Question about opening a business in Spain

[Billygoat]

Was thinking about moving in a few and opening a Surf Shop on the beach around El Palmar's or Conil. Anyone got any info to what i need to do to move and open a business over there? I'm guessing i need to get with the Embassy. Was wondering how hard it is for someone that is from the USA to move, live and run a new business over there? Any info is very helpful.
Thanks
BG

[Billygoat]

Hello everyone, just got a PM from Nol. From what i was told. I can live in Spain and open any of the two business i was talking about. If you can open a business over there. It's alot easier to live there. I'm going to update this thread for others to follow as time goes by. I'll try to list all the info i find about moving and starting a buiness in Spain. I'm most likely going to find a lawuer to help out with the paper work. Starting spanish lesson soon at local college. Plus, got software to study on labtop. I'll let everyone know how everything goes as it comes together. First thing is going to be going over and scouting out some locations for apartment and store location. Then i'll get with the lawyer to find out about business Lic., Tax ID, Etc. I'm guessing either i'd be getting a work Visa or Residence permit or something of that nature. I'll let everyone know. Any info anyone has and wants to post. Please feel free to share with us.
Take care

[Billygoat]

A little update from some info i found. This is info for a limited business over there. I think from what i'm seeing its a buch of running around and getting all this different paperwork together and done. I think this is were a lawyer could speed up the process. Here's the info.
Take care

To set up an S.L. you have to follow the steps below (remember to always bring all your papers and your identification (+ at least 5 copies) to all the meetings you have with different Spanish institutions):

1. First of all you need a certificate (Certificacion Negativa del Nombre (CNN)) stating that the company name you intent to use is not taken. This can be bought in the Registro Mercantil for about 10€.

2. The next step is to get a temporary CIF number (company identification number). To get this you have to fill in the model 037, bring 2 copies of you identification and the original CNN. This can be done in the 'Camara de Comercio' or the 'Ventanilla Unica' in your town.

3. Thereafter you need to deposit 3003€ in a bank account opened in the company's name. You need a certificate from the bank stating that you have made the deposit.

4. The next step is to prepare the official statement of the company (Escritura) and make a public notary sign it. The official statement of the company is saying who is the owners, the address of the company, what the company will be doing etc. Normally the elaboration of this statement is included in the public notary fee (which can range between 200 and 1000€).

5. The company now need to pay a tax of 1% of the initial capital, which is 1% of the bank deposit (minimum 30.03€). This should be done in the tax administration office using the form 600. Remember to bring a copy of and the original 'Escritura' and a copy of your temporary CIF number.

6. When you have paid the above tax you need a certificate from the Registro Mercantil (the same place where you got the CNN) of your Escritura.

7. Now you need to fill in the following forms 36 or 37 (a declaration of starting your activity) and the inscription of the company with social security (form TA6) at the 'Camara de Comercio' or the 'Ventanilla Unica'. You also need to acquire and bring a book called Libro de Visitas, which is an official book used by the government when they do official inspections of your company.

8. The next step (also at the Camara de 'Comercio' or the 'Ventanilla Unica') depends on the number of employees there is going to be in the company. If the only workers are the owners then you need to fill in the form TA 0521/B. If you need other employees you need to get a pre-contract for social security.

9. At this stage you also need to apply for licenses with the local government if it is needed. In generally all public places like bars and shops and also manufactures need a special license (In the 'Camara de Comercio' or the 'Ventanilla Unica' they can inform you about licenses needed to run your business. It is also a very good idea to also seek professional help for this issue).

10. If your company is going to have employees (apart from the owners) you need to register them with a local INEM office (unemployment office).

11. The company can start to operate as soon as you have received all your licenses. The last step is to get the final CIF number at the 'Camara de Comercio' or the 'Ventanilla Unica' by showing the original certificate from the Registro Mercantil of your Escritura.

Back to the main guide "How to Start-up or Buy a Business in Spain"

[Billygoat]

Sorry, been alittle busy and haven't been around much. Here's what i found about owning property in Spain. This is most likely the company i'm going to use to buy a house or land.
Thanks

Owning a Property on the Costa de La Luz

Although foreign buyers don't have to become resident in Spain they do have to apply for an NIE (Numero de identification de Extranjero) number through their lawyer.

