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Before you start
any business
venture in Spain
you will have
examined the
market to make
sure there is a
demand for the
product or service
you are to
provide. Bear in
mind that the
market here is
very different to
that in your home
country. As an EU
citizen you have
every right to
start a business
in Spain, just as
though you were at
home so once you
have convinced
yourself of the
viability of your
new business, you
can get started.
Step one, no
matter what you
decide to do is to
visit the national
police station and
apply for an N.I.E.
number. This is
simply an
identification
number for
foreigners and is
mainly for tax
purposes. Simply
take along your
passport and
complete a simple
form. Usually your
number can be
collected within
four weeks.
Download the form
here.
In Spain there are
two levels at
which a business
must be
registered. At
local level you
need to register
your business with
the town hall and
obtain an opening
licence (Licencia
de Apertura) which
will clearly
define your
business and the
way in which it
will trade. At
national level you
will register with
the IVA office
which is the
equivalent of the
Inland Revenue
office. The
Agencia Tributaria
will collect your
tax. You will need
to be fluent in
Spanish to
undertake the form
filling on your
own, otherwise
employ the
services of a
Gestoria who will
do all the hard
work for you for a
reasonable fee.
The next step
would be to decide
on the format of
your business,
similar to in the
UK with PLC and
Ltd companies. You
will need expert
advice as to which
type best suits
your business.
Empresa
Individual is
equal to a sole
trader with the
business being run
in one persons
name only.
Sociedad Civil
is a partnership
where several
individuals will
come together to
form a business.
Sociedad
Limitada is a
limited company
with registered
shareholders and a
set minimum
trading capital in
the bank.
Sociedad Anonima
is a larger
company with a
large minimum
trading capital.
This S.A. company
also has
shareholders.
Tax
contributions
Whether you are a
resident in Spain
or not, if you
have an income
here, you may be
liable for tax
payments, as in
any other country.
As a foreigner it
can be a
complicated and
costly situation
so you will
without doubt need
specialist advice.
Your Gestoria will
be able to help
you.
Social Security
payments
All businesses are
registered with
the Social
Security Office
and as such will
be liable for
social security
payments which
vary according to
the status of the
business. Making
these payments
will entitle you
to the benefits of
the local health
service such as
doctors and
hospitals. The
payments will also
contribute towards
an old age
pension, although
contributions have
to be paid for a
minimum of 15
years to qualify.
A company
employing people
will also have to
pay social
security on their
behalf. This
stresses the fact
that if you employ
people you must
have a proper
written contract
with them for
mutual protection.
Finally, if you
are buying an
existing business
in Spain it is
vital that you
examine every
aspect of the
business before
signing anything
or parting with
your money. It is
crucial that you
ensure the company
has no debts or
tax liabilities
that would be
transferred with
the business.
If you do take the
plunge and start a
business in Spain,
you will find that
you are accepted
by the Spanish as
a foreigner and
you will have the
respect that you
earn. You will
however find many
business practices
here very
different to those
in your home
country. You will
also find it
impossible and
unreasonable to
try to change
them. There is
however, plenty of
money to be made.
One thing you
could do is buy a
bar in Spain -
something that
thousands have
already done. See
a selection of
businesses for
sale on the Costa
del Sol,
here
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