Starting your company in Spain as a Latin American — without the mistakes made by those who came before you

Latin American entrepreneurs in Spain face obstacles that general accounting firms do not know how to resolve: incorporating an SL without prior residency, setting up a holding structure for LATAM-Spain operations, banking KYC for accounts with transactions from Venezuela or Argentina, and the interaction between Spanish corporation tax and home-country taxation. Many end up with incorrect structures that generate tax or compliance problems down the line.

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Why BM Consulting

Specialised advice and personal service

BMC manages SL incorporation for Latin Americans, entrepreneur visa applications, business bank account opening and the design of LATAM-Spain holding structures — all from a single adviser with experience at the intersection of Spanish business law and Latin American legal systems.

  • A Sociedad Limitada (SL) can be formed in Spain with share capital from €1 (Ley 18/2022) in 5-10 working days, even without residency in Spain.

  • To actively operate the company, the Latin American needs a residence authorisation

    the entrepreneur visa (Ley 14/2013) is the most direct route and also enables the Beckham Regime.

  • Opening a business bank account for an SL with Latin American shareholders triggers bank KYC/AML processes — documentation must be prepared in advance and the right bank chosen.

  • Corporation Tax (IS) in Spain is 25% generally and 15% for new companies in their first two profitable years.

How we work

From first contact to case completion

  1. Optimal structure analysis

    We determine whether the most efficient option is a single-shareholder SL, a multi-partner SL, self-employment as an autónomo, or a holding structure with a Spanish SL linked to a company in the home country. This phase considers the type of activity, number of shareholders, cross-border tax position and financing needs.

  2. NIE and pre-registration documentation

    Each company shareholder needs an NIE (Foreigner ID Number) to incorporate the SL, even if they are not resident. We manage NIE procurement in Spain (police station) or at the Spanish consulate in the home country.

  3. SL incorporation

    We process the company name reservation at the Central Mercantile Registry, the notarial signing of the deed of incorporation, and registration with the provincial Mercantile Registry. The full process takes 5-10 working days without registry complications.

  4. Tax and social security registration

    We handle registration with the AEAT (Modelo 036), the managing director's autónomo registration (if applicable), the definitive company tax ID (NIF) and the relevant IAE business activity registrations. If the SL will have employees, we also register as an employer with Social Security.

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The problem

Latin American entrepreneurs in Spain face obstacles that general accounting firms do not know how to resolve: incorporating an SL without prior residency, setting up a holding structure for LATAM-Spain operations, banking KYC for accounts with transactions from Venezuela or Argentina, and the interaction between Spanish corporation tax and home-country taxation. Many end up with incorrect structures that generate tax or compliance problems down the line.

Our solution

BMC manages SL incorporation for Latin Americans, entrepreneur visa applications, business bank account opening and the design of LATAM-Spain holding structures — all from a single adviser with experience at the intersection of Spanish business law and Latin American legal systems.

Process

How we do it

1

Optimal structure analysis

We determine whether the most efficient option is a single-shareholder SL, a multi-partner SL, self-employment as an autónomo, or a holding structure with a Spanish SL linked to a company in the home country. This phase considers the type of activity, number of shareholders, cross-border tax position and financing needs.

2

NIE and pre-registration documentation

Each company shareholder needs an NIE (Foreigner ID Number) to incorporate the SL, even if they are not resident. We manage NIE procurement in Spain (police station) or at the Spanish consulate in the home country.

3

SL incorporation

We process the company name reservation at the Central Mercantile Registry, the notarial signing of the deed of incorporation, and registration with the provincial Mercantile Registry. The full process takes 5-10 working days without registry complications.

4

Tax and social security registration

We handle registration with the AEAT (Modelo 036), the managing director's autónomo registration (if applicable), the definitive company tax ID (NIF) and the relevant IAE business activity registrations. If the SL will have employees, we also register as an employer with Social Security.

5

Bank account opening and AML management

We advise on bank selection and prepare the KYC documentation package: full company documentation, beneficial owner identification, source of capital and business activity description. For Latin American shareholders from certain countries, we anticipate the bank's AML questions.

€1
Minimum share capital to form an SL in Spain (Ley 18/2022)
5-10 days
SL incorporation timeline in Spain (electronic process)
15%
Corporation tax rate for new companies in first 2 profitable years
25%
General Corporation Tax rate in Spain

I arrived from Medellín with my logistics app project and needed a Spanish company to access European investors. BMC incorporated the SL in one week, guided me on the entrepreneur visa and helped me open the Santander account without issues. We now have the first European investor on board.

