Header Banner - Google Adsense

Business

It is vital to fully understand the Spanish tax system to avoid misunderstandings and ensure that you do not make inappropriate decisions with regards to investments, business and private transactions. Not knowing the system is not an excuse and a bad decision made in ignorance can lead to higher taxes in the future or even fines and penalties.

Here is a simple guide to some of the key taxes which may affect you whilst living, doing business or even just being on Holiday in Spain.

Starting up in business in Spain, requires careful consideration to ensure you meet all the compliance requirements. It's easy to get carried away and rush into starting up your business without taking the time to research into the Spanish environment, or even without seeking professional advice. It's amazing how many foreign residents in Spain will not take the same level of care in setting up their business in Spain as they would in their own country. Although Europe has been working towards harmonization for several decades there are still important differences in the amount of compliance obligations imposed on businesses, so its vital that you are fully informed before you start trading.

Most businesses will at some point in their growth need to employ staff. Unfortunately, doing so in Spain is complicated by very strict labour laws and regulations, so it's important to be fully informed and confirm with your payroll adviser before taking this step.

Starting a business is an exciting, yet daunting process. If you are planning to operate in Spain make sure you have all the essential information before you start. Take things slowly so you can be sure to take the best route for your particular circumstances. To get you started we have answered the most commonly asked questions:

Before you start trading, you need to register with the tax authorities.

The number of banks has increased considerably over the last few years. There are two main types of bank in Spain, clearing banks and savings banks. In the latter category Spain has over 80 savings institutions called "cajas", in Spanish, which were originally charitable organisations granting loans for public interest and agricultural policies. They comprise co-operative savings banks whose members are agricultural co-operatives, although they play only a small part in Spain's banking system and hold just a few percent of total bank assets.

If you are buying property in Spain, investing or starting a business, or making a will (among other reasons), you should definitely employ the services of an experienced lawyer. You will find that fees are generally lower than those charged by lawyers in northern European countries and when preparing contracts involving a sum of money, (ie property purchase), fees are calculated as a percentage of the sum involved.

There are various legal and professional advisors in Spain that you may need if you purchase property or decide to become a resident. This section is intended to help you understand what the role of different professions is and how they can help you.

Every year Andalucía welcomes thousands of tourists, business people and new residents from other countries. Although many have a good understanding of the Spanish language, at one time or another they will usually all need the services of either a translator, who converts the written word of one language into another, or an interpreter who does the same with the spoken word.

Every year Andalucía welcomes thousands of tourists, business people and new residents from other countries. Although many have a good understanding of the Spanish language, at one time or another they will usually all need the services of either a translator, who converts written texts from one language into another, or an interpreter who does the same with the spoken word.

Living in a foreign country is a wonderful and enriching experience, which requires that you understand the local customs and ways of doing things - these may be considerably different from what you've experienced in your home country.