cost of starting a business in spain

You will not be considered as an employee, and will have less social benefits than you would as a regular employee. For expats, starting a business in Spain can open up lots of opportunities. You can access our article on how to become an autnomo in Spain in order to clarify even further. We are just going to briefly talk about the main ones: The different business structures in Spain are the following ones: Probably the best option for small companies, as the legal process for its creation is really simple. Opening and operating a business can often require the owner to obtain a license to carry-out the specific activity. Many thanks. If you dont have a Spanish bank account, find out how to open a bank account in Spain.

They must be sent to the Corporate Register of Spain (Registro Mercantil) in order to check their availability. We also use third-party cookies that help us analyze and understand how you use this website. Other declarations are frequently applicable on a quarterly and annual basis, depending on your circumstances. one that is registered, established, or incorporated outside of your country of residence, there are several major pros and cons you should bear in mind.

directors who live in Spain must be registered as autnomo (sole-trader). Recommendation on the most appropriate fiscal arrangement to ensure taxation levels are optimised, Resolution of tax enquiries related to your professional activity, Completion and presentation of all required tax returns, Maintenance of all legally required records (income, expenses, invoicing,assets), Updates on any legislative changes affecting your professional activity.

As mentioned above, your company will need a tax number. Ensure legal interests are protected, especially when creating a company with several partners. Why? Not only are we talking about delicate steps and documents (for example when it comes to the shareholder agreement); but also because you must make sure you stay up to date with your tax duties. Manage communications with the Tax Authorities. Getting the NIE is a really simple process. Once that is decided, you just need to create the shareholder agreement, defining each shareholder and the share percentage each has. This is the most inexpensive way to set up a business.

But what happens if you already have your own company in any other country and would like to expand in Spain? One of its main advantages is that it does not require any type of initial investment. If available, they will accept one of the three, depending on the preferences you set beforehand when submitting them.

Furthermore, you will need to introduce an address. I worked with Rosa on obtaining a background check from Spain, and she could not have been more helpful. Alternatively you can incorporate your company without traveling to Spain. If you make the application in person at your local tax office, bring the original and a photocopy of your NIE (numero identificacion extranjero). Do not forget to take with you your original documentation and photocopy of the deed and your NIE. There are two different working residencies that can allow you to carry the process out: the entrepreneur visa and the work permit as a self-employed individual. wash nigeria business nairaland starting cost standard whatsapp We recommend setting-up an ordinary limited company (sl), 3,000 euros initial share capital. If you want to set up a limited company in Spain, there is a defined path to follow. I am looking to acquire a yacht in Spain under the Spanish Flag. This service includes the following components: Anyone undertaking a business activity via a limited company will require a local tax and accounting service. Nevertheless, that is something we do not recommend. All professionals must hold professional indemnity insurance. If you want to register your trademark officially, here you will find a complete guide on how to do it. Especially if the activity or service to be provided is dangerous in any way, such as certain sporting activities. Call us now at +34 938 07 40 56 toset up an appointment with Federico Richardson, one of our specialists in company formation in Madrid and Barcelona. The first step in setting up a limited company is to obtain a certificate to verify that the company name you want to use is not already taken. Nevertheless, that does not imply that the company you set up is as an autonmo.

That said, the perception of Spain as having an old-fashioned or twee business culture isnt completely accurate. To get a work permit, you will need to apply to the Spanish embassy in your home country. setting-up cost: 1,500 2,000 (including notary fees, mercantile registry companys name reservation and certification, lawyers fees ), Annual Return (Abbreviated accounts, balance sheet, profit and loss statement, annual report). There are two possibilities to get this number: Once you have your NIE number you need to obtain whats called a certificate of uniqueness. Here also you can benefit from the full support of our, Both local and foreign entrepreneurs can easily. This will cover you against any claims by third parties regarding injuries, accidents, or damage of property that is incurred on your watch, or as a result of negligence from within your company. Both individuals and companies are interested in either making strategic investments in businesses located in other countries or indeed in purchasing them outright. So, Just in case you dont know where to start, here you will find a list with.

Why? You will now need to apply for the deed of incorporation to establish your company.

