When founders dream of launching a startup under the Mediterranean sun, Barcelona and Madrid often come to mind first. But an increasing number of entrepreneurs are turning their gaze to Valencia — a city that’s building a vibrant, founder-friendly startup community.

It’s not just about sunshine (though 300 days a year doesn’t hurt). It’s about momentum. Valencia’s startup scene is collaborative, affordable, and increasingly international. It’s big enough to see the benefits of accelerated growth — in 2024 the ecosystem experienced a 15.45% growth in the number of startups compared to 2023 — yet still retains a community vibe making it easy for newcomers to network and make connections.

And its sights are set on growing its ecosystem exponentially into the future.

In 2024, the Invest in València Program, aimed at attracting foreign investment and entrepreneurs, resulted in more than 1,500 new jobs and generated an economic impact of €149 million over a two-year period. To strengthen its support for early-stage startups, Valencia City Council also increased seed funding by 50%, raising the total to €600,000.

This Mediterranean city has become a magnet for startups in AI and Big Data, climate tech, mobility, logistics, healthtech, and gaming. With strong university talent, deep ties to legacy industries (like shipping and food production), and regional government investment in R&D, Valencia is quickly becoming a launchpad for mission-driven, high-growth companies.

What’s more, the city is launching a new initiative, the Urban Innovation Sandbox, aimed at providing companies, startups, and academic institutions with spaces to test their inventions with streamlined bureaucracy. These ‘sandboxes’ will allow innovators to experiment in relevant or real conditions, expediting product development and time to market.

And advancements in connectivity will help to facilitate this. Supported by European funding, late last year Valenciaport rolled out a €6 million 5G network project to deliver secure connectivity for over 25,000 devices, including vehicles, sensors, and drones—driving forward the port’s digital innovation efforts.

It’s also interesting to note that 34% of startups in Valencia have a female co-founder showing a promising growth in female entrepreneurship that the ecosystem plans to foster as its community grows.

Add to that a relatively low cost of living, a strong talent pool flowing from the local universities, and a highly navigable regulatory landscape.

Whether you’re an EU founder seeking sun and scale or a non-EU entrepreneur eyeing a soft landing in the Schengen Zone, this guide breaks down how to relocate your startup to Valencia — from administrative queries to breaking into the startup community once you’re there.

Practical guide to moving your startup to Valencia

EU Founders: Residency and paperwork

If you’re from the EU, relocating to Valencia is straightforward. The main administrative hurdle is securing your NIE (Número de Identificación de Extranjero) — a personal tax ID number required to open a bank account, sign rental contracts, and register your business. If staying longer than 90 days, you’ll also need an EU Certificate of Registration.

Choose the right structure

Spain offers two main business structures:

• Autónomo (sole proprietor): Ideal for freelancers or solo founders. Beware the flat-rate social security contribution (~€300/month), regardless of income.
• Sociedad Limitada (SL): A limited liability company, the go-to for most startups. Minimum capital: €3,000

Tax and compliance

New businesses enjoy a reduced corporate tax rate of 15% for the first two years of profit (standard rate is 25%). VAT (IVA) sits at 21%, and if you’re hiring, you’ll need to register with Spanish social security.

Visa pathways for non-EU founders

Moving to Valencia from outside the EU means securing a residence permit — but Spain offers startup-friendly pathways.

Entrepreneur Visa (Ley de Emprendedores)

This visa is tailored for innovative ventures that contribute to Spain’s economy. Key requirements:

• Scalable business model with economic potential
• Solid business plan
• Proof of funding and health insurance
• Clean criminal record

You’ll first submit your plan to the Spanish Economic and Commercial Office. Upon approval, you apply for the visa via your local Spanish consulate.

Self-Employed Visa (Autónomo)

More suitable for freelancers or non-scalable businesses. It demands a viable business plan, qualifications, and financial means to support yourself.

Health insurance

Spain requires private, no-copay, comprehensive health coverage for most visa applicants. Insurers like Innoinsure cater specifically to startup founders and expats.

Step-by-step: Launching a business in Valencia

Whether you’re a local or newly arrived, here’s how to set up shop:

1. Obtain NIE — Your tax ID number for all official interactions.
2. Choose legal structure — Decide between Autónomo or SL.
3. Register business name — With Spain’s Mercantile Registry.
4. Open a bank account — Essential for operations and depositing capital.
5. Sign incorporation deed — Via notary for SL companies.
6. Get your CIF (Company Tax ID) — From the tax office.
7. Register for social security — Especially if hiring staff.

Tap into funding and support

Valencia isn’t just pretty beaches — it’s investing in brains.

• IVACE (Valencian Institute of Business Competitiveness) offers grants and subsidies for innovation.
• Lanzadera, Spain’s answer to Y Combinator, incubates hundreds of startups per year with funding and mentoring.
• BigBAN Angels connects local startups with seasoned investors.

The EU also offers broader support via Horizon Europe and related innovation grants.

Coworking and accelerators

• Wayco and Vortex offer dynamic, founder-filled workspaces.
• Lanzadera accelerator, backed by Mercadona’s founder, also offers office spaces.

To find out if Valencia is the right spot to set up shop, a great way to test the waters is to check out VDS 2025 taking place on October 22 – 23. Every year Valencia’s very own tech event brings together over 1200 attendees, both from Valencia’s tech community and abroad, to share ideas, network, and build connections that will shape the future.