The currency blog

Spain is undeniably regarded as one of the hottest tourist destinations in Europe with an ongoing encouraging economic growth; accordingly, people are now taking a lot of interest in investing in new business opportunities. Although the entire process is not that difficult, one needs to be very clear about the practical aspects of launching any particular type of trade. No doubt, there is a wealth of opportunities for business and self employment.

Statistics show that about half of the British people moving to Spain are choosing to run their own business, and increasingly young entrepreneurs are taking up the lead with new ideas to explore the actual potential of the existing market. Moreover, a strong economy- the 8th largest in the world (Organization for Cooperation & Development - OECD estimation) with continuous infrastructure and communication development further promotes promising business ideas.

People who come to Spain eyeing up any job might find it very difficult to sustain, considering the lower salaries (compared to UK and US) and also the shortage of jobs. So, they end up either opening up their own shop, enterprise or just being a part of an already established business. In addition, a simplified administrative procedure and the effort of Spanish government to promote small and medium scale industries nurture the most favourable business environment.

Some look at the expat market

However, the key to opening a new business in Spain lies with the fact that you have to have an original approach, something different to the existing ones. Some look at the expat market, some at tourists and some towards the locals. However, these days, if you want to reach a wider customer base, the business should be looking at both the foreign residents and locals as well.

The primary tasks before establishing a new business is the need to do good market research to study the potential consumer, target customer location, competitors or market leaders, etc. Only then, can one really capitalise on his/her ideas with ample knowledge to take up the challenge. In fact, these are the common preconceived notions for the proposed product development and marketing strategy.

Chambers of Commerce

A wide range of information and advice is available to those wishing to start their own business. Based in the domain of the Chambers of Commerce of Spain, an entire information system has been developed for the business community. Through the Servicio de Creación de Empresas you will get guidance on aspects of business creation, while the Instituto Cameral de Creación y Desarrollo de la Empresa (INCYDE) provides free advice and personalised assistance from making a business plan to ongoing support after the foundation of a business.

Another integrated system where you can get all relevant information is the Ventanilla Única Empresarial (VUE) or one-stop shops for businesses. Through this government sponsored service: you will get information on obtaining a municipal license, the need of a company tax identification number (Cédula de Identificación Fiscal - CIF) and registering for local tax on business activities (Impuesto de Actividades Económicas - IAE). You can also get help for registration workers for social security (the labour and social security obligation).

In the case that you are going to establish a business in a specific location, it’s better to get all prior information, including legal terms of the respective autonomous community, as Spain boasts a decentralised system with self-governing local bodies. Overall, starting a business in Spain is fairly straightforward, provided you have a solid business plan, the necessary capital and a sound knowledge of Spanish legal and administrative procedures. Relatively low labour cost, a large base of foreign resident and easy availability of commercial properties can only stimulate your enthusiasm.

Information courtesy of Craig Edmonds www.marbellaguide.com/blog

Marbella Guide is your personal and business guide to Marbella.

Discuss on this on the Currency Exchange Forum