Most likely the taxation would be lower, but for commercial purposes I dont recommend it (companies and customers in Spain are usually wary of companies from Gibraltar, because Spanish rules and warranties do not apply.) These cookies do not store any personal information. Evidence of payment can be obtained in the form of a bank certificate which will need to be provided to a notary or lawyer showing the act of incorporation of the company. Learn what kind of business structure is right for you and how to get started. Recommendations regarding the most appropriate fiscal arrangements to ensure taxation levels are optimised. Employees are also entitled to 30 calendar days vacation per year. So how do I know which type of business should I start?

In that sense, there are two different types of directors.

Limited companies pay corporation tax in Spain, which is levied on worldwide profit. A cost of approximately EUR 100 is added to the company's registration fee with Registro Mercantil Central. Growing a company is a complete adventure. Please contact me about FCA Authorised currency services (to beat the bank and save up to 4% on money transfers to and from Europe and further afield). Now that you have obtained the deed from the notary, you should go to the Spanish Tax Agency (Agencia Tributaria) in order to: Bear in mind that you will start paying taxes once when you start your activity. Rafael was very committed to helping us, asked for all the information he needed, and then provided us with very clear information in a very short period of time. Miguel is a highly qualified - and regulated - economista, similar to a chartered accountant in the UK. Where the business shall deal with the public, licence applications tend to be quite arcane and complex.

Besides, determining who the director of the company will be is a required step. Sole traders will pay tax on a quarterly basis at the standard rate of income tax; they will need to fill out a tax return at the end of each financial year. If you foresee that you are going to get incomes over 60.000, directly constitute a company instead of establishing yourself as a self-employed worker. Business accounts vary in cost, and in lieu of a fee, some will require minimum deposits. Where would you prefer your Accountant/Tax Lawyer to be located? The tax lawyer will provide you with a report on the impact of the course of action proposed and options to make the investment as efficient and cost-effective as is possible.

This category only includes cookies that ensures basic functionalities and security features of the website. The sole trader is the simplest form of business available in Spain that can be registered by one person. Company annual return (abbreviated accounts: balance sheet, profit and loss statement, annual report), Ongoing updates on any legislative changes affecting the area of the Company Activities. After you have obtained a tax code and the certificate of no-name coincidence for a limited business, you will need to open a business account with a Spanish bank and make a deposit of 3,000. The shareholders will be 2 Australian Ltd Companies.

The first thing to do as a foreigner is to get your NIE number. The only requirement is that you are a legal resident. I have a EU citizenship, Eu Passport, Padron, NIE number and Spanish Residentia. Do not forget to take along the original and photocopy of the deed and NIE. One of its main advantages is that your liability is limited to the capital investment made. In that form, it is asked whether you are a sole trader (empresa individual) or a self-employed individual (autnomo). Starting a business in Spain doesnt always need to be an arduous process. I would highly recommend anyone buying in this area to work with her. Nevertheless, we would suggest you first start with an SL and then move to a stock corporation once you decide to go for an IPO. You will need to fill out the model 036 or 037, depending on the case. For those who have not yet established their limited company in Spain, you will also be interested in the the Limited Company Incorporation and Tax Service which is ideal for single person or multi-director Limited Companies in Spain. The contribution of that amount of money generates a bank certificate that demonstrates the payment. Why? Because the constitution process is exactly the same. For sure this is not money lost and can be used in the firm daily operations. Newly incorporated companies must use the 036 form used to request a tax identification number; to describe their business activity, and disclose other business details. Finally, you will also need buildings and contents insurance. The Self-Employed Set-Up and Tax Service is ideal for an individual sole trader who is planning to work alone. This will be the official name of the company, which will appear on your invoices and other documents. That is why we recommend you rely on an accountant to manage your quarter and annual returns. Miguel speaks English fluently. As we have just seen, depending on the type of company you would like to start, the corresponding residency card changes. Nevertheless, the specific steps you should take in order to successfully have your company start running are not that clear. Initial Set-up according to client's requirements, Production of Employee Pay slips (printed at client site), Management & Payment of Employer & Employee Social Security Contributions, Registration and Removal of Employees from Social Security system, Registration with the AEAT (Spanish Tax Authority) and the Social Security System.

