Which regime applies depends on tax residence, real operations and the territorial connecting rules.
Catalonia, Madrid, Andalusia, Valencia, Extremadura and the other regions: 25% general, 23% under €10M turnover, 19% and 21% for micro-companies, 15% for qualifying new companies.
Innovative, scalable companies certified by ENISA (Empresa Nacional de Innovación) under the Startups Law may pay 15% in the first tax period with a positive taxable base and the following three, while they keep meeting the requirements.
Regions compete with grants, founder and investor tax deductions and Social Security help. Extremadura, for example, offers grants of up to 50% of eligible project costs for qualifying small businesses, subject to sector, investment, timing and funding requirements (open until 31 December 2026).
Under the currently published framework, authorisation of new ZEC registrations is linked to a deadline of 31 December 2026, subject to any applicable extension or replacement rules. If your business could qualify for the 4% regime, assess eligibility, local substance requirements and the authorisation timetable before making incorporation decisions.
Beyond the ZEC, both companies and self-employed professionals (autónomos) with a business in the islands can use the Canary Islands Investment Reserve (RIC, Reserva para Inversiones en Canarias) to cut tax on profits reinvested locally.
A company with €80,000 of taxable profit in 2026:
| Situation | Rate applied | Corporate tax |
|---|---|---|
| General rate | 25% | €20,000 |
| Established micro-company (turnover under €1M) | 19% on €50,000 + 21% on €30,000 | €15,800 |
| New qualifying company (first tax period with a positive base, or the next) | 15% | €12,000 |
| Approved ZEC entity, on qualifying income | 4% | €3,200 |
Illustrative results only: these are not four options available interchangeably to the same company. Each regime has its own conditions (activity, jobs, investment, real substance). Figures cover corporate tax only, before deductions; dividends paid to shareholders are taxed separately. That is exactly what we check before you register.
On top of the rate, Spanish corporate tax rewards certain activities with deductions from the tax due. We check which ones your business can use before you set up.
Spanish productions and foreign shoots managed by a Spanish production company (the tax rebate), up to €20M per production. Canary Islands: 54% on the first €1M and 45% after. Navarre and the Basque territories have their own film incentives.
For live performing arts and music shows, up to €500,000 a year, provided at least 50% of the profits are reinvested in similar activities.
25% of R&D spending (42% on the excess over the previous two-year average), plus 17% for dedicated researchers, and 12% for technological innovation. Unused credits can be carried forward for 18 years or, in some cases, paid out in cash with a 20% discount.
60% reduction of the net income from qualifying patents, utility models and advanced registered software developed by the company.
Each incentive has its own requirements, certificates and caps, and some can be combined with the regional regimes above.
Limited company (SL, Sociedad Limitada), sole trader or branch, and the region that fits your activity, your taxes and where you will live.
Company name certificate from the Central Mercantile Registry and statutes drafted for your shareholders, not a generic template.
Identification and tax registration for foreign shareholders and directors, as applicable: the foreigner identification number (NIE, Número de Identidad de Extranjero) for individuals or a tax number for companies, plus apostilles and sworn translations.
Deed of incorporation at the notary, in person or through a power of attorney if you are abroad, and registration in the Mercantile Registry.
Company tax number (NIF, Número de Identificación Fiscal) and tax registration, share capital arrangements and supporting documentation, and assistance opening a business bank account.
Assessment and coordination of the applicable Social Security registration for directors, beneficial ownership, and foreign investment reporting and authorisations where applicable, with our partner accountants.
Some activities also need sector licences or additional registrations before trading. We flag them in your action plan.
If you are not an EU citizen, owning a Spanish company does not by itself let you live or work here. We design the company and the permit together, so one supports the other.
No Spanish work permit is needed to establish or manage a business. Those residing in Spain for more than three months generally need to complete the residence registration formalities.
For non-EU founders with an innovative project of special economic interest to Spain, subject to a favourable ENISA assessment under Law 14/2013. The initial residence authorisation is generally valid for three years. Start-up & Entrepreneur Visa →
Residence and work authorisation for non-EU nationals who will personally carry out a business or professional activity, subject to a viable business plan, investment and licensing requirements.
For non-EU professionals working remotely from Spain, mainly for companies or clients abroad. It is not a general route for operating a Spanish company, and work for Spanish clients is limited. Start your Digital Nomad Visa application →
Seven steps. The decisions that save you the most money happen before anything is signed.
Your activity, partners, residence status and plans, reviewed in one session.
Regions and regimes compared on tax, incentives and practicality.
Legal form, capital, statutes and shareholder rules defined.
A written plan with steps, dates and a fixed fee. No surprises.
NIE, powers of attorney, apostilles and translations for every founder.
Deed reviewed, signed at the notary and filed with the Mercantile Registry.
Tax registration, Social Security, bank assistance and your first filing calendar.
Our offices are in Figueres (Girona) and Barcelona. We meet founders, attend notaries and handle registrations across the Costa Brava, Girona and the rest of Catalonia.
Founders from Japan, the United Arab Emirates, the United States and across Europe set up with us in the region that suits them best, with every step reported in writing.
Yes. Foreign individuals and companies can generally establish or own a Spanish company without residing in Spain, subject to identification, tax, company law and any applicable foreign investment requirements. Owning a company does not automatically grant residence or work rights.
The Canary Islands Special Zone offers a 4% rate on qualifying taxable income, but only for approved entities that meet its requirements. Other territories offer reduced rates or reliefs. The most suitable location depends on where the business genuinely operates and which regime it qualifies for.
A Spanish limited liability company (SL) can generally be incorporated with share capital from €1. However, special rules apply while capital stays below €3,000 (a 20% legal reserve and partner liability up to €3,000 on liquidation), and the company must have enough resources to operate and meet its obligations.
No. Non-EU founders need a separate permit, such as the entrepreneur residence or a self-employed permit, depending on their activities and circumstances. Incorporating a company does not automatically provide a residence or work permit. We plan both together.
It depends on the structure, shareholder identification, documents, notary availability, registration and any sector-specific requirements. Foreign documentation, bank procedures and immigration applications may extend the overall process, so we start with the slowest steps first.
Tax losses (negative tax bases) can be carried forward with no time limit and offset against future profits. New companies can offset them without the usual 70% cap in their first three tax periods with a positive taxable base; after that, up to 70% of the taxable base, with at least €1 million a year always deductible.
Yes, but Spain's list of non-cooperative jurisdictions (updated in June 2026) brings extra steps: in most cases a prior foreign investment declaration, and less favourable tax treatment of dividends and other payments. We check this before the structure is set.
Tell us about your project and we will review your requirements. We aim to reply within one working day with an initial assessment of the company structure, location and residence options worth considering, the next steps and a clear fee proposal.
Our initial response is preliminary and subject to reviewing your individual circumstances. No obligation.
Prefer to talk it through? Book a consultation, deductible from our fees if you go ahead.
MigratioLex · Costa Brava office: Carrer Joan Reglà, 5, 3-B, 17600 Figueres (Girona) · Barcelona office: Passeig de Gràcia, 12, 1º, 08007 Barcelona · Both offices by appointment only. This page is general information and does not constitute legal or tax advice. Tax rates refer to 2026 and apply only if each regime's conditions are met.
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