Madrid is experiencing a historic boom in company creation, with record-breaking figures that cement its position as one of the most dynamic economic hubs in Spain and Europe. According to data published by ABC, the region has reached unprecedented levels of new incorporations, reflecting the confidence of entrepreneurs and investors in Madrid’s business environment.

Spain combines a dynamic business environment with a high quality of life, making it a prime destination for international entrepreneurs and professionals. However, success here requires more than just a good idea — it demands cultural awareness and local adaptability. Here are seven key insights to help business expats thrive in Spain:

Expats running international operations often face a hidden tax risk: Permanent Establishment (PE). Without realizing it, simply managing part of your business from Spain — even temporarily — can create legal ties that result in unexpected tax liabilities in other countries.