Advice for starting a business in Spain
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. See ideas here. 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.
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.
