Open an ecommerce business in Spain: The Step-by-step guide

Establishing an ecommerce business in Spain offers a wealth of opportunities, thanks to Spain’s robust digital economy and a consumer base that’s increasingly inclined towards online shopping.

However, navigating the legal requirements, tax regulations and competitive Spanish landscape can feel overwhelming—especially if you're unfamiliar with the local market. Whether you're a local entrepreneur or an international business aiming to expand, understanding this vast and diverse ecommerce landscape is critical for success.

Our guide provides a comprehensive overview of the benefits, legal requirements, costs and actionable steps to help you launch your online business in Spain.

At the end, we’ll discover how Xolo can make your entry into an EU-based ecommerce business a breeze.

4 major benefits to setting up your ecommerce business in Spain

Spain's ecommerce sector has experienced significant growth, with internet sales surpassing €50 billion in recent years. This growth trend continues to suggest a sizable market for startups.

Several key factors make Spain a strong market for ecommerce businesses:

• High internet penetration – Over 90% of the Spanish population has internet access, with an ever-increasing adoption of online shoppers.
• Mobile-first market – Spain has one of the highest rates of smartphone usage in Europe, meaning many consumers browse and shop using their phones.
• Government support for digitalization – Initiatives to boost the digital economy have made it easier for online businesses to thrive.
• Cross-border potential – Spain is part of the EU, making it easier to expand to other European markets once established.

On the surface, it’s easy to see why so many have admired Spain’s potential for housing their ecommerce businesses. Spain’s growing market of digital nomads and online shoppers has gone from trend to established powerhouse.

In-demand ecommerce markets in Spain: Research is key

Understanding consumer preferences is vital for positioning your e-commerce business effectively. In Spain, popular online purchase categories include clothing, footwear, consumer electronics, media products, and food and beverages. Identifying and targeting these high-demand niches can enhance your business's success in the Spanish market.

In 2024, Statista discovered that clothing and shoes reigned supreme across Spanish ecommerce sales. In fact, these two categories amounted to more than half of all sales made online.

Market research isn’t just knowing what products are in demand—it’s about identifying where you fit in.

• Is your product filling a market gap?
• How saturated is the niche you're targeting?
• What pain points are you addressing, and your competitors not?

Carefully analyzing these factors will help you position your brand and develop a marketing strategy that resonates with consumers across Spain and the EU.

Discovery through research is a great way to identify how your products may fit in specific markets. Ecommerce allows for international reach, so your dependency on localised sales isn’t always necessary. It is, however, important to always consider how you’ll pay taxes and where, as well as setting up a VAT number in the EU. 

Legal requirements to opening an ecommerce business in Spain

Before you go gung-ho into making an online platform, you’ll want to ensure you’re able to meet and keep Spain’s regulations. Failure to do so can result in fines and operational disruptions, ultimately causing even the best idea to fall flat on its face.

Spain’s bureaucratic red tape is being cut slowly, but some processes may have a bit more friction than others. Regardless, localized companies like Xolo provide assistance from company registration and on into annual reporting. If you’re feeling stuck, don’t sweat it alone––go with a trusted platform designed to see you succeed.

A few simple points to remember before you begin:

1. Register Your Business

Whether you’re looking at being a sole proprietorship (autónomo) or a limited liability company (Sociedad Limitada), you’ll need to consider when to register your business.

2. Obtain a Tax Identification Number (NIF)

A Tax Identification Number is required for tax reporting and invoicing. Non-EU residents may also need a Foreigners Identification Number (NIE).

3. Register for VAT

Revenue thresholds generally stipulate when a business needs to register for VAT, but you’ll find plenty of helpful resources online to keep you compliant.

4. Ensure GDPR Compliance

The General Data Protection Regulation (GDPR) governs how businesses handle customer data. You must provide clear privacy policies, protect your customer’s data, and obtain consent for data usage.

5. Follow ecommerce and consumer protection laws

Spanish law requires that you comply with the Law of Information Society Services and Electronic Commerce (LSSI) and the General Law for the Defense of Consumers and Users to ensure fair treatment of customers and transparency in business practices.

Any business failing to comply with local laws may not see the light of day. Stay on top of your game, and consider letting Xolo be your partner in Spanish compliance.

Costs of starting an ecommerce business in Spain

Registering your business in Spain can be quite affordable, but the costs of launching an ecommerce business don’t stop at registry fees. Still, kicking off your ecommerce shop in Spain may start with a simple:

• €100-300 for registration
• Upwards of €3000 in starting share capital for an LLC
• A base corporate tax rate of 25% (with exceptions for some smaller companies)

Starting an e-commerce business involves various costs, including those aforementioned business registration fees. However, you’re likely to rack-up expenses for using ecommerce platforms like Shopify or WooCommerce, initial investments in digital marketing strategies, costs related to sourcing or manufacturing products, and expenses for delivering products to customers, including partnerships with logistics providers. 

Understanding these costs is essential for effective financial planning and ensuring the sustainability of your ecommerce venture. A bit of research before you get the ball rolling with help you go far, and ensure you stand out above the competition.

7 steps to starting your ecommerce business in Spain

Hey! You made it. Starting a business is often the easiest part when building a brand in the EU. It’s the administrative and growth hustle that follows that may just wear someone out. 

You can get a headstart on fighting burnout, ditching unnecessary stress and making pivotal decisions before the last second arrives. Whether you go it alone, partner up with Xolo and leave some of that worry on our doorstep, or find another solution that fits your needs, there’s some clear steps any business should consider.

Let’s embark on the start of your Spanish ecommerce journey:

1. Conduct market research 

Identify your target audience and analyze competitors to understand market demands and opportunities.

2. Choose a business structure

Decide on the legal form of your business, such as a sole proprietorship (autónomo) or a limited liability company (Sociedad Limitada).

3. Register your business

Complete any necessary registrations with Spanish authorities, including obtaining a Tax Identification Number (NIF).

4. Develop your online store

Select an ecommerce platform that suits your needs, design a user-friendly website, and set up secure payment gateways.

5. Implement clear marketing strategies

Utilize digital marketing techniques such as SEO, social media marketing, and email campaigns to attract and retain customers.

6. Ensure you’re legal compliance

Adhere to all legal requirements in Spain, including ecommerce laws, data protection regulations and consumer rights.

7. Launch and monitor your new ecommerce business 🎉

Officially launch your online store, monitor performance metrics, and make necessary adjustments to optimize operations.

Ready to see how you can get the ultimate head start before Day 1?

Simplify your ecommerce journey with Xolo

Navigating the complexities of establishing an e-commerce business in Spain can be challenging. Xolo offers tailored solutions to handle your administrative tasks, tackle compliance issues (before they happen), and provide peace-of-mind through secure financial management.

We want you to focus on your business. 

Partner with Xolo to streamline your entrepreneurial journey and ensure your ecommerce venture thrives in today’s exciting Spanish market.