How easy is it to start a small business in Spain?
Looking for small business ideas in Spain? Spain was ranked 28th out of 190 countries in the 2018 World Bank Ease of Doing Business Survey, indicating that doing business here is significantly more straightforward than in most bordering countries. It takes only around 15 days to establish a business in Spain.
Is Spain a good business place?
It is one of the most incredible places in Europe to establish a business because of its developed economy, stable socio-political climate, and beneficial policies in place to assure the success of all investments made in the country. Businesses established in Spain benefit from free transit and logistics of goods and services throughout the European Union, with no extra formalities, such as exchange rate swings or processing expenses.
How can a foreigner start a business in Spain?
To start a business as a foreigner, you’ll need the following;
- Make sure you have a tax identification number for a foreigner.
- Register with Mercantile Registry (Registro Mercantil Central or RMC).
- Obtain a tax identification number for your business (CIF).
- Open a bank account for your business.
- Incorporate your company by signing the Articles of Incorporation.
- The company should be registered.
- Fill out a social security application.
Business ideas to start in Spain without money
WORK AS A LANGUAGE INSTRUCTOR
It’s unmistakably evident. What does a foreigner living in Spain have to offer the labour market that a Spaniard doesn’t? Their native tongue will be extremely rare or difficult to get by, depending on the country of origin. For many foreigners, becoming a language instructor is an excellent option.
Spanish remains the most popular language for Spaniards to study. However, many people in the country are increasingly attempting to learn a second language. As a result, if you know German, Chinese, Japanese, Araba, Hindi, French, Italian, or any other language, you will have no trouble finding pupils eager to study it.
BUSINESS OF CLEANING
Cleaning services are also in high demand these days. Our recommendation is to focus on office buildings or other business properties rather than the personal house cleaning industry. Your mop and rag activities will be more profitable due to this.
If you’ve had success in your home country in any field, you now have the opportunity to share it with others in Spain and earn a living. For example, if you’ve successfully launched one or two businesses and believe you’re now in a position to share what you’ve learned with struggling novices, being an online coach is a good fit.
Consider this: how many websites require high-quality images for their product pages? How many Instagram models rely on stunning images to boost their followings? The answer is straightforward: a great deal. If you’ve always owned a reflex camera but don’t know what to do with it, you now have a lucrative business idea: becoming a professional photographer.
WORK AS A MESSAGE ARTIST
Everyone requires a massage in today’s stressed culture. After a tough week at work, there’s nothing better than that. Before you start, you’ll need to take some classes, but they won’t take up much of your time or money.
One of the most significant advantages is that you don’t have to go to a specific massage facility or stay in a specific area. You can visit your clients at their homes or wherever they request, significantly lowering your costs.
Franchise opportunities for small business ideas in Spain
Some of the franchise opportunities for small business ideas in Spain include;
FocalPoint Business Coaching is the world’s leading coaching and business skills training organisation. They focus on performance coaching and training for company owners and executives through training and one-on-one coaching in a setting that emphasises lifelong learning, positive support, and results-oriented responsibility. The minimum cash required to join this franchise is 65,950 euros.
The Tasting Quarter (founded in 2002) is a UK-based pilot franchise that organises and hosts in-person, virtual, and hybrid drink and culinary events for the blue-chip corporate market. It requires minimum cash of 60,000 euros.
Websites to find the business of the sale in Spain
We target these reference sources (business directories) for clients who need to compete in Spain. With ordinary classifieds and some highly-selective Spanish business directories, it’s a rather diverse collection.
Expat.com is the leading website dedicated to making your ex-pat project a success.
It invites ex-pats and expats-to-be to share their experiences and provide free information and guidance. Our purpose is to assist all individuals who reside or wish to live abroad: everyone is welcome to join!
Bizpages is a trademark of an international firm whose primary purpose is to assist and promote businesses worldwide by promoting their websites, products, services, and employees. A group of IT sector professionals launched the company in 2019.
Tech business opportunities in Spain
Graphic design is a profession and academic discipline that creates visual communications to transmit particular messages to specific social groups. A graphic designer earns up to 1,880 Euros per month.
