Set up an SL in Spain
Explore information about how to set up an SL in Spain and contact our local agents for representation and support.
Would you like to set up a Sociedad Limitada (SL) in Spain in 2026 and need assistance? You can ask about our online services and first explore this article. This way, you can better understand the key conditions.
| Quick Facts | |
|---|---|
| Minimum share capital | EUR 1 |
Minimum number of shareholders | 1 |
Number of directors | 1 |
| Mandatory residency requirements for setting up a Spanish SL company | Not applicable |
| Local director required (Yes/No) | No |
| Time frame for setting up an SL in Spain | Approximately 2 weeks |
| Corporate tax rate in Spain | Generally 25% |
| Dividend tax rate | 19% withholding tax on dividend payments – Exceptions can apply. |
| VAT rate in Spain | 21% standard rate, with reduced rates of 10% and 4% |
| Number of double taxation treaties (approx. ) | More than 90 |
| Annual meeting required | A general shareholder’s meeting once a year |
| Accounting and filing requirements | Companies prepare and file annual financial statements. |
| Foreign-ownership allowed | Yes |
| Tax exemptions or incentives for setting up an SL in Spain | Research and development incentives, a technological innovation tax credit, a patent box regime, etc. Conditions apply. |
| Additional licenses | Industry-specific ones |
Who can open SLs in Spain?
Any local and foreign entrepreneurs interested in doing business in Spain.
How is an SL known in Spain?
SL is the same as a limited liability company, the most popular business structure worldwide.
How many shareholders can set up an SL in Spain?
At least 1.
What is the minimum share capital for an SL in Spain?
It can start at EUR 1, but it is recommended to deposit EUR 3,000.
The presentation below provides information on the steps necessary for opening a Spanish SL:
What are the key conditions to open an LLC/SL in Spain in 2026?
- get the NIF first – this is the tax identification number for foreign corporate entities in Spain.
- get the NIE – this is the identification number for foreigners in Spain. It is necessary for shareholders, company directors or managers,
- check & reserve the business name with the Trade Register/Registro Mercantil,
- open a Spanish bank account and obtain the Certificate of Deposit,
- draft the Articles of Association,
- sign the deed before a notary, obtain the company's provisional NIF from the Agencia Tributaria and register the company with the Mercantile Registry,
- register the firm with the Taxes & Social Security.
NOTES:
- all documents must be in Spanish and notarized,
- it is recommended to hire a Spanish agent/gestor (such as our local specialists) to deal with all these formalities and skip the complexities.
Can I register an SL in Spain via proxy?
Yes, our Spanish agents can act on your behalf via a power of attorney. There is no need to travel to Spain for the incorporation formalities.
More details on the Spanish SL (limited liability company) are available in the presentation below:
What is the time frame to open a Spanish LLC in 2026?
About 2-6 weeks. Getting the NIF & NIE is the most time-consuming part of the company formation in Spain.
What is the taxation of SLs in Spain?
• 25% is the standard corporate income tax for LLCs in Spain. This tax is calculated on net income, minus allowable deductions, as the case may be.
• there is also a 3% tax for large companies (worldwide revenue above EUR 750 million and Spanish digital revenue above EUR 3 million) that offer online advertising, data transmission services, or online intermediary services in Spain.
• the standard VAT rate in Spain is 21%. Companies that offer services and products that include VAT must file VAT returns on a quarterly basis.
•the general withholding tax in Spain is 19% (subject to exemptions and treaty reductions) for dividends, royalties, and interests of SLs in Spain.
Are there any business updates for LLCs in Spain in 2026?
- mandatory B2B e-invoicing (Royal Decree 238/2026) will apply from 6 October 2027 for businesses with turnover above EUR 8 million and from 6 October 2028 for the rest. Separately, the Verifactu rules for invoicing software apply from 1 January 2027 for corporate taxpayers and 1 July 2027 for others (a postponement to October 2028 was announced on 5 October 2026); the system allows you to report directly to the Agencia Tributaria all invoices.
- newly established companies can benefit from a 15% corporate tax rate in the first tax period with a positive tax base and the following one; in 2026, companies with turnover below EUR 1 million pay 19% on the first EUR 50,000 and 21% on the rest.
- Under Law 10/2025 on customer services, businesses offering fixed-term subscriptions to consumers must send a 15-day notice for automatic subscription renewals for their customers.
Is an SL a good option for branches or subsidiaries in Spain?
Yes, a sociedad limitada can be a proper option for branches and subsidiaries in Spain.
Our agents in company incorporation in Spain can help you register any kind of company, including an SL. Our accountants in Spain can provide tailored services right from the start of the business. Contact us today and get your offer.
Federico Richardson Alborna, Attorney at Law · 8 October 2026Federico Richardson Alborna is the founder of Lexidy Law Boutique SLP and a University of Navarra graduate.