When you own a business in Spain you will need to take into consideration the running costs. Some of the main costs and expenses are highlighted below.
You pay your rent every month to your landlord, usually between the 1st and the 5th of every month in advance. The majority of rental payments will be subject to 21% IVA paid every quarter. Please make sure that your accountant explains this clearly and how it is paid.
This is tax you will pay if you have an exterior terrace occupying land belonging to the Town Hall.
This is paid to the Town Hall to be able to use their “space”, for example, on a pavement. This tax is usually paid annually and the cost varies depending on the size of your terrace and location. Upon opening your business the Town Hall will send someone from the terrace department to measure the space you are occupying. They will then issue the tax for the year based on the m2 occupied.
This fee is paid to the community of owners if your property is included within a registered community. In some communities, you will have the water included. The amounts cover such things as the painting of the buildings, the maintenance, security and cleaning.
This is a fee for your rubbish, bottles, plastics etc., so you can use the bins on the street. They are emptied daily so please find the nearest containers to your property and dispose of items accordingly. There are also companies who will dispose of your cooking oil and we can arrange for them to visit you.
We advise everybody buying a business in Spain to have an accountant to help with your bookkeeping and taxes. Their fees depend on the size and type of business and the number of people you employ. A small business without employees will cost approximately €100 per month plus IVA for the bookkeeping. If you employ staff the cost will increase per payroll.
Social Security for Staff
This fee is paid every month and covers your employees’ health care including sickness, maternity, pension and unemployment insurance. This fee varies depending on your type of business, the ages and contracted hours. We recommend that your accountant provide costs for staff social security payments to include in your monthly budget.
You will need to get business insurance for contents and public liability. We work with several brokers to provide the most competitive price for public liability, fire and theft. A policy on a 60m2 property should cost in the region of between €400 and €500 per year, depending on the security measures and the contents.
This is your own Social Security obligation for being self-employed and is paid monthly. The amount you pay is, from January 1st 2023, based on your earnings. The payments are for your future Spanish pension and also include your health care under the Spanish NHS.
Other expenses you need to consider include electricity, water, gas, Wi-Fi, mobile sim cards, pest control and fire extinguisher maintenance.