Obtaining a Residence Permit in Spain by Establishing a Company: Entrepreneur Visa and Innovative Business Project Requirements

Establishing a company in Spain offers significant opportunities for Turkish entrepreneurs who want to access the European Union market and develop their business activities with a European focus. Cities such as Madrid, Barcelona, ​​Valencia, Malaga, and Bilbao have growing entrepreneurial ecosystems in the fields of technology, tourism, renewable energy, financial technologies, health technologies, and digital services.

However, establishing a company in Spain and obtaining a residence permit in Spain are separate legal processes. A Turkish citizen establishing a limited liability company in Spain, becoming a partner, obtaining a tax identification number, or being appointed as a company director does not automatically grant them residency and work rights.

In Spain, individuals wishing to establish, develop, or manage a business while actually residing there must also possess a suitable residence permit under immigration law. If the project is innovative and has special economic value for Spain, an entrepreneur's residence permit application under Law No. 14/2013 may be applicable. If the business activity is traditional and local, a general self-employment permit may be more suitable.

Therefore, before a company is incorporated, its business model needs to be classified not only under commercial law but also under immigration law.

Does establishing a company in Spain grant residency rights?

Owning shares in a Spanish company, being a director of the company, or investing on behalf of the company does not, in itself, grant the right to reside in Spain. A citizen of a country outside the European Union can manage their company while residing outside Spain or appoint a representative for transactions in Spain.

However, if the individual intends to settle in Spain and personally manage the business, work with clients, provide services, or continuously perform activities within the company, they must have the appropriate residence and work status.

The Spanish entrepreneurship residence permit is open to foreigners who wish to enter Spain, as well as those already in Spain with a valid visa, stay or residence permit who wish to start, develop or manage an innovative economic activity. The permit is valid throughout the country and is initially granted for three years. (BOE)

In this system, the determining factor is not simply the establishment of a company. The project must be innovative, or of particular economic interest to Spain, and receive a positive assessment from ENISA.

What is the Spanish Entrepreneur Visa?

The Spanish entrepreneur visa or entrepreneur residence, known in Spanish legislation as “autorización de residencia para emprendedores”, is a special type of residence permit for foreign entrepreneurs who do not benefit from the European Union's free movement regime.

The legal basis for the program is Articles 69 and 70 of Law No. 14/2013 on the Support and Internationalization of Entrepreneurs. The system provides a fast and centralized application process for individuals who will initiate, develop, or manage an innovative or economically valuable activity in Spain.

Applications are evaluated electronically by the Unit for Large Companies and Strategic Groups (UGE). The novelty and economic value assessment of the business project is carried out by ENISA, Spain's state-owned innovation company (Ministry of Human Rights)

In the entrepreneur session, general foreign worker quotas or employment market tests regarding the availability of a suitable worker in the Spanish labor market are not applied. The focus of the application is not on a job offer, but on the entrepreneur's own project.

Is there a fixed investment or employment requirement?

In Spain, there is no fixed minimum investment amount stipulated by law for entrepreneur residency applications. Similarly, there is no general requirement that each applicant must employ a specific number of workers.

UGE's current statement clearly indicates that there are no minimum investment or employment requirements for this permit. However, this does not mean that every project without capital or a financing plan will be accepted. (Ministry of Human Rights)

The actual investment required to implement the project should be calculated according to the applicant's sector and business model. For example, a project based solely on software and consulting cannot be carried out with the same financial resources as a project requiring a production facility, laboratory, or physical logistics infrastructure.

ENISA examines whether the investment needs outlined in the business plan are realistic, where the financing will come from, and whether the applicant has the capacity to actually carry out the project. Therefore, although there is no legal minimum threshold, the financing required for the project must be demonstrated with concrete and reliable documentation.

What does an innovative business project mean?

The activity that can serve as the basis for an entrepreneurial residence permit in Spain must be innovative or of particular economic interest to Spain. Simply establishing a new company or replicating a business model previously implemented in Spain is not sufficient.

Innovation doesn't necessarily mean developing a product for the first time in the world. It may be sufficient for the product, service, production method, technological infrastructure, distribution model, or customer experience to differ significantly from existing solutions.

Technology, artificial intelligence, cybersecurity, biotechnology, health technologies, financial technologies, energy efficiency, sustainability, circular economy, advanced manufacturing, mobility, and scalable digital platforms are areas that can stand out in the evaluation of innovative projects. However, the mere fact that the sector is called technology is not sufficient. The project's real distinctiveness, technical competence, and commercial viability must be explained.

A traditional restaurant, real estate office, ordinary import-export company, small retail store, or general consulting firm is not eligible for an entrepreneur visa simply by establishing a company. Such activities must demonstrate innovative methods, original technology, a scalable structure, or tangible added value for the Spanish economy.

What criteria are examined in the ENISA assessment?

