Setting up a business in Spain as a way to obtain a residence permit
The conditions for non-EU foreign nationals who wish to set up a business in Spain and obtain a residence permit which includes permission to carry on an activity on their own account are a guarantee of the business owner’s solvency and the legality and viability of the business.
A residence permit for Spain (which also allows free movement within the Schengen area) can be obtained by setting up a business. The legislation aims to prevent potential fraud by ensuring that the applicant for the residence permit with permission to carry on an activity on their own account is not planning to establish a dummy company, and that the business will generate jobs and contribute to the nation’s prosperity.
How can it be proved that the business has sufficient funds with which to implement the planned investment? How high is the expected return on the investment? How many jobs will be created? Here, an opinion should be sought from a business association registered in Spain or an association for self-employed workers and freelancers. The application for a residence permit with permission to carry on an activity on one’s own account, together with additional proof of the legality and viability of the business, must be submitted to the Spanish consulate in the respective country in which the applicant usually resides. Only once the office approves the application will a visa be issued for travel to Spain and the establishment of a business. For this reason, the process is usually undertaken in collaboration with Spanish partners, who will work on the setting-up of the business until a residence permit has been issued.
Carlos Prieto Cid
Tarracoiuris Abogados, Spanish Lawyers in Tarragona, Spain
Member of Eurojuris España, international network of Spanish Law Firms
