There are various ways to set up a company in Spain. The right legal form depends on the individual objectives and circumstances. This also applies to the question of whether or not to set up an S.L.U. as a self-employed person. We show you what you need to bear in mind with the Spanish S.L.U.
What is the Spanish S.L.U.?
This type of company in Spain is a one-person limited liability company. It is comparable to the German GmbH. However, in contrast to a “Sociedad de Responsabilidad Limitada” (S.L.), there is only one shareholder. This is reflected in the name “Sociedad de la responsabilidad limitada unipersonal”. Therefore, the addition S.L.U. to the company name.
What are the advantages of the S.L.U.?
As the Spanish equivalent of the German GmbH for sole shareholders, the shareholder’s liability is limited to the capital contribution. In addition, a different tax rate applies to the income than for a self-employed person or freelancer. This is because they have to apply their own income tax rate of up to 47% in Spain. In contrast, the Spanish S.L.U. is taxed at 15% to 25% at corporation level.
How do you set up an S.L.U. in Spain?
Just like the S.L., the corporation must be founded with notarization and entry in the commercial register. A minimum capital of EUR 3,000 must be paid in or contributed in kind. However, strict checks are carried out to determine whether the shareholder is authorized to establish an S.L.U. at all. to found. If the founder provides all services himself and the company has neither personnel nor operating resources, the formation of an S.L.U. is not necessary. not permitted. In this case, the activity is usually registered as a self-employed person or sole proprietorship “empresario individual/autónomo”.
We provide you with comprehensive advice on setting up a company in Spain, the right legal form and support you personally every step of the way. With our 30 years of experience in Spanish tax law, we take care of all the details for you.
