Spain is one of the top ten most attractive places to start a business. The most common types of business are limited liability company and general partnership. Limited liability companies can start doing business in Spain even before they are entered into the register as limited companies in the process of formation.
If you are planning to start a business in Spain, you have to take in account the following costs of starting business in Spain. The entrepreneur doing business in Spain must pay share capital of his company and address to a notary. The Regulation specifies the maximum rate of payment for notarial actions. This leads to a difference in the level of fees depending on the particular notary.
Costs of starting business in Spain include some fees and taxes that must be paid for the procedures of incorporation and also further taxes established by law. Registration fees include an administrative fee that has different values for legal entities or individuals.
Costs of starting business in Spain also include the fees and taxes related to the choice of the company as a form of doing business in Spain. The amount of tax depends on the value of the share capital or contributions to the assets of the company. The charges for opening of a bank account are also included into the Costs of starting business in Spain. These fees vary depending on the bank.
To sum up, it is worth to emphasize that costs of starting business in Spain are all the expenses associated with running a business. If you’re looking to start up a limited company, expect to pay at least €1000 euros in administrative start-up costs as well as your taxes. The most important costs are fiscal obligations to the State or local government, under the provisions of local taxes or fees (Spanish corporate income tax is at 25%, respectively. Value Added Tax (VAT) is 21%); costs related to salaries to employees; costs related to the payment of social insurance for employees.