Blogging is the process of creating and managing blog material. You write content that answers the questions and provides useful information on what people are looking for, and you can generate revenue by applying for Google Adsense or joining and promoting different affiliate products. If you are a consultant, you can use this method to drive traffic to your website and sell your consulting services. A blogger earns upto 2,480 euros in a month.
Computer programming is creating and executing an executable computer program to execute a specific computation. Programming entails analysis, algorithm generation, profiling algorithm accuracy and resource usage, and algorithm implementation. A programmer earns 2,510 euros in a month.
Benefits of doing business in Spain
Trade partnerships and a strategic location
With access to the EMEA (Europe, Middle East, North Africa) markets, relationships, and economic links with Latin America, Spain has a solid strategic location and deep trade partnerships. Spain is also a member of the European Union (EU), which gives it preferential access to the world’s largest common market, which has a population of 500 million people and a per capita income of about 33,535 euros.
Foreign Direct Investment
Foreign direct investment is likewise welcomed in Spain and plays a vital role in economic relations between the United States and Spain. The Spanish government has taken a pro-free-trade and pro-investment stance, lowering business rules and creating incentives to attract international enterprises and investment. According to the UNCTAD World Investment Report, these actions have helped Spain climb to ninth place internationally in terms of foreign investment.
The infrastructure is excellent.
Spain’s infrastructure has advanced fast in recent decades, and the country currently possesses some of the best rail and subway systems in the world. With 46 state-owned ports on Spain’s coasts, the country also has a thriving maritime economy. Spain features three of Europe’s top 10 container ports and world-class port infrastructure. Spain also boasts a thriving technological sector, with over 70 technology parks and multiple fibre optic cable deployment, allowing for high-speed Internet access.
Willingness to reform
As previously stated, Spain has implemented several necessary structural reforms. Giving local governments more authority, leveraging innovation to help diversify the national economy, boosting national employment conditions, enhancing social welfare programs, and investing in national research and development capabilities are just a few examples.
Minimal procedures and the tax burden.
If you think of starting a business as a foreign entrepreneur in Spain, you have different ways of achieving that objective. There is no problem if you do not wish to incorporate a branch or subsidiary firm of your own company (located in another country) with all the difficulties, procedures, and costs.
The most OK location in terms of communication
The physical location is undoubtedly one of the most attractive advantages of establishing a business in Spain. The Iberian Peninsula is strategically positioned, making it the “entry gate” to America (particularly Latin America, where shared culture and language generate hundreds of investment opportunities), Africa, and Europe. Our country is ideal for various industries, including import-export, tourism, and communication. In fact, in 2017, Spanish products exports to third nations were roughly 277.000 million Euros… And here’s another intriguing information: foreign businesses formed in Spain generated 43% of this total.
Challenges of starting a business in Spain
How to Start a Business
According to the World Bank and the International Finance Corporation, Spain ranks 136th in the world for ease of starting a business. There are eleven procedures to follow, each with numerous phases, which can be intimidating for foreign companies. Obtaining certification of uniqueness, for example, or granting a public deed of incorporation before a public notary, are both exceptional requirements.
Dealing with Building Permits
Construction licences in Spain take 182 days to get, with many certificates and inspections required as part of the procedure. Companies may also need to obtain an operating licence before the building’s registration can be completed, and the property may be made operational with water, power, and telecommunications.
Obtaining Electrical Power
Companies can spend a lot of money to get access to power. The processes to connect to the national grid are quite expensive. Obtaining the necessary papers from the local government before contracting a private company to complete the connection work can take some time.
Getting Credit and Registering Your Property
The execution and delivery of the public deed of purchase of Spain are ranked 53rd in the world in terms of obtaining credit by the World Bank and the International Finance Corporation, which is lower than most of its European competitors.
The Commission Nacional del Mercado de Valores (CNMV) maintains market transparency and protects investors in Spain. It verifies and licences the items sold to investors through commercial networks but leaves much of the regulation to the private sector. Spain is ranked 100th in the world by the World Bank and the International Finance Corporation for investor protection, significantly behind its European peers.
