Tag Archive for: money

Tax Deductions in Spain For The Self Employed

Tax deductions in Spain for the self-employed can provide a great opportunity to save money and create a more stable income. Freelance Tax deductions are available on the cost of materials, tools, and maintenance expenses for self-employed or independent workers. Tax deductions may also include other professional costs such as training, exhibitions, and conferences – all of which could provide an invaluable resource for self-employed individuals in Spain.

This is an absolute must-read if you want to become a freelancer in Spain. Without a doubt, the taxes that come with self-employment are one of the most crucial aspects to consider as part of your choice. Read on!

What are tax deductions for self-employed?

In Spain, two taxes offer deductions to self-employed workers: the Personal Income Tax (IRPF) and the Value Added Tax (IVA). Those who take advantage of these tax reductions can greatly reduce costs.

Personal income tax is a progressive tax levied on the income of individuals. Employed workers are taken off their payroll each month. In the case of the self-employed, they must withhold a small amount on each invoice they issue. Both employed and self-employed workers have to make the annual income statement to balance the amounts. IVA is a direct tax that taxes consumption and is added to the amount of each item or service for sale.

tax deductions in Spain for the self employed

Income tax or IRPF (“Impuesto de la Renta de las Personas Físicas”)

Almost every quarter, self-employed people must pay the Spanish tax agency (Agencia Tributaria) for personal income taxes. This tax is known as IRPF or personal income tax by the Spanish tax authority. As a freelancer, you’ll be dealing with the IRPF on a regular basis:

  • when invoicing clients
  • setting aside for quarterly payments
  • calculating your annual tax report

Thus, if you file your quarterly tax return, 20% of it should be submitted as an advance payment. You must complete 130 (Modelo 100) and 131 (Modelo 130) forms, and this preliminary report will make preparing the annual tax return easier.

How to file IRPF quarterly

Every 3 months, self-employed individuals must submit their Personal Income Tax (IRPF). This declaration includes your income decreased by any relevant expenses. If you’re a freelancer living in Spain for more than 183 days each year, then you will become known as a tax resident. As such, all income generated from any self-employed activities must be declared and taxed accordingly.

Consequently, when filling out the quarterly IRPF documents you are essentially paying a 20% prepayment in anticipation of your income statement. To file your Personal Income Tax, you’ll have to turn in Tax Form 130 (Modelo 100) or Tax Form 131 (Modelo 131) every quarter. Later on, these quarterly reports will help you file your annual tax return (Declaración de Renta).

How to calculate IRPF in the Annual Tax Report

It depends on several factors, such as your economic situation and the type of activity that you pursue. In general, tax rates range from 19% to 47%.

  • From 0 to 12.450€: 19%
  • From 12.450€ to 20.200€: 24%
  • From 20.200€ to 35.200€: 30%
  • From 35.200 to 60.000€: 37%
  • From 60.000€ to 300.000€: 45%
  • Above 300.000€: 47%

Depending on the specifics of your circumstances, you may use additional allowances to reduce what you owe in terms of the base rate.

How to apply IRPF retention when invoicing a client

When voicing clients in Spain, the percentages of IRPF that the customer has to remit will also be included on your client’s invoices. IRPF’s annual costs vary, though the average is 15% deducted from all the fees paid by the client. Your customers withhold IRPF percentages and pay them back to the Tax Office in your name.

VAT for self-employed workers (“IVA”)

Once each quarter (between the first 20 days of each quarter, on January, April, July, and October), you file and pay your quarter VAT at the local tax office. In Spain, VAT is 21%, and you will apply that extra rate to the different invoice services you send to your clients.

How to file VAT

In order to file your VAT, you must fill out and submit a Modelo 303 form. This document is mandatory for all self-employed workers that have to pay social security contributions or freelance tax (Autónomos).

When filing this form, you must provide evidence of the expenses incurred, such as food expenses, maintenance costs or professional fees.

During each quarter, each invoice you send will include an extra 21% on your prices. For each business-related invoice you received and for all those invoices for work-related products you have purchased (like a new phone or computer), you will pay that 21%.

At the end of the quarter, you must sum up all VATs you received, subtract VATs paid, and the difference is what you must pay to the Tax Agency. You will do that using Model 303.

You may be exempt from paying this tax if you deal with business customers outside Spain (but within the E.U.) and are VAT registered.

How to deduct VAT

For instance, if you’re a computer programmer and purchase software, computers, or ergonomic chairs, they’ll be tax deductible. If you submit an invoice for non-business items like a refrigerator or table set with six chairs, unfortunately, it won’t pass silently but will qualify should your business specialize in hospitality services.

How to file your annual VAT

At the end of each year, you must also submit Model 390, including a summary of all VAT transactions throughout the year. Completing this annual VAT declaration form will provide you with a comprehensive overview of all your incoming and outgoing VAT transactions. You can do it quickly and conveniently online through the Agencia Tributaria website. However, if you deliver educational services, artworks, or specific types of freelance writing, then filing your Value Added Tax Return is not required – but that also means no tax deductions for those activities.

Which are the expenses you can deduct?

But now comes the good news: what you can deduct and all those concepts that will help you save money. That is because, on your income tax declarations, you can deduct several invoices you have been paying throughout the year to lower the final tax base.

You can get a tax credit in Spain if you have paid freelance or self-employment taxes. In most situations, a deductible item should be credited to the yearly return. If not, you cannot file a tax deduction. As business owners, you can claim deprecated assets on your company property.

What exactly is deductible?

  • Your monthly social security contributions
  • Any type of expense related to sustaining your freelance activity
  • Tax and accounting invoices you paid
  • Any tool or service that works as a subscription base that you use for your working operations
  • Your health insurance monthly payment (up to 500€)
  • Utilities like your phone and internet invoices
  • Supplies, like your office
  • Vehicles, in case those have been used for your freelance activity
  • Tax services maintenance expenses

Important note:

For all deductions to be applicable, you must prove the corresponding expenditures through formal invoices, in which your name, address, and tax identification number must appear.

Tax deductions in Spain for the self employed

How to file freelance tax in Spain

After filing a tax return with the tax authorities, your earnings must be reported at least three times per year. You declare your earnings from October to December and pay 20% of your tax. This is a Model 131 form, and it is required for every employer to submit a request. Every self-employed person must use model 132 for their freelance income tax in Spain. Each year, you will do your yearly income tax declaration, which uses model 100 and contains all the incomes you received and taxes you paid during the previous year.

Options to file tax returns

There are two different options to file tax returns: online with the Spanish tax authority (Agencia Tributaria) or through a personal visit to your local Tax Office. In either case, you must provide all personal information, income, taxes paid, and deducted expenses in the annual income statement.

Additionally, there are extra tax declarations that you may need to submit depending on your personal situation and business activities. For instance, If 70% or more of your clients make tax withholdings on your fees, on each invoice, you send to your clients, you can choose to subtract from the total a standard 15% income tax, or a reduced 7%. Then, once you do your annual income tax declaration, and according to how much you have generated during the year and after subtracting all the different allowances and bonification, you will pay (or receive) the difference.

But there is also another alternative. Using Model 130, you would quarterly pay, in advance, a 20% income tax for all the incomes you declare quarterly (without subtracting the 15 or 7% on each invoice). But, if you use a modular system called “estimación objetiva”, you would use model 131 instead, and your income levels will be based on estimations rather than actual income.

A word from SublimeSpain

From the look of it, taxes for a self-employed worker in Spain are quite favorable given all the deductions available to qualified individuals.

