Two founders signing incorporation papers at a table by an arched window overlooking a Valencia street

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.

SLSpanish limited company

AutonomoSelf-employed route

3,000 EURMin. SL capital

5-10 daysTypical SL formation

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

Autonomo is the simplest and fastest route. Registration takes 1-3 days: you register your activity with the Agencia Tributaria using Modelo 036 or 037, then register with Social Security under the RETA scheme, and 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 percent IVA and apply a 15 percent IRPF withholding on invoices to Spanish companies, reduced to 7 percent for your first three years. You are personally liable for business debts. Best 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 at higher income levels. Minimum share capital is 3,000 EUR, though the SL de Formacion Sucesiva regime lets you start with as little as 1 EUR. The steps: notary deed, registration with the Registro Mercantil, AEAT registration, and 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. The corporate tax rate is 25 percent standard, but just 15 percent for a new company in its first two profitable years. IVA is 21 percent 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 percent on Spanish-source income up to 600,000 EUR per year, instead of the standard progressive IRPF scale that climbs to 47 percent. 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?

Autonomo is almost always cheaper to start. Registration takes 1 to 3 days and new autonomos pay the Tarifa Plana of 80 EUR per month to Social Security for the first 12 months in 2026.

An SL costs roughly 1,500 to 2,500 EUR in formation fees on top of the 3,000 EUR share capital. 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?

Expect 5 to 10 business days on a clean file: name reservation at the Registro Mercantil Central, notary deed, share capital deposited at the bank, Mercantile Registry inscription, then AEAT and Social Security registration.

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?

The Beckham Law applies to you as an individual, not to your company, so what matters is how you are engaged. It works most cleanly for employees hired or posted in Spain and for Digital Nomad Visa holders.

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?

No. A Spanish SL can be owned and directed entirely by non-residents, and there is no nationality or residency requirement for shareholders or administrators. What every one of them does need is a Spanish tax number: a NIE for individuals, a NIF for a foreign corporate shareholder. Non-resident directors should also check the social security position attached to the role.

What is the minimum share capital for a Spanish SL?

3,000 EUR is the standard minimum, and it stays your money: it goes into the company account and can be spent on the business afterwards. The SL de Formacion Sucesiva regime lets you incorporate with as little as 1 EUR, but it imposes reserve and profit-distribution restrictions until you reach 3,000 EUR. Founders paying real invoices from day one usually just fund the full amount.

What tax will my new Spanish company pay?

Corporate tax is 25 percent as standard, reduced to 15 percent for a newly created company in its first two profitable years. IVA is 21 percent with quarterly declarations (Modelo 303) and an annual summary (Modelo 390).

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.

Michael BastinFounder, ValenciaMove

Resident in Valencia since 2016. Founder of BeTranslated. 25+ years in translation, interpretation and multilingual SEO.

Reviewed 24 July 2026 by Michael Bastin