If you’re planning on starting any sort of business in Malaga, you’ll want an idea of how much it’s going to cost you. There are a number of steps that require some sort of expenditure and in this article, we run through the main ones, both for individuals setting up as self-employed and for companies. Read on for detailed information on the cost of setting up a business in Spain.
Did you know?
As always with anything to do with Spanish paperwork, you can save time, stress and energy if you use the services of a professional (legal, fiscal or administrative) to help you. Since time always equals money in business, using professional services will ultimately save you money.
Instead of spending hours trying to set things up yourself, let the professionals do their thing while you do yours!
The costs of setting up as self-employed in Spain
When you become self-employed in Malaga, you’ll find that as well as paperwork, certain costs are involved. They include the following:
Monthly social security payments
Unless you qualify for a discounted rate of social security (see below), expect to pay at least €289 a month (minimum monthly amount in 2021).
Discounts: The newly self-employed in Malaga (or if you haven’t been self-employed for at least two years in Spain) get a discounted rate. You pay €60 a month for the first 12 months, then 50% of the usual rate for months 12 to 18, then 70% for months 18 to 24.
Note that your monthly social security payment is a flat rate and not dependent on how much you earn.
Licence for premises
If your self-employed business in Spain involves premises, you need an opening licence. The cost varies depending on the council, but in Malaga, for example, a licence costs from €400 to €800. Expect to pay around €500 for the licence to open a shop or office, for instance.
You can of course do the paperwork yourself and save paying the following costs. However, employing an expert to do it for you will save you invaluable time (and stress), which you could spend on growing your business.
- Signing up with the tax office – expect to pay between €50 and €100 for someone to do this for you.
- Signing up for social security payments – costs range from €40 to €100 for this service.
- Applying and obtaining an opening licence for premises – costs start at €50.
The costs of setting up a company in Spain
If your business interests involve setting up a company, it’s considerably more expensive than being self-employed. Expect the following costs:
Minimum set-up capital
At least €3,000 capital is required, although of course you get this back if you dissolve the company.
Company statutes and deeds
One of the most important parts of setting up a company since the statutes and deeds lay out the road map for the company and dictate what you can and cannot do.
Take expert legal advice on this point. Expect to pay from €200 for drafting the company statutes and preparing the company’s title deeds – money very well spent in our personal experience!
You sign the constitution of the company at a notary public. Expect to pay around €600 for this, more if your deeds are complex and/or long.
Company Registry costs
You also need to register the company at the Registro mercantile and this costs around €250.
Licence for premises
If your company is going to have premises, you need to get an opening licence. The cost varies depending on the council, but in Malaga, for example, a licence costs from €400 to €800. Expect to pay around €500 for the licence to open a shop or office.
Other set-up costs
As is the case for those setting up as self-employed in Spain, when you establish a company there are procedures you can do yourself. Or you can pay someone to do them for you. For the company, these include:
- Company tax declaration and obtaining the company tax number (CIF in Spanish) – estimate at least €100 for this.
- Signing up the company at the tax office and getting a digital certificate – expect to pay a minimum of €50 for this service.
Bring in the professionals
When you set up as self-employed or as a company in a foreign country, it’s advisable to hand the administration and fiscal paperwork to the experts. You can contract the services of an accountant, tax advisor and admin separately or use a company that offers an all-in-one package.
This is the case with Russell Bedford Emprende. Their bespoke package for the set-up for the self-employed costs just €200. For companies, their package costs €500, including company statutes. (Note that licence for premises is not included in these prices.)
Both represent significant savings on contracting individual experts and give you absolute peace of mind that everything will be done correctly and efficiently. That leaves you to get on with what you do best, ie running your business.