[View on Google]. For the first two years, limited companies pay 15% tax on the first 300,000 of profit, and 20% tax on profits above this threshold. :) [View on Google], Miguel has been excellent - really quick to respond and helpful.

Drawing-up a notarial contract according to your guidelines, properly prepared and tailored to your objectives. In Spain, there aredifferent company structures, which are defined by the Commercial Code.

Employment in Spain is highly regulated, so you will need to ensure that you meet the rules before expanding your team. To obtain this, you will need to complete the tax form 036; this can be done online or by hard copy, delivered to your local tax office. It should take around 15 days for the deed to be registered and original documents returned. Obtaining all necessary documents, permits and approvals. It was great to have the advice and support when buying a property abroad.".

I want to sign up to the newsletter! Nevertheless, there are several exemptions that you can benefit from which can reduce the taxable amount considerably. In case the business law of your country requires it, you also need to present a certificate of good standing. Denis provides expert fiscal and tax advice to local and international companies as well as self-employed individuals - ensuring tax compliance at all times and avoiding any issues with the Spanish tax authorities. Why? Donate to the UN Refugee Agencytoday.

In that case, it would be much better if you could get in touch with one of our business lawyers so we can analyze the situation more carefully, as there is no straightforward answer and the process will differ depending on the exact situation. Filing your VAT returns (IVA) is also required. Theres no fixed cost.

Traditional charities which accept donations from the public will generally fall into the foundation category. So if you just invested 3.000, that is the maximum amount it can be requested from you in case of indebtedness.

That is a crucial step. Alternatively you can incorporate your company without traveling to Spain. 2022 Advocate Abroad SL. We are talking about its legal structure. The country has good logistics and infrastructures that can help your business project succeed. Because of its flexibility and easiness in the registration process, just demanding 3.000 for the constitution process as a minimum capital investment. It would depend on several factors (such as: initial share capital, number of partners, extension of the incorporation deeds, ).

You can find information about the form, along with form downloads and links to completing online, at the Spanish Tax Agency (Agencia Tributaria). Nevertheless, the specific steps you should take in order to successfully have your company start running are not that clear. This is the minimum share capital allowed when setting up a limited company. That is why we suggest visiting our article about the legal process to get the visa as an entrepreneur.

Looking forward to your answer, kind regards. Our business lawyers will solve all your doubts and manage the whole process for you. Why are we mentioning this? With all the previously mentioned documents (NIE number, the bank certificate and the certificate from the Registro Mercantil), you now need to go to the notary to sign the public deed of incorporation. Depending on the type of company you are setting up, however, you might find the journey somewhat bureaucratic and long-winded. That is why you need to request the companys CIF.

We normally charge a basic fee of 120 + IVA to limited companies, which covers the following costs: IVA charged is deductible against any IVA (VAT) paid. Banks such as BBVA, Bankia, Santander, and La Caixa all provide business accounts. The deed will be stamped certifying this fact.

When processing your application, you must provide a series of documents, including the following: While additional branches and subsidiaries dont need to file accounts on the business register, they must pay income tax and submit quarterly VAT returns through their NIE number. | Quiero suscribirme a la newsletter. Because afterward, if you would like to sell the shares of the company or divide the capital of the firm for the different shareholders, you will have a much more difficult time than if you used cash. To be able to advise on such investments ranging from relatively straight forward to highly complex - requires a great deal of experience and ability to carry-out due diligence, understand the impact of tax and accounting rules and corporate law in general, to ensure that your investment is safe and productive. [View on Google]. The 2 directors will be either 2 Australian Citizens or 1 Australian and 1 Greek Citizen. We are just going to briefly talk about the main ones: Probably the best option for small companies, as, In terms of taxes, as a sole trader, you will pay. Besides, you cannot start a company if you dont have a good business idea. First of all, you will need to provide evidence that you have enough capital to invest in your business and support yourself while living in Spain.

This is not actually a cost per se.

