Start a Business in Madrid

Permits, costs, timeline, and step-by-step requirements.

✔ 4 permits⏱ Declaración Responsable: same day to 2 weeks. Licencia de Actividad: 4-12 weeks.💰 €800-€3,000+ (depends on activity + sq meters)

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Overview

Starting a business in Madrid requires a Licencia de Actividad / Declaración Responsable through the Ayuntamiento. Base fee: €800-€3,000+ (depends on activity + sq meters).

Required Permits

✓Alta en Hacienda (tax registration with Agencia Tributaria)
✓Alta de autónomo (self-employed registration with Seguridad Social, ~€300/month)
✓IAE (business activity tax — exempt first 2 years for new businesses)
✓Licencia de Actividad / Declaración Responsable (from Ayuntamiento)

Step-by-Step Process

1

Alta en Hacienda (tax registration with Agencia Tributaria)

2

Alta de autónomo (self-employed registration with Seguridad Social, ~€300/month)

3

IAE (business activity tax — exempt first 2 years for new businesses)

4

Licencia de Actividad / Declaración Responsable (from Ayuntamiento)

Costs

Estimated total: €800-€3,000+ (depends on activity + sq meters) depending on permits and inspections.

Contact

Ayuntamiento

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Common Mistakes

⚠ Declaración Responsable allows SAME-DAY opening for low-risk (actividad inocua) businesses
⚠ Actividad clasificada (restaurant, bar) requires full Licencia de Actividad — 2-8 weeks
⚠ Municipal fees: €800-€3,000+ (depends on activity + sq meters)
⚠ Autónomo: €80/month first year (tarifa plana), ~€300/month after
⚠ Must register with Agencia Tributaria BEFORE municipal licence
⚠ Rules vary by district — zoning differences across the city

Choose Your Business Type

RestaurantFood TruckBarber ShopRetail StoreCoffee ShopBar / NightclubGym / Fitness StudioNail SalonCannabis DispensaryDog GroomingBakeryCleaning ServiceDaycare CenterAuto Repair Shop

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