D.V. CEO, logistics startup, Medellín → Madrid, 2024

Download our guide

LATAM → Spain 2026 Guide (PDF, 32 pages)

Spain offers the Latin American entrepreneur a combination that is hard to find elsewhere in Europe: ease of incorporation (an SL can be operational within days, with share capital from €1), access to the EU single market, shared language and an established Latin American community that understands the local market. This guide covers the complete process of creating and operating a company in Spain for the Latin American entrepreneur.

This is the fourth part of BMC’s LATAM → Spain 2026 guide. For the overall overview, see the Latin Americans in Spain 2026 pillar guide.

Why Spain is the best European business platform for Latin Americans

The choice of Spain as a European business base is not merely cultural — it has structural foundations:

Access to the EU single market

A Spanish SL is a European company. Its products and services can circulate freely across the 27 EU countries without tariffs or technical barriers. For the Latin American who wants to sell to European businesses, a Spanish company is the trust credential that significantly smooths the commercial process.

The Spain-Latin America trade corridor is one of the most active in terms of bilateral direct investment. BBVA and Santander have presence on both continents; Ibero-American chambers of commerce facilitate business connections; and the ICEX (Spanish Institute of Foreign Trade) runs specific programmes for companies with Latin American investment.

The startup ecosystem and Ley 28/2022

The Ley 28/2022 de Startups created the concept of “emerging company” in Spain with specific tax advantages:

  • Reduced IS rate of 15% for the first 4 profitable years.
  • 50% Social Security contribution reduction for founders working in the company for the first 3 years.
  • Stock options with fiscal deferral until a liquidity event.
  • Reformed entrepreneur visa with express certification.

For Latin American startups wanting to establish their European headquarters in Spain, these incentives make Madrid and Barcelona highly competitive versus Lisbon, Berlin or Amsterdam.

Language as a genuine competitive advantage

For the Latin American, operating in Spanish in Spain is not just personal comfort — it is competitive advantage. The 600 million Spanish speakers worldwide are a market accessible from Spain in a natural way. A Spanish SL can serve as a platform for both the European market and the global Spanish-speaking market.

The Sociedad Limitada (SL): basic structure and incorporation process

Why the SL and not the SA

For most Latin American entrepreneurs, the Sociedad Limitada (SL) is the optimal legal form:

  • Minimum capital of €1 (since Ley 18/2022): extremely low entry barrier.
  • Limited liability: shareholders only risk their capital contribution, not personal assets.
  • Flexibility in shareholder agreements: articles of association can accommodate very diverse governance structures.
  • Incorporation without physical presence (via power of attorney): the Latin American shareholder does not need to be in Spain at the time of signing if they grant a notarised power to a representative.
  • Single-shareholder company: unipersonal SL is permitted (Arts. 12-17 LSC).

Step-by-step incorporation process

Step 1: Company name reservation Request name reservation from the Central Mercantile Registry (RMC) — valid for 6 months. The RMC verifies no identical or confusingly similar name exists. Processing time: 3 working days.

Step 2: NIE procurement for shareholders Each individual shareholder needs an NIE. Obtained at the Spanish consulate in the country of residence (process may take 2-4 weeks) or at a police station in Spain for those already in the country.

Step 3: Notarial deed of incorporation The deed of incorporation is signed before a Notary in Spain. Must include: company name, registered address, business purpose, share capital and shares, governing body and articles of association. If shareholders cannot be present, a notarised and apostilled power of attorney from the home country can be used.

Step 4: ITPyAJD tax filing SL incorporation has been exempt from the graduated ITPyAJD stamp duty since 2010, but the regional tax form (exemption) must still be filed.

Step 5: Mercantile Registry registration The deed is registered at the provincial Mercantile Registry for the registered address. Registration takes 5-7 working days. Registration is constitutive — the SL does not exist as a legal entity until this moment.

Step 6: Tax registration Once registered, the definitive company tax ID (CIF) is requested and Modelo 036 is filed with the AEAT, describing the economic activity and applicable tax obligations.

Total incorporation cost: typically €600-1,200 in notary fees and registry charges depending on the complexity of the articles.

Entrepreneur visa: the immigration route for the Latin American founder

Requirements

  • Business project with added value for the Spanish economy, evidenced by a favourable report from the DG of SME Policy (at the consulate) or from the DG of Migration (if already in Spain).
  • The project can be a company being incorporated or already formed.
  • The applicant must have qualifications or professional experience sufficient to execute the project.
  • No criminal record.
  • Health insurance.

