A guide for moving your startup to Valencia.

      When founders envision starting a business beneath the Mediterranean sun, Barcelona and Madrid typically come to mind. However, an increasing number of entrepreneurs are focusing on Valencia, a city that is cultivating a lively, supportive startup ecosystem.

      It's not solely about the year-round sunshine (though having 300 days of it is a plus). It’s about the progress being made. Valencia’s startup environment is collaborative, cost-effective, and becoming more international. It is large enough to benefit from rapid growth—showing a 15.45% increase in the number of startups from 2023 to 2024—while still maintaining a community feel that makes it easy for newcomers to network and form connections.

      Valencia is also aiming for significant expansion of its ecosystem in the coming years. In 2024, the Invest in València Program, focused on drawing in foreign investments and entrepreneurs, created over 1,500 new jobs and had an economic impact of €149 million over two years. Additionally, to enhance its support for early-stage startups, the Valencia City Council raised seed funding by 50%, totaling €600,000.

      The Mediterranean city has become a hub for startups in various sectors including AI, Big Data, climate tech, mobility, logistics, healthtech, and gaming. With a strong talent pool from universities, substantial links to established industries such as shipping and food production, and regional government backing for R&D, Valencia is emerging as a launchpad for mission-driven, high-growth enterprises.

      Moreover, the city is introducing a new initiative, the Urban Innovation Sandbox, designed to give businesses, startups, and academic institutions spaces to test their innovations with simplified regulations. These 'sandboxes' will enable innovators to work in relevant or real-world conditions, speeding up product development and market entry.

      Advancements in connectivity will also facilitate this development. Following European funding, Valenciaport launched a €6 million 5G network project last year to provide secure connectivity for over 25,000 devices, including vehicles, sensors, and drones—advancing the port’s digital innovation initiatives.

      Notably, 34% of startups in Valencia feature a female co-founder, indicating a positive trend in female entrepreneurship that the ecosystem seeks to nurture as it expands. Furthermore, the city offers a relatively low cost of living, a strong talent pool from local universities, and a user-friendly regulatory environment.

      Whether you’re an EU founder in search of sun and growth or a non-EU entrepreneur looking for a smooth entry into the Schengen Zone, this guide outlines the steps to relocate your startup to Valencia—from administrative processes to integrating into the startup community.

      Practical guide to establishing your startup in Valencia

      EU Founders: Residency and paperwork

      For EU citizens, moving to Valencia is relatively simple. The primary administrative challenge is acquiring your NIE (Número de Identificación de Extranjero)—a personal tax identification number needed to open a bank account, sign rental agreements, and register your business. If you plan to stay longer than 90 days, you'll also need the EU Certificate of Registration.

      Choose the right structure

      Spain provides two main business types:

      - Autónomo (sole proprietorship): Best for freelancers or solo founders. Keep in mind the flat-rate social security contribution (around €300/month), which applies regardless of income.

      - Sociedad Limitada (SL): A limited liability company, preferred by most startups. Minimum capital required: €3,000.

      Tax and compliance

      New ventures benefit from a reduced corporate tax rate of 15% during their first two years of profit (the standard rate is 25%). The VAT (IVA) rate is set at 21%, and if you intend to hire staff, registration with Spanish social security is necessary.

      Visa pathways for non-EU founders

      For those relocating to Valencia from outside the EU, obtaining a residence permit is essential, but Spain offers startup-friendly options.

      - Entrepreneur Visa (Ley de Emprendedores)

      This visa caters to innovative businesses contributing to Spain's economy. Key requirements include:

       - A scalable business model with economic potential,

       - A solid business plan,

       - Proof of funding and health insurance,

       - A clean criminal record.

      

      You will first need to present your plan to the Spanish Economic and Commercial Office. After approval, apply for the visa at your local Spanish consulate.

      - Self-Employed Visa (Autónomo)

      This option is more fitting for freelancers or non-scalable ventures. It requires a viable business plan, qualifications, and proof of financial resources to support yourself.

      Health insurance

      Spain mandates private, comprehensive health insurance with no copayment for most visa applicants. Companies like Innoinsure specifically cater to startup founders and expats.

      Step-by-step: Establishing a business in Valencia

      Whether you’re a resident or newly arrived, here’s how to get started:

      1. Obtain your NIE—Your tax ID number for all official dealings.

      2. Choose your legal structure—Select between Autónomo or SL