Opening a Language School or Nursery in Spain as a Foreigner: Licences, IVA and Residence

You can open a language school in Spain without education authority approval: for premises up to 750 m², you file a declaration with the town hall instead of a licence and start trading once it is filed. Our model 80-student academy needs about €31,000. A private nursery is regulated: a two-stage regional permit, at least three groups and roughly €108,000.

Three different businesses behind the word “school”

Spanish law treats a “school” as one of three distinct regimes, and which one you fall into decides the permit, the tax and the investment. Start with the question “whom am I teaching, and what?” rather than with the search for premises.

Language academy: what the town hall requires

A private centre that awards no officially recognised qualification operates under ordinary civil and commercial law, with no permit from the education authorities (art. 24.1 of the LODE education act). The same article bans names that could be confused with official centres: an “Escuela Oficial de Idiomas” can only be state-run, so a private school calls itself an academia or escuela de idiomas.

Language teaching falls under IAE business heading 933.9 (the IAE is Spain’s register of business activities), which is listed in the annex to Law 12/2012: for premises up to 750 m², the town hall may not demand an activity licence (licencia de actividad). It is replaced by a declaración responsable, a sworn statement that the premises comply with the rules (arts. 2–4). You still need a technical project from an architect or engineer, fire safety and accessibility: the declaration only moves the inspection to a later date.

If any of your students are children, every teacher and administrator must hold a certificate showing no entry in the Sex Offender Registry, and hiring anyone with such an entry is prohibited (art. 57 of Organic Law 8/2021). Teaching at a private academy is not a regulated profession: the law requires no teaching degree. Teachers on a regular timetable are hired as employees under the sector collective agreement for non-formal education (enseñanza y formación no reglada). A self-employed teacher (autónomo) who works only for you, on your schedule, is a disguised employee in the eyes of the labour inspectorate.

IVA: when lessons are exempt and when 21% applies

The IVA (Spanish VAT) exemption covers teaching languages, school and university subjects, as well as childcare and early education, when the service is provided by a public body or an “authorised” private institution (art. 20.Uno.9º of the IVA Act). The tax authority reads “authorised” by substance, not by paperwork: the centre must mainly teach subjects from the official curricula of the Spanish education system, and it is the Ministry of Education that decides this (DGT binding ruling V0282-26).

• Languages. English, German, Spanish as a foreign language and Russian are part of the official curricula of state language schools (art. 1 of RD 1041/2017 names Russian explicitly), so live lessons in them are generally exempt.
• Recorded courses. Access to recorded lessons, downloadable materials and subscription platforms is an electronic service, not teaching: no exemption, 21% IVA, even when online consultations come with the recordings (same ruling, V0282-26). A live lesson over video call is still teaching.
• Leisure. Art studios, parties and play sessions that do not pass on knowledge are not exempt.
• Private lessons. An individual who teaches personally, without premises or a business IAE heading, is exempt under a separate rule (art. 20.Uno.10º).

The exemption has a price: the IVA you pay on rent, refurbishment and equipment cannot be recovered and becomes a cost. That is why rent in the figures below includes IVA. If a school mixes exempt lessons with taxable recorded courses, IVA is recovered pro rata, which is a job for your gestor (accountant). Rates and returns are covered in “IVA tax in Spain“.

Students on a student visa and Cervantes accreditation

A language school can bring in students from abroad, but only if three conditions are met: the language is Spanish or another official language of Spain, classes are taught in person, and the centre is a state language school or is accredited by Instituto Cervantes (art. 52.1.e.2º of RD 1155/2024). An English school or an online school cannot sponsor a visa. A student can renew the permit only after passing DELE or SIELE or registering for the exam (art. 55.5), so exam preparation is part of what such a school sells. How the visa works from the student’s side is explained in “Student visa for Spain“.

A new school cannot get accredited straight away. The minimum Cervantes requirements are at least two years of teaching Spanish as a foreign language, a dedicated administrator with at least a year of experience, an academic coordinator and at least two Spanish teachers with a university degree, 60 hours of methodology training and 600 hours of experience, on proper contracts. Under the 2026 fee schedule, opening the file costs €650, the assessment with an expert visit €2,100 plus the expert’s travel, and the annual fee €2,175: up to €4,925 in the first year, followed by reassessment every three years. Accreditation is a contract with a specific centre, so if you buy an accredited school, get Cervantes to confirm the transfer before you pay a deposit.

