Setting up a Spanish SL company: a guide for Danes

Many Danes live in Spain either full-time or part-time. If you want to run a business there, the Sociedad Limitada (SL) is the most common company structure.

Requirements for an SL

• NIE number (foreigner identification number) for all owners and directors.
• A company name certificate from the Central Commercial Registry.
• Incorporation before a notary.
• Minimum share capital: since 2022, just €1, but profits must be allocated to a reserve until the capital reaches €3,000.
• Registration with the Registro Mercantil (Commercial Registry) and the tax authority (CIF).

Tax

The corporate income tax rate is generally 25%, with a reduced rate for newly established companies in their first profitable years. VAT (IVA) is normally 21%.

Common pitfalls

• The process involves extensive paperwork — allow several weeks.
• Opening a bank account may require an in-person visit.
• If you live in Denmark but own an SL, you need to consider the CFC rules and the company's place of effective management.

Frequently asked questions

How long does it take?

Typically 3–6 weeks, depending on the NIE number and notary arrangements.

Can I set up a company without travelling to Spain?

Often yes, through a power of attorney — but this will usually need an apostille.

Is an SL a good choice if I live in Denmark?

Rarely. It makes the most sense when either the business activity or you yourself are based in Spain.

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