# Pros and cons of setting up a business in spain?



## Expat-in-spain (Nov 2, 2011)

I'm at the latter stages of setting up own consultancy firm with my target base in UK but with me residing in Spain. The huge majority of my work can be done remotely so my actual location isn't really a problem. 

At first I was naturally just thinking, well I live in Spain so it should/would be a Spanish company but as my entire business would be UK based, with a UK virtual office and UK redirecting numbers should I just go and create my company in UK?

I've read corporate tax in UK is 20% up to 50k profits and in spain its 25-35% dependant on profits.

Anyone been in this kind of situation and could perhaps give me some advice?


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## gus-lopez (Jan 4, 2010)

Legally you live here so the tax & NI should be paid here.

The other way , setting it up in the UK, if you tell the truth re: where you live then you'll never pay NI as they cannot take it from someone who does not live in the country apparently.

Option 2 leaves you with no healthcare anywhere.


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## 90199 (Mar 21, 2010)

Seek professional advice from the tax collectors in both countries, that way you will get the correct answers to a somewhat complicated situation.


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## expatmat (Feb 12, 2013)

You don't have to set your company up in either UK or Spain, in fact these are probably your least 2 attractive options.


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## Expat-in-spain (Nov 2, 2011)

expatmat said:


> You don't have to set your company up in either UK or Spain, in fact these are probably your least 2 attractive options.


what would you suggest?


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## expatmat (Feb 12, 2013)

I'd suggest looking into it. 

I'm sorry, I don't know much about your situation so can't offer sound advice. Understandably, the critical info is the stuff you probably don't want to share publicly.


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## wk44 (Feb 22, 2013)

I do beleive that you can also open an offshore UK company also, but when we came here we opened a spanish company and joined the system


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## Spanish inheritance tax (Feb 23, 2013)

If you can do without a Spanish SL and use a UK Ltd instead, do it, spanish law is unnecassarily complicated, language issues and expensive.... When living here you could take out a salary and pay Spanish tax on it


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