# re: small business



## Kelsa10 (Feb 24, 2016)

*re: small business*

Good afternoon all, 
I am hoping to relocate to Benidorm ASAP, being held back by conflicting information regarding small businesses. I would love to open a small shop. Can anyone please advise me on the 'legal' side of things please, I'd really appreciate any help.


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## xabiaxica (Jun 23, 2009)

Kelsa10 said:


> Good afternoon all,
> I am hoping to relocate to Benidorm ASAP, being held back by conflicting information regarding small businesses. I would love to open a small shop. Can anyone please advise me on the 'legal' side of things please, I'd really appreciate any help.


:welcome:

You need to get in touch with the ayuntamiento to find out exactly what local requirements are. 

At the very least you'll need a licence to open & insurance. It will depend on what the business is as to what else you will need.


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## Guest (Feb 24, 2016)

Kelsa10 said:


> Good afternoon all,
> I am hoping to relocate to Benidorm ASAP, being held back by conflicting information regarding small businesses. I would love to open a small shop. Can anyone please advise me on the 'legal' side of things please, I'd really appreciate any help.


All I can say is that welcome to Spain.

It's a huge nightmare to open a business. /SNIP/


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## Kelsa10 (Feb 24, 2016)

Yes, sadly it seems a nightmare. As the business would be tiny it doesn't seem worth the hassle. 😩


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## xicoalc (Apr 20, 2010)

They come, they go!.. All I can say is research very well the market in the area, competition and so on. Get a good plan and dont plan based on a dream, plan on reality. For every 100 people who go and open a business in Spain (especially in the area you are talking) 95 pack up and go home! I wish you well but be careful and dont seen any money you cannot afford to loose!


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## Kelsa10 (Feb 24, 2016)

Thanks. Yes done all that already & I think I have a good chance of it working. Putting it into practise however is a different story. I think your right, i need to think of the potential losses & that's just in getting it up and running. Thanks so much.


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## xicoalc (Apr 20, 2010)

Kelsa10 said:


> Thanks. Yes done all that already & I think I have a good chance of it working. Putting it into practise however is a different story. I think your right, i need to think of the potential losses & that's just in getting it up and running. Thanks so much.


Taking on a premises, acquiring licenses, refitting/ preparing premises, marketing, accounting fees to set up, high social security amounts, insurance etc all need to be thought about. My advise to anyone trying to start up in Spain is to think what you can afford to loose. If for example it will cost you 50k and you can afford to blow 50k for fun then go for it but if that 50k will come from borrowing or seriously eat into long term finances then be careful. I want you to succeed but see so so so so many people who come to Spain on a dream and end up on the UK dole system in two years!


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## Kelsa10 (Feb 24, 2016)

Yes I totally get that. Thanks so much for your advise. Just not worth it for something that is a little more of a hobby rather than business. Oh lord 😩 back to the drawing board.


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## Madliz (Feb 4, 2011)

xicoalc said:


> They come, they go!.. All I can say is research very well the market in the area, competition and so on. Get a good plan and dont plan based on a dream, plan on reality. For every 100 people who go and open a business in Spain (especially in the area you are talking) 95 pack up and go home! I wish you well but be careful and dont seen any money you cannot afford to loose!


As the old saying goes, _if you want to make a small fortune in Spain, bring a large one._


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## Kelsa10 (Feb 24, 2016)

Ha ha!!! Love that!!! Just enough to be able to stay would do me 😜


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## xicoalc (Apr 20, 2010)

Kelsa10 said:


> Yes I totally get that. Thanks so much for your advise. Just not worth it for something that is a little more of a hobby rather than business. Oh lord 😩 back to the drawing board.


Perhaps and understandably you maybe dont want to share the type of thing you are thinking of doing but you said a hobby, so I am guessing something for fun and if it makes a few euros even better? Where would you operate from, what sort of money are you talking about? I can't even begin to guess what you will be doing but if its home based for example maybe costs are much lower?


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## el romeral (May 8, 2012)

Yes, agree with what has been said. Then there is the requirement for full disabled access, oh and a lift too.


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## Barriej (Jul 23, 2012)

I asked a similar question a couple of years ago.

So maybe I can share some of the experience.

My wife and I were looking at purchasing an existing business in Alfaz and then adding on to it our successful business model from here in the UK.

The upshot was that it was and still is a lot more expensive to either setup or take over a business in Spain than in the UK. 
You have the choice of self employed which comes with a monthly fee to cover your national insurance (although that then gives you access to the Spanish healthcare system) which is payable even if you don't earn a euro. 
Or to start a company and be the employees. Same thing applies but the NI is lower for some reason but there are more taxes to pay.
The other main difference between the UK and Spain is the old VAT or IVA, there is no threshold as in the UK. You have to deal with this on every transaction. So a good Accountant is needed. I doubt that there is a free software package that follows the Spanish tax system like there is here.

We decided in the end that we would be worse off moving to Spain at that time, even with family in the area we wanted to live in and a bolt hole here in the UK it just was not worth it.
And while we visit family at least once a year (it was nice during the day in Benidorm at the beginning of Feb) we are still not happy with the situation.

I can take my pension in 2017 and even with this and my wife running any business we would still be worse off or at best break even. 

It's not worth it in my opinion to say I want to go to Spain just because the sun shines and the food is better etc.

We are still planning to end up in Spain but it will be in a few years time, but only if the figures add up. And we will weigh up the gains in lifestyle over the decreased cash very very carefully.

Like others have said if you can afford to loose the money and still return to the UK in good shape then go for it.


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## xicoalc (Apr 20, 2010)

Barriej said:


> I asked a similar question a couple of years ago.
> 
> So maybe I can share some of the experience.
> 
> ...


In most holiday / expat areas such as the ones mentioned here I have seen over the years pretty much every expat owned business, whether it is a bar, school, service business, you name it close down and the local open as something new time and time again. At the height of the boom there were business selling up the lease on their bars for huge figures (one bar I knew sold for nearly 100k just for the lease) and an agent I know said to me that now its on the market for just a few thousands.

You make a very good point that careful planning and number crunching is the key and then when you have studied the figures take a further chunk off the projected income and add another chunk onto predicted expenses and only then if it all looks good and your market research shows there is a demand maybe think about giving it a go.

People come to Spain all the time and struggle, some have a period of boom and then go on to struggle but remember that you can't just shut up shop after a year and get dole money and a free house like you can in the UK. If your business fails you are on your own.

I am well and truly established in Spain ad have paid my taxes here for many years so in my case if I lost my job tomorrow I would get Paro (dole) but even then it would be for a very limited time. Things are just different here.

Knowing the area, knowing the market and having good general local knowledge is the key. The people who succeed in Spain are those who have either well researched or have been here long enough to know a) how things work, b) whether an idea is viable, and c) lots of people who will help make it a success. If you are thinkngseriously of doing this then lots of reccy trips, research, asking things and using the forum.

Do keep us updated!


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## PNE Matt (Feb 28, 2016)

Really interesting reading and helpful insight.


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