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Starting A Business in Spain

Starting A Business in Spain

If you are living in spain and wish to start your own business here, you need to register as self employed (autonomo) for income tax and social security reasons. many small businesses also prefer that their staff are autonomo too, as this effectively means that they are working without a contract and are therefore liable for paying all taxes and contributions themselves, and are working without the protected rights that a contracted employee would have.

Tax registration

You may already be registered for tax (for instance if have already purchased and sold a property here)or if you have had any other employment in Spain. Contact an assesor or gestor and give them your NIE number and they will check to see if you are on the tax office's ( Hacienda ) database. If you are, they can then proceed to register you as Autonomo online without the need for any further documentation.

If you are not already on the hacienda’s database then you need to take copies of the following documents to your assesor or gestor ....

  • NIE
  • Passport
  • Certificado de Empadronamiento (available at your local Ayuntamiento - town hall)

Social security registration

It is necessary to then present your autonomo registration at your local social security office (however, your assesor may do this included in the whole process for you - but make sure!)

  • Copy of your NIE.
  • Copy of your passport picture page.

Usually you will be required to have these copies certified (compulsada). Your local Ayuntamiento will often do this for free, if not a Notary will be able to do this for you at a modest charge.

Social security contributions

The current rate is approximately 240 euros per month and after registration this will be debited automatically from your bank account at the end of each month.

There is optional state cover for work-related accidents and illness; the extra monthly contribution for this is roughly 25 euros.

What happens after registration?

Once you are registered, you or your Asesor must submit quarterly income tax returns and payments on account. This is usually done the 3rd week of jan, april, july & october, but your facturas need to be presented to him sooner to enable him to prepare and submit the tax return.

Your quarterly tax bill will then be calculated based on the iva that you have charged minus the iva that you can reclaim. Your assesor will then give you a slip which you need to pay by bank transfer at your local bank (usually before the 21st of the month) - Fines are levied for late payment!

If you are supplying goods or services which are subject to vat (called iva in spain), it is also necessary to file quarterly returns.

Social security benefits

As of the 6th novermber 2010, changes to the social security system for autonomo workers allows the option of paying a voluntary 1.7% extra contributions (approx 15 euros per month) in order to have provision for a maximum 12 months unemployment benefit payments. The duration of time that payments will be made for will depend on the amount of time that contirbutions have previously been made, and a minimum qualifying period of 12 months contributions is in place.

Please click here if you wish to read about these changes to procedure.

Comment on this Article

 
NIna : I have asked Raquel from Perez Legal to shed a little more light on this issue, which she has done Here
Tumbit - Admin - Mon, 12th Dec 2011
I am receiving sickness benefit every week, and have to report to the doctor on a weekly basis to get the baja, sick note, but my solicitor said I should not pay my autonomo whilst I am off sick and receiving benefit, I am now very confused as below you have said I should continue to pay.
Nina Giles - Thu, 8th Dec 2011

Nina : Three things here :

1) You will have had to have paid in the voluntary supplement for sickness benefit before you can claim any such payment

2) You will still need to pay your monthly contribution while you are claiming sickness benefits,

3) The length that you can make a claim for needs to be substantiated by a Doctor.

In the case of an Employee, you can claim for a maximum of 12 Months. This may be extended by a further 6 months if the Doctor feels that there is a strong chance a full recovery may be made within this period - otherwise you would be ruled as being `Permanently incapable of working´. I `expect´ that the rulings will be similar for Autonomos.

Tumbit - Admin - Wed, 7th Dec 2011
The article did not help at all, it explains quite a few things regarding unemployment benefit, but I really need to know for what length of time I will be paid sickness benefit.
Nina Giles - Wed, 7th Dec 2011
Nina : This article here may answer a few question that you may have > How to claim unemployment benefit in Spain
Tumbit - Admin - Wed, 7th Dec 2011
I have contributed into the Spanish system now for 7 years, I have autonomo, I cannot work now due to needing two knee replacements, for how long will I be paid sickness benefit?
Nina Giles - Wed, 7th Dec 2011
Ramon : In answer to your repeated question - We are NOT a Government agency, nor did you make any such application through us. Speak with the agency you made your application with.
Tumbit- Admin - Thu, 28th Jul 2011
Dear Sir: Good morning. When do I expect to know the status of my application for Business Permission, which I filled in your office on May 9, 2011. How long can take the approval of this application? Thank you. Ramon R. Rosete Jr
Ramon Rodriguez Rosete Jr - Thu, 28th Jul 2011
Ramon : We are not associated or affiliated with the Spanish Authorities in any way and therefore unable to advise you of the status of your application.
Tumbit - Admin - Thu, 7th Jul 2011
July 7, 2011 Spanish Immigration Oficina de Extranjeros Avenida de Asturias 4 24008 Leon, Espana Sir: Good day, I am Ramon Rosete Jr. applying for Business Permission since May 8, 2011, may I know the status of my application for entering in your country. Is this granted by your country being as an applicant for economic business permit. Please advised me if my application is granted. Thank you very much. Sincerely yours, Ramon Rodriguez Rosete Jr Applicant for Business Permission
Ramon Rodriguez Rosete Jr - Thu, 7th Jul 2011
hola como estas uds. well i want to do some kind of busines in spain i have my impadroment of six months in here i am an indian my residencial stetes is illigal iwant to ligalais myself ineed your direction thanks thakur
Thakur - Wed, 23th Jun 2010

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