Acquiring residency to set up a business in Spain is an option for foreign entrepreneurs who wish to establish themselves in the country and develop a business project. This type of residency is one of the authorisations provided for in Law 14/2013 on Support for Entrepreneurs and their Internationalisation, known as the Entrepreneurs Law, which aims to attract talent and investment and promote job creation.
Below is a description of the steps and requirements necessary to obtain residency in order to set up a business in Spain:
1. WHO CAN APPLY FOR A RESIDENCE PERMIT FOR SETTING UP A BUSINESS?
Foreign entrepreneurs who are not citizens of the European Union may apply for this permit:
- Have a business project of general interest to the Spanish economy.
- Want to develop an innovative activity that generates employment and wealth.
- Want to set up a new company in Spain or transfer an existing company to Spanish territory.
This authorisation is intended for those who can prove that the business project is viable and will have a positive impact on the country’s economy.
2. REQUIREMENTS FOR APPLYING FOR A RESIDENCE PERMIT TO SET UP A BUSINESS IN SPAIN
The entrepreneur must meet a series of basic requirements in order for the application to be approved. These requirements are divided into general requirements and requirements specific to the business project.
a) General requirements for applying for residence to set up a business in Spain
- Not be a citizen of the European Union.
- Not be in an irregular situation in Spain at the time of application.
- Not have a criminal record in Spain or in the countries where they have resided in the last five years.
- Have sufficient financial resources to support themselves and their family in Spain.
- Have public or private health insurance valid in Spain.
- Pay the relevant administrative fees for the residence permit application.
b) Business project requirements to apply for a residence permit to set up a business in Spain
The business project must have certain characteristics in order to be considered of general interest. These are the criteria that will be evaluated:
- Innovation: The project must be innovative and have a detailed business plan justifying it. Innovation may relate to new products, services, processes or business models.
- Employment impact: The ability of the project to create jobs in Spain will be assessed. Job creation forecasts will be a key factor in the evaluation.
- Economic impact: The project must have a significant impact on the local economy, either by attracting investment, increasing exports, improving productivity or boosting strategic sectors.
- Technical and commercial feasibility: The applicant must submit a robust business plan demonstrating the economic and technical feasibility of the project. This plan must include detailed information on objectives, financial structure, investment required and market analysis.
3. DOCUMENTS REQUIRED TO APPLY FOR BUSINESS RESIDENCE IN SPAIN
In order to apply for a residence permit for setting up a business, the entrepreneur must submit the following documents:
- Duly completed application form.
- Valid passport and copies of all relevant pages.
- Private health insurance with full coverage in Spain.
- Proof of sufficient financial resources: Bank statements, proof of income or proof of assets.
- Criminal record certificate issued by the countries where the applicant has resided during the last five years.
- Detailed business plan: This document must include the business model, market analysis, financial analysis, income forecast, investment required and number of jobs to be created.
- A favourable report issued by the General Directorate of International Trade and Investment of the Ministry of Industry, Trade and Tourism. This report evaluates the business project and determines whether it is of general interest to Spain.
4. SUBMITTING THE APPLICATION FOR RESIDENCE TO SET UP A BUSINESS IN SPAIN
Once all the documents have been compiled, the application for a residence permit to set up a business can be submitted in one of two ways:
- From the country of origin: If the applicant is not yet in Spain, he/she can submit the application to the Spanish consulate in his/her country of residence. Once the permit is approved, a residence visa must be applied for.
- From Spain: If the applicant is already in Spain legally (e.g. with a short-stay visa), he/she can apply for the authorisation directly to the Unit for Large Companies and Strategic Collectives (UGE-CE), which is part of the Ministry of Social Integration, Social Security and Migration.
5. DURATION AND VALIDITY OF THE RESIDENCE PERMIT FOR SETTING UP A BUSINESS IN SPAIN
The administration has 20 days to resolve the application. If no reply is received within this period, the application will be deemed to have been approved by positive administrative silence.
Once granted, the initial authorisation is valid for two years and may be renewed if the business continues to operate and meet the requirements. Renewal will be for a further period of two years.
6. ADVANTAGES OF THE RESIDENCE PERMIT FOR SETTING UP A BUSINESS IN SPAIN
This type of residence has several advantages for entrepreneurs:
- Speed of processing: As it is a preferential procedure, it is processed more quickly than other residence permits.
- Family reunification: The entrepreneur can apply for a residence permit for his/her spouse and minor children, who will be able to live and work in Spain.
- Mobility: During the validity of the permit, the holder can move freely within the Schengen area without the need for additional visas.
- Residence and work: In addition to residing in Spain, the entrepreneur may work in his/her own business or in other work activities without the need for additional permits.
7. RENEWAL OF RESIDENCE PERMIT FOR SETTING UP A BUSINESS IN SPAIN
In order to renew the residence permit for setting up a business, the applicant must prove that the business project is in progress and that it has met the expectations described in the original business plan. The main requirements for renewal are:
- Maintenance of the business: The business must be operational and meet employment and profitability targets.
- Compliance with tax and employment obligations: The entrepreneur must be up to date with tax and social security obligations.
- Sufficient financial resources: He must continue to have sufficient resources to support himself and his family.
8. CONCLUSION
Residence in Spain for the purpose of setting up a business is an excellent option for foreign entrepreneurs who wish to establish themselves in the country and develop an innovative project. Not only does it provide access to the European market, but it also contributes to economic growth and job creation in Spain. The key to success in this process is having a viable project and complying with the legal requirements that will allow you to obtain a residence permit with benefits for the applicant and their family.
At Quikprokuo we can help you with all the steps required to obtain a residence permit to start a business in Spain, please contact us here.
