Starting a Spanish business does not necessarily mean that the business owner must live in Spain all year. However, you must ensure that the company does have a foothold on Spanish soil itself.
If you are still wondering who is able to start a business in Spain, know that whether you are a resident or not really bears no importance. An individual is considered a resident in Spain if:
Therefore, if none of these conditions are met, the individual is regarded as a non-resident.
To start a company on Spanish soil, it is essential to have a physical presence of some kind in the country. This presence can take the form of a room, an apartment or a location in a shared office. You'll need this residence in order to obtain a VAT number as it will prove to the tax authorities that you offer services of some kind in Spain. Once you have your VAT number, you will be able to charge your customers, excluding tax across of Europe.
If you are a Spanish resident, it is also essential that you employ at least one employee who works in your facility. The tax authorities conduct an inspection to ensure that your business is in order and you will be notified of their visit in advance.
If you are not a resident but conduct your business through a permanent establishment in Spain, you will be charged an income tax.
You will be taxed on your earning (salary, commissions etc.), your home equity income, inherited assets or income gained from dividends or interest. You will be able to benefit from exemptions from certain incomes through your tax return.