Process and timelines

  • From the home country: 20 working days for the entrepreneur visa at the consulate once the favourable report is obtained.
  • From Spain: the DG of Migration or competent regional authority report is the key step; resolution in 1-2 months.
  • The favourable project report is the key document. BMC advises on preparing the business plan adapted to the evaluation criteria of the competent bodies.

Entrepreneur visa + Beckham Regime: the ideal combination

The entrepreneur visa enables applying for the Beckham Regime within 6 months of starting business activity in Spain. This combination provides:

  • Legal residency: the entrepreneur visa is the residence authorisation.
  • 24% flat tax rate: rather than 25% IS rate on the founder’s personal income as managing director.
  • No tax on foreign-source income: dividends, interest and capital income from the home country are not taxed in Spain for 6 years.

LATAM-Spain holding structures: when and how

The Spanish SL as holding entity for Latin American stakes

A Spanish SL holding stakes in Latin American subsidiaries can benefit from:

  • Art. 21 LIS exemption: dividends received from subsidiaries with ≥5% stake and ≥1 year holding are IS-exempt, provided the subsidiary was taxed at a minimum 10% rate in its home country.
  • Capital gains exemption: sale of stakes in foreign subsidiaries may also be exempt under Art. 21 LIS.
  • Access to Spain’s DTT network: the Spanish SL can apply Spain’s DTTs with third countries to optimise dividend and royalty taxation.

Substance requirements for the Spanish holding

Spanish and EU tax authorities (ATAD Directive, BEPS rules) are very demanding about substance-less holdings: a Spanish SL that only holds stakes but has no employees, active directors or genuine management activity in Spain can be considered an “artificial structure” and denied the Art. 21 LIS benefits and DTT access.

Minimum recommended substance:

  • At least one director or manager tax-resident in Spain.
  • Employees or consultants performing real management services to subsidiaries.
  • Active bank account with genuine transaction flows.
  • Real registered address (not merely a letterbox).

The Spain-Argentina corridor: the most frequent structure

For the Argentine entrepreneur with a Buenos Aires company wanting to establish a European presence:

  1. Argentine company as the operating entity for the Latin American business.
  2. Spanish SL as the European head entity and invoicing vehicle for European clients.
  3. Intra-group services: the Spanish SL charges management, technology or marketing fees to the Argentine company (transfer pricing regulated by the Spain-Argentina DTT and Art. 18 LIS).

This structure requires careful transfer pricing planning and must be documented with formal intra-group agreements.

Opening a business bank account: the most underestimated practical obstacle

Opening a business bank account in Spain for an SL with Latin American shareholders is, in practice, one of the most complicated steps in the process, due to banks’ KYC/AML obligations.

What the bank requires

  • Deed of incorporation registered at the Mercantile Registry.
  • CIF (company tax ID).
  • NIE and passport of all directors and shareholders with ≥25% stake (beneficial owners).
  • Beneficial ownership declaration: document identifying the natural persons who ultimately own or control the company.
  • Business description: nature of the activity, typical clients, countries operated in, expected transaction volumes.
  • Source of funds: documentation of where the capital contributed to the SL comes from.

Countries with greater banking scrutiny

For shareholders from certain Latin American countries, the AML process is more intensive:

  • Venezuela: given the political and economic situation, Venezuelan shareholders receive closer KYC scrutiny. Source of funds must be exhaustively documented.
  • Ecuador, Bolivia, Nicaragua: some banks may request additional documentation.
  • Argentina, Colombia, Mexico, Chile: standard KYC process, similar to European shareholders.

Alternatives for getting started

While the traditional bank account application is being processed (which can take weeks or months), the following alternatives allow immediate operation:

  • Wise Business: business account in euros for Spanish SLs, fully digital onboarding, no physical branches. Excellent for early-stage startups.
  • Revolut Business: similar to Wise, with physical and virtual cards.
  • BBVA / CaixaBank: the banks with greatest experience with Latin American clients. BBVA’s presence across Latin America facilitates the KYC verification of Latin American shareholders.

The autónomo as an alternative to the SL

For the Latin American with individual professional activity (freelancer, consultant, designer, developer), registering as self-employed (autónomo) may be simpler than forming an SL, especially in the early years of activity.

Advantages of autónomo over SL

  • Lower formation cost: only RETA registration and tax registration.
  • Fewer accounting obligations: sole traders are not required to maintain formal accounting records.
  • Flat-rate initial contribution: new autónomos with no prior activity pay only €80/month during the first year.
  • Simplicity of closure: deregistering as an autónomo is far simpler than liquidating an SL.

