Expanding to Spain is appealing for UAE entrepreneurs, but understanding the costs involved is essential for effective planning. While Spain offers a cost-competitive environment compared with many other EU countries, setting up a Sociedad Limitada (SL) still involves several mandatory and optional expenses.
1. Company Registration Fees
To reserve a company name and register the SL with the Spanish Mercantile Registry, there are official government fees. These vary depending on the services used and whether local agents assist with the process.
2. Notary and Legal Costs
Spain requires notarised signing of incorporation documents (Estatutos Sociales). Notary fees are based on document complexity and value. Many UAE founders use a Power of Attorney (PoA) to avoid travel, which may include legal and translation costs.
3. Minimum Share Capital
The legal minimum capital for an SL is just €1, but most entrepreneurs deposit €3,000 or more to gain credibility with banks and partners. This amount must be placed in a Spanish corporate bank account before incorporation.
4. Banking and Compliance Costs
Opening a Spanish business bank account may involve account opening fees, international compliance checks, and documentation costs. Non-EU residents face stricter due diligence, so preparing documentation in advance is important.
5. Professional Service Fees
Accountants, lawyers, and consultancies help with tax registration, NIE numbers, accounting setup, and ongoing compliance. These professional fees vary based on scope and expertise.
6. VAT and Tax Registration
There is no cost to register for VAT (IVA), but tax filings, annual accounts, and payroll reporting require accounting support.