Being a freelancer means spending your money on supplies and services. However, you can offset some expenses against your personal income tax, social security contributions, and freelance tax deductions. Knowing which items are eligible for these deductions is key to maximizing the amount of money you save in taxes each year. Additionally, knowing the fundamentals of finance and law is essential in order to maximize your savings while being self-employed.

After studying our guide, we strongly believe you have a better comprehension of what it costs to be an independent contractor in Spain. Even if this information may appear overwhelming at first glance, do not worry; SublimeSpain has got your back. We are here to assist you to make the most out of your freelance experience by providing any support or answers that you need.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

Company Registry Spain: Doing a Company Search in Spain

The Spanish company registry, or “Registro Mercantil“, offers transparency and allows the public access to information about companies in Spain.

An owner of a company can’t keep the information about his business a secret, everybody can find out basic data such as the name of the company, its activity, its managing director, and its shareholders.

Questions about Company Registry Spain

Company Registry Spain: Doing a Company Search in Spain

What is the Spanish Company Register?

The Spanish company register is a public registry that records the information of all companies in Spain, including sole traders (freelancers).

Who can search the Central Mercantile Register?

The public registry is open and accessible to anyone, regardless of whether they want to search for a specific company or check out how their competitor is doing.

How to register your company with the Mercantile Registry?

When forming your company in Spain, you will need to register it with the Spanish company registry. The first step for registering a business in Spain is getting your NIF (CIF), an identification number that will be used by the commercial registry as well as the Spanish tax office.

How does the Registro Mercantil work?

The Registro Mercantil collects and stores the basic information of all Spanish companies. It offers transparency and allows the public access to information about every business, from small units to large corporations.

The Spanish company register is open to the public, so everybody can find out basic data about a business entity that interests them. You can search for companies in the Spanish company register by name, industry, and location.

What can you do at the Registro Mercantil?

There are many things you can do there, depending on what you need.

  • When you want to start a company

    The first step in starting a business in Spain is to go to the Central Mercantile Registry and request a name. If you are not sure if your name is taken you can have a look in the Spanish Commercial Registry to see if it is available.

  • If you want to know if a company is active

    You can either search for the company by name or NIF number (CIF). If you are searching by name and it’s not available, try adding an ‘S’ at the end of the name. This is, if you are searching for “Sociedad de Gestion”, try also searching for “Gestion S” or simply, “Gestion”.

  • If you want to know the directors and owners of a specific company

    You can also search by name and NIF number (CIF). If you don’t know the exact name use one or two first letters and choose between “Possible Individuals” or “Possible Legal Entities”. Notice that you can only access information about individual people if you have a legitimate interest.

  • If you want to check the company’s solvency and creditworthiness

    You can request their balance sheet which will show you all of their assets, liabilities, credits, and guarantees in addition to the names of the current directors/owners.

  • If you want to check if a company is registered or not

    You can search for its entity number which will tell you whether the company was successfully formed and is currently active, inactive (dormant), dissolved (liquidated), or bankrupt.

  • If you want to know which companies operate in certain industries or specific business activities in Spain

    The company register also offers lists of companies in certain industries, for example, the list of companies operating in different areas (districts) throughout Spain, or the list of car dealers.

How can a company register with the Registro Mercantil?

To establish a company in Spain, you must file it with the Registro Mercantil Central. The method of company formation in Spain is guided by a set of paperwork that must be signed by the company’s officials. Among these are the information of the shareholders, and articles of association. If you need help with company formation we can help you. Contact SublimeSpain.

Company Registry Spain: Doing a Company Search in Spain

What types of companies are registered in the Trade Register in Spain?

The mercantile register regulations require every company in Spain to be registered here. The most frequent type of business entity registered in Spain is the limited liability company. This business form offers some of the best conditions for entrepreneurs and may be used for a wide range of commercial purposes. Other popular company entities that you can find in the Spanish central mercantile register are sole traders, partnerships, and public limited companies.

Types of company registers in Spain

You can find company information in different places. Below are the most popular types of registers that you can look for companies in:

  • Registradores: This type of register is the most widespread and populous, so it’s useful if you want to find information about companies in certain areas (provinces).
  • RMC: the commercial register in Spain is a database with all the companies which have an R.M.C. number. You can obtain this information by going to any local commercial registry office or requesting it from the Spanish Commercial Registry (RMC).
  • BVDinfo: This website provides a list of all companies registered with the Spanish Trade Registry. You can find the company code, its NIF number, and date of registration, among other data.
  • EBRA: The European Business Registry Association (EBRA) is a database similar to the Spanish commercial register. It offers company data in all EU member states.
  • Infoempresa: Infoempresa is a website with information on companies and business activities. It also includes the list of companies operating in certain areas (districts) throughout Spain or the list of car dealers.
  • Companysearch.es: this is another website that provides information about companies operating in Spain. You can find clearly what kind of information is included on their website.
  • Info-clipper: Info-clipper is another site with company information on Spanish companies. It also offers information about companies from other countries.

As you can see there are many options to find information on companies in the Spanish central company register. The official Registro Mercantil is a safe choice. However, other sources might have more information available.

How reliable are the documents in the Spanish Company Register?

The central commercial register in Spain is public and open to all, so anyone can request information about a company. In general, the data is reliable and authentic, especially when it comes from a governmental source like the Central Registro Mercantil.

Still, sometimes we come across information that we believe is inaccurate or outdated. We also see some cases where the documentation on a company isn’t available, even though they are legally required to keep it up to date and accessible to everyone. This can happen because of database errors or a company incorporation process that went wrong.

What are the costs involved with the company register?

There are small costs involved in accessing several of the services offered by the company register. Depending on the number of companies you want to see, the price will increase. The price can also increase when you want to find different types of company documents.

What company documents can you find in the company registry?

Company documents you can find in the mercantile register are:

  • Company financials such as the filing of annual accounts and legalized official books. Balance sheet, income statement, annual report, changes in equity, and cash flows.
  • Registered office
  • Brands under company
  • Social capital
  • NIF-IVA number
  • Representatives, directors, attorneys, and contacts
  • Stock data for listed companies
  • Original filings/images
  • Detailed corporate structures
  • Business activity

What do you need for a company search in Spain?

You can search for Spanish companies by company name, key officers, NIF (CIF) number, finance, and even by business activity. If you need to know what kind of company is this and its legal status you will find the required information in the National Company Register (Registro Mercantil).

A word from SublimeSpain

At SublimeSpain, we understand that navigating the complexities of Spain’s company registry can feel overwhelming, whether you’re an entrepreneur or an investor. That’s why we’re here—to simplify the process, offer clear guidance, and ensure you have access to the insights you need to make confident decisions. From registering a company to conducting detailed searches, trust us to help you every step of the way. Because when you have the right information, opportunities open up. Let’s build your success in Spain—together.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

Buying a Holiday Home in Spain

Spain is a popular holiday destination and with good reason. The country has some of the most stunning beaches in Europe, the weather is fantastic (mostly), and there’s plenty to do for both adults and kids. But if you’re thinking about buying your own holiday home in Spain, it is best to do your homework first. While buying a holiday home is similar to buying a property in Spain, we will discuss things specifically related to holiday homes.

Why buy a holiday home in Spain

Spain is an excellent destination for holiday home buyers, and the country has plenty to offer for both adults and children. But there are other reasons why you may want to invest in an apartment or villa in Spain.

