Guide for Expats in Spain: How to Start a Business and Work as a Freelancer Legally (2025)

Are you planning to live in Spain and start your own business? This guide is for you. We’ll walk you through how to legally become an entrepreneur as a foreigner, which visas you need, what taxes to pay, and which grants you can apply for.

Updated for 2025 | For entrepreneurs, freelancers, and digital nomads | Visas, taxes, and legal steps explained clearly

1. Can I start a business as an expat in Spain?

Yes. If you’re a non-EU citizen, you can legally start a business or work as a self-employed professional in Spain by applying for one of the following permits:

Entrepreneur Visa
For foreigners with an innovative or tech-based business project. The project must be positively evaluated by ENISA or the Ministry of Economy.

Self-Employed Status
If your business is not considered tech-innovative (e.g., consulting, hospitality, personal services…), you can register as self-employed with a residence and work permit.

2. Requirements to Start a Business in Spain as a Foreigner

Basic documentation and conditions:

• Viable business plan (Canvas model or full Business Plan)

• Proof of sufficient financial means

• NIE (Foreign Identification Number)

• Registration with the Spanish Tax Office and Social Security

• Compliance with tax and labor regulations

3. Steps to Register as Self-Employed

Once you have your visa and NIE:

1. Register with the Spanish Tax Agency (form 036 or 037)

2. Join the Social Security system (RETA)

3. File declaration of start of activity

4. Register in IAE (Economic Activities Tax)

5. (Optional) Register with a professional mutual insurance fund

Tip: Hiring a gestor (administrative advisor) can simplify these steps, especially if you’re not fluent in Spanish.

4. How Much Does It Cost to Be Self-Employed in Spain?

• Minimum monthly fee: approx. €320 in 2025

• Flat rate for new freelancers: €80/month for the first 12 months (extendable if income is low)

5. Taxes for Self-Employed Expats in Spain

As a freelancer, you must pay:

• Quarterly income tax (IRPF) – form 130

• Quarterly VAT (IVA) – form 303, if applicable

• Annual income tax return – form 100

• Annual VAT summary – form 390

Note: These forms and requirements may vary depending on the region (autonomous community).

6. Are There Grants or Support for Foreign Entrepreneurs?

Yes. There are public and private initiatives to support entrepreneurship:

• ENISA: public funding for tech startups

• Regional and local grants for self-employment

• EU Next Generation Funds

• Programs like ACELERA PYME, business incubators, local chambers of commerce

7. Which Legal Structure Should I Choose?

The SL (Sociedad Limitada) is the most common option for expats due to its flexibility and limited liability.

8. Do I Need a Lawyer or Accountant?

Not mandatory, but highly recommended — especially if you’re not fluent in the language or Spanish tax procedures. A gestor or lawyer can help:

• Speed up registrations

• Optimize tax strategy

• Avoid penalties and mistakes

9. Can I Work for Other Countries from Spain?

Yes. You can legally work as a freelancer for international clients while living in Spain.

10. Spain’s Digital Nomad Visa (Since 2023)

Since 2023, Spain offers a Digital Nomad Visa, ideal for:

• Online freelancers

• Remote workers for foreign companies

Includes tax benefits (Startup Law), allows bringing family, and offers legal residence for up to 5 years.

Final Thoughts: Is It Viable to Start a Business as an Expat in Spain?

Absolutely. Spain offers a favorable legal and economic framework for foreign entrepreneurs, thanks to:

• Institutional support

• Extensive grant and funding networks

• Specialized visas for innovation and tech

• Entrepreneurial opportunities in tourism, consulting, food, and digital sectors