Foreigners are actively setting up their own small businesses in sunny Spain to bring their company into Europe’s largest market, with new opportunities. Doing business in a highly promising EU country lets you build a comfortable life and improves your chances of obtaining permanent residence in the future. Through work you love, you can obtain citizenship and settle for good in a pleasant place. Spain offers many programmes to support businesses, which helps them grow quickly.
How can a Russian launch a startup, buy an existing business and start operating in Europe? How does registration work for entrepreneurs from another country? Can you grow a business if you are a non-resident? You will get to grips with the most difficult questions after reading this article. We will look at the main features of the law and at profitable and promising areas for small businesses.
Advantages
Access to an entirely new market is the main advantage for foreign business owners. Spain is part of the EU, so a business can use new sales channels and a single logistics and trade environment. This lets you take your business to a completely new level.
A separate advantage that is rarely remembered at the start is access to Spanish and European subsidies: they are open both to small companies and to autónomos (self-employed). Our grant application support helps you choose a programme and put the application together. Grantomat helps you keep track of the calls themselves: it checks them five times a day and sends a notification when a suitable programme appears.
Doing business in Spain has these advantages:
- Stability. The country’s GDP keeps growing, which secures its strong position in the EU. Thanks to the stable economic situation, foreign entrepreneurs can grow without fearing the negative effects of an economic crisis.
- A favourable tax system. Businesses pay a flat rate of 25%. But new companies can pay a reduced rate for the first two years — 15 or 23% with an annual turnover of under 1 million euros. To pay less tax, you will have to work better and earn more.
- State support. Local banks offer acceptable lending terms. Spain runs government programmes that make financial activity easier.
- Immigration policy. The authorities are keen to attract outside investment, so there is a special residence programme for startup founders. Immigration becomes much simpler: the programme lets you obtain a renewable residence permit for 3 years straight away, not only for yourself but for all your family members.
A business in Spain lets you achieve several goals at once: you can start your own company and become freer to choose new places to live with your whole family. The privileges of being a resident remove many restrictions and help you settle in Europe. All you need to do is set up a company and take certain steps.
Business forms
If the decision is being made by a company rather than an individual, the form is chosen together with the tax regime and ownership structure. An analysis for Russian companies and startups is in the article entering the Spanish market: four forms of presence, 2026 tax rates, foreign investment authorisation and sanctions limits.
Spain offers different legal forms for doing business. Foreigners face no restrictions in their choice, so they can work in any sector. The choice depends on the amount of investment, the nature of the business and the number of partners. Let us look at them in more detail.
SL
This form resembles a Russian LLC (OOO): the founders are liable only up to the amount they have invested and do not put their personal assets at risk. At least one partner is required to set up the business, and there is no limit on the maximum number. Share capital can start at 1 EUR, and contributions can be made both in money and in kind.
For one person with no employees, autónomo is almost always the choice — what it means for taxes and contributions is covered in detail in the article on autónomo status in Spain.
Where share capital is less than 3000 EUR, there are conditions to protect creditors. At least 20% of profit goes into a mandatory reserve until, together with the capital, it reaches 3000 EUR. If the company is wound up and its assets are insufficient to repay debts, the partners are jointly liable for the difference between 3000 EUR and the subscribed capital.
You will have to follow a rule when choosing the company name: the abbreviation of the legal form must be added to the brand name.
SA
The share capital of a public limited company (sociedad anónima) is divided into shares and consists of the contributions of all shareholders, who are liable for obligations up to their contributions. The company must have at least one founder, and there is no upper limit. The share capital must be more than 60000 EUR. At least 25% of the total must be paid up at the time of registration.
A non-cash contribution is allowed when setting up the business, but in that case an independent expert must prepare a report describing it. Partners can freely transfer bearer shares unless restrictions are set out in the articles of association.
Autonomo
An individual carries on business on their own account without bringing in outsiders. A sole proprietor can hire employees, but control of the business remains with them. If obligations are not met, personal assets are at stake. No minimum capital is set, so you can start with any amount of investment.
Franchising
Franchising, a special system for selling goods and services based on formal cooperation between different businesses, keeps developing. For an agreed fee, the franchisor gives the franchisee the right to run a particular type of business using an established model for the permitted activity. In essence, a franchise is a contract concluded between companies.
How to set up a business
The process of registering an SL is the same for Russian foreigners and native Spaniards. You will have to take several steps before arriving in Spain. A company does not in itself give you the right to live in the country: you need a separate basis for your stay, and the suitable options are summarised in our overview of Spanish residence cards.