A positive report from ENISA is mandatory during the entrepreneur session. The applicant does not submit a separate immigration application to ENISA; they submit the technical project information through the ENISA system, and the necessary report is requested directly from the institutions during the UGE evaluation process.

The law outlines three main areas of assessment. First, the applicant's professional profile, experience, and level of participation in the project are examined. If there is more than one partner, not only the partner requesting the residence permit but also the roles and contributions of the other partners in the project are evaluated.

Secondly, the business plan is reviewed. The business plan should include a description of the product or service to be developed, the target customer group, market analysis, revenue model, investment needs, and financing sources.

Thirdly, the added value the project will bring to the Spanish economy, its elements of innovation, and new investment opportunities are evaluated. (BOE)

The scalability of the project is also important. The ability of the business model to grow independently of a single region and the entrepreneur's personal efforts, expand into different markets, utilize technology or intellectual property, and generate sustainable revenue can strengthen the application.

Why is the applicant's professional profile important?

A well-prepared business idea may not be considered sufficient if the applicant lacks the knowledge and experience to bring the project to life. The entrepreneur's educational background, previous work experience, managed projects, technical expertise, industry connections, and company management capacity are all evaluated together.

For example, an applicant in the health technology field might be expected to demonstrate experience in one of the following areas: healthcare, engineering, software, or product development. Similarly, in a financial technology project, experience in banking, finance, software, or regulatory compliance might be important.

The applicant's role as merely a passive investor in the project may not be compatible with the nature of the entrepreneurial residence permit. The law prioritizes the entrepreneur who will initiate, develop, or manage the activity. Therefore, in addition to the ownership percentage in the company, daily duties, decision-making authority, and the time to be dedicated to the project should also be explained.

What topics should be included in a business plan?

The business plan should not consist solely of general estimates of how much profit the project will generate. It should explain in detail what problem the project solves, how it differs from existing solutions, who the target customers are, and why Spain was chosen as the central country.

Market size, competitor analysis, pricing model, sales channels, marketing strategy, and initial three-year growth targets should be based on realistic data. The financial plan should show initial investment, monthly operating expenses, personnel costs, technology and licensing costs, projected sales, and cash flow.

If financing is to be provided through equity, co-investment, loan, venture capital, or another source, the feasibility of these sources must be documented. Simply having an abstract expectation that investors will be found in the future does not necessarily demonstrate the project's financial viability.

If there are trademarks, patents, software, utility models, domain names, or other intellectual property rights, it must be explained who owns them and how the Spanish company will be granted permission to use them.

General Application Requirements

The applicant must be at least 18 years old, not be in a disorderly situation in Spain, and must not have been convicted of any offence under Spanish law in any country where they have resided during the last two years. Furthermore, a statement of responsibility confirming a clean criminal record within the last five years must be submitted.

The applicant must have valid public or private health insurance in Spain, sufficient financial resources for themselves and their family, and pay the application fee. Applications may be refused, cancelled, or not renewed if deemed a threat to public order, public security, public health, or national security. (BOE)

If the sector in which the project will operate requires licensing, diploma recognition, professional association membership, or administrative permission, these conditions must also be met. An entrepreneur's residence permit does not grant the right to practice regulated professions without the necessary professional permits.

Application Process from Türkiye

The application process begins with the simultaneous preparation of technical and immigration documents. Information regarding the work project is submitted through ENISA's online system. Immigration documents such as passport, financial resources, health insurance, criminal record certificate, and application form are sent electronically to the IGE (Immigration and Naturalization Service).

UGE's official application instructions stipulate that applicants must first complete the project form via the "residence permit for entrepreneurs" option in the ENISA system, then pay fee number 790-038, and finally submit their immigration application through the electronic center.

For applicants located outside Spain, the law stipulates that the residence permit and visa processes are initiated and carried out sequentially with a single application. Once the residence permit is approved by the UGE (Spanish Federal Office for International Relations), the consular visa stage is completed. Individuals legally residing in Spain can apply for a residence permit directly through the UGE without leaving the country. (BOE)

Criminal records, population registers, and other public documents obtained from Türkiye must be apostilled and translated into Spanish by an authorized translator.

How long does it take for the application to be processed?

The ENISA report is legally required to be issued within 10 business days. For residence permit applications, the maximum decision period for the UGE (Universal Entrance Examination Board) is 20 days from the date of the electronic application.

If no decision is made within twenty days, the application is deemed accepted through administrative silence. An appeal to a higher administrative court is possible against a rejection decision. (BOE)

Visa applications are generally processed within 10 business days after a residence permit application has been approved. The actual processing time may be extended if a security check or additional document request is required. (BOE)

Residence Permit Duration and Renewal

The Spanish entrepreneur residence permit is initially issued for three years and is valid throughout the country. At the end of the three-year period, if the conditions that enabled the permit to be granted continue to exist, an application for a two-year renewal can be made.

