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HOW TO MOVE YOUR COMPANY TO SPAIN DUE TO BREXIT

Brexit

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Spain is the best optionAre you worried about the upcoming Brexit and looking to move your business to the EU from the UK? Now is a good time to consider moving your company to Spain as there are many business incentives and lifestyle perks of Spain’s geography and climate.

The weather is beautiful here, with sun all year – complemented with palm trees and the beach. Employees can have a great outdoor lifestyle.

Spain’s economy is now one of the fastest growing in Europe but unemployment is still high (around 17-18% at the time of writing) – this means economic labor is widely available for skilled employees. The recent economic crisis has directly weakened competition and as a result, entry barriers are now more accessible for businesses.

Tax benefits and deductions

There are also new tax deduction incentives for entrepreneurs that have recently been implemented. Former Prime Minister Joe Maria Aznar decided that to attract workers from abroad, he needed to offer them tax incentives to stimulate the Spanish economy. For example, a start-up company is only taxed 15% in its first two years as opposed to the standard corporate tax of 25%.

Lastly, Spain awards tax breaks to companies based in some industries. This includes the foreign film and theater industries – as well as companies in other specific business sectors. If you’re eligible, the Spanish authorities can apply a special tax system as long as the company is making a profit and is abiding by the law. Tax rates can be cut from as high as 56% to as low as 25%.

So, what are you waiting for? The time to move your company from the UK to Spain is now!

Summary of the key benefits.

  • Weather is beautiful year-round, perfect for the outdoor lifestyle.
  • Economic labor is widely available for skilled employees.
  • Competition is weak, entry barriers are more accessible for businesses.
  • New tax deduction incentives for entrepreneurs.
  • Advantageous tax system compared to other European countries.
  • Spain’s economy is now one of the fastest growing in Europe.
  • Barcelona and Madrid are among Europe’s best hubs for start-ups and tech.

How to form an LLC Company in Spain

Here are the main requirements to form an LLC (limited liability) company in Spain. Lecuidy can help with all of these requirements, and get you set up quickly and efficiently.

LLC Company’s structure:

  • At least one shareholder is needed.
  • You will need to obtain a NIE Number, as a foreigner to set up the company in Spain.
  • According to the Spanish administration, whoever holds the Administrator position within the company needs to be registered at the Spanish Social Security and pay approx. 300 EUR/month.
  • The timing for establishing the company would be around 2/3 weeks.

Company’s capital:

  • Founding capital needs to be considered, depending on initial needs and budgets.
  • The minimum founding capital is 3.000 EUR, which can be withdrawn once the company has been established.

Company’s activity & employees:

  • There will be a quarterly presentation of taxes (VAT declarations, etc).
  • You will have to pay 30% of gross salary for social security costs for any employee hired.
  • No need to pay the social security costs of an autĂłnomo/freelancer.
  • We can also assist you in the accounting & tax compliance services without any problem.

Steps to take to establish an LLC in Spain

  1. Order and reserve your company’s name.
  2. Obtain the directors’ NIE (foreigner’s Spanish ID)
  3. Prepare your incorporation documents and draft your Articles of Association according to the Spanish Law.
  4. Draft, according to your necessities, the Establishment of LLC Deed.
  5. If necessary, we will help you with the process of opening a Spanish bank account.
  6. We will assist you with signing your company’s Deeds before a Spanish Public Notary and the registration at the Commercial Registry.
  7. Finally, we will obtain your Tax ID and realize the registration of the D1-A (foreign investment)

Immigration to Spain after Brexit

Immigration is also an important consideration for companies moving to Spain after Brexit. Here are the requirements for EU and non-EU citizens.

  • EU Citizens

Only have to obtain the registration certificate as an EU citizen residing in Spain – and prove they have sufficient financial means to sustain themselves.

Brexit has created some uncertainty but UK citizens are still EU citizens for the foreseeable future. The details around how immigration will work for UK citizens after Brexit is completed are still being negotiated between the EU and the UK. However, free movement between the UK and the EU could still remain.

And even if not, you should almost certainly be able to remain if you form a company in Spain before Brexit is completed.

  • Non-EU Citizens

Have to apply for a visa and residency authorization, as well as the authorization for self-employment at the consulate or embassy of their current residence.

To obtain this authorization, one has to prove that their business project is viable. One must present Spanish authorities with a business plan and documentation that accredits the viability of the project, the number of people it will employ, and sufficient funds available to support the company and for yourself.

So, if you are applying for permission to start a business in Spain, then you will need to present what is essentially a business plan. This is in addition to supplying evidence of your ability to fund yourself and your business – and adequate skills and qualifications.

This plan should demonstrate how you will develop your economic activity from a practical and financial perspective, in addition to the employment that you expect your activity to create.

How can Lexidy help my company move to Spain after Brexit?

Lexidy is a boutique law firm composed of young, yet experienced Spanish lawyers who are dedicated to offering affordable legal services designed to help you achieve your specific goals.

We would be glad to provide you with more information regarding your immigration options and assist you with the application corresponding to your needs. You can contact us here, today.

Or pick up the phone and call +34-933-443-365 today for your free consultation!


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