Once you have decided that you have a viable concept rather than a crazy idea for setting up a business in Spain, you need to decide what is the best type of company to set up.
Possibly, the easiest and most cost effective way of setting up a business in Spain is to register as autonomo (self employed) .
To register as a self employed person in Spain:
- Go to your local social security office with your NIE (Número de Identidad/Identificación de Extranjeor) and passport to obtain your social security number NAF (Numero de afiliación a la Seguridad Social). If you do not already have your NIE, you can follow the instructions here or contact us
- Once you have your social security number (NAF) , take this to the Agencia Tributaria and ask for a Modelo 036 or 037 to register the activity for your new business. Here is a list of autonomo category codes you can chose from. Ensure you chose the right activity for your new business as this will decide the level of business tax IAE (Impuesto sobre Actividades Econimicas) you will be subject to. If unsure, contact us .
- Return to the social security office with your bank book to set up the monthly social security payments.
How much will it cost?
The biggest cost of being self employed in Spain is the social security payments that are approximately €250 per month. In some circumstances this amount can be reduced. For further details about social security, click here.
Accountant fees for submitting the correct quarterly and annual VAT returns and tax reports can cost anything up to €150 per month. For a professional accounting service at a much lower fee, prices starting from only €65 per month (excl. VAT), contact us.
You are also responsible for advance income tax payments IRPF (Reglamento del Impuesto sobre la Renta de las Personas Físicas). These are paid on a quarterly basis and on presentation of your Annual tax report (Declaración de la Renta) you may be entitled to a tax rebate.
For a personal evaluation of your business idea and further details of our accounting service in Spain , contact CCB Spain .
By Lisa Sadleir