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Open a HORECA Business in Spain

Open a HORECA Business in Spain

Updated on Sunday 04th March 2018

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Open-a-HORECA-Business-in-Spain.jpgThe hospitality industry in Spain is an important one that helps support employment and contributes to the country’s overall economy. Investors who open a HORECA business in Spain will most often focus on opening a restaurant, café or bar, which are among the most popular types of investments in this sector.
 
Our team of lawyers in Spain highlight the main sector-specific characteristics and can help investors open a restaurant or invest in an accommodation business.
 

The Spanish hospitality sector

 
The hospitality sector or the HORECA sector in Spain comprises those establishments that offer accommodation services as well as restaurants, bars, and cafes. Tourism is well-developed in Spain and HORECA businesses are connected to the influx of tourists, in both small and large Spanish cities.
 
The total turnover in the hospitality sector is largely dominated by establishments such as restaurants, bars, cafes, canteens or catering businesses. Other types of businesses also bring their share of contribution to the revenue, although they have a smaller percentage. These are hotels and motels, camping sites and other types of facilities that offer short-stay accommodation.
 
Companies in the HORECA sector are subject to proper registration and licensing. They are also subject to VAT and excise duty, with a reduced VAT rate for the accommodation, food, and beverages. The excise duties to apply to some alcoholic beverages sold in this sector, but not to wine. 
 
Other taxes for Spanish companies in this business sector are those related to employment and social security contributions. Regional taxes for hotels may apply in some areas. One of our attorneys in Spain can give you complete information on the tax regime for companies in the hospitality industry.
 

How to start a HORECA business

 
Opening a HORECA business in Spain is performed according to the local company incorporation and registration rules. When opening a restaurant or bar, investors can start by setting up a company and exploring their available options in terms of locating their new establishment. 
 
Large cities like Barcelona or Madrid receive the most significant number of tourists but an important issue to take into consideration for HORECA businesses is competition. Finding a niche or offering specialized services to clients can help small businesses differentiate from those already establishes on the market.
 
Our team of lawyers in Spain can help you follow the steps for opening an accommodation business, a restaurant or bar. Contact us for professional legal services in most of the Spanish cities.