The most appropriate forms of business for foreign investors
in Spain are:
· Corporation (abbreviation S.A.)
· Limited Liability Company (S.L. or S.R.L.)
· New Limited Liability Company (S.L.N.E.)
· General Partnership (S.R.C. or S.C.)
· Limited Partnership (S. or S. Com)
· Branch office
The Limited Liability Company (Sociedad Limitada or Sociedad
de Responsabilidad Limitada) is the most common forms of incorporated
business in Spain. Liability of shareholders in a Limited
Liability Company is restricted to the value of the shareholding.
Minimum capital required to form a corporation is EUR60,000,
25% of which must be paid upon inception.
The public deed required to incorporate a new company is
registered in the Mercantile Register and applicants must
appear before a notary public to execute the deed of incorporation.
A Limited Company form can have a single shareholder, but
a special regime applies to such company structures and details
of the company set-up have to be recorded in a special company
register. The conditions of the special regime must be complied
with if the single shareholder is to retain limited liability
status.
Alternatively, there is no minimum investment requirement
to start trading as a sole trader (Empresario Individual or
Autónomo), and the individual trader does not have
to comply with any of the stringent filing requirements stipulated
for Limited Companies and Partnerships; their tax affairs
will be dealt with under the personal income tax regime, which
may reduce the complexity of the business start-up and maintenance
process. However, a sole trader is completely liable for the
debts of the business.
To commence trading, a sole trader must first register with
the tax authorities (Impuesto de Actividades Economicas).
The proprietor must then declare that a new business has commenced
trading by notifying the authorities and must also register
with Social Security. If a company name is to be used, this
can be registered with the Industrial Property Register. In
certain municipal areas, licences may be mandatory in order
to carry out certain business activities.
Branches of foreign operations are also permitted in Spain.
I am facing a dilemma and would like to invite any reader to advise me.
I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.
In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.
However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?
If anyone has pertinent advice on these points, I’d be grateful to hear them.
Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary
Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.
Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...
I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD. Do I pay tax in France or Australia or both ? Any help or guidance would be much appreciated.France move
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