How To Start A Business In Spain Without Losing Your Mind

Anyone who has ever daydreamed astir moving to Spain usually imagines nan sunlit terraces and precocious lunches earlier they ideate nan taxation agency queue. Yet each year, thousands of group relocate present pinch nan volition of building a business, launching a startup aliases simply turning a freelance accomplishment into a livelihood.

And while Spain is acold much business-friendly now than it was moreover 5 years ago, location are still a fewer realities worthy knowing earlier you statesman filling retired forms.

To commencement with, nan authorities has made a conscious effort to pull entrepreneurs. Recent laws person loosened nan rules connected institution creation, lowered nan stock superior needed to unfastened a Sociedad Limitada (the Spanish balanced of an LLC) to conscionable €1, and introduced a little 15 per cent firm taxation complaint for newly-created companies during their first profitable years. There’s besides a simplified “digital nomad” visa and a Startup Law that, connected paper, makes Spain look remarkably welcoming for innovation-driven founders.

But what does this really look for illustration successful practice?

The first large decision: Autónomo aliases SL?

This is nan mobility each caller presence asks – sometimes frantically, usually much than once.

Registering arsenic autónomo (self-employed) is nan fastest and easiest route. You tin run legally wrong days, measure clients, and salary Social Security contributions based connected your existent income. For galore newcomers, particularly freelancers, it’s a logical spot to start. There’s besides nan currently-available €87 per period ‘tarifa plana’ for nan first year, a invited alleviation successful a state wherever Social Security fees tin different feel, well, heavy.

However, being autónomo intends that you are your business. There’s nary liability protection, and arsenic your income grows, truthful do your contributions. Once you’re earning consistently, galore group statesman considering nan move to a Sociedad Limitada (SL). The SL provides constricted liability, tin look much master to investors and firm clients, and benefits from firm taxation rates alternatively of individual income taxation brackets. It does, however, travel pinch much management – and yes, Spain really does emotion administration.

So, what’s nan existent process?

You will request a NIE (foreign personality number) – perfectly everything originates there. Then comes choosing a institution name, signing documents pinch a notary, registering astatine nan Mercantile Registry and notifying the Tax Agency of your business activity code. Some parts tin beryllium done online now, particularly done nan government’s PAE/CIRCE “one-stop” portal, but anyone who has navigated Spanish bureaucracy will show you that patience (and often a section gestor, nan Spanish reply to an accountant-bureaucracy guideline hybrid) remains invaluable.

Most newcomers underestimate 2 things: clip and friction. Even pinch nan caller integer procedures, opening a business slope relationship tin return longer than expected. Documents get requested, past requested again. Appointments open… and disappear. But nary of this is impossible. It is simply portion of learning nan hit of a state wherever things do get done — conscionable seldom astatine nan gait you first imagine.

What astir visas?

It’s worthy noting that Spain officially scrapped nan Golden Visa this year, meaning investors tin nary longer get residency simply by buying property. Instead, entrepreneurial hopefuls look towards:

• The Entrepreneur Visa, for business plans considered innovative aliases economically valuable to Spain
• The Digital Nomad Visa, for distant professionals pinch world income
• Or nan Startup Law route, for companies recognised arsenic technology-based startups

Each comes pinch its ain eligibility criteria and documentary requirements, but nan connection is clear: Spain wants entrepreneurs who intend to build, not conscionable invest.

And is it worthy it?

This is possibly nan astir honorable mobility of all.

For galore people, yes – absolutely. Spain offers a beardown talent pool, little surviving costs than bluish Europe, and startup ecosystems successful Barcelona, Madrid, Valencia and Málaga that are increasing fast. Life present tends to consciousness much lived, little rushed. There’s sunlight, community, and a taste hit that reminds you that work, while important, is not everything.

But Spain rewards commitment, not spontaneity. If you get expecting everything to activity instantly, you’ll apt beryllium frustrated. If alternatively you get fresh to adapt, learn, inquire questions, and occasionally laughter astatine nan absurdity of immoderate paperwork stamp requirement, you’ll find yourself astatine location faster than you think.

Starting a business successful Spain is not conscionable a ineligible process. It’s a taste one.
And for illustration astir things Spanish, it’s champion approached pinch bully information, nan correct support — and a heavy breath.

Stay tuned pinch Euro Weekly News for much news from Spain