Starting a Business in Valencia, Spain 2026 - SL & Autonomo
Whether you need a Spanish SL (limited company) or want to register as autonomo (self-employed), we guide you through company formation in Spain from start to finish.
Your two main options
Most expats setting up a business in Spain choose between two structures: Autonomo (sole trader/self-employed) or Sociedad Limitada (SL) - Spain's equivalent of a limited company. The right choice depends on your income level, liability appetite, and business plans.
Registering as Autonomo
Autonomo is the simplest and fastest route. Registration takes 1-3 days: you register your activity with the Agencia Tributaria using Modelo 036 or 037, then register with Social Security under the RETA scheme, and you can start invoicing. The big saving is in year one - new autonomos pay a flat Tarifa Plana of 80 EUR per month to Social Security for the first 12 months in 2026. After that, contributions follow your real net income, starting around 200 EUR per month and rising with each bracket. You issue facturas with 21 percent IVA and apply a 15 percent IRPF withholding on invoices to Spanish companies, reduced to 7 percent for your first three years. You are personally liable for business debts. Best for freelancers, consultants and sole traders.
Forming a Sociedad Limitada (SL)
An SL gives you limited liability, a more professional corporate image, and potentially lower effective tax rates at higher income levels. Minimum share capital is 3,000 EUR, though the SL de Formacion Sucesiva regime lets you start with as little as 1 EUR. The steps: notary deed, registration with the Registro Mercantil, AEAT registration, and Social Security. Expedited, formation takes 5 to 10 business days. Budget roughly 1,500 to 2,500 EUR for the formation itself (notary around 500-800 EUR, Registro Mercantil 150-300 EUR, and gestoria fees on top), separate from the share capital. The corporate tax rate is 25 percent standard, but just 15 percent for a new company in its first two profitable years. IVA is 21 percent with quarterly declarations, and annual accounting is mandatory. An SL also makes it easier to bring in investors or partners later.
What we handle
- Autonomo registration with AEAT and Social Security - usually same day
- SL formation: notary coordination, Mercantile Registry, bank account opening, AEAT registration
- Quarterly and annual tax filing setup (Modelo 303, 200, 390)
- Invoicing and accounting system introduction (Holded, Contasimple)
- Coordination with our network of certified Spanish accountants (gestores)
- VAT (IVA) registration and quarterly returns
Combining business formation with the Beckham Law
Digital Nomad Visa holders who register as autonomo can combine this with the Beckham Law special tax regime, a flat 24 percent on Spanish-source income up to 600,000 EUR per year, instead of the standard progressive IRPF scale that climbs to 47 percent. To qualify you must not have been a Spanish tax resident in the previous five years, and you must apply within six months of registering with Social Security. The regime lasts up to six years - your arrival year plus the five that follow. This combination makes Valencia one of the most attractive bases for international entrepreneurs in Europe.
Valencia's business ecosystem
Valencia is Spain's third city and has a growing startup and tech ecosystem, supported by Marina de Empresas (one of Spain's leading startup hubs), the Las Naves innovation center, and a university system producing strong technical talent. Operating costs are significantly lower than Madrid or Barcelona. For entrepreneurs and remote business owners, it represents exceptional value.