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Limited Company in Spain (SL) - Everything You Need to Know

This guide walks you through Spain’s limited company, called an SL (short for Sociedad Limitada). Think of it as Spain’s version of an LLC. We cover name checks, tax forms, costs, and every strange acronym you will see on government sites.

Quick Q&A

What is a limited company (SL) in Spain?

An SL is a limited liability company. The company owes the business debts, not you personally. You need to put in €3,000 share capital and file annual accounts each year.

Highlights in plain terms

Mini number example

Profit Corporate tax (25 %) Net after corporate tax
€100,000 €25,000 €75,000

What is an LLC called in Spain?

The Spanish version of an LLC is the Sociedad Limitada (SL). You might also see SRL (same thing, different initials) or SLU if there is only one owner.

SL costs 2025

What Typical cost
Name certificate €22
Notary deed €500-€600
Mercantile Registry fee €100-€400
Legal or advisory fee €800-€1,200
Share capital €3,000 (stays in the company bank account)
Annual accounting starting from €1,200-€2,400
Payroll ~€20/emp

SL taxes 2025

Example:

Profit Corporate tax (25 %) Net after corporate tax
€100,000 €25,000 €75,000

After-tax cash (left in company) If paid as dividends
(withholding tax)
Cash you receive If kept in company
to reinvest
€75,000 €16,130 €58,870 €75,000

SL vs SLU: running solo

If you are the only owner, you can form an SLU (Sociedad Limitada Unipersonal). This is simply an SL with one shareholder. Same taxes, same liability. The only difference is that every public document must mention that you are the single owner.

Who can register a limited company in Spain?

In Spain, not everyone can set up a company. Any adult can legally form an SL, but you generally need a reason: protecting from business risks, hiring staff, or renting office space. Without one of these, staying autónomo is often your best option.

Can a foreigner own a company in Spain?

Yes. Foreigners can own 100 percent of an SL. Just secure an NIE (foreign ID number) or TIE (residency card). No extra taxes apply for non‑residents.

How to register a company in Spain

  1. Reserve your company name (certificación negativa).
  2. Open a company bank account, deposit the €3,000 capital, and keep the bank certificate.
  3. Draft the articles of association (statutes).
  4. Sign the deed before a notary.
  5. File the deed at the Mercantile Registry - your company is born when it’s recorded.
  6. Get the CIF (company tax ID) and register for VAT with Modelo 036.
  7. Enrol for social security as the company admin.

Want help setting up? renn can help you set up your company.

Name check and VAT registration for SL

  1. Reserve your company name: order a certificación negativa (negative certificate) from the Central Mercantile Registry website. This proves no one else is using the name.
  2. Register for VAT and the company census: file Modelo 036 with the Tax Agency. Tick the box for EU VAT (VIES) if you will sell to other EU countries.
  3. File VAT returns: send Modelo 303 every quarter and the summary Modelo 390 each January.

Spain has no VAT turnover threshold. You must register before your first sale.

Limited company vs autónomo: which saves more?

Autónomo is the Spanish incorporation of a self‑employed freelancer. You pay personal income tax that rises in bands up to 47 percent, plus a monthly social‑security fee (currently €230‑€550). An SL pays the flat 25 percent company tax, while you pay personal tax only on the salary and dividends you take out.

Rule of thumb

Why an SL can save on taxes

More about autonomo vs. SL.

Bottom line

Setting up a company in Spain is straightforward once you know the jargon. Open an SL when profit is heading past €50,000 or you just want limited liability.

Need the official rulebook? Spain’s public administration site has full details.

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