When deciding to start a business in Spain, a foreign investor should be aware of the total cost that varies according to the type of company he chooses to open and the licenses and permits he needs for certain economic activities.
For the beginning, the entrepreneur should prepare the amount required for the share capital of the company that starts from 3,000 EUR for a limited liability company up to 60,000 EUR for a joint stock company.
The foreign investors who don’t want to go in person to Spain in order to open a company may contact a Spanish lawyer who will handle the entire procedure of registration. The foreign citizens may give the power of attorney to the local lawyers who will act on behalf of them and will submit all the required documents to the local Trade Register and handle all the procedures for company incorporation.
For this operation there is a fee that may vary from lawyer to lawyer. For details about the fees and the taxes you have to pay for incorporating a certain type of company, you may contact our attorneys in Spain.
If you choose to incorporate a company in Spain through a local law firm, you may benefit from additional services, such as a virtual office (a cheaper alternative to a traditional office, with important advantages), contracting accounting services, help for hiring employees and financial consulting.
After beginning the economic activity, a company must also pay taxes, such as corporate tax (25- 28%), dividend tax (from 0% to 27%, according to the amount of dividends), VAT (standard rate - 21% and reduced VAT rates: 10% for medical, pharmaceuticals, transport of passengers, admission to cultural sporting and entertainment events and 4% for foodstuff, newspapers etc.)
There are also the costs with the workforce that are below the European average, especially after the beginning of the economic crises, when the wages decreased and the unemployment rate increased.
The main costs related to a start-up in Spain are for:
- incorporation and registration;
- hiring and paying the wages and the taxes for the employees;
- maintenance of the business;
- marketing and advertising etc.
If you need to know more details about how you can set up a company and the costs related to this operation, you may contact our law firm in Spain. Our Spanish lawyers will calculate the total cost of opening a business in this country and they will help you start it.
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