Spain is attractive not only for its tourist attractions, but also as a place for permanent residence and doing business. Local legislation is open to foreign capital, providing a number of advantages for foreign investors. In addition, investing in opening a business in Spain may provide a foreigner with the right to obtain residence permits.

Today we will talk about how to open a business in Spain, what steps need to be taken and what you should be prepared for.

Features of starting a business in Spain

In Spain there is a fairly favorable attitude towards business. Any foreigner has the right to open his own business in the country, and the process of registering a company differs little from the procedures in the countries of the former CIS. The country has analogues of closed and open joint stock companies - SL (Sociedad Limitada) and SA (Sociedad Anónima).

However, there are differences. The main one is that non-residents, i.e. Foreigners without a residence permit do not have the right to be officially employed by a company, receive an official salary or make contributions to the local pension fund. They can only be the founders of the company and receive profit in the form of dividends.

Foreigners who are residents of Spain (including participants in the Golden Visa program) have the same rights as citizens of the country.

To open a business in Spain, a potential businessman must meet the following requirements: be of age, be in the country legally, have a taxpayer identification number (NIE) and provide evidence of sufficient finances for life and business activities.

To register a company in Spain, you must go through a certain procedure, about which you can find out more. 

An essential step before starting a business in Spain is to conduct market research and develop a detailed business plan. It is important for foreign entrepreneurs to take into account local cultural characteristics, consumer preferences and the competitive environment.

The business plan must contain:

- Business concept: a detailed description of the enterprise, services or products offered, target audience and competitive advantages.

- Financial diagram: cash flow planning, authorized capital, projected profit and main expenses.

- Financial investments: assessment of the initial costs of starting a business, including sources of guarantees for the loan.

- Internal structure of the enterprise: organizational structure, management chart, appointment of managers.

To register a business and begin official activities in Spain, you must obtain a NIE number (Número de Identificación de Extranjero) - a taxpayer identification number, and also open a bank account for future transactions. 

Opening a business in Spain/Alicante/Torrevieja

Spain provides various forms of enterprises, such as sociedad limitada (SL), sociedad anónima (SA), sole proprietorship (autónomo), branches of international companies, cooperative (sociedad cooperativa), joint ownership of property (comunidad de bienes) ) etc. Each of them has its own characteristics in terms of taxation, responsibilities and regulation.

Opening a business in Spain is most often carried out in the form of a closed joint-stock company (sociedad limitada), where the founders are liable for debts in the amount of their contribution to the authorized capital. The owner of the company cannot be a director, so a person with a passport of Spain or an EU country is appointed to this position, and the authorized capital is 3,100 euros.

With this form of enterprise, it is necessary to pay taxes, such as income tax (IS) in the amount of 15 to 25%, VAT (IVA) depending on the type of product or service (4, 10 or 21%) and social insurance contribution for each company employee in the amount of 29.8% of the salary.

After choosing a business form and developing a business plan, you must register the business in the Spanish Trade Register (Registro Mercantil) and fulfill all legal obligations associated with the chosen business form.

To obtain licenses and permits to conduct business in Spain, you may need to obtain relevant documents, such as permission to use retail space, licenses for a restaurant or tourism business, permits from local authorities, etc. 

Opening a Business

Opening a business in Spain is a serious process that requires several important steps. You will need a city permit to build, renovate or demolish buildings, as well as register with the Spanish tax office and obtain a tax identification number. Compliance with labor laws and other aspects of human resource management must be taken into account when hiring personnel. 

Opening a company in Spain provides a number of advantages, such as the opportunity to open a company in a country with a developed economy, the need to become a resident foreigner. Spanish banks are ready to lend to foreigners when opening companies, and opening a business can lead to obtaining a residence permit and even citizenship. 

Among the disadvantages are high tax rates, but the Spanish government is loyal to foreigners opening a business in the country. Real estate agency Arcostec offers a wide selection of commercial real estate and provides all the necessary advice on starting a business in Spain

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