How To Launch A Startup In Barcelona

Barcelona. The name alone will send you into a daydream spiral of golden Mediterranean beaches, lively Spanish tapas bars and late-night strolls down Las Ramblas. Largely known as a tourist hotspot, this city is actually gaining a lot of traction as an exciting startup destination.

So if you have been dreaming of starting your own business in a city that has forward-thinking energy and a great work-life balance, Barcelona may just be your perfect match.

 

Why Start A Business In Barcelona?

 

Recently, in the last decade or so, Barcelona has shifted from just a summer tourist location to a serious player in the global startup scene. In fact, it sits alongside London, Berlin and Amsterdam as one of the top 10 startup cities in Europe. So what makes it such an attractive destination for new ventures?

Lifestyle: You simply can’t beat the lifestyle in Barcelona. The weather is great, the landscapes are breathtaking and there is a big emphasis on maintaining a balanced lifestyle between work and play.

English-friendly: Spanish and Catalan are the official languages however the startup scene is very international and English is widely spoken in these circles.

Good location: In the heart of Europe, businesses can trade with neighbouring countries or even expand to North Africa.

Startup support: There are plenty of networking events and co-working spaces with a tight-knit community of entrepreneurs and investors, specifically in the tech space.

 

Industries With High-Growth Potential

 

Sure, you could start almost any business in Barcelona if you have the right idea and mindset. However, these industries have really taken off and are showing no signs of slowing down.

Tech and SaaS: Software innovation is thriving especially in B2B platforms and software-as-a-service (SaaS).

Tourism: Barcelona is one of the most-visited cities in Europe, bringing in thousands of tourists every year. Startups in hospitality, travel and tourist activities are in great demand.

Creative industries: The city is known for its artistic history, giving rise to businesses in design, digital media and fashion.

Healthtech: Barcelona has a big medical research and biotechnology sector with some of the top hospitals keen to work with startups.

 

Incubator And Accelerator Programmes

 

Joining an incubator or accelerator programme early on in your venture can help you meet the right people and make the right connections, especially in your industry. Fortunately, Barcelona has a range of programmes on offer that are definitely worth looking into.

Tech Barcelona: A non-profit that aims to connect startup founders with investors.

Connector: An accelerator with a focus on tech-based and highly scalable startups. This programme is known for its strong community of mentors and venture capitalists.

SeedRocket: This is one of Spain’s top accelerators particularly for tech ventures who can get access to investors and mentors.

Barcelona Activa: An agency that provides workshops, incubation and business support.

 

Funding Opportunities For Startups

 

Acquiring funding can be one of the biggest hurdles faced by early-stage startups. However, the number of options available in Barcelona are steadily increasing.

VC firms: Some of the most notable venture capital firms include Nauta Capital and Inveready.

Angel investors:  There is a strong network of angel investors who can be accessed through accelerator connections.

Crowdfunding: To raise funds from the public, Barcelona has platforms like Kickstarter and Crowdcube.

 

 

Visa And Residency Requirements For Foreign Entrepreneurs

 

If you are not an EU resident, there are several pathways that you could take for starting a business in Barcelona.

Startup Visa: This is designed for non-EU residents and will require a business plan approved by ENISA, a government agency. Additionally, you will need to provide proof of finances and health insurance.

Self-Employed Visa: Ideal for freelancers or solo entrepreneurs. To obtain this, you will need to register as self-employed and present a solid business plan.

Digital Nomad Visa: This was recently introduced and enables remote workers to live and work in Spain for up to 5 years. This is great if your business isn’t based in Spain but you still want to physically be there.

 

How To Start A Business In Barcelona

 

Here is a simplified step-by-step guide on how you can legally start a business in Barcelona.

 

Select A Legal Structure

 

One option is to register as Autónomo which is a sole proprietor. This is the best option for freelancers or solo entrepreneurs. Most startups tend to choose a Sociedad Limitada which is the equivalent to a Limited Liability Company (LLC).

 

Register The Business

 

The next step is to register your company name and the business with the Mercantile Registry. You will also be issued with your CIF which is your tax ID.

 

Open A business Bank Account

 

You can then open a corporate bank account at any local bank where you will deposit your share capital if relevant and manage your company’s finances.

 

Register For Tax And Social Security

 

For tax purposes, you can register with the Spanish Tax Agency. And if you plan on hiring local employees to work for you, then you will also need to apply for social security.

 

Should You Launch A Startup In Barcelona?

 

If you’re looking for a business location that combines lifestyle, culture and startup friendliness, Barcelona is pretty hard to beat. Not only is it more affordable than other capitals around Europe, but it has an entrepreneurial spirit like no other to give new entrepreneurs a boost of confidence.

Plenty of potential lies in healthtech, hospitality and technology. Add in the sunshine, leisurely walks on the beach and some tapas and you could see why more founders are choosing this spot for their startups.