Taxes to be Paid
Paying taxes is a time-consuming process that can take up to 167 hours to complete eight special payments every year. Earnings tax is modest, but labour taxes and contributions are substantially higher than the OECD average, implying that the total tax rate as a profit percentage remains high.
When trading across borders in Spain, the main problem is cost; importing is roughly 186 euros more expensive per container than the OECD average while exporting is nearly 280 euros more expensive.
Contract enforcement takes 510 days and 40 processes. The enforcement of a judgement takes a long time, and the legal fees associated with the claim might be reasonably high.
Getting Out of Debt
Insolvency takes 1.5 years to resolve and costs 11% of the estate. From this perspective, the World Bank and the IFC place Spain in a relatively good position.
Spain has a diverse culture, and there is no one-size-fits-all strategy for doing business in different parts of the country. The cultural diversity of Spain has resulted in a strong sense of individualism, as seen by strong relationships and a sense of identity among the numerous ethnic groups. On a corporate level, there is a high emphasis on interpersonal interactions.
30 profitable small business ideas in Spain
1. Establish a dentistry clinic
The health sector might be difficult to break into because you must be highly knowledgeable in your speciality to stand out. As a result, businesses like dental clinics are solely run by specialists. If you’re a dentist, it’s clear that you’ll need to open your dental practice. To practice your area in Spain, you will need a licence from the government; therefore, it is advisable to be patient and provide enough time to accomplish all legal duties before launching any health-related business. If you’re interested in this profession, you should also consider public liability insurance.
2. Start a car-rental business.
Some people are self-reliant and would want to drive themselves around regardless of where they are on the planet at any time. When they visit new places, these groups of people will always want to rent a car to explore the surroundings on their way. You may create a car rental business to accommodate visitors who prefer to drive themselves. You can rent inexpensive and costly automobiles in your rental service, as well as motorbikes and bicycles, to suit everyone’s budget.
3. A retail store
Another successful business idea you can consider is opening a rental shop in Spain. You can sell various items, but make sure that the product you choose has a strong demand. If you’re selling imported goods, things can get a little tricky because you’ll have to deal with many things at once. Reselling things created in Spain is easier since there are many suppliers. Before you begin, be cautious and conduct a simple survey to determine demand.
4. Designer of Interiors
Working for yourself as an interior designer is a terrific opportunity to take control of your time while making the world (or at least wealthy people’s homes) more lovely if you have a way with frames, fabric, and fabulousness. To find clients, you don’t need a college diploma; you only need the necessary experience and perhaps an extensive portfolio of designs and works. Working as an interior designer in Spain might be lucrative.
5. Spa services are available.
A spa is a business that offers a variety of services aimed at enhancing health, beauty, and relaxation via the use of personal care treatments. Among the services offered by spas are manicures, hair care, seaweed wraps, aromatherapy, facials, waxing, acupuncture, and face and full-body massages. People need to unwind and pamper themselves after working so hard during the week. Thus these services are almost mandatory. If you have the necessary expertise, you can open a spa in your area and attract tourists for more revenue.
6. Adult daycare is available.
Every country on the planet has a sizable elderly population. Many Spaniards choose to keep their elderly parents and relatives at home rather than putting them in nursing institutions, but they will want assistance to care for them when they must leave for extended periods. In a professionally managed group environment, an adult day care centre is often a non-residential facility that addresses adults’ health, nutritional, social, and daily living requirements.
7. Services for Carpooling
If you live in Spain, you should also consider starting a car-sharing company. It is because owning and maintaining a personal vehicle is exceedingly expensive, and many low-wage workers would instead use ride-sharing services. If you own a car and work in a specific region, you can start a ride-sharing business for your neighbourhood to make additional money.
8. Business of bookkeeping
Bookkeeping is a type of financial accounting that entails keeping and keeping track of business activities. Bookkeepers ensure that a company’s financial records are accurate and thorough. Enterprises of all sizes, large and small, must keep accurate records in case of taxes or other unforeseen circumstances, and businesses in Spain are no exception. Although several software tools for performing bookkeeping responsibilities are now available, they will never be able to take the position of a competent bookkeeper.