Heritage-language weekend school

Expat families across Spain run weekend schools that teach children their parents’ language: Russian, Ukrainian, Polish, Chinese, Arabic, Romanian and others, often alongside literature, maths and creative classes. Russia, for example, has only one official school in Spain, attached to its embassy; every other “Russian school” offers supplementary weekend education. Legally such a school is an academy like any other: no education authority permit, and only people with the certificate under art. 57 of Organic Law 8/2021 may work with the children. How these schools differ from mainstream Spanish schooling is covered in “Schools in Spain“.

There are two legal forms. A commercial one, as an autónomo or an SL (limited company), where the profit is yours. A non-profit one, as a cultural association: it may charge fees, but its income goes only to its purposes and is not shared among members (art. 13 of Organic Law 1/2002). Lessons in a language on the official curriculum, such as Russian, Chinese, Arabic or Romanian (RD 1041/2017), and in maths are usually exempt from IVA as official-curriculum subjects; creative studios are not. And mind the line with a nursery: if on weekdays the school takes children under three for the whole day, it has become a nursery and cannot operate without a regional permit.

Private nursery: the regional permit

A private centre that regularly takes pre-school children may only operate with a permit from the education authorities (art. 24.2 LODE), and each autonomous region sets its own requirements for the first cycle, from birth to age three, by decree; the Ministry of Education keeps a list of these decrees. The permit comes in two stages: first the premises and the building project are approved, then after the works you submit the staff list with qualifications and receive the authorisation to open (arts. 6–7 of RD 332/1992, which the regions follow). The nursery heading (931.1) is not in the annex to Law 12/2012, so the town hall also issues an activity licence.

Take Andalusia, which updated its decree in 2025 (Decreto 76/2025, arts. 11–15):

• at least three groups: under one year, one to two years, and two to three years;
• no more than 8, 13 and 20 children per group respectively, so the smallest nursery has 41 places;
• at least 2 m² of classroom per place, which means 82 m² for 41 places, plus a hall of at least 30 m² and a private outdoor play area of at least 75 m²;
• qualified adults (a maestro, a degree-level early years teacher, or a Técnico Superior en Educación Infantil, a vocational early years educator) numbering at least one more than the number of groups, with at least one maestro for every six groups.

In historic town centres and dense urban areas, the decree allows a reduced nursery: 1.5 m² per place and an outdoor area of at least 30 m², which may even be outside the building (additional provision 2). In Madrid groups are slightly larger, up to 8, 14 and 20 children, with mixed groups of up to 15 (resolution under Decreto 18/2008).

Salaries are set by the sector agreement: from 1 September 2026, a maestro earns at least €22,400 a year and an early years educator (educador infantil) €17,850 (XIII convenio de centros de asistencia y educación infantil, annex I). On top of that the employer pays about 31% in social security: 23.6% for common contingencies, 5.5% unemployment, 0.6% training, 0.2% FOGASA (wage guarantee fund), 0.75% MEI (intergenerational equity) and the workplace accident rate. The minimum team, one maestro and three educators, costs €75,950 in salaries, about €99,495 a year with contributions. A teaching qualification obtained outside the EU must be recognised by the Spanish Ministry of Education before its holder can work with a group.

The permit also has a commercial side. A working mother receives an extra tax credit of up to €1,000 a year per child under three only if she pays an “authorised” nursery (art. 81.2 of the IRPF (income tax) Act), and every January the nursery files an information return on those families, form 233 (Orden HAC/1400/2018). In Andalusia a private nursery can also join the family support programme (Programa de ayuda a las familias), under which the regional government, the Junta, covers part of the fees for families.

A play centre (ludoteca) is not a nursery

A ludoteca is a play club: activities, parties, play rooms. It opens under the rules for leisure venues, without the education authorities, so it cannot work as a nursery. In Andalusia a children’s leisure centre may not regularly take pre-school children, charge for care and supervision, require enrolment or monthly payment, and children under three may only be there with an adult who does not work at the club (explanatory file for Decreto 155/2018). Other regions have their own rules, but the logic is the same.

