Spain draws a clean line between autónomo, a tax and social security status rather than a company, and forming an actual SL. Most people freelancing or running a small operation start as autónomo, and the numbers below explain why that's usually the right call at first. Here's what it takes to start a business in Spain in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Autónomo. Not a separate legal entity, you personally are the autónomo. Simpler and cheaper than forming a company, but you're personally liable for business debts and taxed at personal Income Tax (IRPF) rates.
- SL (Sociedad Limitada). Spain's standard limited liability company. Minimum share capital is technically €1 under the Crea y Crece reform, though €3,000 fully paid remains common practice; falling below €3,000 triggers special legal-reserve rules until you build back up to it.
As a rough guideline, an SL starts to make fiscal sense once net profit consistently clears around €40,000 to €50,000 a year; below that, the SL's monthly accounting and filing costs tend to outweigh the tax savings.
2. Register your business
Autónomo
Registration is a two-step process: file Modelo 036 or 037 with Hacienda (the tax agency) to declare your activity, then enroll in RETA, the self-employed branch of Social Security, on or before your actual start date. Both need to happen before you begin trading.
SL
You'll need an NIE (foreigner ID number) if you're not a Spanish national, then a notarial deed (escritura pública) signed before a Spanish notary, followed by inscription in the Registro Mercantil (Commercial Registry) for the province where the company is based. Express telematic incorporation through the CIRCE system can close in 5 to 10 working days. Total setup typically runs €1,500 to €4,000 once notary, registry, and legal-advisory fees are added on top of the share capital itself.
3. Get your NIF or CIF
Autónomos use their personal NIF (or NIE for foreigners), no separate business tax ID needed. SLs receive a CIF, obtained through the same Modelo 036 filing used to register the company for tax purposes with Hacienda.
4. Check licenses and permits
Spain doesn't issue a single national business license. What you need depends on your industry and municipality: a licencia de apertura (opening license) is often required for physical premises, regulated professions need their own authorization, and local town halls may add further requirements. Check with your ayuntamiento directly.
5. Understand Spanish taxes
Autónomos pay IRPF (personal income tax) on business profit at progressive rates, filed quarterly as an advance via Modelo 130 and reconciled in the annual Renta return. Separately, RETA social security contributions are income-based: a reduced flat cuota of roughly €80 to €88 a month applies for your first 12 months (extendable a second year if income stays below the minimum wage threshold), after which contributions scale with your declared income bracket, with a combined general rate around 31.4% of your chosen contribution base.
SLs pay corporate tax (Impuesto sobre Sociedades) at 25% standard, reduced to 15% for the first two profitable years for companies with individual shareholders, with additional reduced brackets for micro and small enterprises based on turnover under recent reform.
VAT (IVA) is 21% standard, charged on invoices and reclaimed on business expenses, with the net difference remitted quarterly via Modelo 303.
6. Stay compliant
Autónomos file Modelo 303 (IVA) and Modelo 130 (IRPF advance) every quarter, plus an annual Renta return and a VAT summary (Modelo 390). SLs file annual accounts with the Registro Mercantil and an annual corporate tax return, on top of the same quarterly VAT obligations. Spain is also phasing in Verifactu, a certified electronic invoicing system, with mandatory compliance now set for mid-2027 for most businesses.
Spain business costs at a glance
| Item | Cost |
|---|---|
| Autónomo registration (Hacienda + RETA) | Free |
| SL formation (notary + registry + advisory) | ~€1,500 to €4,000 |
| SL minimum share capital | €1 (€3,000 common practice) |
| Autónomo cuota (first 12 months) | ~€80 to €88/month |
| Autónomo cuota (ongoing, income-based) | ~31.4% of chosen base |
| Corporate tax, standard rate | 25% |
| Corporate tax, first 2 profitable years | 15% |
| VAT (IVA), standard rate | 21% |
Frequently asked questions
How much does it cost to register as autónomo in Spain?
Free. Registration is a two-step process: filing Modelo 036 or 037 with Hacienda and enrolling in RETA (Social Security).
How much does the autónomo cuota cost in the first year?
A reduced flat rate of roughly €80 to €88 a month for the first 12 months, extendable a second year if income stays below the minimum wage threshold.
How much capital do I need to start an SL in Spain?
Technically €1 under the Crea y Crece reform, though €3,000 fully paid remains common practice.
What's the corporate tax rate in Spain?
25% standard, reduced to 15% for the first two profitable years for companies with individual shareholders.
At what profit level does an SL make more sense than being autónomo in Spain?
Roughly €40,000 to €50,000 a year in net profit, the point where an SL's tax savings typically start to outweigh its extra accounting and filing costs.
Fees and rates above come from the Agencia Tributaria (Hacienda) and Seguridad Social as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Spain-qualified gestor or lawyer about your specific situation.