Emigrating to start a Business in Spain

- a challenge but watch out!!

Emigration get’s easier every day and is, thanks to cheap flights and internet, not such a drastic decision anymore as decades ago. Living and Working in Spain, 320 days of sunshine, inviting beaches, no more traffic jams, quietness and space, a nice house in the mountains or along the coast, who doesn’t want this dream to come true. But...... come to your senses before trouble commences!

Once upon a time the only Britons heading for Spain were those who were planning to retire there. Not any more. Today, a growing number of people are moving to the country to set up their own businesses. Indeed, Spain is now one of the most popular places for people to launch their own start-up.

“The number of people looking to set up businesses in Spain is increasing all the time,” says Jose Morillo, director of investment at the Spanish embassy. His department gets 1,500 enquiries a year. Over the last five years, GDP growth in Spain has been 68% above the European Union average. While the image of Brits buying pubs or bars on the Spanish coast still holds true, Morillo said people are going into a whole range of sectors, including construction, hairdressing, retailing, information technology and leisure, with scuba diving being particularly popular at the moment. Setting up a business in Spain is straightforward, but it can be time-consuming making sure you have all the correct forms and licences. And there is the language barrier if you are not fluent in Spanish.
Reflections

Why do I want to leave the UK?
What is it I can do in Spain?
What kind jobs are there available, or do I need to start a business?
Where can I start my business?
What business should I start?
Where can I find useful information and training?

Facts and Figures

5oo Brits leave UK every day Spain is the number one choice in Europe for Brits choosing to live abroad.

Five hundred Britons are leaving the UK every day to find a new life overseas, according to the Office of National Statistics.
In 2006 a record 410.000 people left Britain to live and work abroad, Spain comes in second place (behind Australia) as the most popular destination in Europe for Brits moving abroad.
Some 75.000 Britons chose to start a new life in Spain in 2006, most likely attracted by the already established expatriate community. Of the 410.000 people who left the country 216.000 where British citizens. In 2001, the figure was 159.000.
A large majority of the people leaving the UK said that they intended to stay abroad for more than four years, and over 40 % said they were ¨emigrating¨ ( this is 164.000 emigrants). Almost 30% said that they were leaving to look for a job, already had definite jobs or wanted to start their own business (a dream come true).
This means that in 2006 123.000 Britons are looking for a job or started a business in Spain. In 2007 these figures are expected to grow even more!!
Most people had a steady job in the UK but started a business in Spain.
The reasons to leave where the strict rules in the UK, but don’t forget, business rules might not be as strict in Spain, but they are time consuming. It takes a lot of time and patience to get your licences, permits (permit of residence) and identification numbers.
When children are involved, they’re most likely to be younger than 12 and blend in harmoniously in the Spanish school system and society.
Emigrants are mostly well educated, which is not always an advantage as Spain, with the quickest growing economy in Europe ( 3,2 % per year) is crying out for computer specialists and construction workers, not for managers nor social workers.

Then finally the Big Step into Spain

A small step for mankind, a giant leap for a better life?
Perhaps, but watch out, the road to Spanish Success is paved with legal thorns.
The European Union made emigration a lot easier; there are no formal barriers anymore.
The convenience of emigration also has disadvantages, emigrants think too easy about it because it’s so relatively close (3 hours flying) and they don’t expect the cultural differences to be that big. This makes the step more difficult than expected.
The big advantage is that you can start all over again; it’s a great way to finally start that business you’ve always dreamt of in Britain.

Top Five to overcome Worry Five, To be or not to be in Spain........

1. Let a gestor or assessor arrange your business matters
The most important step for you is to look for a reliable gestor (administrator) or asesor ( professional advisor). When you are moving over to Spain you have some many costs that it’s tempting trying to arrange all documents by yourself, in order to save a lot of money. We can tell you by experience that you can and will safe yourself a lot of trouble, annoyment, misunderstanding and time when you put this into the capable hands of a professional gestor-asesor. They also arrange all necessary business documents (see below). When you want to import a car for instance, don’t try to do this yourself, it took us 3 months to come nowhere and our gestor one week to get us Spanish number plates.

2. To be arranged before you can start your business in Spain
-Numero de Identification, (NIE) is necessary as a personal identification. Without a -NIE can can’t arrange anything nor get anything done.
-CIF, Codigo de Identification Fiscal, arrange it at the regional tax office (delegation de Hacienda del Agencia Tributaria). This is your VAT number and Identification that you are running a business. Without it you can’t do any business in Spain.
-Register your business name at the Registro Mercantil and sing up in the trade register (Escritura de Constitucción) in the presence of a notary established in Spain, memorandum of association
- draw up an official rental contract when you hire a business unit or building. A gestor or lawyer (abogado) can do this for you.
- application for a business permit (licencia de Actividades Económicas) at the Town hall (Ayuntamiento)
- register the activity of you enterprise at the Taxoffice (hacienda) and payment of Tax (impuestos de Actividades Económicas). You don’t receive a tax form, it is you duty to take responsibility for tax payment yourself in Spain.
- Arrange work contracts when you hire employees and register the Social Security (Seguridad Social) in the provincial establishment-settlement of the ministry of Social Security.
All the above mentioned items can be professionally ( and quickly) handled for you by an asesor or gestor.

