For a new company in Spain or an experience one, its impotant to be awared of the Public Holidays in the Country.  This will help you plan your year and find trends that could benefit your Business.

The Enterprise and Employment Department have just publish the official holydays in Spain:

• Friday 6 of January,  Kings (Reyes)
• Friday 6 of April, Good Friday (Viernes Santo)
• Monday 9 of April, Pascua (Pascua Florida)
• Tuesday 1 of May, Labor Day (Fiesta del Trabajo)
• Wednesday 15 of Agoust, (la Asunción)
• Tuesday 11 of September, Catalonya National Holiday (Fiesta Nacional de Cataluña)
• Friday 12 of October, Spain National Holiday (Fiesta Nacional de España)
• Thursday 1 of November, All Saints (Todos los Santos)
• Thursday 6 of December, Constitution Day (Día de la Constitución)
• Saturday 8 of December, The Inmaculate (La Inmaculada)
• Tuesday 25 of December, Christmas (Navidad)
• Wednesday 26 of December, Sant Esteban (San Esteban)

A side of this National Holidays, there are 2 aditional Local Fairs, paid or unpaid according to each town council.

Hope this help plan your business, Happy New Year and holidays!

Sebastian

You should know that in Spain, the self-employed entrepreneur is a natural person who is able to excecute their business and economic activity with a contract, billing services offered.

The following could be self-employed entrepreneur:

• Adults who can freely disposal of their property.
• Emancipated minors, with the limitations set out in section 323 of the Civil Code.
• Minors and disabled people, through their legal representatives.

Features of a Self-Employed in Spain:

• Regardless of whether the worker is enrolled in the Special Regime for Autonomous Workers (Régimen Especial de Trabajadores autónomos) or for its own account, it is presumed, until proven otherwise, that are independent licensees of an establishment open to the public as the owner, tenant or other similar concept.

• The self-employed is responsible for membership, unsubscribe or change to social security, and liability is unlimited on all its present and future assets, unlike companies which are generally limited.

Formalities to become Self-Employed in Spain:

Taxation:

• Census Statement, which includes a request for a tax identification number NIF or NIE for foreigners and the declaration of the activity executed in the country.

• Tax Statement  on the Economic Activity (IAE Impuesto sobre Actividades Económicas).

Social Security:

• Join the special regime of self-employed social security

Benefits:

• The auto-entrepreneur status is advantageous because it does not pay the corporate tax. However, this status does not correspond to all activities, and also depends on the volume of activity. Do not hesitate to contact us for more information.

Monthly payroll taxes for a worker Autónomo are € 254.21.  If he has 30 months of age, he will pay only 70% of this amount. Of course, the entrepreneur also must also pay tax on income (declaración of profitability).

You should know that in Spain the number of foreign becoming entrepreneur is increasing. Indeed, it is a quick and easy access to the Spanish market, and less restrictive than the creation of a business in other countries.

Sebastian

You should know that a period of economic crisis has two main drawbacks:

• The purchasing power of consumers is quite low and funding frozen.
• But many economists justify these times of crisis like the best times to take and create businesses.

The same is true of the crisis in Spain.

First, it is the most logical reason, “after rain comes fair weather.”It is obvious that after a period of crisis comes a strong growth and a period of high prosperity. Thus, if we manage to undertake and successfully during the crisis, our results will be better than during periods of growth. Spain, now in crisis, displays indicators better than the previous year. GDP grew by 0.7% in 2011, and forecasts of 1.3% in 2012. The tourism sector, which had declined since 2008, rose sharply in 2011, and will reach record levels in 2012 and 2013. Spain seems to find solutions to the crisis.

Moreover, in times of crisis, everything is cheaper: labor, projects, facilities, etc … In addition, facing high unemployment in Spain, it is very easy to find the hand of unskilled as skilled and highly motivated. In addition, we must remember that Spanish is the minimum wage below the minimum wage twice French ..

Then, in times of crisis, competition is weakened. The crisis in Spain is the perfect example. Given that this is a difficult period, when competition is weak or in trouble. Entry barriers are more affordable, particularly in the highly competitive market as the low-cost. Indeed, during crises, the tendency is given to products with high quality / price ratio. This creates new patterns of consumption and opens markets that did not exist before the crisis in Spain.

On the other hand, in crisis, the state promotes general business creation. Thus, to counter the crisis in Spain, the new government announced it would reduce the corporate tax to encourage business creation. Taxation is often relaxed and substantial aid.

All these explanations show that periods of crises are good times to start, especially compared to the crisis in Spain. Since 2008, and the flow of the crisis in Spain, many SMEs have closed. The place is free now, and especially for companies with headquarters in Spain, but with an activity beyond the Spanish borders.

Rather than wait and be patient until the end of the storm, the best solution seems to face to come out more.