When autónomo + Beckham is optimal

For the Latin American digital nomad with high income from foreign clients, the autónomo + Beckham Regime combination is very efficient:

  • Register as autónomo in Spain.
  • Apply for Beckham Regime within the first 6 months.
  • Invoices to foreign clients: foreign-source income that under Beckham is NOT taxed in Spain.
  • Only Spanish-client income (if any) is taxed at 24%.

Ongoing compliance: what doesn’t end at incorporation

Incorporating the SL is only the beginning. Ongoing obligations include:

  • Annual Corporation Tax: Modelo 200 filed in July each year.
  • Quarterly VAT: Modelo 303 in January, April, July and October.
  • Monthly or quarterly withholding returns: Modelo 111 (employees and professionals) and 123 (dividends and interest).
  • Annual accounts: deposited at the Mercantile Registry by 30 July.
  • Beneficial ownership declaration: updated at the Mercantile Registry as required.
  • Minutes book: record of company and board resolutions.

BMC provides ongoing tax and accounting advisory for Latin American-owned SLs in Spain, coordinating all these obligations and continuously optimising the tax position.

For the full first-year tax guide for Latin American residents: Tax for Latin American New Residents in Spain 2026.

Regulatory references:

FAQ

Frequently asked questions

Yes. A Sociedad Limitada in Spain can be formed by any individual or legal entity regardless of nationality or residency. What is needed is an NIE (Número de Identificación de Extranjero), which can be obtained as a non-resident at the Spanish consulate in the home country or at a police station in Spain if visiting. However, to actively operate the company as a manager, the Latin American will need a residency and work authorisation. The entrepreneur visa (Ley 14/2013) is the most suitable route for those who will actively manage the company.
Since the reform of Ley 18/2022 (Crea y Crece), the minimum share capital for an SL in Spain is €1 (previously €3,000). However, SLs with capital below €3,000 are required to allocate 20% of profits to a legal reserve until that figure is reached. In practice, most incorporations use €3,000 or more to avoid operational restrictions and to facilitate bank account opening.
A Spanish SL is subject to Corporation Tax (Impuesto sobre Sociedades, IS). In the first two years with positive taxable income, the rate is 15% (new companies, Art. 29.1 LIS). From the third profitable year onwards, the general rate is 25%. Companies qualifying as 'emerging companies' under Ley 28/2022 de Startups are taxed at 15% for the first 4 profitable years. There are also specific fiscal incentives such as the R&D deduction (Art. 35 LIS) that can significantly reduce the effective tax burden.
Sales of goods or services to companies established outside the EU (including Latin American countries) are generally VAT-exempt as exports or services rendered to non-EU-established entities (Arts. 20 and 69 LIVA). The Spanish SL can invoice without VAT to its Latin American clients. However, the SL does bear Spanish input VAT on its Spanish purchases and can recover it in the quarterly VAT return (Modelo 303). For services, the localisation rules of Art. 69 LIVA must be analysed case by case.
Yes, and it is a common structure for Latin Americans with operations in multiple countries. A Spanish SL as holding entity for stakes in Latin American subsidiaries can benefit from the Art. 21 LIS exemption on dividends and capital gains from subsidiaries with ≥5% participation and ≥1 year holding period, provided the Latin American subsidiary has been taxed at a minimum rate of 10% in its home country. The exemption also has specific anti-abuse clauses for low-tax jurisdictions. A genuine holding structure requires real substance in Spain.
Opening a business bank account for an SL with Latin American shareholders or directors triggers the bank's KYC/AML process, which can be document-intensive. Banks with the most experience with Latin American clients include BBVA, Santander and CaixaBank for traditional banking, and Wise Business or Revolut Business as fintech alternatives with more agile digital KYC for startups. Banks will typically request: incorporation deed, director appointment minutes, CIF, ID documents for all beneficial owners, and documentation on the source of capital and nature of the business. For Latin Americans from certain countries (Venezuela especially), the process may take longer and require additional source-of-funds documentation.
The managing director of an SL who receives remuneration for their role is obliged to register as a self-employed person (autónomo societario) under the Special Regime for Self-Employed Workers (RETA) if they hold a direct or indirect stake of 25% or more in the company. The autónomo societario monthly contribution in 2026 varies with declared income (minimum base set annually by ministerial resolution; confirm the current contribution base with the TGSS or a qualified labour specialist). The autónomo societario does not have access to the flat-rate €80/month that individual autónomos receive in their first year. An alternative is for the SL to employ the Latin American shareholder as a regular employee — if they hold less than 25% — though this has its own fiscal implications.
Ley 10/2010 on prevention of money laundering (AML) imposes obligations on regulated entities operating in Spain: notaries, law firms, accounting firms, financial institutions and certain companies. Firms with shareholders or business activity linked to certain Latin American countries (especially Venezuela and Ecuador, which have featured on FATF higher-risk jurisdiction lists) may receive greater scrutiny during bank account opening and for cross-border transactions. The key is to document correctly the origin of funds, have well-drafted service contracts, and maintain a transparent company structure with beneficial owner declaration at the Mercantile Registry.