During the renewal process, an assessment is made of whether the company has actually been established and is operational, whether the core objectives in the business plan have been implemented, whether the project retains its innovative and economic value characteristics, and whether the applicant's role in the operation continues.

Completely abandoning the initial project, a company remaining inactive for an extended period, or appearing to have been established solely for the purpose of obtaining residency may pose a risk to renewal. When a renewal application is submitted, the existing permit remains valid until a decision is made. A renewal application can also be submitted within 90 days of the permit's expiration; however, administrative penalties may be imposed for late submission. (BOE)

After five years of legal and uninterrupted residence, a long-term residence permit application can be considered. This takes into account not only the total duration of the entrepreneur card but also the actual period of residence in Spain and time spent abroad.

Can Family Members Obtain Residence Permits?

The entrepreneur's spouse or registered partner in a marital setting, minor children, economically dependent adult children who have not established their own family unit, and parents whom the entrepreneur is obligated to support may apply together or at a later date.

If family members' applications are submitted simultaneously with the main application, they will be considered together. For each family member, proof of family relationship, health insurance, and sufficient financial resources must be provided. (BOE)

The permission granted to family members is linked to the status of the main applicant. Marriage, birth, and dependency certificates must be prepared with an apostille and Spanish translation.

How to set up a company in Spain?

In Spain, one of the most common company types used by entrepreneurs is the "Sociedad de Responsabilidad Limitada" (SL) limited liability company. Single-shareholder companies can be established as SLUs (Single-Shareholder Companies).

In Spain, the legal minimum capital for a limited liability company is one Euro. However, special provisions apply, such as requiring at least 20% of annual profits to be allocated to a legal reserve until the capital reaches 3,000 Euros, and holding partners liable for the difference between the 3,000 Euros and the paid-in capital if the company's assets are insufficient to cover its debts during liquidation. (paeelectronico.es)

The fact that a company can be established with one Euro of capital does not mean that an entrepreneurial residence permit can also be obtained with a one Euro investment. In immigration applications, the actual capital and financing required for the project are assessed separately.

Generally, company formation requires obtaining an NIE number, determining the company name, preparing the articles of association, establishing capital, completing the incorporation process before a notary, obtaining a tax identification number, and registering the company with the Commercial Registry. Incorporation and some commencement of operations can be carried out electronically through CIRCE and the Single Electronic Document System (ipyme.org)

Depending on the type of activity, additional procedures may be required, such as a municipal business license, environmental permit, health permit, tourism registration, or professional qualification certificate.

The Difference Between the Entrepreneurial Session and the Freelance Session

Not every company project is eligible for an entrepreneurial residence permit. Individuals opening a traditional business on a local scale or engaging in a self-employment activity without an element of innovation may need to apply for a general self-employment residence permit.

In a general work permit application, the sustainability of the activity, the necessary licenses and professional qualifications, the adequacy of the investment, and the sources of livelihood are examined. The initial permit is valid for one year and may be limited to a specific autonomous region and sector of activity. (Ministry of Human Rights)

The entrepreneurship session focuses on innovative projects or those of particular economic interest to Spain; it is a three-year, nationwide program that undergoes rapid evaluation via the UGE-ENISA system.

The choice between these two paths should be made based on the true nature of the project, not on which application seems easier.

Common Mistakes Made in Applications

The most common mistake is assuming that a residence permit is automatically granted when a company is established in Spain. Company formation is a commercial law process, while an entrepreneurial residence permit is an immigration process based on novelty and economic value assessment.

Submitting an unfunded or unrealistic project on the grounds that it does not meet the legal minimum investment requirement also increases the risk of rejection. The absence of a fixed investment threshold does not mean that the expenses in the business plan do not need to be financed.

Projects unrelated to the applicant's professional background, generic market research, unexplained revenue estimates, and the copying of a business model from another country without adapting it to Spain could weaken the case.

The fact that the company is only established on paper before the application, and does not have a real work area, customer plan, financing, or technical team, can also make it difficult to obtain a positive ENISA report.

Conclusion

Establishing a company in Spain will not, by 2026, automatically grant a visa or residence permit. Turkish citizens wishing to manage their company from Spain and reside in the country must obtain an entrepreneur's residence permit or another work permit appropriate to the nature of their project.

There is no fixed minimum investment or number of employees required for the entrepreneur session. However, the project must be innovative or have special economic value for Spain, be based on a realistic business and financing plan, and receive a positive report from ENISA.

A successful application requires a comprehensive explanation of the entrepreneur's professional profile, active role in the project, uniqueness of the product or service, market potential, scalability, investment needs, and the added value to be provided to the Spanish economy.

The initial residence permit is granted for three years and can be renewed for another two years if the conditions are maintained. Family members can also apply for a residence permit under the same system, provided they meet the necessary conditions.

The success of the process depends on the harmonious execution of company registration, ENISA technical file, UGE residence permit application, consular visa, tax planning, and sectoral licensing procedures.