FAQ

Question	What is the procedure for starting a business, up in Spain or the Canaries.
Answer	Council of Europe regulations provide that European Union citizens can work in Spain under exactly the same conditions as Spaniards. The rules for starting a business in Spain are more or less the same as those in any other European country. There is quite a lot of paper work involved and certain regulations and procedures need to be adhered to. If you do not speak the language we strongly recommend you use professional assistance. Make contact with a good gestoria to advise you on all bureaucratic procedures. Find a good asesor fiscal, tax consultant, to handle your book keeping. Consult a lawyer to make sure you understand your contracts. A good adviser in one of these categories will certainly save you time, trouble and money and many of them speak English. Certain types of business can only be carried out by people with recognised qualifications which may vary from the UK ie if you are a food handler then you will need to have a certificate of a food hygiene course. You will need your NIE, your foreigner's tax identification number, which you will need if you are buying a house in Spain also. So arrange this as soon as possible by visiting the local Police station who will supply you with a simple form to complete. Take with you four passport photos and two copies of your passport. I recently collected two NIE numbers from Denia police station that only took them two weeks to have issued, however, this may vary depending on how busy the local authorities are! As a self employed business man, trabajador autónomo, you will need to apply for your Spanish Social Security card, also you will need to register yourself as a businessman or professional for the IAE – the Impuesto Sobre Avticidades Económicas – the tax on economic activities. You register for this at the local town hall and this tax widely varies from business to business. For example a bar or restaurant owner will pay according to the size of his establishment and even its location. Your gestoria will help you determine your category. You could pay as little as 200 euros a year or a much as 2000 euros depending on your self employment status. Keep accurate books noting all your payments of IVA, Spain 's Value Added Tax, plus your expenses for the gestoria, accounting and legal advice. A small business is obliged to start paying tax by using the modular system. In the case of bars or restaurants the tax agency decides what the income tax should be based on an analysis of how many tables there are, how many waiters are employed, the square metres of your premises and other factors. You will be charged business tax on this assigned amount each quarter. At the end of the year you will file your complete return of actual income and take your deductions for business expenses. If the agency owes you money in return, and they probably will, you claim the refund. The main advantage here is that you do not have to send in a detailed set of quarterly statements as these are presented at the end of the year. I hope I haven't tied you up in knots, please take my earlier advise and as soon as you have your business plan ready consult a tax consultant and a business specialist.