Join our mailing list

 

 





Join us on Twitter Lowtax Facebook page Join our discussion on LinkedIn Join us on Google+ Delicious Subscribe to the Tax-News RSS Feed
 
 

Spain Summary Guide

Living and Doing Business in Spain

Spain is situated in southwest Europe on the Iberian Peninsula and borders the Mediterranean Sea to the east and south, and the Atlantic Ocean to the northwest of the country. The Pyrenees separate Spain from France and with a population of over 40,500,000 (July 2009), Spain is the seventh largest country in Europe, and enjoys a temperate climate with long, hot summers and pleasantly mild winters, especially on the Mediterranean coastal regions, or ‘the Costas’. Due to the immense popularity of Spain with British tourists, English is widely spoken in the major population centres and holiday resorts. The major cities of Madrid (the capital), Barcelona and Valencia have excellent air connections to cities in Europe and the Americas.

Spain has a very well developed telecommunications infrastructure. There are around 20.2m telephones and 49m mobile phones in use, with around 25m Internet users. High-speed broadband connectivity is widespread and broadband services are generally reliable and stable.

Spain’s banking system is well established and modern. Most major cities and towns have branches of an established bank and larger cities and tourist resorts have branches of international banks, including British and American banks. Many Spaniards now use online banking services. Some branches have an English-speaking member of staff but it is advisable to learn some Spanish if planning to live and work in Spain. Opening a bank account in Spain is a relatively straightforward business and is usually done either the same day or within two or three working days, though this may take longer for non-EU nationals. Spanish banks are open less frequently than banks in other parts of Europe.

The cost of living in Spain is generally still lower than in other western European countries, though this is not the case in the major cities such as Madrid and Barcelona, where in particular, property prices are high.

 
 

Spain Summary Guide Contents

 Spain Summary

 Spain Summary Chart

 Spain Residence

 Taxation of Business People in Spain

 Living and Doing Business in Spain

 Business Forms in Spain

Latest Comments

Expat Brit

Hi,

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.

TJM @ Eindhoven, NL

T. Dog

Read replies | Reply | Start new thread

Jersey vs. Malta??

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

Read replies | Reply | Start new thread

Purchasing investment-link insurance for my staff

Would that count as income tax to my staff? And would that count as expense to my company?Michael

Read replies | Reply | Start new thread

Irish crisis - effects on small business?

Hi all,

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...

Thanks,Kate

Read replies | Reply | Start new thread

Living in France contracting to Australian company

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

Read replies | Reply | Start new thread