How to start a business in Spain (getting an NIE) — 2026

Spain is one of Europe's biggest consumer markets and a popular base for founders, freelancers and remote teams. But the paperwork has its own logic: before you can invoice a single euro, you need a Spanish tax identity, a legal structure, and a Social Security registration. This guide walks through the practical steps — getting an NIE, choosing between autónomo and a Sociedad Limitada, registration, the Social Security cuota, and VAT (IVA) — with figures confirmed against official sources for 2026.

If you are weighing Spain against other markets first, start with our pillar guide on how to start an online business in Europe, then come back here for the Spain specifics.

Step 1: Get your NIE

The NIE (Número de Identidad de Extranjero) is your foreigner tax and identity number, and it is the non-negotiable first step. You cannot register as self-employed, sign a company deed, open most business bank accounts, or file taxes without one.

How you get it depends on your nationality:

• EU/EEA/Swiss citizens can register a business directly with a NIE — no separate work permit is required. You apply either at a Spanish consulate in your home country (form EX-15) or in Spain (form EX-18) once you have your green residency certificate.
• Non-EU citizens need the NIE and the right to work. To operate as an autónomo, that usually means a self-employment residence/work authorisation (autorización por cuenta propia, form EX-07) or a visa that permits self-employment, such as the digital nomad visa. To simply own or direct an SL, a NIE is enough — no residency permit is required for the shareholder or director role itself.

Practical tip: the NIE application is the step most likely to introduce delays, so start it before anything else.

Step 2: Choose your structure — autónomo vs Sociedad Limitada

There are two common routes for a small business.

Autónomo (sole trader)

Being autónomo means registering as self-employed in your own name. It is the fastest and cheapest way to start: no minimum capital, no notary, and you can be operational within days. The trade-off is unlimited personal liability — your personal assets are exposed to business debts — and Social Security contributions are due monthly whether or not you turn a profit.

Sociedad Limitada (SL)

An SL is Spain's equivalent of a private limited company. It gives you limited liability and a more credible structure for taking on partners, investment or larger contracts. It requires a notarised incorporation deed and registration at the Registro Mercantil (Commercial Registry), so it is slower and costs more to set up (notary, registry and gestor fees typically run into the hundreds of euros).

On capital: the historic €3,000 minimum share capital was abolished by Law 18/2022 (Ley Crea y Crece). You can now incorporate an SL with as little as €1. But the €3,000 figure has not truly disappeared — while share capital is below €3,000, the law requires you to allocate 20% of annual profits to legal reserves until capital plus reserves reach €3,000, and if the company is wound up with insufficient assets, the partners are jointly liable for the shortfall up to €3,000. In practice, many advisers still recommend capitalising closer to €3,000 to avoid these strings.

Rule of thumb: if you are a solo founder testing an idea or freelancing, start as autónomo. If you have partners, external liability exposure, or plan to raise money, an SL is usually worth the extra setup.

Sources: Agencia Tributaria; Ley 18/2022 "Crea y Crece" (grupo2000, taxfix summaries of Ley de Sociedades de Capital).

Step 3: Register the business

For an autónomo, registration is two filings:

1. Tax (Agencia Tributaria): submit the Modelo 036 or the simplified Modelo 037 to register your activity and tax obligations.
2. Social Security (RETA): enrol in the Régimen Especial de Trabajadores Autónomos before you begin activity.

For an SL, the sequence is: reserve the company name (certificación negativa de denominación), open a bank account and deposit the capital, sign the incorporation deed before a notary (every shareholder and director must have a NIE), register at the Registro Mercantil, and obtain the company tax number (NIF).

Step 4: Social Security — the autónomo cuota

This is the cost that surprises most new autónomos. Since 2023, contributions are based on your real net earnings across a system of 15 income brackets. For 2026 the government has confirmed rates are frozen at 2025 levels, with monthly cuotas ranging from roughly €200 to €590 depending on your net income, calculated by applying a contribution rate of about 31.5% to your chosen contribution base.

New autónomos get a major break: the tarifa plana (flat rate) of €80 per month for the first 12 months. It can be extended for a further 12 months if your net income stays below the minimum wage (SMI). Note that the MEI solidarity surcharge (0.9%) is added on top, nudging the effective figure slightly above €80.

Sources: Seguridad Social — RETA; Infoautónomos; Wolters Kluwer (cuota autónomos 2026).

Step 5: VAT (IVA)

Spain's VAT is IVA (Impuesto sobre el Valor Añadido), administered by the Agencia Tributaria. The 2026 rates are:

• 21% — general rate (most goods and services)
• 10% — reduced rate (e.g. hospitality, passenger transport, some foods)
• 4% — super-reduced rate (essentials such as bread, milk, books, medicines)
• 0% / exempt on certain items

Unlike some countries, Spain has no general VAT-registration threshold — if your activity is subject to IVA, you charge it from your first invoice and file quarterly returns (Modelo 303). If you sell across the EU, cross-border VAT rules apply; you can sanity-check what you should charge with our EU VAT calculator.

Sources: Agencia Tributaria — tipos impositivos de IVA.

What it costs to start — a quick summary

• Autónomo: effectively €0 to register; then the monthly cuota (from €80 flat rate, later €200–€590 by income) plus a gestor if you want help with filings.
• SL: capital from €1 (with the reserve strings above; ~€3,000 recommended), plus notary, Registro Mercantil and gestor fees typically totalling several hundred to a couple of thousand euros.

Planning to expand across Iberia, or comparing regimes? Our companion guide on starting a business in Portugal covers the equivalent steps next door.

This is general information, not legal or tax advice — rules vary by country and change; confirm with a qualified professional before acting.

Getting online in Spain

Registration gets you legal; a website gets you customers. Once your NIE and structure are sorted, a fast, multilingual site and clean invoicing setup are usually the next priority. We build exactly that for SMBs across Europe — see our web development service, or grab a free consultation and we'll help you map the quickest path from registration to your first paying customer.