Setting up a business

A lot of people dream of retiring in the sun, whilst others dream of running a bar or restaurant in a coastal area. Either way, you need to do your homework to make sure that you have enough funds to live on, if it all goes wrong, or if you get strangled and delayed in the red tape surrounding setting up a business. Please bear this in mind.

What if your intended opening of your bar takes 6 months longer than you anticipated? Could you afford to live whilst you are waiting for the necessary permissions?

If you intend working outdoors – have you taken into account the climate? As I write, the temperature is almost 40 degrees. That’s why the Spanish have a siesta time, whilst the expats fall like flies with exhaustion or heatstroke, trying to mix cement, build walls, or dig trenches……

There is a lot of work to be had - especially in inland areas. Plumbers, builders, decorators, house sitting - you name it, an entrepreneurial person can do very nicely, getting ahead of the manyana attitude that exists.

Many people turn to starting a business in order to make a living, but this is strewn with pitfalls. A lot of expats simply do not do enough homework before moving and setting up a business in Spain.

You will find Spain a frustrating country with regard to the bureaucracy associated with starting a business. Try not to let it put you off. For foreigners, the red tape is almost impenetrable (especially if you don't speak the language) so you need to employ a good interpreter to help you wade through the forms, and speak to people in authority. Patience and tolerance are required – lose your temper once, and your application goes back to the bottom of the pile! . Happily things are improving dramatically day by day, and regulations and procedures have become less complicated since Spain became a full member of the European Union in 1993.

There is something else to look out for too – other British people! This growing economy is very lucrative for the crooks and the sharks. You’ve read the stories of unscrupulous timeshare people swindling tourists, and you’ve probably heard horror stories about builders, etc. Whenever you found a pot of honey, you are bound to find a lot of wasps that are attracted to it too…. We have personally fallen foul of some of the more disreputable expats, who are struggling to make a living, so they resort to trying to make money out of the new expats whose pockets are bulging with Euros, and who will do anything to get their dream house bought, or their business set up. Be vary wary. Just as you would do in Britain, maintain a healthy suspicion regarding the motives of anyone you do business with. It a sad fact of life that foreigners who prey on their fellow countrymen are all too common in Spain. In our view, you would be better off dealing with a long established Spanish company with roots in the community and a good local reputation to protect. Most Spanish business people (with the usual exceptions) are decent, ethical people with a good name in their community. It is such a shame that the British give us all a bad name!

Despite all the bureaucracy, Spain has always been a country of small companies and sole traders. The country has over 1.5m family run businesses of all sizes employing around 85% of the working population.

Among the best sources of help and information are your local chamber of commerce and your local town hall.

Summary

If you are intent on starting (or taking over) a business in Spain, and are prepared to work hard, there is no earthly reason why you cannot make a go of it. But you have to get through a little pain and frustration in order to achieve your goals, and expect the manyana attitude to be prevalent. In fact, we could go so far as to suggest that you should double the amount of time you thing it will take to get set up officially, and then you will not be too disappointed.

Good luck!

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