Money
SL or Autónomo in Spain? When a Company Makes Sense
A sociedad limitada is Spain’s standard limited company. Here’s how it compares with being autónomo, and how to set one up.
By
How to Live in Spain
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2 min read
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Many people start out as autónomos and set up an SL later. A sociedad limitada limits your personal liability and can save tax once profits are higher, but it costs more to run, with bookkeeping, quarterly returns and annual accounts.
The setup steps
Every shareholder and director needs an NIE. Reserve the company name with a certificate from the Central Mercantile Registry, suggesting several options. Write the bylaws covering the activity, capital, shares and management, then open a bank account and deposit the capital. Since 2022 the minimum is €1, although companies with less than €3,000 must set aside extra profits.
Notary, NIF and registration
All founders sign the deeds before a notary, or send someone with power of attorney. File form 036 for a provisional NIF, register the company at the Mercantile Registry, then request the definitive NIF.
Tax and social security
The general corporate tax rate is 25%, and new companies usually pay 15% in their first two profitable years. Directors who control the company usually join the self-employed social security scheme.
Follow every step with our starting a company checklist, or compare it with registering as autónomo.
An SL limits your personal liability
Minimum share capital is €1
Every partner and director needs an NIE
Corporate tax is 25%, often 15% at first
Controlling directors usually pay autónomo contributions
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