Starting a business in Valencia, Spain 2026 - SL & Autonomo
Whether you need a Spanish SL (limited company) or want to register as autonomo (self-employed), we guide you through company formation in Spain from start to finish.
Start a Business in Valencia: Your Two Main Options
Most expats setting up a business in Spain choose between two structures: Autonomo (sole trader/self-employed) or Sociedad Limitada (SL) - Spain's equivalent of a limited company. The right choice depends on your income level, liability appetite, and business plans.
Registering as Autonomo
Registering as an autonomo is the simplest and fastest route: it takes 1 to 3 days.
The steps to register:
- Register your activity with the Agencia Tributaria using Modelo 036 or 037.
- Register with Social Security under the RETA scheme.
- You can start invoicing.
The big saving is in year one: new autonomos pay a flat Tarifa Plana of 80 EUR per month to Social Security for the first 12 months in 2026. After that, contributions follow your real net income, starting around 200 EUR per month and rising with each bracket.
You issue facturas with 21% IVA and apply a 15% IRPF withholding on invoices to Spanish companies, reduced to 7% for your first three years.
You are personally liable for business debts. It is the best option for freelancers, consultants and sole traders.
Forming a Sociedad Limitada (SL)
An SL gives you limited liability, a more professional corporate image, and potentially lower effective tax rates above a certain income level.
Minimum share capital is 1 EUR, cut from 3,000 EUR by the Crea y Crece law (Ley 18/2022) with effect from 19 October 2022, which also repealed the old SL de Formacion Sucesiva regime.
Two rules still bite while capital stays below 3,000 EUR: 20% of annual profit must go to the legal reserve, and if the company is wound up owing money the shareholders cover the shortfall up to 3,000 EUR.
The steps to set one up:
- Notary deed.
- Registration with the Registro Mercantil.
- Registration with the AEAT (tax agency).
- Registration with Social Security.
Expedited, formation takes 5 to 10 business days. Budget roughly 1,500 to 2,500 EUR for the formation itself (notary around 500-800 EUR, Registro Mercantil 150-300 EUR, and gestoria fees on top), separate from the share capital.
These are the corporate tax rates, which is why most small companies never pay the standard 25%:
| Situation | Rate |
|---|---|
| Standard rate | 25% |
| New company (first two profitable years) | 15% |
| Micro-company (turnover under 1 million EUR) | 19% on the first 50,000 EUR and 21% above |
| Turnover of 1 to 10 million EUR | 23% |
IVA is 21% with quarterly declarations, and annual accounting is mandatory. An SL also makes it easier to bring in investors or partners later.
Company Formation Spain: What We Handle
- Autonomo registration with AEAT and Social Security - usually same day
- SL formation: notary coordination, Mercantile Registry, bank account opening, AEAT registration
- Quarterly and annual tax filing setup (Modelo 303, 200, 390)
- Invoicing and accounting system introduction (Holded, Contasimple)
- Coordination with our network of certified Spanish accountants (gestores)
- VAT (IVA) registration and quarterly returns
Combining business formation with the Beckham Law
Digital Nomad Visa holders who register as autonomo can combine this with the Beckham Law special tax regime, a flat 24% on Spanish-source income up to 600,000 EUR per year, instead of the standard progressive IRPF scale that climbs to 53.85%.
To qualify you must not have been a Spanish tax resident in the previous five years, and you must apply within six months of registering with Social Security. The regime lasts up to six years, your arrival year plus the five that follow.
This combination makes Valencia one of the most attractive bases for international entrepreneurs in Europe.
Start a Business in Valencia: The Local Ecosystem
Valencia is Spain's third city and has a growing startup and tech ecosystem, supported by Marina de Empresas (one of Spain's leading startup hubs), the Las Naves innovation center, and a university system producing strong technical talent.
Operating costs are significantly lower than Madrid or Barcelona. For entrepreneurs and remote business owners, it represents exceptional value.
If your new business needs custom software, Globaprom builds internal tools and multilingual apps for SMBs.
Company Formation in Spain: Questions Founders Ask
Autonomo or SL - which is cheaper in year one?
An SL costs roughly 1,500 to 2,500 EUR in formation fees, on top of whatever share capital you choose to put in, which has had no 3,000 EUR floor since 2022. The maths only turns in the SL's favour once profits, liability exposure or outside investors enter the picture.
How long does registering an SL in Valencia take?
Delays almost always come from one place: a missing NIE for a foreign shareholder or director. Get the numbers first and the rest moves quickly.
Can I combine an SL with the Beckham Law?
Being the controlling shareholder-director of your own Spanish SL can complicate eligibility, which is exactly why this question belongs before you incorporate rather than after.
Do I need a Spanish resident director for an SL?
What is the minimum share capital for a Spanish SL?
What tax will my new Spanish company pay?
Annual accounts must be filed with the Registro Mercantil. It is not optional, and late filing blocks the company's registry entry. See our tax guide for expats for how this interacts with your personal position.
Resident in Valencia since 2016. Founder of BeTranslated. 25+ years in translation, interpretation and multilingual SEO.
Reviewed 4 September 2026 by Michael Bastin