How To Start A Business In Spain

Starting a business in Spain is extremely easy and typically should not take more than a month. Buying Spanish property and doing business in Spain form a recipe for success, as thousands of foreigners have already discovered.With more and more people of working age coming to Spain, there has been a marked increase in the number of applications to operate a business in Spain.

Statistics show that the country has been recognized by British nationals as the ideal destination for relocation and running a business. Spain, which boasts nearly 1.5 million commercial premises, is a paradise for small companies and sole traders.

Doing business in Spain is a lucrative proposition not only because of the ease with which one can set up and run a business, but also because of the relatively low labour costs compared to the UK. The huge number of tourists and foreign residents is a major contributing factor to the desire to set up both tourist related and service businesses in Spain. There are an estimated 2.8 million permanent foreign residents in Spain.

Only last year, some 47,000 Britons became Spanish residents bringing the total registered British residents to 274,000. According to an estimate published in The Guardian recently, almost 750,000 Britons spend most or part of the year living in Spain. Over 650,000 British citizens have already settled permanently and 16 million British tourists visit Spain every year.

All you need to set up a business in Spain is the NIE (Numero de Identidad de Extranjero), which is a mandatory identification number for anyone setting up a commercial operation in the country. This number can be obtained from the Oficina de Extranjeros at the local police station or police headquarters.

The process is relatively simple and the NIE can be obtained within a month. Once you have the NIE, you can buy property, open a bank account, apply for a business permit and pay taxes.

There are several lucrative sectors for doing business in Spain. The tourism and hospitality industry throughout coastal Spain, especially in Costa Blanca, Costa Almeria and Costa Calida, is witnessing a boom like never before.

The number of tourists visiting Spain each year has crossed the 50 million mark and is still growing. There are around 300,000 holiday homes owned by non-residents, of which British nationals alone are reported to own over 45,000.

New residents are successfully doing business in Spain running schools, shops, medical practices, estate agencies, bars and restaurants, in fact the opportunities are only limited to your imagination and hard work.An example of an emerging sector is the 'photovoltaic' manufacturing industry. This is a way of generating solar energy for large-scale commercial applications as well as for the residential sector. Though in the early stages, this market has great potential and offers enterprising businessmen the chance to set up a business in Spain and capitalize on this new emerging market sector.

Apart from the ease of running a business, another advantage is the availability of excellent residential and commercial properties at great prices. Spain is the second home for many Europeans because the cost of property is significantly lower than countries like France, Germany and even parts of Italy.

The Costa Blanca, Costa Calida and Costa Almeria are among the biggest Spanish property hotspots, owing to their great tourist appeal.Significant infrastructure development is underway in these regions to cater to the tourist influx and the consequent demand for Spanish property.

Therefore, if you are not sure as to what kind of business in Spain you want to start, buying a commercial Spanish property as an investment may be a good option for you.