  • The weather: The Mediterranean climate means that the summers (June to September) are hot and sunny, and winters (November – April) can be chilly with mild temperatures. In the summer, temperatures in Spain often go well over 30°C and can be as high as 45°C in July and August in inland areas.
  • The houses: There is an extensive range of options for buying a holiday home in Spain. Depending on your budget and preferences, you can opt for a townhouse, country house, apartment, or even a villa.
  • The price: The property market in Spain has fallen sharply since the crisis, so prices are very affordable compared to other places. For example, you can buy a luxury villa with a private pool for as little as € 250.000. There are also great opportunities for renovation works or plots of land for building your own holiday home.
  • The beach: There are numerous beautiful stretches of coast in Spain, from the Costa Brava to the Andalusia Coast. The shores have a lot to offer in activities, restaurants and shops.
  • The freedom: You can go to your holiday home at any time of year, and you don’t need to worry about finding transportation or fighting the crowds when you’re on holiday in Spain.
  • A Spanish Visa: When you buy property above € 500.000 you can get the Golden Visa Spain. This gives you access to the Schengen area.

Spanish Holiday Home

Get the help of a Property Lawyer in Spain

Learn more

The downsides of buying a holiday home in Spain

Reasons to not buy a holiday home are:

  • The bureaucracy: Buying or selling a property is quite complicated in Spain.
  • The economy: There is still a great deal of uncertainty about the Spanish economy. However, this is slowly changing, and there are lots of positive signs, such as lower unemployment figures and an increase in foreign investment.
  • Insurance problems: It can be tricky to get an annual insurance policy for homes that are empty most of the time, so this needs to be considered.
  • Property taxes: For example, you need to pay municipal tax when you own a property in Spain, and failure to do so can result in huge fines and even jail time. Inform yourself about the tax laws in Spain before you buy!
  • Vacant homes: Many properties stand empty throughout the year. Unfortunately, this means that there is a risk of vandalism and theft. Next to this, Spain is not happy with empty homes and combating this with regulations.
  • Reliable agent: Make sure you use a reliable real estate agent with the required knowledge and expertise.
  • Property scams: Unfortunately, some fraudsters go to great lengths to scam holiday home buyers.

How to find the perfect location for your dream holiday house in Spain

Now you may be ready to buy a holiday home in Spain. You’ve read about the many reasons why it’s great to own a property there, but where should you start? Below are some ideas on how to find your dream location in Spain.

Consider the city:

Some people want to live near the beach, and others prefer the quiet countryside. If you’re unsure what you like, it can be a good idea to visit some cities first and decide if it’s really for you.

Consider what you want to do in your future holiday home:

Do you want to relax on the beach or by your private pool? Are you interested in history and culture? You can find accommodation for every type of holiday. Just make sure that you know what you like before looking for a location because this will make it much easier to choose.

Research the location and surrounding area at different times:

It’s difficult to get a good impression of an area if you visit it in high season when everything is hectic, busy and overcrowded. It would help if you also considered visiting the site at other times of the year (for example, spring or fall) to see how it looks like outside of tourist season. It can be surprising what you’ll find.

Look for a place that is close to an airport:

If you want to visit your holiday home with short travel times, this is something to keep in mind when looking for the ideal location. Just make sure you are not too close to an airport, because you do not want to hear planes all the time.

Pick a neighbourhood that has convenient amenities like restaurants and grocery stores:

The location of your future holiday home is essential because it directly affects the value and resale value. Research the area where you want to buy a vacation home in Spain. If there are not many amenities like restaurants and grocery stores, this might be something you need to consider before moving!

Consider the landscape:

Spain is a country with beautiful landscapes, so this should be one of the essential things you consider when looking for the perfect location. Mountains, hills, plains, beaches and historic towns are just some examples of what you can find in Spain. It depends on what type of holiday home experience you’re looking for!

Check out what people live nearby:

It’s also important to pay attention to the people who live in your neighbourhood. When looking for the ideal location, you don’t want to buy a holiday home near noisy or rude neighbours, so keep that in mind.

How do I find a property to buy in Spain:

There are a couple of ways to find your ideal property. In general, visit the area you want to purchase in, search online through listings, or hire an estate agent.

Visit the area:

Although it isn’t the most efficient way to look for a property, you can visit the area and go from place to place. That way, you’ll get an excellent overall impression of what is available. Just make sure that you have a plan before going on your search, and this will make things much easier!

Search through listings online:

There are a lot of great websites that can provide you with information on properties for sale. You’ll find lots of information and pictures, which will help you make your decision. The most important thing is to know what you’re looking for and not be afraid to ask questions! It’s much easier to find the perfect place if you have all the information. Examples of real estate sites are habitaclia.com, fotocasa.es, and idealista.com.

Hire an estate agent:

If there aren’t many listings in the area you want to buy a property, hiring an estate agent can be a good idea. They know their way around, and they’ll find the perfect place for you. Don’t hesitate to ask them; they should always provide honest feedback!

From our experience, it is best to hire an estate agent in combination with a lawyer to find a property when you don’t speak the language. The estate agent will help you find the property, while the independent lawyer will protect you. The savings you make by having insiders will be more than covered by the risk of the extra cost involved in making the purchase.

Holiday home in Spain

Hiring a property lawyer when a Spanish holiday home

When you are buying a holiday home in Spain, it is recommended to get a Spanish property lawyer involved. It is important to find a lawyer that speaks your language and has experience in the region where you want to buy. This way, there won’t be any unexpected problems or issues! It’s also best to make sure the lawyer is independent; you don’t want them to represent the owner. The lawyer can do a large variety of tasks for you, including:

  • Negotiating the price and terms with the owner means that they will try to lower the cost and/or include services in the contract.
  • Making sure all legal documents are in order: This is more complicated than it sounds. Basically, an estate agent or lawyer will make sure everything is according to Spanish law. If there are any irregularities in the contract, they will let you know about it.
  • Inspect the property: The lawyer also ensures that everything is in order and that there aren’t any hidden costs or problems with the building. This is a crucial step! Don’t think twice about spending a bit more to do this part properly.
  • Arrange the payment: The lawyer should make sure that all payments are made according to the contract and that you have proof of this. This prevents any misunderstandings or disagreements later on.
  • Inspections during your holiday homeownership: In some cases, it is also necessary for a lawyer to inspect the property from time to time. This is mainly the case if you have problems with the building, for example, if it needs maintenance work. However, this is only necessary in some exceptional cases and mostly depends on your contract and what you agree upon.

It’s always best to be careful when buying a property in another country! Make sure that you know all about the property and that everything is done according to the law. We also have a blog about property lawyer services for UK citizens.

What type of holiday home properties are there in Spain?

Many different regions of Spain have their unique character and charm, and they range from the mountains of the Pyrenees to the sunny beaches along the Costa del Sol. You can find a lot of different types of property, depending on what kind of holiday home experience you’re looking for. A few examples are:

  • Beach properties: If your idea of a perfect holiday is laying under an umbrella on some beautiful white sand, then buying a beach house is the way to go. Many people like to buy holiday homes in Spain due to the fantastic beaches and warm climate.
  • Mountain properties: Are you more into hiking and mountain biking? Then this might be what you’re looking for! Mountains are truly iconic in Spain, and there are plenty of opportunities for you to explore.
  • Town/city properties: Many lovely historic towns are perfect for a quiet getaway. The excellent public transportation system makes it easy to visit things like museums and art galleries without having to use your own car.

Beaches in Spain

What should you look out for when buying a property abroad?

