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Company formation in Spain from India usually means a Sociedad Limitada (SL): you sign the deed of incorporation before a Spanish notary and register it with the Registro Mercantil (Mercantile Registry). Every foreign shareholder and director needs a Spanish NIE or NIF, the SL can start with EUR 1 of share capital, and profits are taxed at 25%, or 15% in the first two profitable years for a qualifying new company.
Spain is the EU's 4th largest economy (more than 47M consumers) with a 25% CIT rate (new companies: 15% for first 2 profitable years, companies with turnover under EUR 1 million: 19% on the first EUR 50,000 and 21% above in 2026, per PwC's Spain tax summary). Spain's standout incentive is the Beckham Law: a flat 24% tax rate for qualifying incoming employees for 6 years, now extended to Digital Nomad Visa holders. R&D credits of 25-42% and Patent Box (60% exemption) further reduce effective rates. EUR 1 minimum capital (reduced from EUR 3,000 by the Crea y Crece Law, Law 18/2022). The India-Spain DTAA provides 15% on dividends. Add the Digital Nomad Visa and Spain is a practical EU base for Indian tech companies and professionals. Comply Globally has helped 1,080+ entrepreneurs across 47+ countries.
SPAIN AT A GLANCE
| Company type | Sociedad Limitada (SL), a private limited company. A Sociedad Anónima (SA) suits larger businesses |
|---|---|
| Foreign ownership | 100% allowed: an Indian individual or company can own the whole SL, and a single shareholder is enough |
| Directors | No Spanish residence or nationality rule. Each director who represents the company needs a Spanish NIE (individuals) or NIF (companies) |
| Minimum share capital | EUR 1 under Law 18/2022. Until capital plus legal reserve reach EUR 3,000, 20% of profits go to the reserve |
| How you register | Name certificate from the Registro Mercantil Central, deed signed before a notary, then registration with the provincial Registro Mercantil. The SL exists once registered |
| Time to register | Usually 7–15 business days once documents are complete, plus time for NIEs and apostilled Indian documents |
| Corporate tax | 25% standard (Agencia Tributaria). New companies: 15% in the first two profitable years. In 2026, turnover under EUR 1 million: 19% on the first EUR 50,000, 21% above |
| VAT | 21% standard, with reduced rates for some goods and services |
| India-Spain DTAA | Spain's 19% withholding on dividends and interest is capped at 15% for Indian residents |
| India-side filings | ODI through your AD Category-I bank before you remit, then the APR and the FLA return to RBI each year (for Indian company or LLP investors) |
| Our fee | From ₹1,25,000* plus government fees, quoted in writing before you pay |
*Our professional fee. Government fees are charged at cost.
Spain's Startup Law (Law 28/2022, on the promotion of the startup ecosystem) gives extra tax and immigration benefits to companies that ENISA, the state innovation agency, certifies as a startup (empresa emergente). Your SL is registered first, then you apply.
Certification is optional. An SL that does not apply can still use the 15% rate for new companies in its first two profitable years, if it meets those conditions.
OUR SERVICES IN SPAIN
We handle company formation, EXIM, IOR/EOR, visas, banking and ongoing compliance, all through a single point of contact.
Register a Spanish SL (Sociedad Limitada) or SA (Sociedad Anónima) through the Mercantile Registry and Spanish Tax Agency. We handle company name reservation, NIE/TIE assistance for foreign directors, drafting of articles, notary coordination, tax registration, and full incorporation remotely from India.Minimum capital for SL: EUR 1 100% foreign ownership permitted Incorporation usually takes 7–15 business days once documents are complete Starting from ₹1,25,000* (government fees extra)
We handle Spain’s 25% Corporate Income Tax (CIT), 21% VAT, transfer pricing rules, annual accounts filing, and payroll compliance. We help optimise structures using the India–Spain DTAA to minimise double taxation on dividends, interest, and royalties.New companies pay 15% CIT in their first two profitable years, and startups certified under Spain’s Startup Law pay 15% for up to four. We also assist with Beckham Law applications, digital nomad tax planning, and EU VAT registrations.Source: Agencia Tributaria (Spanish Tax Agency)
We handle BOTH sides simultaneously: Spanish company incorporation AND Indian FEMA compliance.Our team assists with Form FC filings through your AD bank, Annual Performance Reports (APR), RBI FLA returns (for Indian company or LLP investors), overseas investment structuring, and Foreign Tax Credit claims in India.One team covers both sides, so your Spanish filings and your RBI filings run on the same calendar.
Business visas, Entrepreneur Visa, Digital Nomad Visa, Highly Qualified Professional permits, and EU Blue Card assistance.We manage immigration documentation, renewals, NIE registration, residency formalities, and compliance support.Spain’s Digital Nomad Visa allows eligible remote professionals and entrepreneurs to reside in Spain while benefiting from attractive tax incentives under certain conditions.
Import/export registration, customs compliance, EU VAT support, 3PL warehousing, IOR/AOR/EOR services, and Spain–India trade facilitation.Spain offers strategic access to the European Union market, strong Mediterranean ports, and logistics connectivity across Europe, North Africa, and Latin America.
Corporate account opening assistance with Santander, BBVA, CaixaBank, Sabadell, HSBC, and international fintech banking platforms.We prepare KYC documentation, business plans, projected financials, and compliance paperwork for smoother onboarding.Most Spanish banks require video verification or at least one in-person verification step depending on the ownership structure.
Why Partner With Comply Globally?
The four standards we work to on every Spain engagement, from the first call to your annual filings.
We reply within 4 hours. A Spanish SL usually takes 7–15 business days to incorporate, depending on notarisation and NIE processing.
