Many foreigners open restaurants, ice-cream parlours, shops, agencies and tourism businesses in Spain, especially on the coasts, islands and in big cities. Red tape is generally manageable, but competition is strong and success depends on good preparation.
First: idea and location
- Research the market: who the customers are, how much competition there is, how seasonal the area is. A resort may be packed in summer and empty in winter, like many Costa Brava or Balearic towns.
- Visit the area in different seasons and talk to other business owners.
- Work out the budget: premises rent, any traspaso, works, licences, equipment, stock, advisers and at least six months' running costs.
- Learn Spanish, and in bilingual communities consider the local language too.
Self-employment: the autónomo
The simplest form is to become a trabajador autónomo, a self-employed worker. You need an NIE (see moving to Spain), then you register with the tax agency (Agencia Tributaria, form 036 or 037) and with Social Security under the RETA scheme. Since 2023 contributions are based on actual net income, in monthly bands; new autónomos can benefit in their first year from the tarifa plana, a reduced rate of 80 euros a month, extendable in some cases. You charge VAT (21% standard) on invoices and file quarterly VAT returns and income-tax payments on account.
For a business with partners or significant risk, a company is usually better (see setting up a company).
Licences and premises
Businesses open to the public, such as shops, bars and restaurants, need an activity licence or a notification to the town hall (declaración responsable), with requirements on safety, accessibility, soundproofing and kitchens. Before signing a lease on premises, have a technician check they are suitable for your intended use: it is one of the most expensive mistakes. Bars and restaurants also need health registration and food-handling training.
Buying an existing business
Buying a going concern through a traspaso, the transfer of the lease, equipment and sometimes goodwill, lets you start straight away. But check everything: the real accounts of recent years, whether the licence is valid and transferable, the length and terms of the lease, debts to the tax office, Social Security and suppliers, and staff contracts. Be wary of high prices for goodwill and sellers in a hurry.
Support and advice
Autonomous communities, town halls and chambers of commerce run business help desks, the PAE (Puntos de Atención al Emprendedor), and sometimes grants or microcredit for young people and women. A good gestor or accountant is essential for tax and employment obligations. See also working in Spain.