3. Legal Forms of Enterprises

In Spain you can start your business choosing a Sociedad Comanditaria (limited partnership), a Sociedad Anónima (SA), nameless partnership, or a Sociedad de Responsabilidad Limitada, partnership with limited responsibility, SRL-SL .As starter we would recommend you an SC, you don’t have to do extensive bookkeeping here.

4. Look for and start with the right personnel

Your Personnel is the reflection of the quality of your company

Selection, Training and Coaching on the job and above all a good communication are essential for a professional business. Don’t forget that your personnel have the contacts with your clients, and unless all your clients are Britons, it is very important to hire at least one Spanish member. Spanish personnel cannot be missed in all your Spanish contacts, suppliers, phone calls etc. and they also know how the Spanish do business and how they communicate. To start with, they are not to be missed to help you survive in the jungle of Start ups.


5. Absorb yourself in the Spanish Business Codes of Conduct

You’ve probably worked in the UK all your life, and are used to the British ways of doing business. It could be kind of a culture shock to you to find out that things are quite different in Spain.
In general the Spanish are very hospitable, friendly and welcoming but also proud.
It is very unwise to be dominant to your Spanish business partner, inflexible or impatient. As respect to his guests, a Spaniard will always express himself in a positive, open minded and optimistic way. He won’t say no to you, but don’t expect this to be a yes or that success is at hand. In co-operating or contacts with Spanish (business) people, Spanish Language is very important. If you don’t speak the language, you can expect troubles or problems.
Expect long payment terms and keep in mind that accuracy and punctuality is not a virtue in Spain.
.
It’s better enjoying yourself in and of Spain if you’ve taken care of your business in time

Special offer for readers

As a reader of this magazine and in cooperation with this magazine , Schatte for Sale (www-schatteforsale.com) offers you the participation in a business week for emigrants.
Because of the large number of inquiries about emigration, starting a company or working in Spain, this magazine organises a Business Education Week in Spain.
4 times a year, Cómpeta, a lovely whitewashed mountain village in the quiet surroundings of the Sierra Tejada and only 16 km´s away from the sea, will be the Centre of Education to prepare yourself for emigrating and starting a business in Spain.

Our Goal is to cover all aspects, to help you handle or overcome problems with your start up and to prepare you as an emigrant step by step in doing business and start your own Company.
We offer you a combination of learning the language, history, culture and day to day work and training.

Business Training

You will learn to get to know and how to handle the Spanish Business Culture, the Spanish way of doing business, sales, negotiating, and networking and to improve your presentation skills.

1. Spanish

Santa Clara Academia de Idiomas, started in 1999, has developed a unique teaching methodology that stresses the importance of linking language with social cultural aspects of society. Her enthusiastic team is there to help you integrate in the Spanish way of life and to learn the language in the most effective manner possible.
In addition to the classes you will have plenty of time to enjoy to the fullest all that Cómpeta and surroundings have to offer! Walks in the Natural Park, the Mediterranean at a 30 mintues drive, painting, cooking and traditional Spanish dance (Flamenco and Sevillana) courses, live music performances, over 30 bars and restaurants, the famous Vino de Cómpeta, 320 sunny days a year and many fiestas…!

2. Training and Workshops

Schatte for Sale started its training centre in 1995 and moved over to Spain in 2005. They are specialised in business courses from communication skills to management training. Their goals are the recognition of commercial talent, development of commercial skills and coaching of commercial growth. Robin Schattefor, your trainer, has over 25 years of experience in International Business in sales and training. He trains people in his own unique way.. motivating, challenging, guiding, down to earth, with humour and above all pure. Many national and international references proof his quality.

A Five Days Program

Mornings
9.00-11.00 intensive Spanish Language Teaching, 2 hours per day
break
11.30- 14.00 hrs. 5 workshops: communication skills-networking skills, how to sell your service-product, commercial negotiation, presentation skills, doing business in Spain.

Afternoons
lunch 14.00-15.30 hrs.

15.30-17.30 hrs. 5 workshops with one or two specialists.. web specialist, accountant, asesor-gestor, lawyer, insurance company, advocate, financial advisor, business consultant.

Evenings
visit to British company’s , wine bar, tapas bar, Spanish restaurant etc. to bring your knowledge of Spanish and habits into practice and to meet British businesspeople for a conversation on how they have put things into practice.

What are the Costs?
Your investment in this interesting and intensive program is 995 pounds or 1495 euros.

Included
6 nights in a single room with bathroom in a nicely restored townhouse in Cómpeta.
Five days 2 hours Language School, in total 10 hours of intensive Spanish Language lessons, all trainings and workshops by professional teachers, trainers and specialists.

Not Included
Transportation to and from Cómpeta, lunches and dinner, drinks, extra spending

Extra Costs
hotel room, double bed

How can I subscribe?
By sending an e-mail or call (also for extra information)

Schatte for Sale
Calle Andalucia 6
29754 Cómpeta (Malaga)
robin@schatteforsale.com
www.schatteforsale.com
www.santaclara-idiomas.com
0034 952 553 666
0034 952 553 836