Sebastián

In spain the Real Estate have been crush by the crisis, but apart from being a big problem for many investors it´s an open door for new opportunities.  The  property prices have gone down significantly, and for those with credit or money in the pockets its time to make a move.

In the overall Real Estate Market, the decline have reach an average of 20% in real terms, and even more in the case of Properties in the side coast were values have downgraded around 40%.

Additionally, Spain offers other benefits apart from the price reduction that promotes foreing investment.

• Security,
• Geographical proximity,
• Good weather,
• Quality of life,
• Universal public services of high quality, and better everyday infrastructure linking major tourist destinations,
• Legal Framework.

There are other economical facts, that may help on the final desicion when investing or not in a Real Estate in Spain.  According to the Spanish State Secretary of Housing, the relationship between supply and demand Properties in mayor cities is reaching an equilibrium, which equals to a leveling in prices and an improvement in sales.

Other fact that reflects why investing into Real Estate at Spain is a huge opportunity, is the significant increase of institutional funds.  BNP Paribas Real Estate have shown a 41% rise not residential investment in Spain, with a volume equal to 4,000 millions euros in 2010.

Non-residential real estate its about to hit bottom, with a reduction superior to 40%.  On the other hand, offices and non-residential real estate depend on rent demand, that is link to the economical evolution of the country.

But with an economy where the banks are not willing to lend money easily, the spanish residents doesn´t have any more the opportunity to buy a house, meaning that renting is the only ovious option.  Probably Residential Homes is the market with the highest potential, either for investing in the long term or for renting.

Finally, to have a strong view on what experts have to say in the topic, the Wealth report of 2010, develp by J. Rivero (Metrovacesa president of real estate, and owner of Bami Gecina)  said the following on Spain Investment:

First, the spanish Real Estate Market have reached the end of a cicle that lasted for arround 6 – 7 years, and a new cicle is to come. Which equal new opportunities for investors.

Second, big family fortunes are now taking a close look at spanish Real Estate Market.

Third, best places to invest in Spain are Madrid, Barcelona and Mallorca due to its strong economical and turistic activity.

Forth,  unlike to other investment, Real Estate are transparent; they are easy to comprehend and fast to analyze.

Said all this, we can see that Spain and Specifically BARCELONA has huge opportunities.  In order to make the process simple and easy for you, we offer you to contact us and will be a pleasure to help you.

TAS-SL, is an accounting and legal firm, with a wide range of partnerss, we will fight for you in order to get the best price, and in the fastes posible way.

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What is distance selling?

Distance sales are those sales that occur without the simultaneous physical presence of the buyer and seller.  When trading between the two parties, the proposed contract is transmitted from the seller to the buyer, who accepts by any means of distance communication. In the case of Europe, distance sales occur when a member of the EU, with a VAT number, trades with another member with out a VAT registered number.

Distance Sales Examples:

• Contract made by mail
• Contract made by phone
• Contract made by Television
• Contract made by radio

Distance sales generated to the State

If the value of the commercial transfer, projected throughout the calendar year exceeds or will exceed the amount of 35,000 euros for a Spanish company, the supplier must register the VAT in their own state, an take in consideration the VAT Spanish rate.

In the case of other European Member, the threshold varies according to the country:

Distance sales created from the State

In the case of distance sales generated to other Member State who are not register for VAT, is require to register the equivalent VAT on the commercial transfer until it reach the threshold.  Once the value exceeds the threshold in the Member State, the supplier is obligated to register in the Member State and account for VAT. If the threshold is not exceeded, the supplier can apply to account VAT in the Member State.

The legal side for SPAIN…
Are excluded from the scope of Royal Decree 225/2006, the companies listed in article 5.2, as amended by Royal Decree 200/2010 of 26 February.
Law 7 / 1996 of January 15 of the Retail Trade in Article 38.2, amended by Law 1 / 2010 of March 1, envisaged the creation of the Registry of distance selling companies. This Register, which is regulated by Royal Decree 225/2006 of 24 February, is a public and administrative nature, being merely informative value. Depends organically from the Directorate General of Domestic Trade, Ministry of Industry, Tourism and Trade.
This rule has been amended by Royal Decree 103/2008 of February 1, by amending the Royal Decree 225/2006 of 24 February, which regulates certain aspects of distance selling and registration Company registration in distance sales (BOE of 22 February) and by Royal Decree 200/2010 of 26 February, amending Royal Decree 1882/1978 of 26 July on channels marketing of agricultural and fishery products for food and Royal Decree 225/2006 of 24 February, which regulates certain aspects of distance selling and registration in the Register of distance selling companies, for their adaptation Directive 2006/123/EC of the European Parliament and the Council of 12 December 2006 on services in the market (BOE of March 13).
The connotations if engaged in distance sales are usually primarily for tax. These considerations are often important in the event that marks the threshold beyond Directive 2006/112 of the Council of November 28, 2006
The most important concept to take into account distance sales tax are the thresholds which, if exceeded, VAT should be applied in the countries of destination

For deliveries below the threshold, you can opt to charge VAT in the destination country. This option is irrevocable and irreversible.

