Starting a Business in Spain: What Property Buyers Should Know

For many people relocating to Spain, buying property is just the first step in a new lifestyle. Increasingly, foreign buyers are also exploring the possibility of launching their own business, whether to generate income or simply to stay active and connected. Spain offers attractive opportunities for entrepreneurs—but it’s essential to understand the legal and administrative landscape before diving in.

Choosing a Business Structure

One of the first decisions is selecting the right legal form for your business. The most common options are:

• Autónomo (Sole Trader): Suitable for freelancers or small service providers. It’s the simplest structure with minimal setup requirements.
• Sociedad Limitada (S.L.): A private limited company, ideal for ventures involving multiple partners or significant financial investment.
• Sociedad Anónima (S.A.): Reserved for large businesses with substantial capital and shareholder structures.

For most property buyers looking to run a small business—such as a holiday rental agency, consultancy, or café—the Autónomo or S.L. structure is the most practical.

Residency and Work Permits

EU/EEA citizens can live and work freely in Spain. However, non-EU nationals must obtain a relevant visa, such as:

• Self-Employment Visa (Visado de trabajo por cuenta propia): Requires a viable business plan, sufficient funding, and compliance with professional regulations.
• Entrepreneur Visa: For innovative projects with potential economic impact. This is more complex and subject to approval by a government committee.

Registering the Business

The process varies slightly depending on the structure, but typically involves:

1. NIE Number: A foreigner’s tax ID number, essential for any legal or financial process.
2. Tax Agency Registration (Agencia Tributaria): Declare your activity and business model (known as “epígrafe”).
3. Social Security Registration: Autónomos must enroll and begin monthly contributions (approx. €230–€294 as of 2025, though discounts may apply for first-time registrants).
4. Business License (Licencia de Apertura): Required for physical premises, issued by the local town hall.
5. Other Permits: Food services, tourist rentals, and some professional services may require additional certifications or inspections.

Taxes and Accounting

Spain has a well-defined tax system:

• IVA (VAT): Usually 21%, but certain sectors benefit from reduced rates or exemptions.
• IRPF (Personal Income Tax): Paid by autónomos based on net income.
• Corporate Tax: For companies, generally 25% of profits.

Many business owners hire a gestor or accountant to handle monthly filings, especially if unfamiliar with Spanish tax codes. Their services typically range from €60–€200/month depending on the complexity of the business.

Popular Business Types Among Expats

• Tourist Accommodation: From managing holiday lets to rural B&Bs.
• Hospitality: Cafés, tapas bars, and small restaurants.
• Consultancy and Freelancing: Marketing, IT, and legal services.
• Property Management: Overseeing rentals for absentee owners.

Be aware that each sector may require sector-specific licenses and insurance. Due diligence is key.

Support and Incentives

Spain offers regional support programs for new businesses, especially in rural or underdeveloped areas. Local chambers of commerce (Cámaras de Comercio) provide guidance, courses, and networking events. In some provinces, grants and low-interest loans are available for young or foreign entrepreneurs.

Final Thoughts

Starting a business in Spain involves patience and planning. While the bureaucracy can feel daunting, thousands of foreign residents successfully run businesses here every year. Understanding the legal framework and getting the right local advice will help you transition from property buyer to business owner with confidence.

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