Im interested in opening several gyms in Valencia. These cookies will be stored in your browser only with your consent. She double checked things that didn't seem right which ended up saving me a lot of money, extra work that she noticed and argued for me to save me money. T, Now that you already have your NIE you can, But what many companies actually do is to, With all the previously mentioned documents (NIE number, the bank certificate and the certificate from the Registro Mercantil), you now need to, Then, the notary will register the company in the Company Registry. Limited companies pay corporation tax in Spain, which is levied on worldwide profit. Many times we mistakenly assume that the word autnomo and self-employed are the same. Rafael graduated in Law from the University of Seville in 1995. If you rely on us for the whole process of opening a business in the Spanish territory, we will coordinate and represent you in the notary, getting all the required appointments with the different legal institutions that appear among all the steps. We are grateful for his dedication and excellent service. We will go into more detail shortly, but the process works like this: Non-EU citizens moving to Spain to start a business will need a valid work permit to do so. 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. Inma helped me to buy a property in the Valencia region. This is, without any doubt, the most popular firm structure in the Spanish territory. You can find the nearest one in your area at www.notariado.org. This is why we highly recommend you to contact us in order to let us help you with the overall process. And that will happen if your incomes are higher than 50.000 60.000 per year. Unlike in some other countries, there is no threshold when VAT kicks in; rather, it is applicable on all profits. Apart from setting-up and managing the payroll system in Spain for new businesses - and existing ones - this service includes processing new employee contracts, handling Social Security obligations as well as communications with this department as well as advising on the most appropriate corporate structure that will allow you to minimise tax exposure. The actual legal constitution steps of the business are the following no matter if you are a foreigner or not. partners or shareholders who work in the company: it would depend on their percentage of participation in the company. How to get it? Each of them has its own characteristics, and understanding their different purposes is crucial. While it might take some time to adjust to business practices in Spain, there is no need to be put off. I would highly recommend anyone buying in this area to work with her. Associations, on the other hand, are usually run more informally by groups of people who have a common interest. The NIE is essential for any fiscal transactions in Spain, such as incorporating a company. In order to start your business in the Spanish territory, you will need to go through the next steps: Lets now analyze each of the 8 steps to constitute your company as an expat in Spain. We recommend setting-up an ordinary limited company (sl), 3,000 euros initial share capital. I regard his fee structure very competitive and reasonable and he made appointments for me with Insurance Agencies in order to fulfil the health insurance requirements for Spain--when we have committed to pursue our legal status here in Spain we will instruct his Service to act on our behalf.". He speaks English fluently with a certified Advanced level. Then, the notary will register the company in the Company Registry. This will normally require at least some of the following services: This service costs from 60 per calendar month. Nevertheless, even if the project does not necessarily have to be technological for the self-employed worker visa application to be accepted, not every company will be valid. If you want a virtual office in Spain, add around EUR 80. Hello! Open Closed-Ended Investment Fund in Spain, Create Open-Ended Investment Fund in Spain, Articles of Association of a Spanish Company, Set up a Company in Insurance Sector in Spain, Set up a Company in Construction Sector in Spain, Set up a Transporting and Storage Company in Spain, Establish an Advertising and Marketing Company in Spain, Open a Company for Rental and Leasing Activities in Spain, Set up a Business for Repair of Transport Equipment in Spain, Relocate your UK Company to Spain after Brexit, The Costs of Starting a Business in Spain. The shareholders will be 2 Australian Ltd Companies. That is why we hugely recommend relying on a business lawyer. They will also have the responsibility of deducing the required social security contributions from their employees salaries each month. This is the minimum share capital allowed when setting up a limited company. If the business idea you would like to develop is innovative and technology is at its core of operations, then you should apply for the entrepreneur visa. Depending on the type and size of the business that you are planning to set-up, a limited company can often be the appropriate choice for the same reasons as are the case in your home country flexibility and limited liability. Note that the bureaucracy associated with incorporating a company and ensuring tax and reporting compliance tend to be rather more complex than in the UK and other Anglo-Saxon jurisdictions. The only requirement is that you are a legal resident.
Nevertheless. Resolution of tax enquiries related to your activity. To open an account, you will generally need to provide proof of your companys registration, a registered address, and (for larger companies) at least two signatories.
