Doing business in Spain?
Discover the advantages of using a single provider for all your business needs in Spain. We're aware that many of our clients face language and cultural issues when setting up their business in Spain. That's why De Micco & Friends is built around filling all your needs in your language. Once you have determined the best way to establish your business, be it a resident company (Autonomo, S.L. or S.A.), a branch, or a non-resident company, we provide all the follow-up services you might need such as
- Accounting
- Payroll
- International Tax advice
- VAT registration
- Immigration
- Virtual office
- Legal Advice
- Real Estate Transactions
- Wealth Structuring for Individuals and Families…
Services after the foundation of your company
De Micco & Friends Lawyers & Auditors provide all the services you need AFTER your Spanish company is formed. By having corporate/tax lawyers, auditors, accountants, and payroll specialists in the same office, your business needs are covered, and information passes between them without requiring your intervention.
Company Formation in Spain
Take a look at our following overview of the process of set up a company in Spain which De Micco & Friends provides to you. The procedures may slightly depend on the legal form of the company, but here you can see the basic steps.
Steps for setting up a Spanish company (SA/SL)
1. Certificate of availability of the company name: accredits that the trade name chosen doesn’t coincide with any other already in existence.
2. Opening a current account and requesting a certificate confirming that the share capital has been paid into the bank. Enables the minimum share capital to be paid into an account (3.000 EUR for SL’s and 60.000 EUR for SA’s).
3. Granting powers of attorney (optional). If any partner is unable to sign the deed of incorporation in person before a notary public, may authorize another person to do so on his/her behalf.
4. Executing the deed of incorporation of the company. Official record that the partners (or their representatives) have appeared before a notary public to formalize the incorporation of the company.
5. Census declaration
6. Obtaining the provisional tax identification code (CIF).
7. Registration for the following taxes:
- Value Added Tax (IVA)
- Corporate Income Tax (IS)
- Business Tax (IAE)
8. Payment of Property Transfer Tax and Stamp Duty (ITP and AJD). Currently you don’t have to pay these taxes (previously was equivalent to 1% of the share capital) but the official form must be filled in anyway.
9. Registration on the local Companies' Register (Registro Mercantil Provincial) in the two months following the granting of the deed of incorporation or the company.
10. Obtaining the required licenses, authorizations and administrative registrations. May vary according to the nature of the business.
11. Registering the company with the Social Security System and registering and affiliating the workers with the Social Security System. General Treasury of the Social Security.
12. Communicating the opening of the business premises (Regional Government)
13. Obtaining the definitive Tax Identification Code (CIF) (Inland Revenue Office)
14. Legalization of the company records (Registro Mercantil Provincial)
Foreign Investors / Shareholders
In the event that a company (SA/SL) associate is a foreigner, in addition to these steps they will also have to obtain:
- Foreigners' Identity Number (NIE) from a central-government office (Oficina de la Subdelegación del Gobierno) or a Spanish Consulate or Embassy.
- Authorization of the investment from the General Directorate for Trade and Investment (Register for Foreign Investments) run by the Ministry of Economy.
The total time period for the incorporation of the business is approximately 30-40 days (apart from any necessary administrative authorizations and registration on the Companies' register).
Further questions regarding Business in Spain
Financing of real estate
After the banking crisis, Spanish banks are now again interested in issuing mortgaged loans. But the criteria have become far more restrictive. A qualified foreign borrower who is credit-worthy may obtain a mortgage of up to 70% of the property's official estimated value. It has to be kept in mind though that the estimates of the recognised experts are up to 30% below the actual market value.
But foreign applicants for mortgages should not give up easily. The documents that the banks will require have to be prepared well. De Micco & Friends will support you in all stages of the preparation and will connect you with the perfect partner for financing.
The documents required by Spanish banks are not much different from what banks in other countries require. You should always prepare the following documents:
- tax returns for the last 2 or 3 years
- balance sheets and P&L accounts for the last 2 or 3 years (if you own a company)
- wage slips for the last 6 months and proof of other regular income
- a list of all current monthly expenditures
- list of all your assets and liabilities, if possible certified by a tax consultant or auditor
- copy of your passport/ID-card
The required documents may also be submitted in English or German. For any other language, you need to prepare an official Spanish translation.
For citizens from Eastern Europe, Russia or Ukraine, it may be a bit more complicated to obtain a mortgage because the local finance and banking systems are not as transparent as in Western Europe. But depending on the personal situation, the kind of the purchase object and the creditworthiness of the borrower, mortgages are also possible for these clients. But you have to expect that it will take longer to process your application.
Administration, payment of ongoing expenses, representation
For larger objects or also if you carry out other business deals in Spain besides the real estate investment, De Micco & Friends will represent you in all organisational matters, including the payment of expenses on time, and will represent your interests during your absence.
For smaller objects, your Spanish bank will also support you in making the regular payments for expenses.
Stay as a tourist
EU citizens can stay in Spain without any limitations. There is no longer any visa required for some non-EU countries, like the USA. The maximum duration of your stay depends on your home country. It is important to keep in mind that even if you are not residing in Spain, the tax authorities will treat you as a resident if you spend more than 183 days per calendar year in Spain and you will be fully liable to pay taxes.
On the other hand, having residence in Spain can be quite useful for the citizens of certain countries, e.g. in order to have free travel privileges. Russian citizens for example may gain residence if they acquire property worth at least 500,000 €. De Micco & Friends will inform you of the current guidelines, the advantages and disadvantages in a free initial consultation.
Schools in Spain
All major cities in Spain offer international schools and pre-schools. Many offer full board on a weekly basis. Students are educated in different languages like English, German or French and may graduate with a baccalaureate. De Micco & Friends can provide you with a current list of local and international schools and recommendations.
Doctors, hospitals
In many major Spanish cities highly qualified medical care is provided. Mallorca for example has internationally renowned private clinics and a new and modern large hospital and thus offers optimal case.
Private health insurance policies can be taken out locally. These insurance policies which cover more services cost between 50 € and 130 € per person per month, depending on the age and the health situation. The Spanish healthcare system allows EU citizens who are contributing to a healthcare system to use the Spanish system with form no. E-101. Contributing residents who are self-employed or own a company or who are in employment may use the Spanish healthcare system automatically by paying national insurance contributions.
Further information
Whatever your plans for Mallorca and Spain, whether you wish to acquire real estate or start a business, obtain residence or simply enjoy retirement, De Micco & Friends will assist you in any way.
Tell us your ideas and your plans – we tell you what will work and how it will work.
The initial consultation, during which we usually already give you some advice and consultation, is always free of charge and of course without any obligations.
NOTE
This information is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.