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Frequently asked questions

Questions about Setting Up a Company in Spain as a Latin American 2026: SL, Autónomo and LATAM-Europe Holding

Yes. A Sociedad Limitada in Spain can be formed by any individual or legal entity regardless of nationality or residency. What is needed is an NIE (Número de Identificación de Extranjero), which can be obtained as a non-resident at the Spanish consulate in the home country or at a police station in Spain if visiting. However, to actively operate the company as a manager, the Latin American will need a residency and work authorisation. The entrepreneur visa (Ley 14/2013) is the most suitable route for those who will actively manage the company.
Since the reform of Ley 18/2022 (Crea y Crece), the minimum share capital for an SL in Spain is €1 (previously €3,000). However, SLs with capital below €3,000 are required to allocate 20% of profits to a legal reserve until that figure is reached. In practice, most incorporations use €3,000 or more to avoid operational restrictions and to facilitate bank account opening.
A Spanish SL is subject to Corporation Tax (Impuesto sobre Sociedades, IS). In the first two years with positive taxable income, the rate is 15% (new companies, Art. 29.1 LIS). From the third profitable year onwards, the general rate is 25%. Companies qualifying as 'emerging companies' under Ley 28/2022 de Startups are taxed at 15% for the first 4 profitable years. There are also specific fiscal incentives such as the R&D deduction (Art. 35 LIS) that can significantly reduce the effective tax burden.
Sales of goods or services to companies established outside the EU (including Latin American countries) are generally VAT-exempt as exports or services rendered to non-EU-established entities (Arts. 20 and 69 LIVA). The Spanish SL can invoice without VAT to its Latin American clients. However, the SL does bear Spanish input VAT on its Spanish purchases and can recover it in the quarterly VAT return (Modelo 303). For services, the localisation rules of Art. 69 LIVA must be analysed case by case.
Yes, and it is a common structure for Latin Americans with operations in multiple countries. A Spanish SL as holding entity for stakes in Latin American subsidiaries can benefit from the Art. 21 LIS exemption on dividends and capital gains from subsidiaries with ≥5% participation and ≥1 year holding period, provided the Latin American subsidiary has been taxed at a minimum rate of 10% in its home country. The exemption also has specific anti-abuse clauses for low-tax jurisdictions. A genuine holding structure requires real substance in Spain.
Opening a business bank account for an SL with Latin American shareholders or directors triggers the bank's KYC/AML process, which can be document-intensive. Banks with the most experience with Latin American clients include BBVA, Santander and CaixaBank for traditional banking, and Wise Business or Revolut Business as fintech alternatives with more agile digital KYC for startups. Banks will typically request: incorporation deed, director appointment minutes, CIF, ID documents for all beneficial owners, and documentation on the source of capital and nature of the business. For Latin Americans from certain countries (Venezuela especially), the process may take longer and require additional source-of-funds documentation.
The managing director of an SL who receives remuneration for their role is obliged to register as a self-employed person (autónomo societario) under the Special Regime for Self-Employed Workers (RETA) if they hold a direct or indirect stake of 25% or more in the company. The autónomo societario monthly contribution in 2026 varies with declared income (minimum base set annually by ministerial resolution; confirm the current contribution base with the TGSS or a qualified labour specialist). The autónomo societario does not have access to the flat-rate €80/month that individual autónomos receive in their first year. An alternative is for the SL to employ the Latin American shareholder as a regular employee — if they hold less than 25% — though this has its own fiscal implications.
Ley 10/2010 on prevention of money laundering (AML) imposes obligations on regulated entities operating in Spain: notaries, law firms, accounting firms, financial institutions and certain companies. Firms with shareholders or business activity linked to certain Latin American countries (especially Venezuela and Ecuador, which have featured on FATF higher-risk jurisdiction lists) may receive greater scrutiny during bank account opening and for cross-border transactions. The key is to document correctly the origin of funds, have well-drafted service contracts, and maintain a transparent company structure with beneficial owner declaration at the Mercantile Registry.

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