Although it can be very exciting to buy a holiday home in Spain, there are certain things you should consider beforehand. Here are some of the most important ones:

  • Language barriers: The language barrier can make it difficult to communicate with people you’re not familiar with. If this is something that concerns you, make sure the estate agents or lawyer you’re working with speak your language. Otherwise, you might want to make sure that someone in your family or a friend speaks the language and can help out in case of an emergency.
  • Legal issues: Buying a property abroad is similar to buying one in Spain, but there are also some important differences. Make sure always to ask your lawyer or estate agent what you should be aware of. If they don’t seem to know the answer, it might be best to hire someone else.
  • Insurance: Having a Spanish holiday home can provide you with great memories for many years to come, but there are some additional costs involved as well. Holiday homes can be easily exposed to bad weather, thief’s, and utility issues. That is why it’s essential to make sure your property is insured, and this will protect you in case anything happens.

The Spanish property market is strong and offers good rental opportunities

The Spanish property market is becoming stronger every year. One of the main reasons is the tourism boom throughout Spain. The country has become a popular holiday destination, which has led to more demand for properties. On top of that, prices are rising as well!

There are many different things you can do with your Spanish property after making the purchase. You can choose to live in it yourself or rent it out. If you choose to live on your property, you will be able to enjoy all the comforts of home while on holiday.

If you decide to rent it out, there are many different ways to do this as well! You can put the house on AirBnB or similar websites, and it will be rented out to tourists immediately. Or, you can go with an ordinary tenant and rent the property through an estate agency, for example.

Spanish Rental income tax

When you rent out your holiday home, you will pay income tax (IRPF). Make sure you know the ins and outs when it comes to rental income tax in Spain when you plan on renting out your holiday home.

Holiday house in Spain

Popular locations for buying a holiday home in Spain

Many foreigners like to buy a holiday home in popular tourist locations such as:

Costa del Sol

The coastal region is famous for its fantastic weather and beaches. Costa del Sol has become one of the most popular holiday destinations for people all over Europe, which means there’s lots of demand for properties! Although it can be difficult to find affordability, many opportunities are available.

Costa Tropical

The Costa Tropical is between the Sierra Nevada mountains and the Mediterranean Sea. It’s a trendy holiday destination for Europeans during spring and autumn because of its great weather and affordability. There aren’t as many property options here as on the coast, but you can still find some fantastic deals.

Costa Blanca

Costa Blanca is a popular destination for holiday home buyers from the UK and Ireland. This area has a fantastic climate, lots of coastline, and many beaches. It’s challenging to find affordability here due to high demand from tourists, but there are still some great deals to be found!

Galicia

Galicia is a dream location for nature lovers and people who love fishing. It’s one of the best places in Europe to fish and is perfect for people who enjoy sailing. Although it can be difficult to get around, it’s a truly special place.

Andalucia

In Andalucia, you will find some of the most culturally-rich cities in the world. This region is what you might call a hidden gem in southern Spain, which means it’s becoming more and more popular with holiday home buyers across Europe! It also has great weather throughout the year, especially in places like Almeria and Malaga.

Catalonia

Catalonia is located to the north of Spain and is home to the city of Barcelona. This region is excellent for people looking for an affordable holiday home near a famous European city. Although it has become more expensive over recent years, you can still find some bargains if you’re willing to look around!

Sierra Nevada

Sierra Nevada is another hidden gem that’s located in the southeast of Spain. It offers breathtaking views and is home to one of Europe’s highest peaks, the Mulhacen (the third-largest in the Iberian peninsula). This area has a fantastic climate, and if you’re looking for affordability, this might be right for you!

Balearic Islands

The Balearic Islands are famous for their fantastic weather, beaches, and warm water. They’re most popular with holiday home buyers from the UK and Ireland because of their popularity among British tourists. Due to high demand, there aren’t many places where you can find affordability in this region. Cities you can find there are Ibiza, Mallorca and Menorca.

The Canary Islands

The Canary Islands are located off the coast of Morocco and are popular among Europeans who like to escape to warmer climates during the winter. The best time to buy in the Canary Islands is when you’re ready for somewhere new in your life because they’re not always very affordable!

Holiday Property in Spain

What are the costs associated with buying a holiday home in Spain

The costs will depend on several things, including your budget and the area you want to buy in. Costs can include notary fees, registration fees, transfer taxes, exchange rate expenses, and stamp duty.

The average cost of buying a holiday home is around 10% – 15% of the purchase price. This means that if you’re buying an apartment for 200,000€, then your expenses will be at least 20,000€.

Why you should consider purchasing off-plan properties for sale in Spain

Most properties for sale in Spain are second-hand, with only a small percentage being newly built. This means that you can purchase a home at a much lower price than if it were to be made today.

Moreover, most new-builds are built-in popular coastal areas, which means they’re costly. You can save thousands of Euros by purchasing off-plan properties for sale in less exclusive regions. However there are many legalities and pitfalls involved when buying an off-plan property, so, it is best to get a lawyer involved.

Get the help of a Property Lawyer in Spain

Learn more

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal advice. We highly recommend seeking guidance from a legal expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

The best summer jobs in Spain if you are studying

Spain is one of Europe’s most popular places for summer vacations, and not just for tourists. Many students flock to the Spanish shores in search of the perfect summer job, whether they are looking to gain experience, make some extra cash, or simply enjoy the laid-back lifestyle that Spain has to offer. With its warm weather, stunning beaches, and vibrant culture, this country has a wealth of summer job opportunities for students to choose from. In this article, we will explore some of the best summer jobs in Spain for students and offer tips on how to make the most of your summer in this vibrant country.

The importance of summer jobs

In today’s rapidly evolving job market, it has become increasingly important for students to gain work experience in their free time and build their professional portfolios while they are still in school. A summer job is an excellent opportunity for students to accomplish this goal while also earning money to help support themselves financially.

One of the key benefits of finding a summer job is that it allows students to gain real-world experience in a professional setting. This experience can be a valuable addition to their resumes and can help set them apart from their peers when applying for future jobs. Moreover, it provides an opportunity to network with professionals in the field, making it easier to secure future job opportunities.

Additionally, working while studying can provide students with numerous benefits that extend beyond simply gaining work experience. For instance, it can teach valuable time management skills and help them develop a strong work ethic.

By balancing work and studies, students can learn how to prioritize tasks and manage their time more effectively. These skills can prove incredibly beneficial in their future careers.

Best summer jobs in Spain

Popular Summer Jobs in Spain for those who seek employment

Spain is one of the most popular destinations for students seeking for summer work abroad. With its beautiful beaches, vibrant nightlife, and warm climate, Spain offers a perfect mix of work and play. Below, you will find the latest summer jobs in Spain:

Hospitality Industry

This industry includes jobs such as waiter, bartender, hostess, and kitchen staff. Working in the hospitality industry can be a great way to improve your language skills, meet new people, and earn some extra cash. It offers flexible hours and a fun, fast-paced work environment. Many hotels, resorts, and restaurants in Spain hire seasonal staff during the summer. In some cases, English speakers can join their international staff too.

Retail Industry

This field includes job positions such as sales assistant, cashier, and customer service representative. Working in retail can be a great way to gain experience in customer service, learn how to work as part of a team, and develop your communication skills. Many stores in Spain hire seasonal staff during the summer months to help with the increased demand from tourists.

Tourist Industry

Spain is one of the most popular tourist destinations in the world, which means there are plenty of job opportunities in the tourist industry. If you are a native-level English speaker you will find plenty of seasonal jobs. This includes job positions such as tour guide, language tutor, and travel agent.

Working in the tourist industry can be a great way to share your love of Spain with others, meet people from all over the world, and learn about different cultures. Many tourist companies in Spain hire seasonal staff during the holidays to help with the increased demand for tours and travel.

Internship Opportunities

If you are looking to gain experience in a specific field, there are plenty of internship opportunities available in Spain. This includes internships in fields such as marketing, finance, and engineering. Internships can be a great way to gain valuable work experience, develop your skills, and make connections in your industry.