Incorporation usually initiated within 72 hoursZero compliance failures across 1,080+ engagements.Every filing is reviewed by a dedicated country specialist before submission.
Filing dates tracked for you · 4.7★ on TrustpilotOne contact for everything: Spanish incorporation and Indian FEMA compliance handled at the same time, without the hassle of coordinating vendors.
Single Point of Management · 47+ countriesPublished price: Spanish SL from ₹1,25,000*.Government fees are charged at cost and quoted in writing before you pay.
“Initially I thought their promises were just marketing claims, but after working with them, I can confidently say their responsiveness, expertise, and execution quality exceeded expectations.”Deepak Nirwan, Delaware Distributes
TAX FRAMEWORK
Spain’s standard corporate income tax rate is 25%
According to the Agencia Tributaria (Spanish Tax Agency), Spain levies a standard 25% Corporate Income Tax on resident companies. Newly incorporated companies pay 15% in their first profitable year and the year after, if they meet the conditions. In 2026, companies with turnover under EUR 1 million pay 19% on the first EUR 50,000 of taxable profit and 21% above it. Spain applies a 21% standard VAT rate, with reduced rates available for certain goods and services. Spain withholds 19% on dividends and interest paid abroad, and the India-Spain DTAA cuts both to 15% for Indian residents, with credit in India for the Spanish tax. A Spanish SL also gives you direct access to the EU single market.
Sources: Agencia Tributaria · India–Spain DTAA · Updated November 2026.
| Factor | 🇪🇸Spain | 🇫🇷France | 🇮🇹Italy | 🇵🇹Portugal |
|---|---|---|---|---|
CIT Rate | 25% (23% SMEs) | 25% | 24% (IRES) | 19% |
Capital Gains Tax | 19–30% (individuals) | 31.4% (flat PFU, individuals) | 26% (flat rate) | 28% |
Dividend WHT | 19% (non-resident) | 25% (reduced via treaty) | 26% | 25% |
VAT / GST | 21% | 20% | 22% | 23% |
DTAA Network | ~100 treaties | ~125 treaties | ~100 treaties | ~80 treaties |
World Bank Doing Business 2020 rank (final edition) | #30 | #32 | #58 | #39 |
Expat / Inbound Tax Regime | Beckham Law: flat 24% for 6 yrs | Impatriate regime: 50% exemption | Impatriate regime: 50% exemption (60% with a minor child) | IFICI (replaced NHR in 2024): flat 20% for 10 yrs |
Investment Incentives | Startup Act: 15% CIT yr 1–4 + R&D credits | JEI status: social charge exemptions | Patent Box: 110% deduction of qualifying R&D costs | SIFIDE: 32.5% R&D tax credit |
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Frequently Asked Questions
Yes. Spain has no nationality or residence condition for shareholders, so an Indian individual or company can own 100% of a Sociedad Limitada (SL), and one shareholder is enough. Each foreign shareholder and director needs a Spanish NIE or NIF before the notary signs the deed. Living in Spain to run the business needs a separate visa or residence permit.
Once your documents are complete, an SL usually takes 7–15 business days: the name certificate, the bank certificate, the notary deed and registration with the Registro Mercantil. Before that, allow time for NIEs and for apostilling and translating Indian documents. If the NIEs and the notary appointment are already in place, it can be faster.
Passports and NIEs for every shareholder and director, the name certificate from the Registro Mercantil Central, the bank certificate for the share capital and the bylaws. An Indian company shareholder also needs its incorporation documents and a board resolution. Documents issued in India need an apostille and a sworn Spanish translation, and so does any power of attorney you sign in India.
No. Spanish law does not require a director or shareholder to live in Spain or be Spanish. Every director who represents the company needs a Spanish NIE or NIF, and the SL needs a registered office in Spain. We arrange the address, coordinate the notary and handle the incorporation remotely from India.
The cost of starting a business in Spain has three parts: notary, Registro Mercantil and NIE fees, which we charge at cost; the share capital, which can be as little as EUR 1 and stays in the company; and our professional fee from ₹1,25,000*. You get a written quote in rupees before you pay. Until capital plus reserves reach EUR 3,000, 20% of profits must go to the legal reserve.
The standard rate is 25%. A qualifying new company pays 15% in its first profitable year and the year after, and a startup certified under the Startup Law pays 15% for four years. In 2026, companies with turnover under EUR 1 million pay 19% on the first EUR 50,000 of taxable profit and 21% above it. Standard VAT is 21%.
It is a special regime for people who become Spanish tax residents after moving to Spain. You pay a flat 24% on employment income up to EUR 600,000 (47% above that) for the year you arrive and the five years after. Since 2023 it also covers remote workers, entrepreneurs and highly qualified professionals working for startups, if they were not Spanish residents in the previous five years.
EUR 1. The Crea y Crece Law (Law 18/2022) cut the minimum from EUR 3,000 in October 2022. Two safeguards apply until capital plus legal reserve reach EUR 3,000: at least 20% of profits goes to the legal reserve, and if the company is wound up without enough assets, shareholders are jointly liable for the gap up to EUR 3,000.
A Spanish SL is Overseas Direct Investment (ODI) under FEMA. You report it on Form FC through your AD Category-I bank before remitting the capital; individuals remit under the Liberalised Remittance Scheme (LRS). Each year you file the Annual Performance Report (APR) and the FLA return to RBI (for Indian company or LLP investors). Spanish tax can be credited in India under the DTAA.
Set up your Spanish SL with complete support for incorporation, tax structuring, Beckham Law planning, Digital Nomad Visa, EU compliance, banking, and India–EU advisory.
