There are many opportunities for anyone who is working as self-employed in Spain. If you are prepared to work hard and fit in to the Spanish way of life it can be fairly easy but there are some things you will have to consider
- LANGUAGE – Don’t forget that this is their country. If you plan to open a business that isn’t situated in a tourist area you must make an effort and learn the language. Don’t expect the Spanish people to speak English because most of them do not. Learning the language can also open up more business opportunities for you.
- MARKETING – Even if you are exceptionally skilled at what you do, you will need some skills in marketing. You will have to be prepared to go out and look for customers. They will not come and find you. Find the best places to advertise and the best location to run your business from.
- TIME – Be prepared for it to take a while for your business to be successful. You will need to work hard whether you have had a successful business in the U.K. or not. It won’t happen overnight. Ensure that you have sufficient funds to cover all of your costs for at least the first few months.
- DO YOUR HOMEWORK – Make sure there is a need for your chosen business before you go. Before deciding where you will live, it is advisable to do some research on the area first. Consider taking a few holidays to different areas before you commit to just one area and make sure there is enough work in that particular area to ensure a good, regular income.
There are no restrictions in Spain for European Union nationals if you intend to set up your own business. You can work under the same conditions the Spanish do, but you will be required to join the Autonomous Workers Special System (Régimen Especial de Trabajadores Autónomos).
Autonomous Special System
The Autonomous Special System will enable you to work as a self-employed plumber, electrician, translator, teacher etc. Applications to join the system must be made within 30 days of starting your business and is made to the Provincial offices of the Social General Treasury (Tresorería General de la Security Social). There are some things you will need to do in order to join the system:
- The first thing you should do is apply for an NIE number. You will get this number when you apply for residency and it can be found on your residency card.
- You will need to apply for a Tax license for any work activity. This can be obtained from the SUMA Office (Tax office) in your local town or at the local town hall. This license needs to be renewed every year.
- You need to complete a 037 form, which is stamped by the Tax office. This will confirm the method of payment of your taxes. There are two methods of tax payment:
- You can make a quarterly VAT and Income Tax Declaration based upon the ‘direct estimations system’. This means you must start double entry system book-keeping or hire an accountant or
- Pay a quarterly fixed income tax and VAT amount under the ‘modulos’ system. This system doesn’t take into consideration whether you have had a good month or a bad month and you have to pay even if you have had no income. There is no need to keep accounts or prepare VAT invoices when paying tax under this system and you can benefit if your business has an increased turnover because the payments will be set at a basic level.
- You must register with the Spanish Social Security system. In order to do this, you will need to complete and present a registration document. You will then be liable for fixed monthly payments, which must be paid even if you have no income. There are various levels of social security payable, depending on the amount of pension you wish to receive on retirement. Most people choose the minimum amount (about 200 euros). At each level you have the choice of paying an additional amount for IT (temporary incapacity sickness) benefit in case you become ill. This must be done before the 1st October of each year. People over the age of 50 have a slightly different payment structure, and workers over the age of 65 do not have to make any social security payments except for the optional IT payments, although they can continue to pay if they wish. Further information regarding the above may be obtained from the Seguridad Social office.
- If your work will be carried out in an office or shop where the public are allowed to enter, you will also need to make an Opening License application. This can be obtained from your local Town Hall.
- If your work requires qualification certificates such as plumbers, electricians, hairdressers etc, your original certificates must be officially translated into Spanish. These certificates will be forwarded to the Ministry of Education and Science in Madrid where they will be validated and sent back to you.
- If your business requires the handling of food, you may have to sit an examination at the local Town Hall in order to obtain a certificate allowing you to handle food.
Whilst working on a self-employed basis it is advisable to seek the help of a solicitor. They can advise on any problems that may arise such as a client refusing to pay for services.