Factors to Consider when Choosing Summer Jobs in Spain

With so many options available, it can be difficult to determine which summer job is right for you. Let’s explore the top factors to consider when choosing a summer job, including location, duration, payment, and career relevance.

Location: Best Cities or Regions for Summer Jobs in Spain

Depending on where you live, there may be a variety of summer job opportunities available in your area, or you may need to consider relocating for the summer.

If you’re looking for a summer job in a bustling city, Madrid and Barcelona are great options. These cities offer a wide range of job opportunities, including positions in tourism, retail, and entertainment.

If you prefer a more laid-back summer job, consider looking for opportunities in beach towns or resort areas like the Balearic Islands or the Canary Islands. These locations often have seasonal job opportunities in the hospitality industry, including working in hotels, restaurants, bars, and beachfront shops.

Duration of the Job: Part-Time or Full-Time

Some summer positions may only last for a few weeks, while others may last for the entire summer. Additionally, you may need to consider how many hours are you willing to devote to your summer work.

Part-time summer jobs can be a great option for students or those with other commitments during the summer. Part-time jobs may allow for more flexibility in scheduling and can still provide valuable work experience and extra income.

If you’re looking for a full-time summer job, consider positions in industries such as hospitality, retail, or outdoor recreation. These industries often have a high demand for seasonal workers during the summer months. There are temporary jobs that can provide full-time employment opportunities.

Payment: Hourly Wage, Commission, or Fixed Salary

When choosing a summer job, it’s important to consider the payment structure. Some summer jobs may offer an hourly wage, while others may offer a commission or a fixed salary.

Hourly wage jobs are typically the most common type of summer job and may be available in a variety of industries. These jobs often offer a set hourly rate and may provide opportunities for overtime or additional pay for working weekends or holidays.

Commission-based job positions may be more common in sales or customer service roles. These jobs typically offer a base salary plus a commission based on performance, which can provide a financial incentive for motivated workers.

Fixed-salary jobs may be less common for summer positions but can be found in industries such as finance or administration. These jobs typically offer a set salary for the duration of the job, regardless of performance.

Career Relevance: How the Job Can Help with Future Career Aspirations

Finally, it’s important to consider how the summer job may help with your future career aspirations. While a summer job may seem like just a temporary gig, it can provide valuable work experience and skills that can be applied to future career opportunities.

If you’re interested in pursuing a career in a particular industry, consider looking for a summer job in that field. For example, if you’re interested in a career in marketing, look for summer job opportunities in sales or customer service.

Benefits of Working as a Student in Spain

Spain is a great place for students who seek a unique Spanish opportunity to gain valuable experience. There are four main benefits of working as a student in this beautiful country:

Exposure to Spanish culture and language

Working in Spain as a student provides a unique opportunity to immerse oneself in the Spanish culture and language. While studying abroad can be a great way to experience a new culture, working in Spain allows students to fully immerse themselves in the local community and gain a deeper understanding of the country’s customs and traditions.

Not only will working in Spain help students improve their Spanish language skills, but it will also give them the opportunity to learn about the country’s history, art, and cuisine. This cultural immersion can be a valuable experience for students looking to expand their knowledge and gain a deeper understanding of the world around them.

Opportunity to meet new people and gain new skills

Working in Spain as a student also provides the opportunity to meet new people from all over the world. This can be a great way to expand one’s social circle and make new friends. It can also be a great way to network and meet people who may be able to help with future job opportunities.

In addition to meeting new people, working in Spain also allows students to gain new skills that can be beneficial in their future careers. For example, working in the tourism industry can help students develop customer service and communication skills while working in a restaurant can teach students about teamwork and time management.

Chance to make money and gain work experience

One of the most obvious benefits of working in Spain as a student is the chance to make money and gain work experience. This can be especially beneficial for students who are struggling to pay for their education or who are looking to save money for future travels or expenses.

Working in Spain also allows students to gain valuable work experience that can be beneficial in their future careers. This experience can help students stand out from other job applicants and show potential employers that they are capable of working in a fast-paced and multicultural environment.

Possibility of getting a job offer after graduation

Finally, working in Spain as a student also increases the possibility of getting a job offer after graduation. Many employers in Spain value international experience and are often looking for candidates who have worked in a multicultural environment.

In addition, working in Spain can also help students develop important skills and connections that can be beneficial in their future careers. For example, a student who worked in a Spanish restaurant may be able to use their experience to get a job in a similar industry back home or even start their own restaurant.

Best summer jobs in Spain

Tips for Finding and Securing a Summer Job

Looking for a summer job can be a daunting task, especially if you are a first-time job seeker or a student looking to gain some work experience during the summer break. However, there are several ways to make the job search process easier and more successful. Below we will discuss some tips for finding and securing a summer job:

Utilizing job search engines and recruitment agencies

One of the easiest ways to find summer job opportunities is by utilizing online job search engines and recruitment agencies. There are many websites that allow you to search for job openings based on your location, industry, and job title. You can also set up job alerts, so you receive notifications when new job postings match your criteria.

Recruitment agencies can also be a valuable resource for finding summer job opportunities. These agencies work with employers to fill job openings, and they can help match you with positions that fit your skills and experience. They can also provide you with career advice, help you prepare for interviews, and give you feedback on your resume and cover letter.

Building a strong resume and cover letter

Having a strong resume and cover letter is essential when applying for any job, including a summer job. Your resume should highlight your education, work experience, skills, and achievements. It should also be tailored to the specific job description you are applying for, so make sure to review the job posting and include relevant keywords and phrases.

Preparing for job interviews

Once you have applied for a summer job and have been invited for an interview, it is essential to prepare thoroughly. Research the company and the position, and practice answering common interview questions. Dress professionally and arrive early for the interview.

During the interview, make sure to listen carefully to the interviewer’s questions and answer them honestly and thoughtfully. Highlight your skills and experience, and explain why you would be a good fit for the position. Also, prepare some questions to ask the interviewer, as this shows your interest in the job and the company.

Networking with professionals in the industry

Networking with professionals in the industry can also help you find many summer jobs. Attend career fairs and industry events, and connect with people on professional networking sites like LinkedIn. You can also reach out to family and friends who work in the industry and ask for their advice and assistance.

A word from SublimeSpain

In conclusion, finding a summer job is an important step for any student who wants to gain professional experience, build their resume, and develop crucial skills that will serve them well beyond their years of schooling.

Spain has become a popular destination for EU citizens and other citizens to find jobs and gain experience working. In this sense, students can position themselves for future career success while also enjoying the immediate benefits of earning a paycheck and gaining valuable experience in Europe.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

How Much Does It Cost to Maintain a Property in Spain?

Are you considering investing in a property in Spain and wondering how much it will cost to maintain a property in Spain? If so, the first step is to calculate whether or not you can afford it!

Maintenance costs and other expenses such as utilities are an important part of budgeting for any property. But what “real” cost should you expect if buying a house or apartment on the Mediterranean coast, or perhaps somewhere inland? Read on to discover how much it will cost to maintain life in the land of paella and sangria.

What are the costs of owning a house in Spain?

The cost to maintain a property in Spain can change depending on various factors. These include the residence’s size, whether you are solely responsible for its upkeep or contract specialists to handle it instead.