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. As too many successful startups are being born in Spain, this is attracting foreign talent and investment. In those cases opening a branch in Spain is the right path. VAT returns, Corporation Tax, Income Tax, Non-resident tax, any other tax obligation with any national tax authority: National/Regionals/Local. These cookies do not store any personal information. By choosing I Accept, you consent to our use of cookies and other tracking technologies. The good news is that it is possible to get a bespoke account depending on the specific needs of your business. Rosa is an experienced and highly sought-after English-speaking lawyer who provides expert legal advice and assistance in the following legal areas: Property conveyances, Inheritance, Family law, Criminal law, Business set-up and Employment law. The costs for setting-up an ordinary limited company (3,000 euros initial share capital, with 1-4 shareholders usually are: The process usually takes 4-6 weeks, once the shareholders obtains their NIE; in order to become a shareholder, every partner will need a foreigners ID number (NIE). A more laid-back approach, for example, can result in deadlines overrunning and meetings stretching late into the evening. Nevertheless, it is crucial that you understand the requirements before starting. You can send an email to [emailprotected], what is tributacion IRPF 26,27 in Nomina of Auxiliar in SLU Company. But what happens if you already have your own company in any other country and would like to expand in Spain? The minimum wage in Spain is currently 900 a month, based on 14 payments a year. That implies that you will annually be in charge of your tax returns.
You can find out more in our guide to business culture in Spain. The Spanish territory is the ideal landscape for foreigners from all around the world to start their own company. This is another really important consideration you must take before starting. The most common form, however, is the sociedad limitada or S.L. Miguel is a highly qualified - and regulated - economista, similar to a chartered accountant in the UK. You must bring this document to the notary on the actual constitution day. Ideal infrastructures, worldwide talent, and an entrepreneurial ecosystem makes cities like Barcelona or Madrid your best choice when deciding where to start. Nevertheless, that is something we do not recommend. 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. Nevertheless, there are several exemptions that you can benefit from which can reduce the taxable amount considerably. 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. [View on Google]. This process can take up to 3 weeks. Limited companies will need to register for social security payments and make contributions at 29.9% of their employees salaries. You will need to fill out the model 036 or 037, depending on the case. 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. It would depend on your role on the company: Yes. Non-profit companies in Spain will fall into two categories: foundations and associations. 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. Her English is totally fluent and she had no problem taking the time to read through all the documents and explain everything to me. If you are running your own company at home, but are looking to set up a branch or subsidiary, doing this can be simpler than starting from scratch with a new company. They can provide a wide range of benefits to the company and company principals. [View on Google]. To get a work permit, you will need to apply to the Spanish embassy in your home country. And what happens if you dont have that amount of cash? It was great to have the advice and support when buying a property abroad.". 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. So how do I know which type of business should I start? Businesses must keep records of their accounts and order books, which can be requested for scrutiny by government bodies such as the tax authority.
On the other side, a freelancer or self-employed does not administrate the company necessarily. It will offer you the possibility to expand to a new market while harnessing the power of your brand and systems. I can either acquire the existing company or set up an new company. Also, you will need to clearly define which is the activity of the company. Why? This is largely due to the Spanish government invoking minimum financial requirements for those looking to incorporate in Spain. Besides, you cannot start a company if you dont have a good business idea. For limited companies, the process is significantly different. Now that you already have your NIE you can easily open a business bank account in Spain. Companies must have their mandatory book of accounts certified and stamped by the local office of the Mercantile Registry before they begin to use them. Its not easy to answer if your profit is not too high (10,000 euros 12,000 euros), the taxation for a sole-trader or self-employed is better than the taxation for a limited company. This will be the official name of the company, which will appear on your invoices and other documents. "The service was excellent. 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.) It simply wont succeed. The Spanish government is also pressing forward with a decree to cut a gender pay gap of around 14%. Business accounts vary in cost, and in lieu of a fee, some will require minimum deposits. If you are considering setting up an offshore company, i.e. EE9s2ugOz)BRNGOLE6Mw~~/Wisconsin-VH4D-VH4-Engine-Repair-Manual-_1.jpg)
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. You will face 8 steps in order to set up your company, but it can get a bit tedious sometimes. 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. As a business owner, you will be responsible for your own personal tax return.
Nevertheless, even if the project does not necessarily have to be technological for the self-employed worker visa application to be accepted, This is another really important consideration you must take before starting. I highly recommend our lawyershe was very professional and thorough and her communication was superb throughout. That is why you need to request the companys CIF. For example, you can use your computer, phone or any other asset that is similar and that can sum up to that amount. The 2 directors will be either 2 Australian Citizens or 1 Australian and 1 Greek Citizen. Manage communications with the Tax Authorities. All rights reserved. "Couldnt have asked for better service!". 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. There is a generalized misconception that we must tackle here. That is why we created this complete guide: to solve all your doubts.
you can also relax in the knowledge that any communications received from the Tax Authority often impenetrable to locals never mind foreigners will be managed conveniently and efficiently by your accountant. As your activities are regulated under the income tax regime, it is possible that you end up paying an unnecessary amount of taxes by using this legal structure. Initial discussion with a tax lawyer to understand the project you have in mind. Foundations that turnover more than 2.4m or have more than 50 employees need to undergo an external audit annually. Because you will need to present a really detailed business plan, prove you have enough skills and financing methods to ensure the company will grow. 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.