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You need a tax representative in Spain, an accountant, tax advisor, helping to create a company?

A team of professionals in tax, accounting, social and legal supports you in your development in Spain.

Specializing in the creation of foreign companies in Spain, we are at your service to assist you in starting your business, branch, subsidiary or representative office.

And in order to assist you as a trusted partner in all your business processes in Spain , we offer you our know-how and technical skills. Advisors are at your disposal to support your projects , manage your Spanish tax but also advise you about the VAT and income tax in Spain . Of course, our experts speak Spanish, French and English, because we know that it is important to you.

Qualified to ensure you meet all of your legal obligations  and tax.  Our knowledge allows us to monitor company taxation, accounting, social or legal in Spain and to guarantee to be in compliance while achieving the best benefits and deductions on your tax in Spain .

Did you know that the new provisions of the Spanish government let you create your company in one day?

Call our team will handle all necessary paperwork with professionalism beyond reproach.

As a partner with you in the CAS decision-making by providing you with personal advice, tailor .Do not wait and put you in contact with an advisor info@tas-sl.es

We are a member of the Chamber of Commerce and Industry French in Barcelona.

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A bill in Spain is as follows:

• The name of your company, its registered office and CIF
• The name of the client company, its registered office and CIF
• A unique invoice number
• The name of the product or service, the unit price.
• The amount of the bill in three stages: the amount of VAT (TVA), the amount of VAT and the total amount.

You can also add some elements, such as phone numbers, email addresses or other information. As a precaution, you should also include the following (“Terms of Payment: A Service of receipt of invoice”). This statement specifies that the payment of the invoicemust be made upon receipt by the customer.

At the bottom of the invoice, you can specify a special mention to a law to protect individual information. This is particularly useful when the client is an individual and not a business.

Then you need to send the invoice to the customer by mail or personally. It is not advisable to do so by mail. In VAT in voicing, there are some cases where you do not need the bill, not to mention the rate and amount of VAT.

You can see below a sample bill showing all the above elements. It is also important to mention the CIF of both companies. If your customer is a person, not a business, simply mention the NIF,which is equivalent to the CIF for an individual. If this is a stranger, it is only your NIE (see here for further explanation)

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NIF (Número de Identificación Fiscal): This is the generic term for the tax ID number for all individuals. For Spaniards, it’s the DNI plus one letter; for foreigners, it is your NIE.

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The NIE Number itself is issued on a standard A4 page, with the recipients full name (as written on the passport used during the application process), their place of birth, their nationality, and the number itself, along with a stamp and signature provided by the National Police. The document is often used as a form of identification, and in many cases the original document is required (a copy is not sufficient)

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When starting a business in Spain,  you will face many Spanish words at first difficult to understand. This article will enlighten you on these terms, explaining, for each of them, the French equivalent.

NIE (Numero de Identificación de Extranjeros): The NIE is the identification number of a foreigner in Spain. It is essential to Spain in order to create your company, paid work, open a bank account and almost all the paperwork.

You can get this NIE, whether European or not. This edition includes 8 or 9 characters and starts with an “X” or a “Y”.

• DNI (Documento Nacional de Identidad): This is the identification number of Spanish citizens. It is the equivalent of our passport or identity card.

• NIF (Numero de Identificación Fiscal): The tax identification number of a person. For Spanish, which is composed of a number of ID + letter. For foreigners, it is the same as the NIE.

• CIF (Código Fiscal de Identificacion): Represents the identity of the company tax or legal entity in Spain. It consists of a letter followed by 8 numbers. The letter represents the type of society. The most common is an A for Corporation (corporation) or a B for Limited Company (LC). It will be very useful when VAT invoices in Spain.

• SL (Sociedad Limitada): This is the equivalent of the LLC (Limited Liability Company).

• VAT (Impuesto al Valor Añadido): This is the equivalent of VAT. IVA in Spain consists of the letters “ES” for Spain + CIF number. This VAT number, is used for all transactions in Europe. There are three different types of Spain: the standard rate of 18%, reduced rate of 8% and super-reduced rate of 4%.

• AEAT (Agencia Estatal de Administración Tributaria):  This is an agency of the Spanish authorities responsible for managing the tax system, but also customs.

• IAE (Impuesto sobre Actividades Económicas): This is a tax on economic activities of the company. You pay only for companies with a turnover of over 1 million euros. Stages is calculated based on the turnover of the company.

Start your business right NOW!!

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