This matters when you buy: listings include a “ludoteca bilingüe, guardería por horas” (bilingual play centre, hourly childcare) for €40,000 (negociosenventa.es, October 2026). If the club actually works as an hourly nursery, you are not buying a licence but a risk of fines and closure.

Buying an existing school or nursery: what to check

According to negociosenventa.es listings in October 2026, nurseries are offered for anything from €10,000–15,000 to €170,000–175,000: a nursery in Tres Cantos with 28 enrolments for the 2026/27 school year for €45,000, about €1,600 per enrolled child; one in Las Rozas with 34 children for €80,000, about €2,350 per child. These are asking prices, not completed deals. The general rules of a purchase (buying shares or the business, the seller’s debts, assigning the lease) are covered in “How to buy an existing business or hotel in Spain“.

• The nursery permit. A change of owner is an amendment to the permit that the education authority must approve, and moving to other premises means a brand-new permit (art. 13 of RD 332/1992). Check the number of authorised groups and places in the register of centres: the listing may state one figure and the permit another.
• Staff. Employees transfer to the buyer with all their rights, and seller and buyer are jointly liable for debts owed to them for three years (art. 44 of the Workers’ Statute). If the maestro leaves, the nursery may be left without its mandatory qualified teacher.
• Prepayments. Enrolment fees (matrícula) and termly payments already collected by the seller are your obligations to families for the whole school year.
• The lease. A tenant can assign the lease without the landlord’s consent, but the landlord may then raise the rent by 20% (art. 32 of the Urban Leases Act). For a nursery the outdoor area is key: if it is leased separately or used “by arrangement”, the permit depends on it.
• Accreditations and contracts. Cervantes, exam preparation centres, a franchise, after-school clubs run in schools: each contract transfers separately.

The money: investment and payback

Below are two illustrative examples based on our assumptions. They are not market statistics but a way to see what drives the result. Plug in your own prices, rent and occupancy.

A nursery is sensitive to occupancy: its costs are almost fixed at €150,639 a year and are covered from the 31st child. At 75% occupancy (31 children), pre-tax profit falls to €2,811. If the owner works as the head maestro with a recognised qualification, the result rises by about €29,344, but that is pay for their work, not business income. An academy is the opposite: cheap to start, but it relies on the owner’s hours. To cover its costs and the owner’s contribution it needs about 60 students, and without the owner in the classroom it is a job, not a business. Grants for opening and hiring depend on the region; see “Business grants in Spain“.

Legal form: autónomo or SL

Autónomo (self-employed) suits an academy where the owner teaches. In 2026 the social security contribution on the minimum base ranges from €205.88 a month in the lowest band to €607.35 in the highest (Orden PJC/297/2026), with a reduced flat rate of €80 in the first year. Profit is taxed under IRPF at progressive rates. An academy under heading 933.9 may use the módulos flat-rate scheme (Orden HAC/1425/2025): the owner counts as €15,727.62 of deemed profit a year, each employee €1,253.49 and each square metre of premises €62.36. For our academy with 100 m² and a half-time teacher, that is €22,590.37 before depreciation and €21,460.85 after the general 5% reduction, more than the real €17,228, so ordinary accounting works out better. There is no módulos scheme for nurseries. How to register is explained in “How to register as autónomo in Spain“, contributions and advance payments in “Autónomo taxes and contributions in Spain“.

An SL (limited company) makes sense for a nursery: staff, a multi-year lease and liability towards families are better held in a company than personally. In 2026 a company with turnover up to €1 million pays 19% on the first €50,000 of profit and 21% above that (transitional provision 44 of the Corporate Income Tax Act); a new company starting a new business pays 15% in its first profitable year and the following one (art. 29.1). Neither an autónomo nor an SL pays IAE tax with turnover up to €1 million. Company reporting is covered in “SL reporting in Spain“, and how to fund the refurbishment and reserve in “How to put money into your own SL“. You can set up a company or register as autónomo for the school through business registration in Spain, and keep the books monthly with a gestor.

