Frequently Asked Questions

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Création de société
Since the opening of European borders in 1993, all citizens of the European community have the right to set up a business in a country of the European Union without the obligation to reside there.
So, setting up a business in Spain is now very easy. We take care of all the administrative procedures and your company is set up in 24 hours.
Since the opening of the borders of Europe in 1993, European citizen can create a company in a European country without being obliged to reside there, and this, in respect of the right of national societies. The only requirements are that the person is of legal age (major) and he has not been banned from management by the Spanish authorities. You have to know that in Spain there is no research about your entrepreneurial or banking past in Europe.
An un-European can also create his company, but the conditions are different. Please contact us if this is the case.
Any company carrying on business in Spain must be domiciled in Spain, and therefore registered in the Commercial Register of the province in connection with its business address.
This address is the public address of your business, necessary for all administrative requests and also for the receipt of your accounts books at the end of the fiscal year.
Our firm can avoid the obligation to have a “link” in Spain. In fact, our service includes a direct debit for your business, and thus our office address becomes the address of your business in Spain.
If you want to start a business in Spain, you can either create your business and therefore limit your liability (equivalent of limited liability company), or become a self-employed person.
If you choose to start a business in Spain, you can either create a limited liability company or a public limited company. In both cases, you will limit the liability of the company’s capital.
In Spain, it is more advantageous to start a business rather than becoming a self-employed person in several situations:

If you choose to become a self-employed person in Spain, your social status is coincident with that of the company and your liability is unlimited. This is interesting when you open a small business with only one employee. Indeed, in Spain, the charges will be lower than those of public limited company because you will not have to pay any corporation taxes or contributions.
After having chosen between self-employed person and company, you will have to choose the type of company to set up in Spain.
Create a limited liability company in Spain: a limited liability company is a corporation, that is to say, each partner defines his participation in the capital according to securities or equities. Less flexible than public limited company, create a limited liability company is useful for large projects requiring a strong capital and the involvement of shareholders.
Create a public limited company in Spain: a public limited company is a commercial company where the liability is limited to contributions. This provides some flexibility in decision especially since it is easy to change the status of partners or even to provide additional non-monetary funds. In addition, if you create a public limited company in Spain, it is possible to generate shareholdings in the company without giving voting, for a value stretch to half of the company’s share capital.
Tax System
In Spain, the income tax is deducted directly from wages. Thus, the tax base in Spain represents the net income per year. All persons who reside and have incomes in Spain are required to make this return and are therefore subject to pay income tax in Spain. On the other hand, employees who earn less than € 22.000 per year are exempt. To calculate your income tax in Spain, please visit this website.
Here is a summary of the different contributions in Spain. These fees may vary depending on the line of business, especially concerning the contributions for work accident.
Since the 1st day of January 1993, any taxable business belonging to a member state of the European Union has an individual tax identification number which delivers its tax administration. This number must appear on all invoices, goods trade documentation and business VAT returns of the company.
You can check the validity of a VAT number by referring to Censo VIES, which is the European register of VAT. If the two companies involved in the transaction (buyer and seller) are listed in this register, they are not required to include VAT.
VAT rates in Europe:
When you make a sale in another country, in order to invoice excluding Tax, it’s necessary that:

If these conditions are not met, you cannot invoice excluding Tax.
In some cases, you will not be required to invoice VAT to your client:
Accounting
An invoice in Spain includes the following elements:

In addition, you can add some elements, such as phone number or e-mail address. As a precaution, we recommend that you also add the following « condiciones de pago : a la recepción de la factura ». This statement specifies that the payment of the invoice will be on receipt thereof by the client.
You will send the invoice to the client by mail or given to him by hand. There are some cases where you will not invoice VAT, and therefore no mention either the rate or the amount of VAT.

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