Before you start: 10 key steps to successfully launch your business in Spain

Whether you're registering as a freelancer or planning to incorporate a company, it's essential to analyse each step carefully and strategically.

At Valero Tax Legal, we offer this practical guide with 10 key areas every entrepreneur should understand before launching a business in Spain.

1. Choosing the right legal structure

One of the first decisions you’ll need to make is whether to operate as a sole trader (autónomo) or set up a limited company (Sociedad Limitada - SL).

• As a freelancer, you will pay taxes under the Personal Income Tax (IRPF) system and enjoy a simpler structure.

• As a company, you’ll pay Corporate Income Tax and benefit from limited liability and a more solid business image.

This decision will shape your tax obligations, legal exposure, and internal organisation.

2. Registration process for freelancers

If you decide to operate as a freelancer, you’ll need to:

• Register with the Spanish Tax Agency (Agencia Tributaria) using form 036 or 037.

• Enrol in the Social Security system (RETA) using form TA.0521.

• Issue invoices and fulfil your tax obligations.

These procedures can be done together through a PAE (Entrepreneur Support Centre) using the Single Electronic Document (DUE).

3. Incorporating a limited company

If you prefer to form a Limited Company (SL), you’ll need to:

• Provide a minimum capital of €3,000.

• Sign a public deed before a notary.

• Register the company with the Mercantile Registry.

Much of the process can be completed online. Additionally, if you’re already operating as a freelancer, it’s possible to transfer your business to a company with no tax cost, provided certain legal and accounting conditions are met.

4. Business plan and viability analysis

Creating a business plan is not just a formality — it's an essential tool to:

• Assess economic and operational viability.

• Define your market strategy, products or services, and target clients.

• Identify strengths and weaknesses through a SWOT analysis.

A solid business plan is also key for securing financing or attracting partners.

5. Digitalisation strategy

Every business today — regardless of size — must have a digital foundation:

• A professional website, management tools, social media presence, and online sales channels.

• A digital roadmap aligned with your business objectives.

Going digital is not just about using technology, but using it with purpose and efficiency.

6. Data protection compliance

If your business involves handling personal data, you must comply with the General Data Protection Regulation (GDPR):

• Assess potential risks and apply appropriate security measures.

• Obtain valid consent, especially for minors under 14.

• Even when using third-party services, you remain the legal data controller.

Proper data management builds client trust and prevents legal issues.

7. Legal obligations in e-commerce

If you sell online, your business must comply with:

• Pre-contractual information requirements: prices, product features, delivery, returns, and payment methods.

• Clearly displayed terms and conditions on your website.

• Prior consent to send commercial communications via email.

Payment options like Bizum for businesses require a contract with your bank.

8. Financing the project

Every business requires financial resources. Common funding options include:

• Bank financing: loans, leasing, renting, credit lines.

• Public support and guarantees for entrepreneurs.

• Capital contributions from partners or personal funds.

It’s crucial to distinguish between short-term and long-term needs and prepare a clear cash flow projection.

9. Market research and brand protection

Before launching your business, it’s advisable to:

• Research your market and competitors (INE, Chambers of Commerce, industry reports).

• Identify and segment your potential clients.

• Register your brand with the Spanish Patent and Trademark Office (OEPM) or EUIPO for EU-wide protection.

Registering your brand ensures legal protection and enhances your corporate identity.

10. Professional advice and support

Having specialised legal and tax advisors from the start is a smart investment:

• Ensures legal and tax compliance from day one.

• Helps you make informed decisions.

• Allows you to focus on growing your business.

Using digital management tools will also save you time and improve efficiency.

Starting a business as a foreign citizen

• If you are a citizen of the EU, EEA, or Switzerland, you can register as a freelancer in Spain if you legally reside in the country and hold a NIE.

• Non-EU nationals must apply for a self-employment visa and provide evidence of business viability, professional qualifications, and sufficient financial resources.