To give you an idea of what annual expenses to anticipate when owning a property in Spain, here is an overview of associated charges and fees:

cost to maintain a property in Spain
Spanish currency banknotes and coins

IBI Tax

Owning a property in Spain is an investment that comes with financial requirements, regardless of your residency. Most notably, IBI tax (Impuesto sobre Bienes Inmuebles) must be paid to the local Town Hall each year. It is the equivalent of “Council Tax” for those living in the United Kingdom. This fee covers expenses including waste collection services and infrastructure upkeep. Missing or late payments of annual tax can lead to a hefty financial penalty. Hence, it’s important for all foreign investors and permanent Spanish residents alike to prioritize their IBI taxes on time.

Depending on your location, you can either make this pay annual the tax online or in-person at your local Town Hall. Tax rates for IBI vary by region and are based on the “Valor Catastral” of each property. This means that where you live will affect how much you pay.

To give you an idea of the IBI cost while living in Barcelona, it’s typically 0.6% of your apartment’s value. For example, a two-bedroom home on the Costa Del Sol might be around €400 per year to pay tax. Instead, a luxury villa located in Marbella could range from €1500 – €2000 each year depending on its worth and area.

Non-Resident Property Tax in Spain

IRNR Non-resident income tax (Impuesto Sobre la Renta de No Residentes in Spanish), is a yearly requirement for non-residents living abroad who own real estate. Even if you don’t have any additional sources of income based in Spain and do not rent out your property, as a non-resident property owner this obligation applies to you. This property tax is calculated according to the worth of your assets. Every year, the local town hall issues an IBI receipt that informs you of the cadastral value upon which the IRNR will be based.

Residents’ Tax

IRPF Personal Income Tax (or “Impuesto Sobre la Renta de Personas Físicas” in Spanish) is a direct tax applied to one’s total yearly income for those living in Spain.

This form of taxation applies to any worldwide earnings acquired through employment and self-employment. The taxable amount is determined by subtracting all expenses deemed allowable under Spanish law from your overall global revenue. When filing your annual Spanish income tax return, you can combine rental income with other general sources of income as a resident.

Community Fees/Costs/Taxes for Property Owners in Spain

Along with the taxes outlined above, owning a property in Spain also requires additional administrative and maintenance payments. These can vary widely but might include fees for communal spaces such as playgrounds or tennis courts, annual bank account costs, insurance company expenses, garbage disposal charges and utility bills. All of these must be taken into consideration before making a purchase.

State Tax

Whether you are a resident or non-resident, the amount of taxation required for your Spanish property depends on whether it is being rented out. If so, then quarterly payments must be made to cover 19% of its rental value. If it is not being utilized as such, a much-reduced rate of 0.2% will apply when filing yearly State Tax in Spain.

Utility bills

When it comes to the cost of maintaining a property in Spain, energy costs are an essential factor. Utility bills include water and electricity consumption. The exact monthly utility bills vary depending on the size and occupancy status of your home. However, be aware that higher charges will likely apply if you decide to rent out the premises.

To ensure your bills are paid on schedule, it is essential to establish a Spanish bank account as foreign accounts are not accepted by utility companies in Spain. Although your property may be empty, you will still need to keep up with monthly bills in order to maintain ownership of a home in Spain. Even if you do not stay in the property year-round, utility companies will still expect payment via direct bank transfer. To prevent service disconnection while your home is vacant, it’s essential to maintain sufficient funds in your account at all times. Reconnecting utilities after a lapse can prove time-consuming and costly – so make sure there are no surprises by making timely payments.

Insurance Company Payments

Purchasing a property in Spain necessitates the acquisition of both building and contents insurance, an additional cost to factor into your budget. Home insurance premiums depend on the size of your house and any attached swimming pools, as well as their age and condition. Your mortgage offer often requires that you furnish proof of adequate coverage for their loan security. You can expect to spend approximately 0.05% of your house’s purchase price on yearly premiums. For instance, prices generally range from €250-350 annually near Costa Del Sol. The property insurance company plays a vital role in safeguarding your dream home and its contents. It helps to minimize risks and protect you from the unpredictable.

Other Charges to Consider

When thinking about prospective costs, take into account the distinctive features of your property. For example, if you are fortunate enough to have a private swimming pool in your home, then heating and maintenance charges should be factored in. If there is an outdoor area that needs tending to or any exterior painting or interior decorating required for a non-new built house. Remember that these expenses must not go unnoticed.

If you want to accurately assess the full costs associated with upkeep and updates, a smart tactic is to draw up a list of all monthly and annual tasks that need attending. That way you can factor in extra fees accordingly and ensure you have the accompanying funds ready.

cost to maintain a property in Spain

How much tax do you pay on a house in Spain?

All in all, you can expect to pay the following fees for keeping a property in Spain. However, please bear in mind that these figures are just estimates. They should not replace carrying out your own research for specific requirements of your property:

  • 0.15% Local tax
  • 0.05% National tax
  • 0.05% Insurance
  • 0.1% Utilities (if it is an empty property)
  • 0.3% Community charges
  • 0.1% Property charges

Is it worth buying a property in Spain?

Buying a property in Spain can be a great investment, as the country is one of the most attractive tourist destinations in Europe. From the variety of its landscapes to its lively culture and sunny climate, Spain is certainly an attractive proposition for those considering buying a property overseas.

Cost is also something to factor in when looking at property in Spain. Taxes, insurance, utilities and maintenance need to be considered before making a decision. Overall, though, maintaining a property in Spain can often be quite reasonable. In addition, due to the highly developed infrastructure and numerous local services available there, having an asset in this Mediterranean country can be a very wise choice.

A word from SublimeSpain

There are a number of expenses to consider when maintaining a property in Spain. With the country boasting beautiful beaches, mountains, and culture, it can certainly be worth owning a piece of paradise here. However, upkeep will not be cheap. You must pay taxes and take into account utility bills. Also, you should not underestimate repairs.

If you want to own a property in Spain but don’t want the headache that can come with it, then seeking out expert advice might just be your best option.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

25 Business Ideas to Start in Spain as an Expat

Are you an expat in Spain looking to start your own business and make a mark in the vibrant Spanish market? Spain offers a plethora of opportunities for aspiring entrepreneurs, and with the right ideas and strategies, you can find success in this exciting environment. In this article, we will explore 25 business ideas to start in Spain as an expat that will allow you to tap into the local market and fulfill your entrepreneurial dreams.

Spain: The ideal destination

Spain is an attractive destination for expats looking to start their own small business ventures. Since it has a vibrant tourist culture, many retail-based businesses have sprouted up around popular areas to meet the needs of vacationers and locals alike. From food-related businesses to clothing boutiques or souvenir shops, there is plenty of opportunity to break into local scenes while enjoying a fulfilling expat experience in Spain.

business ideas to start in Spain as an expat

1. Designer Clothing

If you are creative, designing clothes is an excellent business opportunity in Spain. There is a high demand for fashionable clothing, so if you have an eye for style, take advantage of it. You can open your boutique or sell online to capitalize on the Spanish market and beyond. Customers will pay good money for unique pieces, so it’s a great way to make your mark on the fashion scene.

2. Create online courses

Creating online courses is probably the greatest passive income source for an Expat in Spain. This allows you to share your expertise, knowledge, and skills with the world through digital technology and generate passive income. You can either do it through your own website using a subscription or go to Udemy and create an online course. There are thousands of subjects you could begin teaching on, and you have unlimited opportunities to go deeper than necessary to learn the right topic.

3. Tour Guide Business

The Spanish coast, like Costa del Sol, is a popular tourist destination and provides an opportunity to open a tour guide business. You can offer guided hikes, city tours, or historical excursions to make the Spanish experience even more enjoyable for visitors. You can also offer transport services and give tourists a more comfortable experience as they explore the country.

