Structuring International Operations from Spain

A Legal and Tax Guide for Global Entrepreneurs and Expats

In an increasingly connected world, Spain stands out as a gateway to Europe — not only for its lifestyle, but also for its strategic legal and tax advantages. Whether you're an entrepreneur, investor, or remote professional, setting up operations in Spain offers access to a competitive, EU-regulated business environment.

However, entering the Spanish market requires more than ambition. From obtaining a foreign identification number (NIE) to choosing the right business structure, meeting social security obligations, and navigating Spain’s tax system — success depends on proper planning and local knowledge.

At Business Expats, we specialize in guiding international clients through every stage of this process. This guide provides a step-by-step roadmap to legally and efficiently structure your international operations from Spain, whether you're relocating from within the EU or a third country.

Why Spain?

Spain has become one of the most attractive jurisdictions in the European Union for structuring international operations. Its robust legal framework, broad tax treaty network, and openness to foreign entrepreneurship position it as a strategic hub for professionals and international business owners.

However, setting up and operating from Spain requires a clear understanding of the country’s legal and tax environment — covering corporate, immigration, social security, banking, and regulatory aspects. This guide provides a step-by-step roadmap for expatriates, with key distinctions between EU/EEA/Swiss nationals and third-country nationals.

Spain has become one of the most attractive jurisdictions in the European Union for structuring international operations

I. Obtaining a Foreigner Identification Number (NIE)

Every non-Spanish national intending to engage in economic activity must first obtain an NIE (Número de Identidad de Extranjero), issued by the Spanish National Police or a Spanish consulate abroad. The type of NIE and application process depends on your nationality and your business goals.

A. EU/EEA/Swiss Nationals

These individuals do not need a visa to reside or work in Spain but must:

• Apply for a non-resident NIE if setting up a business or investing without living in Spain.

• Apply for an EU Certificate of Registration (Certificado de Registro de Ciudadano de la Unión) if residing for more than 90 days. This certificate includes the NIE and provides full access to Spain’s labor and business markets.

B. Third-Country Nationals

Subject to Spain’s General Immigration Regime, they may apply for:

• A non-resident NIE, if acting solely as investors or company directors without living in Spain.

• A residence and work authorization, if intending to reside and operate from Spain, through options such as:

  • Self-employment authorization (freelance/autónomo).

  • Entrepreneur Visa (under Law 14/2013).

  • Digital Nomad Visa.

  • Shareholder-Director authorization with majority ownership.

    
    

Note: Obtaining an NIE does not make you a tax resident. Tax residency is determined under Article 9 of the Spanish Personal Income Tax Law (IRPF).

II. Tax Registration: Form 030 and NIF Assignment

After obtaining an NIE, you must register with the Spanish Tax Agency (AEAT) using Form 030 to request a NIF (Número de Identificación Fiscal). This is essential to:

• Start business activities

• Sign notarial documents

• Open a bank account

• File tax returns

This step formally identifies the taxpayer to the Spanish tax authorities.

III. Choosing a Legal Structure: Freelancer vs. Limited Company

Expats must define the legal model for operating in Spain:

1. Self-Employed (Autónomo)

Involves registering as an individual with the tax authority (Form 036/037) and affiliating with Social Security (RETA). Best for solo professionals with moderate income and no employees.

• Pros: Fast setup, low initial cost

• Cons: Unlimited liability, limited tax optimization

2. Limited Liability Company (Sociedad Limitada – S.L.)

A formal process that includes:

• Securing a company name certificate (from the RMC)

• Signing incorporation deed before a notary

• Registering with the Mercantile Registry

• Obtaining provisional and final NIFs (Form 036)

If the shareholder-director holds ≥25% ownership, they must register with RETA as a corporate self-employed.

• Pros: Limited liability, better professional image, improved tax planning

• Cons: Higher maintenance costs, accounting and reporting obligations

IV. Spanish Social Security Registration

Anyone operating regularly in Spain must be registered with Social Security. Key steps include:

• Getting a social security number (if not already assigned)

• Registering with the Special Regime for Self-Employed Workers (RETA) using Form TA.0521

• Paying monthly contributions based on chosen base and actual income

If working remotely from abroad and not a Spanish tax resident, exemption may apply — but must be evaluated on a case-by-case basis.

V. Contracts and Invoicing Requirements

Commercial transactions must be formalized with contracts that include:

• Applicable jurisdiction

• Service description and pricing

• Tax clauses and mutual obligations

Invoices must follow Spanish invoicing rules, including:

• Full fiscal ID of sender and receiver

• Tax base, applicable VAT, and breakdown

• Proper VAT location rules application

VI. Periodic Tax Obligations

Depending on your legal form, key tax filings include:

• VAT filings: Quarterly (Form 303) and annual (Form 390)

• Withholdings: Employment or rent (Forms 111, 115, 190)

• Corporate tax: Form 200 (for SLs)

• Informative returns: Form 349 (intra-EU), Form 232 (transfer pricing), Form 720 (foreign assets)

Bookkeeping must comply with Spain’s General Accounting Plan, and annual accounts must be filed with the Mercantile Registry.

VII. Tax Planning and Risk Management

A robust structure must include economic substance and local coherence. Spanish authorities may challenge artificial structures or treaty abuse.

Key risk areas to consider:

• Permanent establishment exposure

• Controlled Foreign Corporation (CFC) rules

• Anti-abuse regulations and GAAR application

Conclusion

Structuring an international business from Spain is not only feasible — it’s smart. But doing it right means understanding the law, planning ahead, and partnering with local experts.

At Business Expats, we guide expatriates and international entrepreneurs through every step — from company formation to compliance and long-term tax efficiency.

Start your Spanish business journey with confidence, clarity, and compliance. Contact us for a personalized consultation.

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