As the European real estate investment immigration becomes increasingly popular, many individuals from our country are choosing to develop their careers in Europe. In Spain, by investing 500,000 euros in Spanish real estate, one can obtain residency status, with no restrictions on the type of property. Additionally, one can start a business here.
Basic requirements for establishing a company:
1. The name of the new company must be registered at the Spanish Commercial Registry.
2. Open a bank account: the minimum capital for a limited liability company is 3,000 euros.
3. A notarization is required before registering the company name and obtaining the deed.
4. Tax ID/Identification Number: a tax ID (valid tax number) or a foreigner identification number (personal ID) is required.
5. Fill out and submit the transfer tax (capital transfer and legal business transaction form), and pay 1% of the capital tax within one month after signing the deed.
6. Business registration includes:
(1) Company name certificate (company name)
(2) Original and copy of the deed
(3) Tax payment certificate
7. Main formalities required for specific taxes: registration for taxation must fill out form 036. Specifically: for the business tax paid for registering the company.
8. Obtain a business license from the relevant municipal office.
9. Register for Spanish social security and occupational accident insurance for the company, and provide social security for employees.
10. Comply with certain employment procedures and local social security office requirements.
Taxes and fees for starting a business:
1. The corporate tax rate is 30% for installment payments.
For small and medium-sized companies, the tax burden is reduced:
a). Small companies: 20% tax on profits up to 300,000 euros, and 25% tax on profits exceeding 300,000 euros.
b). Medium-sized companies: 25% tax on profits up to 300,000 euros, and 30% tax on profits exceeding 300,000 euros.
Newly established companies pay a tax rate of 15% for the first two years.
2. Companies with a turnover below 10 million euros can deduct up to 10% of the corporate tax, but the deducted amount must be used for investment and cannot be distributed as dividends.
Note:
A low turnover means less than 5 million euros annually, with the company employing between 1 to 24 people.
A medium-sized company has an annual turnover of less than 10 million euros.
3. Payment of corporate tax
Corporate tax must be declared within 6 months and 25 days before the deadline.
The months for corporate tax payment are: April, October, and December.
The calculation method for large companies is based on the previous year's turnover exceeding the expected turnover.
4. Value-added tax
Currently, the general VAT rate (Spanish rate) is 21% (implemented from September 1, 2012, to December 31, 2013, and reduced to 19% starting January 1, 2014).
Related registration fees:
Total requirements:
(1) Applicable only to limited liability companies; (2) All shareholders must be independent individuals; (3) Minimum capital of 3,006 euros.
Regarding the execution of the deed
The name used in the written proof of agreement during business days must be the name approved by the Commercial Registry. The first payment of 6,000 euros includes 90 euros.
Assessment and business registration
Within seven working days of receiving the deed, the first payment of 3,005 euros includes 6.01 euros (subsequently, within 0.01% to 0.005%, not exceeding 2.181 euros).
Owners need to certify registration
The name used in the written proof of agreement during business days must be the name approved by the Commercial Registry. The first payment of 6,000 euros includes 90 euros.
Notary fees and registration fees
Notary: 60 euros; Registration: 40 euros.