The order of steps is strict: NIE, name reservation, bank account, notary, register, tax registration — skipping any of them blocks the next. Our full-service SL or autónomo registration helps you get through it without running from office to office.
The procedure includes:
- Getting a temporary NIE. Without this important number you cannot complete a number of steps. You need it to open a bank account, to be identified in the tax system and to work freely in Spain. To apply, you gather a set of documents that are sent to the Spanish consulate in your country of permanent residence.
- Requesting a certificate of name availability after choosing the company name. You need to write down 3 names for the future company. The list is sent to the Mercantile Registry to check availability. Once you receive the certificate, you can use the company name free of charge.
- Opening a bank account for the company. With an NIE you can open an account quickly by providing the bank with the required documents.
- Deciding on the shareholders and drawing up an agreement to regulate all the details. The entrepreneur chooses the shareholders and appoints a director. Once this is decided, an agreement is drawn up setting out the shareholders and their percentage stakes in the business.
- Defining the sector and signing the deed of incorporation. The foreign business owner must specify the sector in which the company will operate. Then you sign a public deed before a notary. The company is officially registered with the Mercantile Registry. If you change the line of business, you will have to go back to the notary.
- Registering the company with the authorities. The entrepreneur goes to the tax office to obtain a definitive number for themselves (NIE) and for the company (CIF). An EORI number is also required for export or import operations within the European Union. After that you will need to visit the local social security office.
Tax payments
Spain applies tax regimes for individuals and for businesses. Sole proprietors pay the first type of tax, which depends on the amount of profit. For example, the rate is 19% when a sole proprietor’s annual income is under 12450 EUR. With annual earnings above 300 thousand euros, the rate is 47%.
Tax forms (modelos) are filed quarterly on a strict calendar, and a fine is charged even for a nil return filed late. So people either keep strictly to the calendar themselves or hand their reporting over to gestor services.
Companies operating as SL legal entities pay a flat 25% on profit. A new business can benefit from a concession in its first two years of activity and pay tax at a reduced rate of 15%. Other concessions are available to entrepreneurs too: reduced social security contributions for self-employed people over 30 who meet the required conditions.
Features of doing business
To do business, foreigners need to spend a long time in the country and obtain a residence permit or visa. No special permits are required to set up a company. One option for registering a business is the startup visa, after which you can apply for a residence permit.
The gestor in Spain has no direct equivalent in Russian-speaking practice: not an accountant and not a lawyer, but an intermediary between the business and state registers. Who they are and what they do is covered in a separate article on the gestor in Spain.
The Spanish government runs immigration programmes, including the digital nomad visa and residence permits for startup founders or investors. To apply, you need to provide a detailed plan for setting up and developing the company and prove you have the money to achieve your goals. Spain is welcoming towards Russians who want to start a business. Such candidates find it easier to get a residence permit, which is why many Russians plan to run their own business as a route to successful relocation.
Popular sectors
The Spanish market is large enough to offer good opportunities for business owners. Several promising sectors stood out in 2024. With expert advice you will find the best ideas.
Food service is the most common first idea among people who have moved, and at the same time the most heavily regulated: licences, hygiene rules, a permit for a terrace. You can see the whole journey in the example of how to open a café in Spain. We have covered two more sectors with very different economics in the same detail: a car repair shop, where most costs go on premises and certifications, and a self-service laundrette — a format with almost no staff.
Pay attention to these sectors:
- Tourism. This category includes hotels and estate agencies as well as restaurants, cafés and shops. Every year tens of millions of tourists visit the country, ready to use such services. But when starting a tourism business, it is important to remember seasonality.
- IT services. Developing online resources, marketing, advertising campaigns, web design and other services are in demand in Spain. You can carve out your own niche by growing in information technology and gaining valuable experience.
- Agriculture. In a country with a favourable warm climate you can grow grapes, olives, maize and much more. Here you can set up fast sales, supplying organic produce around the country or the world. Think the sector is overcrowded? It isn’t, so you can claim your place right now.
You can also succeed in other sectors in Spain. For example, beauty salons, vehicle workshops and shoe or clothing shops bring in good profits. But for the company to grow, you will need to take care of a good location and advertising.
The Relotus-relocation centre will help you obtain a digital nomad visa or a Spanish startup visa. We will help you develop a business plan, gather the documents and submit the application. Step by step we set up your business with you, opening up new opportunities. A professional approach helps avoid requests for further documents, get approval quickly and change your life. You will be able to start a business in Spain, conquer a new market and open up opportunities for continuous growth.
What the authority considers innovation: a case study in which a finished business plan had to be rewritten — the three assessment criteria and what is attached to the plan besides the text.