In this specific case, if you are the one opening and running the branch in the Spanish territory, you must be a resident in the country. Because of its flexibility and easiness in the registration process, In this case you wont pay income tax, but, Defining the names of the company and checking its validity: certificate of uniqueness, Opening a bank account to be used by the company, Establish the shareholders and creating the shareholder agreement, Going to the notary and signing the public deed of incorporation, Registering the company with the tax authorities, Registering the company in the social security, The first thing to do as a foreigner is to, Do it from your country of origin, at the Spanish consulate, Once you have your NIE number you need to, If available, they will accept one of the three, depending on the preferences you set beforehand when submitting them. Also, as a resident Of Spain, you will be liable for personal taxation in Spain on worldwide income which will mean that any income derived from the profits of the company will be subject to Spanish income tax anyway and you will also most likely need to hire two sets of professionals to manage your fiscal responsibilities, thus increasing your cost base. Because yes, you may have your work permit as a self-employed worker. I would highly recommend working with her!

Our fees for an ordinary limited company set-up are 600 + IVA (21%) (please note that our fees are included in our answer regarding set-up costs above).

Once completed the registration process, we will draw up all other corporate documents required by the Commercial Companies Code. it was very informative, quick and straight to the point!

They will also have the responsibility of deducing the required social security contributions from their employees salaries each month.

One example of this is siestas, which dont really exist anymore in Spanish business; although long lunches still do. Ensuring that your Articles of Association contain all necessary elements. From offices in Valencia City and Castelln de la Plana, Inmaculada provides expert legal advice and assistance to English-speakers in Property matters, Contract Breaches/Debt Recovery, Family law and Business formation and bookkeeping service. If you are considering setting up an offshore company, i.e. You can also use assets that are valued the same to work as capital. maybach pure If a few people are setting up as a partnership and want to limit the amount of personal liability and give the business a more formal structure, they can set up as a limited partnership (sociedad comanditaria) instead of a general one. Together we will be able to offer you the specialized help you require for your business start-up in Spain. partners or shareholders who work in the company: it would depend on their percentage of participation in the company. Make sure that the application is made in accordance with the requirements of the Commercial Companies Code.

How to do business, Sole trader vs autonomo (self-employed), How to set up a company in Spain as an expat, The 8 steps to starting your business as a foreigner, Establishing the Shareholders of the Company, Going to the notary to sign the public deed, Get legal assistance from our business lawyers. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. There is a generalized misconception that we must tackle here. Nevertheless, from the day we sign the set up of the company at the notary, they will give you a provisional, Now that you have obtained the deed from the notary, you should go to the, Register that documentation, getting the deed stamped by them, You need your company to be identified with the tax authorities. From the first contact all the way through the purchase of the property. Completion and presentation of all required tax returns. This will normally require at least some of the following services: This service costs from 60 per calendar month. He specialises in business and property matters and over the years has assisted many English-speakers relocating to Spain who wish to establish their businesses in Spain and also get assistance with property investment. Why should you open your company in Spain and not anywhere else? As a Lexidy Law Boutique SLPclient, you will benefit from the joint expertize of local lawyers and international consultants. This is why we highly recommend you to contact us in order to let us help you with the overall process. In this case you wont pay income tax, but corporate tax (impuesto de sociedades), which is equal to 25% on your profits. Before setting up a business in Spain, all resident and non-resident foreigners with financial affairs in Spain must have a foreigners tax identification number (NIE). A stock corporation or sociedad annima is the legal structure reserved for big companies who trade with stocks. nfc wireless genuine lg quick case tl qi g4 charge circle The actual legal constitution steps of the business are the following no matter if you are a foreigner or not. Our advice here is to be as open as possible: introducing all the activities related to what you are going to do. You will then need to take the stamped deed to the RMCwhere it will be registered in the Spanish Register of limited companies. The NIE is the most important thing in order to freely operate in Spain. And our accountants will be in charge of your taxes.

Her English is also first class! And its wrong. This is one of the most crucial steps of the process; as you need to foresee any future possibilities in order to avoid problems later on. With a foundation, anyone can donate to the cause (they dont need to be a member) and committee members can be paid for their work, as with a normal business.

For whom is this structure?

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cost of starting a business in spain