4. Build a content website

If you’re looking for an affordable business idea and the possibility to work from home, look no further than a content website in Spain! To start off, pick a niche that is not too saturated with blog posts from other websites. Then get creative on topics that will provide value and apply some SEO techniques. With enough effort, your website will capture more traffic daily, meaning it’s time to monetize. Consider leveraging Google Adsense or offering ad space directly to partnering companies who can benefit from your site’s affiliation.

5. Laundry Service Business

This is one of the simplest business ideas to start in Spain as an expat and can be very profitable. You only need a few washing machines, a dryer and some Spanish-speaking staff to get started. Once your business is running, you can offer additional services like ironing or even door-to-door service. The idea is to provide convenience for your customers, making them more likely to stay loyal.

6. Become a language teacher

Although English is still the number one language that Spaniards try to learn, nowadays, many individuals wish to learn additional languages. In that case, if you’re an expert in German, Chinese, Japanese, Araba, Hindi, French or Italian (or any other language), then there will be no shortage of eager students looking to learn from you.

7. Handyman Business

Every Spaniard needs a handyman at some point, and this is a great business to get into in Spain if you are handy with DIY projects. You can offer plumbing, painting, carpentry, and electrical work. The Spanish market is always looking for reliable, quality handymen.

8. Coffee Shop or Cafe

In Spain, coffee shops are more than just places to grab a quick cup of joe, and they are places where people gather to relax, read, and chat with friends. Opening your own coffee shop or cafe is a great way to bring Spanish culture home.

9. Souvenir shop

Without a doubt, thousands of tourists flock to Spain throughout the year. There’s something for everyone: Barcelona and Madrid, hikes or gastronomical tours. Yet one activity remains constant amongst them all – souvenir shopping. If you plan strategically and select an appropriate location that is central but also cost-effective on rental prices, then your demand as a shopkeeper will be high. Finding this balance between accessibility and economic costs can successfully promote your business venture to the Spanish population and tourists alike.

10. Food Truck

This is an excellent business opportunity for expats who are passionate about cooking. Setting up a food truck allows you to bring your traditional meals to different locations. You can easily customize the menu to reflect Spanish flavors and regional specialties.

11. Open a travel agency

Everyone loves traveling, and Spain is a great destination for both Spanish nationals and foreigners alike. If you’re passionate about helping people plan the perfect Spanish getaway, then opening a travel agency could be your ticket to success in Spain. If a business idea is going to be worthwhile, it should involve selling experiences instead of products or services. As an expat in Spain, you are uniquely positioned to take advantage of this and offer tourist packages that cater specifically to the needs and desires of visitors from around the world. You know exactly what impressed you when exploring Spain; now, share those same memorable experiences with others. You can arrange everything from flights, accommodation, and car hire to guided tours and local activities.

12. Ice Cream Shop

Because of the hot weather, ice cream is a favorite Spanish treat, so starting an ice cream shop in Spain can be very profitable. It is a relatively inexpensive business to start, and the overhead costs are low. If you choose to make your ice cream from scratch, you can customize flavors that use Spanish ingredients like olive oil, almond milk or churros crumbles. You could even offer vegan options for those with dietary restrictions. With some creativity and hard work, you can create an ice cream store that is popular with locals and tourists.

13. Spa service

Spas offer services to improve health and beauty through personal care treatments. Spa services range from manicures to pedicures and massages to facials. You can set up a spa business in Spain by providing services catering to locals and tourists. With the right marketing strategy, you can make your spa business stand out from the competition.

14. Translator

Spain is renowned for its tourism and entices travelers from all corners of the globe each year. Since visitors tend to prefer communicating in their native language, this creates an exciting opportunity for translators. You can serve as a translator during any travel-related activity or explore other fascinating options that are available to you.

Choosing the path of a freelance translator will unlock countless opportunities for you. Whether it’s website content or promotional material, your skills can be used to create multilingual versions and convey messages worldwide. As Spain has numerous languages, you can specialize in Spanish translations, Spanish-English translations or even Spanish-French and Spanish-German translations. If you’re a polyglot with experience in more than one language, then this could be the perfect business opportunity for you to explore.

15. Organic Meals Café/Resto

Eating healthy is no longer a trend – it’s an international craze, particularly in Spain. If you have the ambition and vision to make a difference in the health market, why not open a restaurant or cafeteria specializing in healthy cuisine? You’re sure to carve out your own niche while providing people with nutritious food options that they can enjoy. Organic ingredients are now widely available, however, it’s essential to make sure you understand Spanish food laws and regulations, as well as the Spaniard’s taste in food.

business ideas to start in Spain as an expat

16. Digital Marketing Agency

This is one of the most thriving businesses globally; Spain is no exception. With the Spanish economy growing, Spaniards are turning to digital marketing to help them reach their desired audiences. If you have a background in social media and digital marketing, then this could be the perfect business opportunity for you. You can offer services such as web design, search engine optimization, content creation, social media management and blogging to Spanish companies – helping them improve their online visibility and brand recognition. The Spanish market is still relatively young, so there’s a great opportunity for you to carve out your own space in the digital marketing industry.

17. Start a destination wedding service

Spain has some beautiful destinations in which couples could marry. You can help couples decide on their weddings during their vacation in Spain, or even organize the wedding itself. For this type of business, you need to be proficient in Spanish, have knowledge of local rules and regulations, and know how to contact local professionals such as florists and photographers. You also need to get all the documents required, such as officiating the event.

18. Tour guide

Do you know all the hidden gems of Spain? As an Expat, why not use your knowledge to help tourists explore the country further? You can start your own tour guide business and take people of various nationalities to the most beautiful spots in Spain. You can provide tours on foot, bike or motorbike – whatever suits your clients best. With the proper business set-up, you can help tourists experience Spain like a local and make money at the same time.

19. Start a hotel business

Each state which has destination tourism needs a hotel. If you have the necessary resources and experience, this could be your chance to become a hotelier in Spain. Adding breakfast in an offer can help you attract more patronage because most people prefer hotel meals, especially in the morning.

20. Become a personal fitness trainer

Another great business idea to start in Spain as an Expat is to become a personal fitness trainer. With more and more people becoming conscious about their health, there’s an ever-increasing demand for personal trainers. You can offer services such as gym sessions, personal training sessions, nutrition counseling and so on to help people stay fit and healthy.

21. Start a car rental service

If you’re looking for a profitable business idea to start in Spain as an Expat, then consider starting a car rental service. With more and more people traveling to Spain, there’s great potential for business in this sector. You can offer luxury cars or budget-friendly vehicles for rental to tourists. You will need a valid business license and a fleet of cars (or a partnership with an existing car rental company) to make this business a success.

22. Start a trading company

Another great business idea to start in Spain as an Expat is to set up a trading company. You can either import goods from overseas or export them to other countries, depending on the demand in Spain. This is a lucrative business opportunity and will require some initial investment. You need to be aware of the current rules and regulations for setting up a trading company in Spain and must be familiar with the local market.

23. Become a freelance social media manager

Social media is now an essential part of any business’s marketing strategy, and many businesses are now looking to outsource their social media management tasks. As an Expat, you can use your skills and knowledge to become a freelance social media manager for Spanish companies. You will need to be well-versed in using various social media platforms and have some marketing experience to make this business work.

24. Become an AI consultant

Artificial Intelligence (AI) is transforming the way businesses operate today, and there’s a huge potential for AI consultants in Spain. As an AI consultant, you will have to help businesses understand and implement AI solutions to improve their business processes. You will need a good understanding of the latest AI technology trends and familiarity with the Spanish market. This is a great online business to start and make money in Spain as an Expat.

