Starting Your Own Business in Spain - A Guide |
Self Employment Options In Spain
Being self employed or starting up your own business is difficult
whichever country you are in, let alone one whose main language is
different to your mother tongue. Spain is, however, a very lucrative
country when it comes to setting up a business or working freelance
and once you have got into a routine with paperwork you are likely to
find being self employed in Spain a highly enjoyable way of life.
It's important for freelancers and entrepreneurs in Spain to have
everything above board even before it is set up, and that involves
each individual having a NIE (social security) Number. Getting a
social security number simply involves filling out a form at the
local Spanish social security office. Once that's been done the staff
there will issue you with a number and a temporary card until the
permanent one is sent. All you need to take to the office is your
passport and a photocopy of it.
You do not actually need to have a job in Spain to have a NIE number,
but you need one in order to work, so it's worth getting one as soon
as you move, so that it's all set up even before you consider starting
a business. This number is also needed to work out what social security
contribution (essentially the same as National Insurance contributions
in the UK) you will be required to make. Self employed individuals need
to pay these themselves but if working for a larger company then your
manager will deduct the amount automatically from your pay.
As well as social security contributions self employed individuals
working in Spain are required to pay an up-front tax payment. This tax
payment is worked out as 20% of the profit from each quarter (3 months)
of the previous year, but at the end of the next tax year the majority
of that money can be claimed back simply as business expense.
Secondly you'll want to do some research into whether your service is
marketable in Spain. Chances are that if it was successful in the UK
or elsewhere with a similar culture in the EU then it will be successful
in Spain too, but it's best to check. Different areas in Spain have a
larger market for different industries and sectors so it's well worth
researching them. Take the south for instance, the steel and iron
industry is particularly abundant there, yet clothing and food
production is more popular in the south. This type of research
can be done with some simply market research or looking into the
competition. Spain has its fair share of 'cowboys' in public sector
trades, so you will want to establish that your business is legitimate
and separate it from the competition from the get-go.
Another important factor in starting a business in Spain is that you
will need to choose a legal Spanish business plan and register the
company or yourself with the relevant plan, in order to be operating
legally. This isn't necessary for IT related companies but it is
always best to check, just in case. These business plans/styles
include Sole Proprietor (Autónomo), Partnership (sociedad civil),
Public Limited Company (Sociedad Anónima) and more, and there is at
least one which will be relevant to your specific business.
Once all the legalities have been set up and your business is above
board it's time to get organised. That might involve finding an
accountant or 'Gestor' to help you with the more in depth paperwork
and these can usually be found via business directories or by simply
googling, but perhaps a more reliable way of finding reputable and
legitimate help is to contact the Embassy of Spain.
It's highly recommended that you gain business help and advice when
thinking of starting up a company or even working freelance in
another country as the likelihood is that they do things very
differently to the UK. Once this has been established you are
free to move onto the exciting part of setting up a business and
getting the ball rolling.
Related Documents: The Spanish Social Security System | Obtaining Your NIE Number
|
|
