Before we moved to Fuerteventura, we had to decide what we wanted to do for a living. We were not yet at the stage where we could sit back and enjoy the sun, sea and sangria.
When we lived in England, Paul was an Accountant and I was a Contracts Manager. We knew that these jobs would not be open to us in Fuerteventura, particularly as our grasp of the Spanish language was so basic. Apart from that, we wanted a complete life change.
I will say at this point, that anything I write here must be checked by your Gestoria (Accountant) or Solicitor, as laws change all the time. Also, we come under Spanish law but it appears there are some things that are different with Canarian law. We bought loads of books on starting a business in Spain, they were helpful as a starting point, but there is nothing like talking to your Accountant or Solicitor.
We decided what we thought we could do and sat down and made a business plan, making sure we included costings and budgets. If your new business will need premises, try to find out how much your rental will be a month. Don’t forget to research whether there is a market or a potential market for your product or service. Look at the competition; examine the market through, internet, magazines and newspapers.
You also need to decide if you are going to be –
Self employed (Empresa Individual), sole trader with the business being run in one persons name
Partnership (Sociedad Civil), partnership where several people form a business
Limited Company (Sociedad Limitada), a limited company with registered shareholders and a set minimum trading capital in the bank.
When you have discussed what kind of company is best for you with your Gestoria, she or he will then advise you on the paperwork required and will do it all for you at a fee which you will need to discuss. You need to know about IGIC, which is similar to our VAT but at varying rates, though the main one is 5%. You will also need to be registered for Social Security payments, at the present time we pay about €240 a month; your Gestoria will advise you of the charges. These payments entitle you and your spouse and children to the benefits of the local health service and also contribute to your old age pension. You must be aware that to qualify for a pension here you must have paid 15 years of contributions. It is something you need to sort out before you leave your home country, you may only be young now but one day you will need a pension, check if you need to continue paying into your home country, your Gestoria can again give you advise as well as your home pension provider.
If you are going to employ people you will need to pay Social Security on their behalf and have contracts of employment. There is a very good article on Spanish Employment Contracts in the 15 – 31 January edition of this newspaper, if you did not see it, contact the paper for a copy.
You will need an NIE number, which is an identification number, this little number follows you everywhere you go. If you are going to be a Limited Company you will need a CIF number, once again your Gestoria will assist.
If you are going to be using a van for your business, you will need a commercial licence. There are also rules on opening locales to the public.
If you are thinking of buying an existing business, get your Gestoria or Solicitor to check it out thoroughly, when you buy a business, you buy any debts that are associated with it, beware. Check the terms and the length of the lease as well.
This all sounds very exhausting, but it is not meant to frighten you, only to inform you. It is better to have the facts before you start than to go ahead and find you cannot cope and have to give up, please don’t do that.
This last piece of advice may sound a bit silly, but, communications on the island are still a little shaky at times. If your business is going to rely on telephone, mobile or internet, then make sure you are able to get these services where your business is going to be placed. There is no point in doing all this work and then finding out that you can’t reach your customers.
When we started out, we were very nervous that we would manage in our new country and our new career. It took us a good 6 months to feel that we were on the right track. So, work hard, be patient and don’t forget, KEEP LEARNING SPANISH.
MAKE SURE YOU ALWAYS GET THE ADVISE OF YOUR GESTORIA OR SOLICITOR.