Business funding and startup law
You can compare funding routes and know the Spanish programmes and traps.
This Topic helps you fund a company in Spain. It covers your own money, bank credit, public loans, grants, investors and Spain's startup law. It also explains the choice between putting money in as capital or as a loan, and how to give employees shares or options.
Pick the article that fits your situation
Ways to fund a new company in Spain
A map of the five main ways to fund a new Spanish company: bank loans, public loans, grants, equity investors and guarantee societies. It is for founders who want to see the options and the main national programmes before choosing one.
Public loans from ENISA, CDTI and the ICO
Explains who can get public financing from ENISA, CDTI and the ICO, what each one lends and on what terms. It is for founders of a Spanish company who want funding beyond a bank loan or their own savings.
Bank credit for a new limited company and personal guarantees
What banks usually ask of a newly created limited company, why they often want the founders to guarantee the loan personally, and how a guarantee society can reduce or replace that guarantee. For founders of a new SL seeking bank credit.
Grants and regional support for new businesses
How to find grants and regional support for a new business in Spain, when to apply, who qualifies and how payment works. For founders who want subsidies without losing money to timing mistakes.
Spain's Startup Law: who qualifies and what you get
Explains which companies Spain treats as certified startups, how to get the status through ENISA, and what tax and other benefits follow. For founders and investors setting up or running a young innovative company with a Spanish base.
Raising investor money into a Spanish company
How an SL or SA can take in investor money: capital increases, convertible loans and, for an SA only, bonds. It covers the steps, the costs and the investor tax break, for founders raising a first round.
Funding your company with capital or a shareholder loan
Helps owners of a Spanish SL decide whether to put money in as share capital or as a shareholder loan. It compares how each form affects the loss-based dissolution test, tax, and your position if the company becomes insolvent.
Offering shares or options to employees
How to give employees shares or options in a Spanish company, how that equity is taxed, and which exemptions certified startups can use. For founders and managers designing an equity plan.
About this topic
It is for anyone considering, planning or carrying out a move to Spain who wants to start a company there. Use it to compare funding routes, see which Spanish programmes exist and spot the traps that affect control, risk and your personal exposure. Business bank accounts and personal credit are not covered here.
Start with "Ways to fund a new company in Spain". It sets the routes side by side, so you can pick the ones worth a closer look. From there, go to the article for each route: public loans, bank credit and personal guarantees, grants, the startup law, investor rounds, capital versus a shareholder loan, and employee equity.
Key rules
- Startup tax rate: Certified startups pay corporate income tax at 15% instead of 25% in the first profitable year and the following three years.
- Minimum capital: An SL needs at least 3,000 euros of share capital, fully subscribed and paid in at incorporation.
- Losses and dissolution: An SL must dissolve or recapitalise if losses bring net equity below half of share capital, and the administrators must call a general meeting within two months of knowing.
- Startup age limit: A company qualifies as a startup if it was incorporated less than 5 years ago, or less than 7 years ago in biotech, energy, industrial and similar strategic sectors, and its turnover is below €10 million.
- ICO lines: You borrow from a bank, not from ICO itself, when you use an ICO line.
- SGR: A guarantee society backs your loan to the bank. It does not lend you money.
Business funding and startup law: the whole process, step by step
From first idea to funded company
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Compare your funding routes (Ways to fund a new company in Spain): Before you start spending or applying
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Decide between share capital and a shareholder loan (Funding your company with capital or a shareholder loan): Before you incorporate, since an SL needs at least 3,000 euros of share capital, fully subscribed and paid in at incorporation
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Apply for any grant before you start the project or investment (Grants and regional support for new businesses): Before you start spending; most calls do not cover costs incurred before the application, and windows last from days to a few months
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Apply for an ENISA, CDTI or ICO loan (Public loans from ENISA, CDTI and the ICO): When a call is open; the Emprendedores line is for companies under 24 months old, and Neotec is for companies under 36 months old. ICO loans go through a commercial bank
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Ask a bank or guarantee society for credit (Bank credit for a new limited company and personal guarantees): Once the company exists and you have a plan to show
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Apply for startup certification (Spain's Startup Law: who qualifies and what you get): While the company is less than 5 years old, or less than 7 years old in biotech, energy, industrial and similar strategic sectors; the report is due within three months of applying
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Raise investor money (Raising investor money into a Spanish company): When your plan is ready; do this after the capital and loan choices are settled
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Offer shares or options to employees (Offering shares or options to employees): Once the company and any investor round are in place
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Act on losses that cut net equity below half of share capital (Funding your company with capital or a shareholder loan): Call a general meeting within two months of knowing
Documents you may need
Identity and residence
- Identity documents of every shareholder — Bank credit for a new limited company and personal guarantees
Income and work
- Deed of incorporation of the company — Bank credit for a new limited company and personal guarantees
- CIF, the company's tax number — Bank credit for a new limited company and personal guarantees
- Modelo 600 tax return — Raising investor money into a Spanish company
The home and the lease
- Convertible loan contract with the conversion terms — Raising investor money into a Spanish company
Other documents
- Business plan with forecasts — Bank credit for a new limited company and personal guarantees
- CIRBE report for each founder — Bank credit for a new limited company and personal guarantees
- Minutes of the general meeting — Raising investor money into a Spanish company
- Bank certificate showing the cash for the new participaciones has been paid — Raising investor money into a Spanish company
- Public deed — Raising investor money into a Spanish company
- Evidence of your track record in the sector — Bank credit for a new limited company and personal guarantees
- Valuation of the asset — Raising investor money into a Spanish company
Business funding and startup law: questions that cross several articles
Which public funding programmes can a new company use?
A new company can normally use ENISA participative loans, CDTI instruments such as Neotec and PID, ICO lines through banks, and guarantee societies. Whether each is open depends on the current call and budget. Read Public loans from ENISA, CDTI and the ICO, then Bank credit for a new limited company and personal guarantees.
Do ENISA loans need collateral or personal guarantees?
No, ENISA loans need no collateral or personal guarantees, but you must match the loan with your own funds. The loan is subordinated to bank debt, so it can help you get bank credit later. See Public loans from ENISA, CDTI and the ICO and Funding your company with capital or a shareholder loan.
Can I borrow directly from the ICO?
No, the ICO does not lend directly to most businesses; you apply to a commercial bank, which approves the loan under an ICO line. See Public loans from ENISA, CDTI and the ICO.
Does my company's age affect which funding I can get?
Yes, age matters because each programme has its own limit: ENISA Emprendedores is for companies under 24 months old, and Neotec is for companies under 36 months old. Startup certification has its own age limit. Read Public loans from ENISA, CDTI and the ICO and Spain's Startup Law: who qualifies and what you get.
Loan amounts, rates and which lines are open change by call, so confirm current terms with ENISA, CDTI or your bank.
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