9. Collaborating/Sharing Office Space
New enterprises are constantly forming in Spain, and they all want office space. Most of these new entrepreneurs cannot afford the expensive rates required to obtain office space; thus, they must rely on office sharing. If you have the funds to construct an office, you can begin renting out space to persons who require offices but cannot afford a separate address. Note that this is a capital-intensive business, but if you can construct a sufficient office space to rent out, you’ve created a cash cow.
10. Keeping bees
Agriculture is one of Spain’s economic powerhouses. You might start farming bees to take advantage of this sector. Since the beginning of time, this foul-tempered insect has been servicing the requirements of humanity. The medicinal benefits of honey, a bee by-product, have been widely discussed. Honey’s popularity has risen as people become more aware of its health benefits. Bees are trained for their honey and other by-products such as beeswax, and it’s a lucrative business that is started with very little money.
11. Start your travel agency.
With so many tourist attractions in Spain, a travel agency is a real business to establish. A travel agency is a private retailer or government service that sells travel and tourism-related services to the general public on behalf of providers such as airlines, vehicle rental companies, cruise lines, hotels, trains, and travel insurance companies. It is a commonly known fact that Spain’s tourism industry is booming, and tourists from all over the world visit this beautiful country all year.
12. Open a smoothie and ice cream shop.
Everyone loves desserts, and because Spain is such a hot country due to its proximity to the desert, the temperature is nearly always ideal for ice cream. A proper business or project plan is necessary when starting an ice cream shop. Because ice cream comes in various flavours, you must choose which ones to sell. Determine the store’s location, products, and marketing strategy.
13. Rental of a home
There has been a tremendous property boom in Spain, and the real estate market has improved significantly. Property rentals are an excellent idea for young entrepreneurs or anyone looking to supplement their income because the situation is considerably different now than it was a few years ago. You can rent out houses to a variety of demographics and for a variety of reasons. The most important thing to remember here is to offer something unique to the public and ensure that the service you provide is good enough to attract new customers.
14. Begin a hotel venture
Every country with tourist destinations requires hotels. When people travel, they always need a place to stay, and one strategy to attract tourists is establishing hotels. Adding breakfast to your menu may help you attract more customers, as it is well documented that people prefer hotels that serve meals to those that do not. Because this is a capital-intensive enterprise, you must plan accordingly.
15. Start a craft company.
A craft is a skill-based activity that involves manufacturing items by hand. If you have any artistic abilities or crafty hobbies, you may have one of the essential building blocks for a successful business, especially if you live in a tourist destination where visitors respect indigenous goods. If you have an extensive collection of handcrafted items, you can open a modest shop in the city to sell them.
16. Designer of Fashion
One of the businesses you might start in Spain is as a fashion designer if you have a lot of creativity with fabrics. Many fashion designers who present their masterpieces on the runway are from Spain, and it is never too late to start. Even if you aren’t planning on putting on a runway show during Fashion Week, plenty of off-the-rack garments need to be designed – without you putting in the long hours and working with even crazier people.
17. Automobiles for Sale
The vehicle sector in Spain is quite profitable, and you may profit from it by selling autos. You can start selling car parts like batteries and promoting automobiles for manufacturers. Spain has an ample supply of lithium, an essential component in the production of batteries. Another automobile-related business you can start in Spain is making or selling hands-free gadgets for drivers so they can do other things while driving without endangering their own or others’ lives.
18. Provide services for senior hair care
The hairdressing industry in Spain is quite competitive, so if you want to carve out a place for yourself, start providing senior hair care services. You can either offer your services to seniors in retirement homes or set up a plan in which you go to their homes at a predetermined time to care for their hair. You can charge extra for your services because you can serve these elders at their homes.
19. Make a career as a language instructor.
You can work as a language instructor in Spain if you have a strong command of any language, such as English, Japanese, or Chinese. Just be cautious and make sure there are enough people who want to learn the languages you know. Learning fluent Spanish for communication is also recommended to gain more supporters because many individuals are willing to learn a second language such as English.