That is the identification number that will allow you to open a bank account, be tax identified, etc. Together we will be able to offer you the specialized help you require for your business start-up in Spain. How to get your business visa: work permit to set up a company, Which type of company should you choose? Details of local social security offices in Spain can be found on the social security website. Your email address will not be published. Especially if the activity or service to be provided is dangerous in any way, such as certain sporting activities. 3,000 (initial share capital). You can do this as a sole trader (empresa individual) or partnership (sociedad civil). I am buying or selling property abroad. It is characterized by a much more rigid structure, and 60.000 are needed for its constitution. For expats, starting a business in Spain can open up lots of opportunities. In order to assess what would be your best option, it would be ideal to have a consultation with you so that one of the lawyers can advise you taking into account your case. This helpful guide covers everything you need to know about starting a business in Spain. Filing your VAT returns (IVA) is also required. The rules and considerations around starting a business in Spain vary depending on the scope of your plans. Necessary cookies are absolutely essential for the website to function properly. Finally, you will also need buildings and contents insurance. There is no legal distinction between your business assets and your personal assets. Recommendations regarding the most appropriate fiscal arrangements to ensure taxation levels are optimised.
Ensuring that your Articles of Association contain all necessary elements. Lets say, for example, that you would like to open any type of classic brick-and-mortar store; like a cafeteria or local supermarket. I worked with Rosa on obtaining a background check from Spain, and she could not have been more helpful. Your email address will not be published. Required fields are marked *. All professionals must hold professional indemnity insurance. Make sure that the application is made in accordance with the requirements of the Commercial Companies Code. In most cases, it is assigned automatically when you register your company, but otherwise, you will have to apply for it as well. He specialises in civil law, in particular property matters, mortgages, inheritance and family law. 
Sometimes, this is passed-on to the new owner, if purchasing an existing business, or if not, it may be necessary to make an application. Nevertheless, from the day we sign the set up of the company at the notary, they will give you a provisional VAT number, with which you can start your activity. The main types of business structure are as follows. Business address (whether it will be only for correspondence or you will really make your business there). | Quiero suscribirme a la newsletter. Complete management of the companys accounts. Initial discussion with a lawyer to understand the project you have in mind, Preparation of a report on the steps to be taken to initiate the activity and the likely costs involved, including an evaluation of the likelihood of success, Upon agreement, initiation of the application and the steps to obtain the licence, Follow-up services to include full tax and accounting service. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. You can arrange a local notary appointment to sign the deed of incorporation. So get ready to learn the. Nevertheless, the specific steps you should take in order to successfully have your company start running are not that clear. 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). So in case you are expecting to earn above that, our advice is to go for a limited liability company. 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. I would highly recommend working with her! Whats different is the need to become a legal resident in the country, which creates an extra prior step you will need to realize. To find out more about Spanish employment rules and rights, check out our guide to working in Spain. Do not forget to take with you your original documentation and photocopy of the deed and your NIE. Nevertheless, being a sole trader (empresa individual), has an important disadvantage: there is no distinction between the companys assets and your personal assets. 
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. 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. One example of this is siestas, which dont really exist anymore in Spanish business; although long lunches still do. As a Lexidy Law Boutique SLPclient, you will benefit from the joint expertize of local lawyers and international consultants. You can do this by yourself through theRMC website. They must be sent to the Corporate Register of Spain (Registro Mercantil) in order to check their availability. Miguel speaks English fluently. You can access our article on how to become an autnomo in Spain in order to clarify even further. Why Is Spain an Attractive Country for Foreign Investors? Because yes, you may have your work permit as a self-employed worker. Service levels agreed in advance and guaranteed. The Advocate Abroad Tax-Payroll-HR service in Spain offers assistance from English-speaking business and tax experts who will help you with your ongoing (or start-up) business operations in Spain. 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. If available, they will accept one of the three, depending on the preferences you set beforehand when submitting them. 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. Our consultants are registered and regulated by the Professional Accountants Body of Spain and speak fluent English. In that sense, there are some really worth investment opportunities in Spain you should really consider. You can also use assets that are valued the same to work as capital. Spanish Legislation Related to Foreign Investments, How to Purchase Shares in a Spanish Company, EUR 3,000 is the minimum share capital that must be deposited in a local. It is mandatory to procure user consent prior to running these cookies on your website. A British national, resident in Spain, who is interested in setting-up a new business wanted information on the likely costs and the legal options when starting a business here. Looking forward to your answer, kind regards. So if you just invested 3.000, that is the maximum amount it can be requested from you in case of indebtedness. This step should not take longer than two hours. ach of them has its own characteristics, and understanding their different purposes is crucial. Raffaele".
