Paperwork to open (Spain and Catalonia)
Paperwork is scary, but the steps are clear. A gestoría (business advisory office) can do it for you for not much money, and it is worth it at the start.
1. Self-employed or company
To start small, almost everyone starts as self-employed (autónomo). The first-year fee is the flat rate of €80 a month; after that it depends on what you earn (roughly between €200 and €600 a month). A limited company (SL) has higher running costs and usually only pays off when you earn quite a lot or there are more partners.
2. The town hall
In Catalonia, about 90% of activities open with a prior notification or a responsible declaration: you submit the papers and can start, although the town hall will inspect later. Bigger or riskier activities (for example, places with a large capacity) need a licence and you have to wait for it.
You will often have to attach a technical certificate or a technical project signed by a technician. That technician costs money: ask the price first.
3. Mandatory when you open
- Official complaint forms and the sign saying you have them.
- Visible prices with VAT included.
- In Catalonia, fixed signs and notices must be at least in Catalan, and customers have the right to be served in Catalan.
- Liability insurance (and premises insurance).
- If you hire someone: register the company with Social Security, a contract and health and safety.
4. Taxes every quarter
- VAT: the VAT you charge minus the VAT you pay, every 3 months.
- Income tax (IRPF): an advance payment on what you earn.
- Some small activities can use módulos (objective estimation): you pay according to the size of the business, not what you earn. Ask the gestoría if it suits you.