Starting a Business In Spain
WHY START A BUSINESS IN SPAIN?
Many people moving to Spain and needing to make a living end up starting their own business in Spain. Often it is because of the frustration of looking for jobs and work. When you do find a job in Spain you then find it is very low paid compared to Western Europe or America. At that point many people decide they would be better off to start their own business in Spain.
ADVANTAGES AND DISADVANTAGES TO STARTING A BUSINESS IN SPAIN
With so many people moving to Spain from countries such as the United Kingdom there is more scope than ever to set up and start a new business in Spain providing services and new ideas to these expats. If you start the right business in Spain you could be sitting on a goldmine if you are first.
Unless you are fluent in Spanish or can employ Spanish speakers then your new business in Spain is most likely to be in an expat area on the Costa del Sol or Costa Blanca and will probably be catering to the growing expat population. Even so you will need to learn some Spanish to cope with basics.
When you start your own business in Spain you open up the potential for high earnings - there is no ceiling and no restrictions. Of course this doesn't mean starting a business in Spain is without potential downsides.
When you start your own business in Spain you don't have a guaranteed income so allow time and have at least six months savings to survive on.
You start your business in Spain from scratch and have to build a customer base which will involve outlaying money on advertising, setting up premises etc. before any money comes in. Most people who start a business in Spain fail because they run out of money before the business starts to take off. If you can get past this difficult initial period you should start to reap the benefits of starting and running your own business in Spain.
Note that the failure rate of new start-up businesses in Spain is high. Many people start a business in Spain in expat areas which makes sense but there are already many other businesses providing services to the expats. Most people who start a business in Spain open a bar or restaurant. Before you start a business in Spain ask yourself these questions:
Are
there already too many other businesses in competition with each other?
How is your new business in Spain going to differ to existing businesses?
What
can your business in Spain do differently to get an edge?
Do you have a new business idea for Spain that doesn't exist yet?
Is there a market in Spain for this new business idea? Research it first.
IF YOU WANT TO START A BUSINESS IN SPAIN THEN CONSIDER BUYING AN EXISTING BUSINESS FOR SALE IN SPAIN OR A FRANCHISE IN SPAIN
If you want to get up and running quickly and have capital to invest you may want to consider buying an existing business for sale in Spain. Major advantages are being able to see that it is already profitable so you can start earning from the business straight away, avoiding the horrible initial setting up period of a new business in Spain and hopefully improving the business even further with your new ideas and enthusiasm.
Just be careful because when you buy a business in Spain you become liable for any debts that come with the business.
Alternatively there are now a number of franchise opportunities available in Spain and this again vastly reduces your risk of starting a business in Spain and it failing as the franchise in Spain should be proven with on-going backup and support.
STEPS TO TAKE TO START A BUSINESS IN SPAIN
If you intend to start a business in Spain you are going to need either a Gestoria or an accountant anyway so get one now and pay them to set your business up - it's worth it!
STEP ONE - You need an N.I.E. number for your business in Spain. This is simply an identification number for foreigners which you may have already as it is needed for many purposes such as renting or buying a property. You can get this yourself by going to a police station with your passport. You then collect your number about three weeks later.
STEP TWO - Decide with your accountant the structure of your business in Spain.
Empresa Individual is the equivalent to a sole trader in the UK with the business in Spain being run in one persons name.
Sociedad Civil is a partnership where several individuals will come together to form a business in Spain.
Sociedad Limitada is a limited company in Spain with registered shareholders and a set minimum trading capital in the bank. Fees are higher than for a sole trader but if sued then only the assets of the limited company are at stake.
Sociedad Anonima is a larger company with a large minimum trading capital and shareholders. This is similar to a PLC in the UK.
STEP THREE - Go to the local town hall and register your business in Spain by getting a opening licence (Licencia de Apertura) which defines what your business in Spain is and how it will operate.
STEP FOUR - Register your business in Spain with the IVA office which is the equivalent of the Revenue and Customs in the UK. Your business in Spain will receive an identification number known as a CIF. The Agencia Tributaria collect your tax on any profit you make in your business in Spain. Again all this form filling can be done on your behalf by your Spanish accountant.
STEP FIVE - Your business in Spain needs to register with the Social Security office and make social security payments which vary depending on the structure of your business in Spain. If you are a sole trader (Empresa Individual) expect to pay approximately €235 a month. This gives you entitlement to the local health service such as doctors and hospitals (not dentist) and if you pay in for 15 years you qualify to receive a pension.
If your business in Spain is structured as a company then you have to pay social security on behalf of any employees and they have to have a proper written contract providing guidelines for both parties.
STEP SIX - Get your business in Spain going - work harder than you have ever worked before - never give up and make lots and lots of money!
Related Make a Living in Spain Pages:
Make a Living in Spain Main Index | Jobs in Spain | Business For Sale in Spain | Buying a Bar in Spain | Finding Work in Spain | Business Opportunities in Spain | Franchises in Spain | Summer Jobs in Spain
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