Spain is a beautiful country that has a lot to offer, which is why many people think about moving there. But the job market can be disappointing: more seasonal jobs, lower income, more unemployment. Setting up a company can be a satisfying alternative to applying for jobs. But what is there to pay attention to when starting a business in Spain as a foreigner?
Who Can Start a Business in Spain?
Any foreigner, who is a legal resident, can open a business in Spain. Majorca is extraordinarily popular with business founders from abroad, as the island is very international and said to be one of the most beautiful spots in Spain. To find the perfect place for your business, make sure to explore the area beforehand and prepare well.
If you’re not yet ready to rent a flat long-term, a nice holiday apartment can be a great option. Holidu.co.uk has plenty of decent and affordable offers on the island, which will give you a foretaste of what living on Majorca could be like.
How to Become a Legal Resident of Spain
Becoming a legal resident is the most crucial part if you want to start a business on Majorca or the Spanish mainland. Members of the European Union simply need to get two things: their Foreigner’s Identification Number (NIE, short for Número de Identificación de Extranjero) and their EU registry certificate.
Immigration used to be easier before Brexit. But it’s still possible for people from the UK to set up a business in Spain. To get permission, they need to apply for a working visa, though, which is more complex and more expensive. The two types of visas that come into question, in that case, are the Entrepreneur Visa and the Self-Employed Worker Visa.
The Perfect Business Idea
It’s best to have a good business idea before deciding to open a business on Majorca. But if Majorca is your dream country, it’s possible to do it the other way around, too. Make sure to find something that people in your area of choice have already been waiting for. If there’s already a strong demand for your product or service, but no competition, your business may even become a sure-fire success.
When it comes to founding your business, the Commercial Code is what you should create your business structure on: sole trader, limited liability company (SL), stock operation, or branch office. Keep in mind that each business structure comes with different levels of liability, nominal capital, and taxes.
Your 8 Steps to Opening a Business in Spain as an Expat:
If you follow these steps and are aware of all possible pitfalls, chances are that you’ll succeed with your new Spanish business:
- Get your NIE or apply for a visa to be able to start a business on the Spanish mainland or on one of the popular islands.
- Find a good name for your company and make sure the name isn’t used (certificate of uniqueness).
- Now it’s time to get your tax ID number or CIF.
- Afterwards, you should be good to open a bank account for your business.
- If you’re not working as a sole trader, but within a group of shareholders, this is the time to set up the shareholder agreement and to establish the shareholders.
- If each shareholder is happy with the agreement, it’s time to go to a notary to sign the public deed of incorporation.
- Once that is done, the company can be registered with the tax authorities.
- Finally, you need to register your business with social security.
Complex Yet Feasible
Founding a company in Spain as a UK expat is not necessarily easy. But if you know which step to take when, it’s definitely possible to live your dream and hit the ground running. Do make sure to prepare well for your adventure, though.
