Follow the Spain investment immigration and doing business in Spain guide:
I. Procedures for Opening a Store
Generally, there are two ways to open a store in Spain: in your personal name or in the name of a company.
For individuals, such as grocery stores, dollar stores, or small clothing retail shops, it is relatively simple because you can use the "tax package" (lump-sum tax) system. For larger businesses or wholesale operations, most choose to establish a company and conduct business in the company's name. The minimum registered capital for establishing a company is 3,000 Euros.
For both, whether in a personal or company name, the procedures and precautions are the same:
1. Sign a lease agreement.
2. Complete business opening procedures (registration with the Tax Agency and Social Security Office).
3. Apply for a business license.
If it is a transferred store, then:
1. It is recommended to sign a lease agreement directly with the landlord.
2. Before signing a contract with the seller, it is recommended to have a professional review it.
3. If using an existing business license, it is recommended to have a professional review it.
II. Precautions
Before opening or taking over a store, be sure to confirm whether there is a business license, whether there is a closure order, and whether neighbors have had negative reactions. These factors will directly affect whether the municipal government agrees to and permits the store to open.
Due to the increasing intensity of inspections and fines, if documents are missing when transferring a business license, it is best to choose to supplement the documents or redraw the plans in a timely manner to avoid trouble during subsequent inspections.
Before signing a lease agreement with the landlord, have an architect confirm the store's business type, whether the design is reasonable, whether certain walls can be demolished according to municipal regulations, and confirm the building structure and application for relevant procedures, etc., to avoid problems after the contract is signed.
III. What do bars need to pay attention to?
Materials required for a bar include: business license, food hygiene handling certificate, complaint book, pest control certificate, label prohibiting the sale of alcohol to minors under 18, no-smoking label, business hours (HORARIO) sign, L10 sign, store insurance, and valid fire extinguishers, among other materials.
Regarding the bar's HOJA DE RECLAMACION (complaint form), the place to apply for it is different from that for general grocery stores, dollar stores, or clothing stores. First, you need to fill out a form to register, and you need to go to a specialized department (DIRECCION GENERAL DE TURISMO) to apply.
As long as it is a bar, restaurant, or cafe, regardless of whether your store is in the city center or the suburbs, you need to apply at the city center (DIRECCION GENERAL DE TURISMO). The materials required for the application include your residence permit, the local lease contract, business license, and modelo 037 (or 036). The complaint book can be collected on the spot.
4. What do grocery stores need to pay attention to?
There are usually two departments that conduct inspections: the Social Security inspection department (Inspeccion de trabajo) and the municipal health department (Inspeccion de sanidad).
The Social Security inspection department (Inspeccion de trabajo) mainly checks whether there are any illegal workers in the restaurant, whether the workers' insurance status matches the facts, and whether the workers' treatment complies with relevant regulations. It should be noted that if there are part-time workers in the restaurant, the working hours of these workers must match the working hours stated in the contract.
The municipal health department (Inspeccion de sanidad) mainly checks whether the store's business license, handling certificate, pest control certificate, store insurance, fire extinguishers, and other relevant documents and labels meet the requirements. All products must have labels (Etiqueta), including price, manufacturer, shelf life, storage method, and notes such as keeping them sealed. When placing items, be careful not to let them come into direct contact with the floor. Pay attention to refrigerator temperatures, etc.
5. What taxes need to be paid when opening a store in Spain?
When preparing the procedures for opening a store, you need to make tax declarations at the local tax office, enroll in insurance at the Social Security Office, and apply for a business license and/or renovation license at the municipal government (these licenses all include corresponding taxes).
Afterward, during the operation period, there are various different taxes.
National taxes:
Quarterly declarations are required for: Value Added Tax (IVA), Personal Income Tax (PAGO FRACCIONADO IRPF, if you are an individual owner), worker tax (RETENCIONES IRPF, if you have employees or have hired freelancers such as lawyers/accountants/architects/notaries), and rental property tax (RETENCION RENDIMIENTOS INMOBILIARIOS, if you are renting the store).
Annual declarations are required for: Personal Income Tax (if you are an individual owner) and Corporate Tax (if you are a company).
Autonomous region taxes: For certain transactions or document notarizations, transaction tax or notarization tax must be paid. Usually, this type of tax is collected by the autonomous regional government.
Municipal taxes:
Garbage tax and property tax are collected annually (if you are renting the store, it is usually deducted from your monthly rent. If you own the store yourself, it is deducted from your account annually).
6. What should be noted about transfers and subletting?
For a store that has been in operation, a simple transfer does not require re-drawing plans; you only need to transfer the name on the previous business license. If it is an empty store, you need an architect to draw plans and then apply for a business license.
Before signing a contract, you should pay attention to: specifying the terms agreed upon by both parties in the contract, such as the validity period of the contract, how to extend it, whether subletting is allowed before the contract expires, the deposit and refund method, and who pays for various miscellaneous expenses. Also, state that the signing of this contract does not violate the provisions of relevant Spanish laws. Once a dispute occurs, you can well protect your actions from being harmed by illegal acts.