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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
BEWARE
When you buy a business in Spain, you buy the business debts
too ! See a good guide here
Social Security
How to get a Social Security Number:
The
process of getting a social security number is now very easy.
Simply go to any social security
office, with your original passport and
copy of the passport.
You will have to fill in a form, which is in Spanish, but its
quite easy as the normal questions are asked like, name,
address, names of parents etc. They
issue the number there and then and give you a temporary card.
They send on the plastic card at their leisure. It is not
necessary to have a job, or even a NIE to get a social
security number.
Why do you need a Social Security Number?:
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You need a social security number to work in Spain. I am
sure that you are aware that if you are self-employed you
have to pay into the social security, but also if you are
employed you pay and this should be deducted by your
employer before payment.
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You are entitled to social security benefits, but pro rata
to what you have paid in.
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You also are entitled to medical care i.e. you can sign on
with your local doctor.
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You only have to pay if you are earning money in Spain, i.e.
not on any pension from the UK.
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