You have the business idea, the first clients and a reason to be in Spain. The next question is structural: do you register as self-employed, or set up a company? For most foreign founders who want to separate business from personal assets, the answer is a Sociedad Limitada, the Spanish SL.
Since the 2022 “Crea y Crece” reform, setting up an SL is cheaper and faster than many investors think: the minimum share capital is now €1. Here is the process, the real costs, and how the company connects to your residence permit.
SL or Self-Employed?
Self-employed (autónomo)
LiabilityUnlimited, your personal assets are exposed TaxProgressive personal income tax Set-upQuick and cheapLimited company (SL)
LiabilityLimited to the capital contributed TaxCorporate tax, plus tax on what you take out Set-upNotary and registry, a few weeksThe Steps and What They Cost
- NIE for each foreign partnerEvery foreign shareholder and director needs a Spanish tax ID, obtainable remotely with a power of attorney.
- Company name certificateFrom the Central Commercial Registry, to confirm the name is free. Usually under €20.
- Bank account and capitalDeposit the share capital, from €1, or contribute assets in kind.
- Bylaws and notary deedSigned before a notary. Notary fees usually range from €150 to €350.
- Tax ID and registrationProvisional NIF, registration in the Commercial Registry (usually €100 to €400) and final NIF.
- Tax and social securityForm 036 with the Tax Agency, and registration of the director with social security if applicable.
Example
Lucas and Sofia, Argentine designers, set up an SL in Valencia to sign contracts with Spanish and European clients. They started with €3,000 of capital to avoid the extra reserve rules, obtained their NIEs through a power of attorney before travelling, and had the company registered in a few weeks.
The €1 Capital: Read the Small Print
You can incorporate with less than €3,000, but while capital stays below that figure the company must set aside 20% of its profits as a legal reserve, and in a liquidation the partners can be jointly liable for the difference up to €3,000. Many founders still choose €3,000 for simplicity and credibility with banks.
Does an SL Give You Residency?
Not by itself. The company is the vehicle, the residence permit is a separate application. Since April 2025, the investor visa no longer exists. The usual routes are:
What kind of business will your SL run?
A viable traditional business that you will run and work in.Self-employed permit → An innovative, scalable project with growth potential.Entrepreneur visa → I was planning to invest to get residency.Golden Visa alternatives →
Why Setting Up an SL Is Harder Than It Looks
- Creating the company before choosing the residence route, and then finding it does not fit.
- Forgetting that every foreign partner and director needs an NIE.
- Using minimum capital without understanding the reserve and liability rules.
- Not planning how you will pay yourself: salary, dividends and social security all have tax effects.
The idea and the clients are the hard part. The right structure and the right permit, chosen together, make the rest straightforward.
Talk to a Lawyer Before You Incorporate
If you are planning to set up a company in Spain and need residence as well, that is exactly what a consultation is for. At MigratioLex, we review your specific case, not a generic checklist. We respond within 24 hours, in English, French or Spanish.
Book Your Initial ConsultationThis article is for informational purposes only and does not constitute legal or tax advice. Based on the Capital Companies Act as amended by Law 18/2022. Costs are typical ranges and vary by notary, registry and capital. The example is illustrative.
