Today we will review the essential tax procedures for investments in Spain: the different obligations and which is the best way to manage them if you want to bring your business to our country. Setting up a business in Spain is a challenging adventure that, as we have told you in other posts, can be a real starting point for your company. Spain is a land of opportunities with great future prospects, with an outstanding location (especially concerning import/export business) and with a substantial growth factor in certain fields such as tourism and services. This is why setting up a business in Spain as a foreigner is an amazing initiative that does not have to fail just because you are not familiar with the tax procedures or the legislation. Do not miss our advice!
Tax procedures for investments in Spain: first steps
If you have already made up your mind about internationalizing your business and establishing here, before talking about the tax procedures for investments in Spain we highly recommend you analyze other factors. In our former posts we have examined thoroughly basic subjects such as the diagnosis and the tax obligations. Do not miss them: you will find reliable and proven information about establishment options, regulations, documents to fill in and how to do things properly, in a quick and transparent way. Do you have all the information? Then, now we will review the tax procedures for investments in Spain.
When you have designed a legal and tax representative in Spain, an essential figure for business without branches or subsidiary companies in our country, he or she will have to get his/her own NIE (Identification Number for Foreigners) in order to operate in Spain as foreigners. As we already told you in a former post, if they are Spanish they will only need a power of attorney signed by you. With this document, the representative will have a free run to register the company in the IAE (Economic Activity Tax) by filling in the 030/036 tax form. The representatives will also have to register themselves by filling in similar forms.
Easier and more affordable? No way!
Believe or not, once filled in the form and with the Company already registered in the VAT and IS (if necessary, as we explained in our post about foreign business taxation in Spain: tax obligations) you will be ready to start doing business in our country. You will also need a cash handling service, as opening a bank account in Spain as a foreigner can be an almost impossible task. Everything ready? Then… welcome! If you are operating with a Non-Permanent Establishment through your legal and tax representatives, your tax obligations will be very few and you will not have to pay any money (you have to when you create a branch or a subsidiary Company).
The tax procedures for investments in Spain are the same for every type of business, whatever they do. But some activities are somewhat peculiar and show interesting advantages. For example, we have the distance-sale business which operate through online shops. In Spain there is a convention that regulates these business (always they operate under a Non-Resident NIF), so they do not pay taxes up to an invoicing volume of €35000. From this quantity on, they will pay for the rest. It is an interesting way to help and motivate these companies to start doing business in Spain.
Surround yourself by the best partners
As you can see, managing the tax procedures for investments in Spain is quick and easy but it is hard to do everything right when you live abroad. Even worst if you do not speak Spanish…! May Spanish public workers do not speak English and the official websites are not translated into English, so the communication issues can turn something easy in appearance into a real chaos.
So be sure you search for good professional advice in Spain by hiring a consultancy with proven expertise. In LEIALTA we offer you the best information in this blog but we can also help you solve your doubts, set up a business in Spain, act as your legal and tax representative and overcome all the obstacles that can arise between you and your goal.
Are you interested in knowing more about tax procedures for investments in Spain, aiming to bring your business to our country? Do not be afraid of telling us your doubts and opinion leaving a comment or contact us to get more information. We have the answers to your questions!