Starting a business in
🇪🇸Spain
Checked November 4, 2026 · How we score
Corporate tax
25%
Top income tax
47%
Setup from
$1,500
all-in, first year
Time to form
15 days
can be done remotely
Taxes in Spain
| Corporate income tax | 25% 25% general rate. New companies pay 15% for their first two profitable years; certified startups 15% for four years; small companies (turnover under EUR 1m) pay reduced phased-in rates (around 21%–19%). Pillar Two applies to large groups. |
|---|---|
| Personal income tax (top) | 47% State and regional rates combine to a top rate of roughly 43%–54% depending on the region; 47% is the state-level top combined with the default regional rates. Savings income taxed separately. |
| Tax system | Worldwide income |
| Capital gains tax | 28%Savings-base rates 19% to 28% (30% above EUR 300,000 from 2025); non-residents pay 19%. |
| Dividend withholding (non-residents) | 19% |
| VAT / GST | 21% |
| Social security | Employee about 6.5%, employer about 30%. Self-employed (autónomo) contributions are income-based, roughly EUR 200–590 per month. Dividend withholding 19% (0% on EU parent-subsidiary). |
Forming a company in Spain
| Usual entity | Sociedad Limitada (SL) |
|---|---|
| Minimum capital | $3,500 |
| Setup cost (all-in) | $1,500–$3,800 |
| Annual running cost | $2,500–$6,000 |
| Time to incorporate | 15 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
Visa requires income of 200% of Spain's minimum wage (about EUR 2,850/month). The property-based Golden Visa was abolished on 3 April 2025; other investor and entrepreneur visas remain. NIE is required to open a company or bank account.
| Digital nomad visa | Digital Nomad Visa (Startup Law), $3,300/month income |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Beckham Law
Flat 24% on Spanish employment income up to EUR 600,000 (47% above) for up to six years; foreign investment income is excluded; extended to remote workers and founders by the Startup Law.
Startup Law (Ley de Startups)
Certified startups pay 15% corporate tax for four years, with tax-deferral on stock options and simplified visas.
Canary Islands ZEC
4% corporate tax for approved companies creating local jobs in the Canary Islands Special Zone.
Reduced SME rates
Companies under EUR 1m turnover benefit from lower rates, phasing down through 2027.
Pros and cons
Why founders pick Spain
- Beckham Law 24% flat for six years
- 15% startup rate and SME incentives
- Digital nomad visa available
- Large domestic market, EU access
Watch out for
- Top personal rates around 47% (higher in some regions)
- Heavy bureaucracy: NIE, notary, registry, gestor
- Wealth Tax and solidarity tax for high net worth
- Golden Visa abolished for real estate
- Autónomo social security is a significant fixed cost
Best for: Remote workers using the Beckham Law · Startups certified under the Startup Law · Founders targeting Spanish and Latin American markets
Spain: common questions
What is Spain's Beckham Law?
A special regime that taxes new Spanish residents at a flat 24% on Spanish employment income up to EUR 600,000 (47% above) and taxes only Spanish-source income for six years. The Startup Law extended eligibility to remote workers and founders; investment income is taxed at 19%–28% above certain thresholds.
Can a foreigner open a company in Spain?
Yes. You need an NIE tax ID and a notarial deed. Foreigners can sign through a power of attorney from abroad; registration usually takes 2–4 weeks and costs USD 1,500–3,800 with a gestor.
What is the corporate tax rate in Spain in 2026?
25% standard. New companies pay 15% for the first two profitable years, certified startups 15% for four years, and small companies with turnover under EUR 1m benefit from lower phased rates.
Does Spain have a digital nomad visa?
Yes. Non-EU remote workers earning at least 200% of the minimum wage (about EUR 2,850/month) can get a visa for up to three years. Holders may qualify for the Beckham Law and become tax residents after 183 days.
Is Spain a good place for a freelancer to be taxed?
Autónomos pay progressive income tax up to ~47% plus social security, so the tax burden is higher than in Eastern Europe. The Beckham Law and startup incentives are the main ways to cut it.
Sources
- Agencia Tributaria
- Spanish Ministry of Foreign Affairs – Visas
- PwC Worldwide Tax Summaries – Spain
Compare Spain
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.