Investing in Spain

Spain, with its growing economy and business-friendly environment, has become an attractive destination for entrepreneurs. If you are thinking of creating a company here, follow these steps:

• Choice of the type of company: The most common forms are the Sociedad Limitada (SL) and the Sociedad Anónima (SA). The first requires a minimum capital of €3,000 and is suitable for small companies. The SA, with a minimum capital of €60,000, is suitable for large businesses.

• Reserve the company name: Before registering your company, you must make sure that the desired name is available.

• Opening a bank account: This is necessary to deposit the company’s capital stock.

• Commercial Registry: Once you have completed the above steps, you must register your company at the Commercial Registry of your province.

• Obtaining the CIF (Tax Identification Code): This is an essential step for the company to be able to operate.

• Social Security registration: If you are going to have employees, it is necessary to register your company with the Social Security.

• Documentation required: DNI for residents and NIE for non-residents, proof of address, and in some cases, documentation justifying the origin of the funds.

• Choose the type of account: There are personal accounts, savings accounts, business accounts, among others. Consider the associated fees and services offered.

• Online or in-person application: Many banks in Spain allow online account opening, but it may be beneficial to visit a branch and speak to a representative.

The investor visa, also known as “Golden Visa”, allows non-EU citizens to reside in Spain if they make a significant investment.

• Requirements: Invest at least €500,000 in real estate, €2 million in government bonds or €1 million in stocks or bank deposits.

• Documentation: Passport, criminal record certificate, medical insurance, and documentation certifying the investment.

• Research and due diligence: Before buying, it is essential to thoroughly investigate the company, its financial situation, clients, contracts, etc.

• Negotiation: Once decided, the price and conditions are negotiated.

• Legal formalities: It is advisable to have a lawyer specialized in mergers and acquisitions to advise you on the process and ensure that all legal requirements are met.

The Spanish real estate market has proven to be resilient and offers opportunities for both investors seeking rental returns and those interested in capital appreciation.

• Study the market: Depending on the region, the type of property and its location, profitability may vary.

• Property search: It can be done on your own or through a real estate agency.

• Financing: It is common for investors to seek financing for their investments. Banks in Spain offer mortgages with varying conditions.

• Property management: Consider whether you will manage the property directly or hire a company to do so.