Foreign owners: which residence permit lets you run a school

• EU citizens register as EU residents and need no work permit.
• Self-employment (cuenta propia) is the main route for non-EU nationals: a business plan with a favourable report from one of the autónomo associations, the investment and the licences. If you already live in Spain on another permit, you switch to this one through a modification at the provincial immigration office (extranjería), via the Mercurio platform, fee 790-052. See “Changing a Spanish residence permit to autónomo” and the overview “Cuenta propia in Spain“.
• Employment in your own SL works only if you do not control it: with half the shares, or a quarter if you also manage the company, social security treats you as an autónomo (art. 305.2.b of the Social Security Act), and the route is again self-employment.
• Non-lucrative residence (no lucrativa) lets you own shares, but not run the school or teach: non-lucrative residence permit.
• Student stay allows work of up to 30 hours a week, and on language courses only with a separate authorisation. After language courses you cannot switch directly to self-employment: the modification is open only after university, secondary education and vocational training (art. 190 of RD 1155/2024).
• The digital nomad visa and the startup visa do not fit a school: a digital nomad works for clients outside Spain, and the startup visa requires an innovative project.

If you are choosing between an academy and a nursery, between buying and opening, or want to check whether your business is enough for a residence permit, we can discuss it in a consultation; the scope of work for your situation is agreed after the call. For an overview of business niches and residence routes, see “Starting a business in Spain as a foreigner“.

Frequently asked questions

Do I need a licence to open a language school in Spain?

You need no permit from the education authorities if the school awards no official qualification (art. 24.1 LODE). For premises up to 750 m², instead of a town hall licence you file a declaración responsable with a technical project and can open once it is filed (Law 12/2012). Everyone working with children needs a Sex Offender Registry certificate.

Can my language school enrol students on a student visa?

Only if you teach Spanish or another official language of Spain, in person, and the school is accredited by Instituto Cervantes (art. 52.1.e RD 1155/2024). Accreditation requires at least two years of teaching Spanish, two qualified teachers, an administrator and a coordinator, plus up to €4,925 in fees in the first year.

What happens to students’ visas if a language school closes?

A student’s permit remains valid while its conditions are met, and the immigration office may check this at any time (art. 55 RD 1155/2024). Without a course the condition lapses, so the student needs to enrol at another accredited centre. The regulation sets a specific rule for continuing studies at another centre only for universities.

Is teaching a regulated profession in Spain?

You can teach at a private academy, give private lessons or teach online without a recognised qualification: it is not a regulated profession. Teaching at an official school and working as an educator in a nursery are regulated and require Spanish or recognised qualifications. An autónomo teaching languages registers under heading 933.9 or as a professional.

Can I switch to cuenta propia after language courses and open my own school?

Not directly: article 190 of RD 1155/2024 allows a switch to self-employment only after university, secondary education and certain vocational training programmes, and language courses are not on that list. Time on language courses counts as a stay, not residence, so for a school people usually apply for a self-employment permit through a consulate.

Do lessons at a heritage-language weekend school carry IVA?

Lessons in Russian, Chinese, Arabic or another language on the official curriculum of state language schools (RD 1041/2017) are usually exempt, as are literature and maths, which are school subjects. Creative studios, parties and recorded online courses carry IVA. If in doubt, you can request a written binding ruling from the tax authority, which binds the inspectors.

How is a play centre (ludoteca) different from a nursery?

A nursery operates with an education authority permit and may take children under three for the whole day. A ludoteca opens as a leisure venue: it may not regularly look after toddlers, require enrolment or charge monthly fees for care, and in Andalusia children under three may only be there with their own adult.

Key points about running a language school or nursery in Spain

• An academy that awards no official qualification opens with a declaration to the town hall; a nursery needs a regional permit and a town hall licence; a ludoteca cannot work as an hourly nursery.
• Lessons in languages and school subjects, and childcare at an authorised nursery, are exempt from IVA, but IVA on rent and refurbishment cannot be recovered; recorded courses are taxed at 21%.
• Only a Spanish-language centre accredited by Cervantes can enrol students on a student visa, and accreditation requires at least two years of teaching Spanish.
• A three-group nursery in Andalusia means at least 41 places, 82 m² of classrooms, an outdoor area of 75 m² or more and four qualified adults; in our example that is about €108,000 of investment and a payback of 5.9 years.
• A non-EU owner can run a school on a self-employment (cuenta propia) residence permit; with no lucrativa, a student stay, the digital nomad visa or the startup visa they cannot.