Setup a business in Spain

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There are different options to setup a business in Spain, establish a new company, to open a branch, to set up a permanent establishment, to buy a business for sale in Spain also could be an opportunity. If you have your own consolidated business and you want to expand it to other countries like Spain, then it will be advisable to open a new company or a permanent establishment to set up your business in Spain, we will study the best option for your business in order to have the best mercantile and tax structure, which will make you saving taxes and responsibilities. On the other hand, if you are an investor looking for high economic profitability then to buy a rolling business could be a good option, we could offer you different options and sectors to invest and to set up a business in Spain.

Buy a business for sale in Spain also could be an opportunity. Setup a business in Spain.

Why Spain is the correct place to setup a business?

Spain is well known, among other things, for its excellent quality of life, open-minded character of its people and the wealth of opportunities on offer, both in the fields of education and culture and in the worlds of sport and leisure.

Spain has a wide range of public and private hospitals and a buoyant housing market. All of which, when combined with the assurance provided by a system of law enforcement that works, make Spain an ideal country in which to live, work and set up a business.

Spain has been ranked among the top world list of tourist destinations, not only in terms of visitor numbers but also in terms of revenues generated.

Spain’s attraction for foreign investors lies not only in its domestic market, with 46.6 million potential consumers and a further injection from around 80 million tourists who flock to the country each year, but also in the possibility of operating in third-country markets using Spain as a base, for example Latin America.

Spain occupies a prominent position worldwide for the importance of its economy; this makes a perfect place to set up a business. The world’s fourteenth largest economy, it offers one of Europe’s most attractive domestic markets as the fifth economy of the EU. With a GDP of 1.2 billion USD, it counts with 46 million consumers, in addition to 75 million tourists who visit Spain annually.

Spanish economy has been growing since 2014 based on various parameters like the size of the market, the development of its infrastructures, talent, innovation capacity, quality of life, costs and the business environment. Spain in recent years it has overtaken the European Union average growing yearly over 3%.

For example, Agro-food industry in Spain offers excellent business opportunities in different sectors like pig, chicken, olive, almond and others, you could buy a business for sale with activity or land and start your own project or set up your business in Spain.

Investor Residence

Non EU investors, entrepreneurs, highly skilled professionals, researchers and intra-corporate transferees may apply for a residence authorization in the framework of the Law 14/2013 on Support of the Entrepreneurship and its Internationalization (September, 27th 2013).

Furthermore, investors who make significant investments in Spain: real estate assets (€500,000); set up a business in Spain by buying company shares in business for sale, investment funds or bank deposits (€1 million); public debt (€2 million), and business projects of general interest.

Fiscal Representation

Being your tax representative when you are doing business in Spain, we act as your partner in the country and we become your interlocutor in front Spanish tax authorities. We make easier the understanding between customers, suppliers and tax authorities, which will free you from bureaucratic procedures.

Establish a Spanish company

From a juridical point of view in order to set up a business in  Spain, foreign investors have several options for investing in Spain. The most commonly used company format is the limited liability company (S.L.). Also widely used is the public limited company (S.A.), an option generally selected by companies of a certain size. Companies have their own legal status. S.A.s and S.L.s are companies with a mercantile character in which the liability is limited to the capital provided. Both types of companies can also be constituted by a single person, or become uni-personal when, once they have been constituted, all the shares become the property of a single partner.

  • Opening a branch. This does not have its own legal status independent of the parent company. However, this type of establishment implies permanent representation and a degree of management autonomy for carrying out the activities of the parent company. Subsidiaries are entered in the Companies Registry.
  • Creating a representative office. This way of becoming established in Spain is only suitable for foreign companies who intend to carry out only auxiliary or secondary activities in Spain to the parent company’s activities abroad.
  • Associating with other companies already established in Spain: joint ventures are a frequent way of becoming established in Spain, as this is a way to share risks and pool resources and experience. The Spanish legal system distinguishes categories of different joint venture.
  • Activity developed directly by a company owner who is an individual. The Spanish legislation also contemplates a particular form of business activity by an individual company owner through the figure of the “limited liability entrepreneur”.

However, it is not essential to invest in Spain to set up a new company or to associate with pre-existing companies. It is possible to set up a business in Spain and have a presence in the Spanish market without the need to physically establish a center of operations in Spain, through:

  • Distribution agreements.
  • Conducting operations through an agent.
  • Conducting operations through a commission agent.
  • Setting up a franchise.
  • Buy a business for sale.

In all these situations you will need a tax representative and a good advising that you can trust.

Banks

Apart from the Spanish banks, many of which are ranked among the foremost banks in Europe (Banco Santander and BBVA), major international institutions operate out of Spain (e.g. Deutsche Bank, Barclays Bank, UBS, etc.), as do large investment banks. We help our clients to look for financing for its projects and set up his business in Spain.

Taxes

Main direct taxes applicable in Spain are:

  • Corporate income tax.
  • Personal income tax.
  • Non-resident income tax.

Main indirect taxes applicable in Spain are

  • Value added tax (VAT).
  • Transfer and stamp tax

Incentives

With a view to fostering investment, employment, competitiveness and economic growth, the Spanish State and Spain’s other public authorities have been developing and consolidating a wide and complete range of aid instruments and incentives, placing special emphasis on fostering indefinite-term employment, on regional investment and on research, development and technological innovation (R&D and TI).

Moreover, since Spain is an EU Member State, potential investors by set up a business in Spain can benefit from European aid programs, which make investment in Spain even more attractive.

Healthcare

Spanish healthcare and hospitals, both public and private, has a very high standard, with many excellent medical centers. Spanish citizens and residents are well served by the Spanish National Health Service.

You could find more information in the following links:

http://www.investinspain.org/invest/en/why-spain/reasons.html

https://www.agenciatributaria.es/AEAT.internet/Inicio/La_Agencia_Tributaria/Campanas/_Campanas_/Fiscalidad_de_no_residentes/Fiscalidad_de_no_residentes.shtml

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