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Open a Sole Trader in Spain

Updated on Monday 03rd May 2021

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Open a sole trader in Spain.jpegA sole trader in Spain is known as empresario individual or autonomo and it represents the simplest business structure available in this country. There are particular requirements to consider when opening a sole proprietorship in Spain, therefore, you are invited to talk to our company formation experts in Spain and ask for comprehensive assistance and support.
 

Conditions for setting up a sole trader in Spain in 2021

 
Sole traders in Spain are accountable for profits and losses in the firm, however, there is no impediment in registering such entity in 2021, concerning a few important conditions:
 
  • NIE or Numero de Identification de Extranjeros is the main document that needs to be obtained in Spain prior to the business registration.
  • IAE is the Impuesto de Actividiades Economicas for which a foreigner must register. 
  • The registration for social security contributions is an obligation in Spain. Such taxes must be paid each month.
  • The tax office in Spain (Agencia Tributaria) requires information about the commercial activities, the name of the founder, and the taxation system applicable.
  • A Spanish bank account is required for a sole trader in this country.
 
These are only a few of the conditions for opening a sole proprietorship in Spain in 2021. We suggest you address your requests to one of our Spanish company formation agents as other legal aspects must be fulfilled.
 

Do I need health insurance for a sole trader in Spain?

 
Yes, if you want to benefit from free healthcare as a sole trader in Spain you need to register for social security contribution payments. A health insurance fund is needed and the best part is that the entire family can be covered, mainly the ones registered at the domicile in Spain. This is another important aspect you need to discuss with one of our Spanish company formation specialists.
 

Deductible expenses for sole traders in Spain

 
Sole proprietorships in Spain are subject to different deductible expenses a Spanish agent with experience in the field can explain. Here are a few details that should be in your attention:
 
  • A part of the rental costs can be deducted.
  • Business advertising, utility bills, and even transportation can be deducted, but not entirely.
  • Membership fees can also be deducted.
 
It is required to have the support of a specialist in this field and benefit from complete information about the deductible expenses linked to a sole trader in Spain. You can count on our company formation agents in Spain right from the start, as they offer complete support and varied facilities for international entrepreneurs in Spain.
 

Asking for the services of an accountant in Spain

 
No matter the type of business you want to set up in Spain, it is required to have the support of an experienced accountant in Spain who can help with a series of accounting aspects. Sole traders in Spain must conform with a series of tax-related matters only an accountant can explain, therefore, do not hesitate to ask for advice and guidance in this direction.
 

Making investments in Spain

 
Spain is a great destination for business and home to a large number of foreign and local companies. The business climate is quite appreciated due to the many advantages offered. Besides simplified company incorporation that allows entrepreneurs have a fast start on the market, there are also other benefits. A skilled and multilingual workforce, excellent infrastructure, a great gateway to important international markets, and beneficial business policies represent only a few of the attributes of the business environment of Spain, highly appreciated by domestic and foreign investors. We present you some interesting facts and figures that underline the business trend and economy of Spain:
 
  1. Nearly USD 752 billion was the total FDI stock in 2019 for Spain.
  2. The 2020 Doing Business report ranked Spain 30th out of 190 worldwide economies in terms of simplified business.
  3. Around 70% of the total FDIs in Spain come from countries like France, the Netherlands, Germany, UK, Luxembourg, and Italy, the key investors of this country.
  4. 3/4 of the total FDIs registered in Spain in 2020 were absorbed by the region of Madrid, the most preferred area for international investors in this country.
  5. Manufacturing, financial and insurance, wholesale and retail trade, tourism, and real state are the sectors in which most of FDIs are directed.
 
If you believe that a sole trader in Spain is the right business choice for you, we suggest you contact our Spanish team of company formation representatives for guidance. Our clients rely on professionalism and proficiency when working with us.
 

Meet us in Madrid and Barcelona

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Call us now at +34 915 36 78 06 or +34 938 074 056 to set up an appointment with Federico Richardson, one of our specialists in company formation in Madrid and Barcelona. Alternatively you can incorporate your company without traveling to Spain.

As a Lexidy Law Boutique SLP client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Spain.

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