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Doing business in Spain: 5 key areas for investors before market entry

December 4, 2025
Accace - Doing business in Spain

When doing business in Spain, companies enter a diverse and resilient economy built on strong industries such as tourism, food production, textiles, technology, banking and energy. Spain continues to channel investment toward high-growth areas including renewable energies, healthcare, telecommunications and advanced technology, creating opportunities for businesses looking to expand in one of Europe’s largest and most interconnected markets.

Spain’s regulatory framework provides clear procedures for company formation, corporate and VAT obligations and various national and regional taxes. Employment rules define structured contract types and transparent requirements for both EU and non-EU workers, while organisations and individuals operate within a well-established personal tax and social security system that applies across multiple income and activity categories.

Together, these strengths make Spain a compelling choice for companies seeking long-term growth and stability within the European Union. This infographic highlights the key considerations to review before entering or expanding on the Spanish market.

Compare Spain to 16 other markets in our FULL EXPANSION guide

Our free eBook on international expansion was created in cooperation with our global business community, Accace Circle, providing basic yet valuable information from 17 countries. Breeze through the specifics of doing business across different markets and compare key data that may be crucial for your ambitions of international expansion.


Industries & investment incentives

Most common industries:

  • Tourism
  • Food
  • Textile
  • Technology
  • Banking
  • Energy

Industries favoured by investment incentives:

  • Technology
  • Renewable energies
  • Health
  • Telecommunications

Company formation in Spain

Most common legal form of business: Limited Liability Company

Required no. of shareholders: at least 2

Required no. of directors: at least 1

Incorporation time
5 days to 2 weeks

%
Incorporation fee
EUR 150 – 2,000

%

Corporate tax

Standard rate
25%

%
Reduced rate
15%*

%

*Reduced rate applies for newly created companies

Who are tax residents: companies that have been incorporated in accordance with Spanish law or have registered office in Spain and/or their ‘effective’ head office is in Spain

Tax period: Usually calendar year

Due date for CIT return: within 25 calendar days following the six months subsequent to the end of the tax year

Standard rate
21%

%
Reduced rate
4% or 10%

%

VAT registration: Spain does not have a VAT registration threshold so both resident and non-resident taxpayers must register for VAT in the country before making taxable supplies.

Other applicable taxes:

  • Excise tax related to economic activities such as alcohol or hydrocarbons
  • Energy tax on the value of electric power production (Impuesto sobre el valor de la producción eléctrica)
  • Property tax (Impuesto sobre los Bienes Inmuebles – IBI)
  • Road tax on Mechanical Traction Vehicles (Impuesto sobre Vehículos de Tracción Mecánica – IVTM)
  • Real estate tax, there isa transfer tax that includes the selling of any real state property (Impuesto sobre las Transmisiones Patrimoniales – ITP)
  • Local or regional income tax, the amount paid is not the same in all autonomous communities
  • Wealth tax (Impuesto sobre el Patrimonio – IP)

In Spain, there are also environmental taxes such as the tax on the production and storage of nuclear fuel and radioactive waste; tax on the value of gas, oil and condensates extraction; tax on fluorinated greenhouse gases; and tax on the production of electricity.


Labour law and employment

Who is entitled to work in Spain:

  • Anyone from EU member countries
  • For non-EU member countries anyone with residence and work authorisation

Types of employment contract:

  • Indefinite or permanent contracts
  • Temporary contracts (limited to strictly defined circumstances)
  • Training and apprenticeship contracts
  • Internship or work experience contracts

Personal income tax

Standard rate
19 – 47%*

%

*19% for income up to EUR 12,450, 24% for income between EUR 12,450 and EUR 20,200, 30% for income between EUR 20,200 and EUR 35,200, 37% for income between EUR 35,200 and EUR 60,000, 45% for income between EUR 60,000 and EUR 300,000, 47% for income above EUR 300,000

Who are tax residents:  Individuals who spend more than 183 days in Spain during a calendar year in Spanish territory, or have their main economic activity or interest in Spain

Tax period: calendar year

Due date for PIT return: June 30 of the following fiscal year

Taxable incomes in Spain: income earned from employment, self-employment, rental properties, capital gains, and savings

Social security contributions

Paid by employer
30.57%*

%
Paid by employee
6.48%**

%

*Plus a variable rate for occupational accidents, for instance 1.50% office work

** The maximum base for calculation is €4,909.50.  In 2025 an additional “solidarity contribution” has been introduced for higher salaries.

Health insurance contributions

Paid by employer
23.6%

%
Paid by employee
4.7%

%

How we can help with doing business in Spain

Doing business in Spain can be simple and rewarding with the right guidance. The Spanish market offers many possibilities and some distinct challenges, but with support from skilled professionals, you can handle local requirements confidently. Whether you are launching a new venture or aiming to expand your established company, our team of specialists in Spain is ready to help you develop business strategies that fit your needs.

We deliver a full range of advisory and BPO services in Spain to help you manage your tax, legal, and corporate responsibilities. Our experts also support your accounting, financial reporting, payroll, and HR activities to ensure everything is accurate and meets Spanish laws and standards.

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