I would like to receive occasional legal & tax updates relating to Spain. You will choose one or the other according to the specific business idea. it was very informative, quick and straight to the point! Dealing with bank formalities connected with setting up of the company bank account. This process can take up to 48 hours. Some banks and business advisory companies will offer special packages to help you set up the particulars of opening a new branch in Spain. Getting the NIE is a really simple process. An SL has to present an annual Spanish corporation tax return and statutory accounts. You can contact us at [emailprotected] and we will answer as soon as possible. With the power of attorney you will have granted to us, on your behalf we will register your company at all Government institutions and offices required by law. 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. Both individuals and companies are interested in either making strategic investments in businesses located in other countries or indeed in purchasing them outright. In this case you wont pay income tax, but corporate tax (impuesto de sociedades), which is equal to 25% on your profits. Why should you open your company in Spain and not anywhere else? As mentioned above, your company will need a tax number. Several types of limited company structure exist in Spain. Taxes in Spain for Expats: For Residents and Non-Residents, Legal: Civil, Family and Labour Law in Spain, Corporate Register of Spain (Registro Mercantil), visiting your local social security office. Besides, determining who the director of the company will be is a required step. Save my name, email, and website in this browser for the next time I comment. While you will benefit from not having to worry about whether or not you are compliant with the legal requirements such as VAT returns, Corporation Tax, Income Tax etc. 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. If you move around the world by choice, consider helping those forced from their homes by conflict. Fees as recommended by the Local Professional Body. I had many questions as it was my first property purchase and she always took the time to explain. partners or shareholders who dont work in the company do not need to be registered with the social security system.
The level of business insurance you will need to take out varies significantly depending on the size of your company, whether you employ staff, and the nature and value of the assets the company owns. Incorporation is important in protecting the owner from personal liability in the event of bankruptcy, but this kind of structure does involve a number of additional tax, accounting, and mercantile obligations. Because the constitution process is exactly the same. In Spain, there aredifferent company structures, which are defined by the Commercial Code. When combined with the free and innovative Advocate Abroad support services you can be sure that you are obtaining completely transparent legal services from registered and regulated English-speaking lawyers abroad.These support services include: "Alvaro kept in contact with me right from the date that I first communicated with him regarding my Intention to seek Residence Permit to reside in Spain. Its main advantage is that you can get external financing as the companys shares can be bought at the stock market. VAT is generally charged at 21%, although companies in some industries can pay a lower level of either 4% or 10%. Assuming you chose to start a Limited Liability Company, you are required to contribute with 3.000 in cash for the constitution of the firm, which you will need to have on a deposit in the newly created account. Depending on the type of company you are setting up, however, you might find the journey somewhat bureaucratic and long-winded. If you want to set up a limited company in Spain, there is a defined path to follow. If you want to import/export within the EU, Bear in mind that if you are registering as a sole trader theres a specific regime that applies, called. you can use either of the following as the company name: Obviously the company name may not already be registered by another entity. That is why we recommend you rely on an accountant to manage your quarter and annual returns. Because yes, you may have your work permit as a self-employed worker. 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. 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. Including some videos to make sure everything is understood easily! 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. This removes the need to get a work permit in the future. 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. The first thing to do as a foreigner is to get your NIE number. You have to deposit this amount in a Spanish bank account and once the company is registered, you are free to use this amount to invest in assets on behalf of the company. This is the official document that states the key details of the company (name, address, details of directors, board members, shareholders, etc.). c. In that sense, the main benefits of starting your company in the Spanish territory are the following ones: No matter if you are a foreigner or a local citizen of Spain, everybody is allowed to start your business in the country. This step takes about three days before you receive the answer from the RMC by courier. Hence, you are fully liable for any possible debt the company has. We also use third-party cookies that help us analyze and understand how you use this website. This HR & Payroll Service includes the following components: This service costs 25 per month for the first employee and 20 per additional employee. That is why we suggest visiting our article about the legal process to get the visa as an entrepreneur. There, you will establish who the investors/shareholders and the administrator are. You also have the option to opt-out of these cookies. To find out more or to opt-out, please read our Privacy Policy, which has also been updated to reflect the same. The accounting services, the creation of documents, and the costs of the agent in charge of, There are also costs for accounting services, creation of company documents, transfer tax on stamp duty, to name a few. So, basically: If you want to import/export within the EU, you will need an EORI number. Public liability insurance is vital if you are running a business.