The four steps, in order
- The legal form. Self-employed or company: the guide Self-employed or company explains it.
- The premises and the permit for the activity, from the town hall.
- The tax registration with the Agencia Tributaria.
- Social Security: registering as self-employed and, if you will hire people, registering the business.
The exact order can vary with your activity and legal form: the tax agency asks for the tax registration before the activity starts Agencia Tributaria, and Balearic law lets you start the activity as soon as the relevant responsible declaration is submitted Act 7/2013, art. 45.
The premises
Renting business premises is a lease “for a use other than housing” LAU, art. 3. The deposit is two months’ rent and, in the Balearic Islands, it is also lodged LAU, art. 36: the guide Renting a home explains how.
This guide’s tip: before you sign a lease or a purchase, ask the town hall whether your activity can be carried on in those premises and what works would be needed. Asking first is far cheaper than fixing afterwards. The law provides that the authority answers enquiries in writing within one month and that the answer is valid for six months Act 7/2013, art. 40.
Licence or responsible declaration for the activity
Balearic law sorts activities into three classes: harmless, minor and major. The title you need depends on the class Act 7/2013, arts. 42 and 43:
| Class | What you submit |
|---|---|
| Harmless | A responsible declaration (declaración responsable) by the holder to the town hall. |
| Minor or major | A responsible declaration with a certificate from a competent technician stating that the installations match the activity project, with or without works. |
- The declaration entitles you to start the activity art. 45. If an essential inaccuracy is found later, you cannot carry on, and the authority must give you at least two months to correct it.
- If works are needed, the law also requires a prior notice or a planning licence, depending on planning rules art. 37. See Home renovations: permits and who to call.
- The declaration replaces the occupation licence and the habitation certificate for the purpose of contracting utilities.
The consolidated text of the act (updated on 13 June 2026) has changed several times. Each town hall also has its own procedure and forms, and some activities have rules of their own, such as entertainment and opening hours. Always ask the activities department of your town hall. On its online office, for example, Palma’s procedure catalogue lets you search for each procedure by name.
The tax registration with the Agencia Tributaria
It is done with form 036 (or 037, the simplified version): the census declaration for registration, changes and deregistration of businesses, professionals and withholding agents. It is submitted online on the tax agency’s electronic office, or completed and printed Agencia Tributaria.
If you are a foreign national you need the NIE first: the NIE and first steps. A company has its own tax identification number (NIF).
Social Security
- If you work for yourself: registering in the RETA is done on the Social Security online office or with form TA0521 Seguridad Social.
- If you will hire people: Social Security has services to register the business and get the contribution account: one for sole traders, who log in as an individual, and one for companies, which log in as an entity online office.
Contributions, bases and discounts change: always check them with Social Security.
Official counters
| Counter | What it is for |
|---|---|
| PAE electrónico and CIRCE | Set up a company or register as self-employed online, with a digital certificate or Cl@ve, and later handle changes such as a new address or name. In-person help is given through the network of entrepreneur support points (PAE). |
| EUGo | The single point of contact under the Services Directive: a wizard that shows the steps to establish yourself or carry on an activity in Spain, and the recognition of qualifications for regulated professions. It is meant, among others, for people coming from another EU country. |
| Your town hall | The responsible declaration or activity licence and, if there are works, the prior notice or planning licence. |
| Tax agency and Social Security | The tax registration and the registration as self-employed or of the business. |
When a professional is worth it
- A gestoría or tax adviser: to choose the legal form, file the tax registration and keep the paperwork. See how to tell them apart in Self-employed or company.
- An architect or an installer: if your activity needs a technical certificate or an activity project.
- A renovation firm: if the premises need works.
- A lawyer and a notary: to set up a company or review a commercial lease.
If the professional says they are a registered member of a professional body, check it: how to do it.
Professionals in the directory
Categories related to this guide:
Tax and administrative advisersLawyersArchitectsPlumbers and electriciansRenovation and buildingNotaries
Sources and date checked
Official sources checked on 24 October 2026. Procedures, requirements and amounts change: always check the source before you act.
- BOE: Act 7/2013 on setting up and carrying on activities in the Balearic Islands, arts. 37 and 40 to 45
- Agencia Tributaria: Form 036, census declaration for registration, changes and deregistration
- Seguridad Social: Registering as self-employed
- Seguridad Social: Affiliation, registration and changes (businesses and professionals)
- Ministerio de Industria y Turismo: PAE electrónico and CIRCE: set up a company or register as self-employed online
- Ministerio de Industria y Turismo: EUGo, the single point of contact under the Services Directive
- Ajuntament de Palma: Procedure catalogue of the online office (example of a town hall counter)
- BOE: Act 29/1994 on urban leases (consolidated text), arts. 5, 9, 11, 17, 21 and 36
- Dirección General de Industria y de la PYME: Sole trader: setting up and starting
General information. It does not replace the advice of a professional.