20. Establish a fitness centre
Getting in shape is the new cool. Everyone wants firm abs, bulging biceps, and fit as a fiddle. Fitness centres will never go out of style because of this. If you have the necessary funds, you can open a fitness centre in Spain and assist individuals in your community to become in shape. If you don’t have the funds to open a full-fledged gym, you can record your workouts and sell them on YouTube. Another approach to generating money in the fitness industry is to publish your workout videos on YouTube and earn money when people watch them.
21. Learn how to work as an insurance underwriter.
Insurance is something that both enterprises and the general public in Spain require. Insurance, of course, necessitates the presence of insurance underwriters. Underwriters serve as the primary link between an insurance company and its agents. Insurance underwriters utilise computer tools to decide whether or not to accept an applicant’s insurance application. They enter information about a client into a computer program to make coverage and premium recommendations.
22. Become a Personal Assistant or Concierge.
A concierge is a person who assists others. This company is looking for someone that is highly efficient and can get things done. People who hire you will want things when they want them, and you must be able to deliver what they want with a personal touch and a friendly grin. The most likely clients for a concierge service are top executives who are at work by 7 a.m. and stay until 9 p.m. most nights, leaving them with very little time to do all the things that must be done during those hours.
23. Make a living as a tour guide.
Spain has a diverse range of tourist attractions that draw millions of visitors annually. As a tour guide, you can assist travellers in visiting these historically significant locations. If you live in a part of the country where there are a lot of tourist attractions, becoming a tour guide is a prominent business to start. When starting this business, you don’t need to spend a lot of money. Simply create an excellent website that explains what services you do and how organisations and individuals may benefit from your assistance. You’ll need to invest in a solid website with excellent SEO to drive organic traffic.
24. Establish a Meat Processing Company
Meat processing is preparing and packaging meat for sale using the equipment. Because all processed meat products must be physically and chemically handled in some way, commercial meat processing is a capital-intensive business. Before starting a firm, you must also have suitable distribution and marketing strategies.
25. Service of laundry
Laundry is something that everyone does; thus, starting a laundry service anywhere, even in Spain, is a fantastic idea. This business takes relatively little start-up capital and skills, even if it is profitable. All you have to do now is choose a suitable spot and acquire the necessary supplies. If you spread the word about your business throughout your community, you will undoubtedly attract customers if you provide excellent service.
26. Become a copywriter for marketing
You can make a lot of money in this profession by developing a copy that makes people want to buy what your client has to offer. Because Spain has many company concerns, providing this service could earn you a lot of money in a short period if you can provide it in the correct places.
27. Begin a destination wedding business
Destination weddings, or being married in a remote area, are a growing trend among adventurous couples. As a result, Spain has a few beautiful settings where infatuated couples can tie the knot. Starting a destination wedding service might be a good idea if you live on a tropical island with pristine lakes, snow-capped mountains, and scenic views. You may provide wedding planning services or assist couples who decide to marry on the spur of the moment while on vacation with the necessary paperwork, such as finding an officiant, a location, and photographers.
28. Start a Recycling Company
Recycling is another business that you may start in Spain and benefit from. A recycling centre collects plastic, paper, and glass from garbage sites and recycles them. Following separating and sorting these materials, operators refine them into usable goods, which they sell to wholesalers and manufacturers. In Spain, you can open a small recycling plant to recycle paper, plastic, metals, and other materials. Recycling is a significant business; the best part is that you can get started with little money.
29. Set up a Curio shop
People on vacation usually look for keepsakes to bring back to their families. You can meet this demand by opening a curio shop in your neighbourhood in Spain. In this business, you must offer your consumers a diverse range of artefacts while also avoiding charging extravagant costs that will drive them away from your competition. Every piece of art has a story, and if you explain the cultural significance of each one to your customers with a welcoming grin, they will find it difficult to resist buying from you, expanding your curio business.
30. Service for raising funds
With so many new enterprises sprouting up in Spain, it’s clear that businesses will be needed to help them generate capital. A fundraising service is a company that assists individuals and organisations in generating donations for a good cause. A professional fundraiser assists charities, charitable organisations, schools, groups, and political organisations in raising their required funds. Given the large number of such enterprises in Spain that require assistance obtaining funds, a fundraising service might do well in the country. Commissions from the funds you raise will be your source of revenue.