Apart from insuring one's properties other fees and taxes have to be paid:

IBI Tax
This is a real estate tax (local rates) levied by the local town hall and is usually 0.85% of the catastral (rateable) value.

Property Income Tax
Non resident natural persons owning real estate in Spain for private purposes will be taxed at the rate of 25% of the supposed profit (rental income) produced by the property and this supposed profit is calculated at the rate of 2% of the catastral value.

Property Wealth Tax
This tax is calculated as between .2% and .25% of the highest of the following values:

1. The catastral value
2. The value estimated by the tax authorities
3. The purchase price 'declared' on the title deed.

Community Fees
These are paid to the Community of Owners for services and maintenance of communal areas when the property is located in a development or condominium.

* Offshore Companies owning property in Spain pay a fixed rate of 3% of the catastral value instead of the Property Income and Wealth Taxes

[Billygoat]

High all,

I know it's been along time since my last post here, but i've been very busy with work and preparing to get the hell out of dodge. The dates are getting closer and the light at the end of the tunnel is getting brighter.

The move to Spain is moving forward. It's looking like i will be over there sometime early summer of 2008, but i will be on the ground looking at houses and a store front sometime in the spring of 2008. Jan-Feb, should be around this time period. Will be doing allot on this first trip. First stuff needed to be done up front.

1. Visit Lawyer
2. Meet with Real Estate Agent
3. Open local Bank account. Personal and Business account
4. Request Business name
5. Apply for Tax number
6. Apply for business Lic.
7. Open P.O. Box

These are some of the first things that need to be done up front. Not in the same order but in general. Lawyer is taking care of the paper work for my Residence Permit. This is best to be done at home before heading over, because. They will make you go home and apply from home.

Well, just wanted to touch base with everyone. Sorry, its been so long since my last post. Still looking to live in or south of the Cadiz area. Some where's close to El Palmar's. Got to have my waves for surfing, lolol
Take care all,
BG

[milehigh]

Good info, keep up the good work. And success!!

mh

[winstone]

Good luck , an interesting read, Spain sounds so laid back, and civilised, I can see why you'd want to open a business there.

winnie

[Billygoat]

Thanks, milehigh. I'll try to post as much info as i can. Once i get over there on my scouting trip. I'll have allot more info to post. Got to head over and meet with local lawyer, real estate agent, and local police department. Lot's to do and lots to get done. It will be worth it in the end. One thing i really like about spain. You are so close to everything. So, easy to catch a plane flight or a train some where's.
Take care,
BG

winstone, It is. I got a chance to spend some time there while in the army and loved it. There are trade off's. By no means is it a perfect place. On major thing i will have to get use to. Is a wal-mart on every corner and speedy service. I know it sounds funny or sad, but when you need something in the states. Wal-mart and Lowes is a very quick drive and the prices are allot cheaper then i'll see in spain, but the beach, women, and smoke are a great trade off. It will be nice and i can't wait. I'm just hoping i can get construction done quick enough. To get the store doors open quick. I've heard some stories about very slow service over there, but I guess i'll see soon enough.
Take care,
BG

[Billygoat]

Well,

Just figured i'd update a little for those following. It's looking like i'm going to be in Holland for Gypsy's 4:20 grower's cup. I'll spend a week there for that event meeting allot of friends and enjoying my vacation. Then after that event. I'll be flying over to Spain for a few days. Going to be meeting up with a couple of real estate agents. Look at a few houses, villa's, and also some store fronts. I'm hoping to find something i like for a house, and store front, but i know i don't want to rush either. If something does catch my eye. I'll be either placing a deposit if it's a house and if it's a store. I'll be signing my lease. This trip i'll be meeting up with my local lawyer. opening up a local bank account and doing some other running around. It's going to be a busy quick trip, but i should get allot done.

Well, I'll update as it get closer to April and if anyone is down near Cadiz area and want's to meet up. I think that would be nice.
Take care,
BG

[stonedbloke]

Im off to Marbella for my honeymoon in may, pm me if you can point me in the right direction for some smoke while im there. It would make my stay just perfect haha