25. Cleaning Business

The best business ideas to start in Spain as an Expat include a cleaning business. Cleaning services are always in demand, especially with the busy lifestyles many of us lead. You can offer various services such as cleaning windows, carpets, upholstery, cars, and more. You may also want to consider offering laundry services or housekeeping services as well. This is an affordable business to start, and you don’t need much capital or experience to get started.

A word from SublimeSpain

Starting a business in Spain as an expat can be an exciting and rewarding endeavor. With a diverse range of business ideas to explore, from tapping into the tourism industry to opening a restaurant, starting a language school, launching a freelancing career, or establishing an e-commerce business, there are ample opportunities to succeed. By combining your unique skills, passion, and a deep understanding of the local market, you can pave the way for a thriving business venture in Spain. So, take the plunge, unleash your entrepreneurial spirit, and embark on a remarkable journey in the land of opportunity. If you want to learn more about business regulations and legal issues, contact our team today!

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

IRPF Spain: How to calculate Personal Income Tax

Are you an expat or a self-employed individual living in Spain? Are you wondering how the Personal Income Tax (IRPF in Spain) works and what you need to do to accurately calculate it? This can be a confusing area of tax understanding for many expats moving abroad. However, in this article we will break down concisely all the information needed about IRPF so that you can confidently know exactly what your obligations are, and how to stay on top of them each fiscal year.

What is IRPF?

IRPF (Impuesto sobre la Renta de las Personas Físicas) is the personal income tax in Spain. It is a direct tax that is applied to the income earned by individuals who are residents of Spain. The IRPF tax rate in Spain is progressive. This means that the more income an individual earns, the higher percentage of tax they will pay. Tax rates for different income brackets range from 9% to 52%.

IRPF in Spain

How does IRPF work in Spain?

The income tax is designed to levy taxes on almost all the income an individual earns. This includes salaries, public pensions, investments, gambling winnings, rental income, and insurance payouts.

The tax authorities categorize this income to differentiate between earned income and savings income. Earned income is subject to general rates, while savings income is subject to specific brackets and scales.

Who pays IRPF in Spain?

Residents in Spain have to pay personal income tax (IRPF) on any income obtained in the country or worldwide. This includes employment income, rental income, capital gains, and other forms of personal income. IRPF is also due on foreign-sourced income if the individual is a Spanish tax resident. Non-residents in Spain must only pay personal income tax on any Spanish-sourced income obtained, such as rental income from a property in Spain.

Individuals earning more than € 22,000.00 a year

The personal income tax rate for individuals earning more than € 22,000.00 annually is progressive from 23% to 45%. There is also an additional surcharge of 3% on any taxable base above € 150,000.00. Individuals earning less than € 22,000.00 a year are subject to the personal income tax rate of 19%, which applies regardless of how much income is earned within the taxable base.

Non-Residence

If you are a non-resident in Spain and have income sourced in Spain, you may be subject to Spanish tax laws and required to pay Spanish income tax. The Spanish tax system requires non-residents to pay taxes on income earned in Spain. This includes employment income, rental income, capital gains, and other types of income. The tax rates for non-residents vary depending on the type of income earned and the country of residence.

You must file a tax return with the Spanish tax authorities to determine your tax liability. The tax return should include all income earned in Spain during the tax year and any deductions or credits you may be entitled to. Failing to pay this tax will result in charges and penalties from the Spanish Tax Agency should you decide to sell your property. This tax must be paid yearly, from January 1st through December 31st of every year for the past year’s taxes.

Spanish Resident

If you are a Spanish resident, you will be taxed for your worldwide income. The personal income tax in Spain is progressive. It starts at 0% for those earning up to € 12,450.00 per year, and goes up to a maximum of 45% for individuals earning more than € 22,000.00 a year. In addition to personal income tax, individuals may be subject to other taxes, such as wealth and capital gains. Wealth tax is a direct personal income tax on the net worth of individuals, while capital gains tax is imposed on any profits derived from the sale of an asset.

In order to avoid double taxation, Spain has signed double taxation agreements with more than 90 countries worldwide. If you have paid taxes in another country and your home country has signed a double taxation agreement with Spain, you may be eligible for a tax credit or refund on the Spanish income tax you paid. When there is no treaty between your homeland and Spain, you can take advantage of foreign tax deductions and any foreign compensation. Your Spanish Lawyer will be able to work out these amounts for you.

You are expected to submit your personal income tax return to the Spanish Tax Agency (Agencia Tributaria) before December 31st each year, covering all income earned from January 1st to December 31st of the previous year. Non-residents who spend more than 183 days in Spain are deemed residents for taxation purposes, regardless of whether they have secured a residence permit or not.

How much tax do you pay in Spain?

To determine the amount of IRPF tax an individual must pay, they must first calculate their taxable income. This includes income from employment, self-employment, investments, and other sources. Certain deductions and allowances are also available to reduce taxable income, such as expenses related to work, contributions to pension plans, and some family-related deductions. You must keep in mind that the exact amount due will depend on your region. To provide an estimate of what to expect, here are the income tax bands that the Spanish government state for 2023:

  • From 0 to 12,450 euros: 9.5% state rate and autonomous rate, or 19% total rate.
  • From 12,450 euros to 20,200 euros: 12% state rate and regional rate, i.e. 24% total rate.
  • From 20,200 euros to 35,200 euros: 15% state rate and regional rate, or 30% total rate.
  • From 35,200 euros to 60,000 euros: 18.5% state and regional rate, or 37% total rate.
  • From 60,000 euros to 300,000 euros: a 22.5% state and regional rate, or 45% of the total rate.
  • Over 300,000 euros: 24.5% state rate and 22.5% regional rate, or 47% total rate.

In Spain, everyone has a non-taxable personal allowance. How much this is will depend on your circumstances, and further allowances depend on your family, marital status, or several dependents.

Notice that to calculate IRPF in Spain, the Tax Agency offers you a free and simple program on its website.

Filing your Spanish tax return

All tax residents must file a Spanish annual return known as the Declaración de la Renta. During May and June, every individual must file their own income tax return.

In order to file your Spanish personal income tax return you will need to present all of your personal information. This includes your name and date of birth, personal tax identification number (NIF), a valid Spanish address, any personal income earned over the past year, and proof of residence. You must also provide information about any taxable capital gains from investments or property sales and details regarding rental income and employment income earned.

Once you have submitted your personal income tax return, the Spanish Tax Agency (Agencia Tributaria) will review it and may require additional information or documents before levying any personal income tax. The agency then has up to four months to send a notification of taxation. The notification outlines the total personal income taxes due for the year. From there, you can make arrangements to pay any personal income taxes due directly to the Spanish Tax Agency.

As a Spanish resident, you must submit a tax return and pay income tax at a progressive scale rate determined by your autonomous community.

IRPF in Spain

A word from SublimeSpain

To sum up, Spanish citizens need to understand how their income is taxed and how this tax is calculated. Knowing the IRPF Spain tax system allows expats living in Spain to benefit from understanding their obligations and allowances when filing a Spanish income tax return. Nobody wants to pay more taxes than necessary – understanding how to calculate taxes will help you optimize your finances. Furthermore, speaking with a qualified financial consultant during the preparation period of your IRPF declaration, can easily avoid confusion, incorrect representation of facts, or double taxation.

Taxation is inherently complex. In addition, the IRPF is one of the most complicated taxes to calculate, if not the most. This is the reason why it is convenient to have professional help and advice. SublimeSpain has developed a wealth of expertise in the rule of law and accounting in Spain. We offer expert services in all aspects of Spanish law, for individuals and businesses. We will guide you through the process of establishing your company in Spain and provide prompt responses to any queries you may have. Contact us today!

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.