Read news from:
Austria
SHARE
COPY LINK
For members

VISAS

What you need to know about Spain’s visa for entrepreneurs

Third-country nationals looking to move to Spain to set up a business can do so through the Spanish government’s Entrepreneurs Law. Here’s everything you need to know about the process, the perks and who is eligible to apply.

Published: 7 February 2022 17:24 CET
Updated: 12 February 2022 16:24 CET
Business visa for Spain
Entrepreneur visa for Spain. Photo: StartupStockPhotos / Pixabay

Those looking to live in Spain via a residency visa for entrepreneurs and business activities, also known as the visado de emprendedor in Spanish, can apply for a one year visa in order to start a business here, however there are several requirements and a lot of hoops to jump through before it’s granted.

Entrepreneurial activity is considered as anything of innovative character with special economic interest for Spain. This means that it must create employment opportunities in the future, even if it doesn’t straight away. It could also mean that it creates good investment opportunities or that it involves a high level of technology to enhance the socio-economic development of Spain.

However, there are no minimum capital requirements like there are in some other countries or a minimum number of jobs that your business must create. Instead, each application will be assessed on a case-by-case basis.  

Even though there are lots of requirements and documents to submit with your application, the good news is that you will get an answer within 10 working days as to whether it’s been granted or not.  

In order to apply you must:

  • Be over 18 years old
  • Be from a non-EU country
  • Not be living in Spain illegally
  • Not have a criminal record in Spain or any country where you have lived in the past five years
  • Must not have been barred from Spain or any other countries with which it has an agreement.
  • Have the necessary economic resources for yourself and for the members of your family during the period of residency in Spain (€2,151.36 each month for the applicant and €537.84 for each family member who you are providing for).

READ ALSO – EXPLAINED: How Britons can live and work in Spain after Brexit

Visa applications must be made at the Spanish Consulate in the country of origin or residence.

Although these are the pre-requisites, there are several other factors that decide whether your visa will be granted or not.

Firstly, you will have to demonstrate that you have the right qualifications and professional experience to carry out your business. Be aware that if you need to have your qualifications verified by the Spanish Ministry of Education if you work in a regulated field, it will require a further painstaking process, which currently takes two years on average.

Secondly, you will have to present a business plan and get it approved before you can apply for your visa. It will be up to the Directorate-General for International Trade and Investments (DGCOMINVER) to assess the viability of your plan.

What should I include in my business plan?

According to the Spanish government, your business plan should include the following things:

  • A description of the project, such as business activity to be performed, start date, location, planned legal form of the company, potential economic impact of the investment, description of the estimated number of jobs that may be created and their duties and qualification, planned promotion activities and sales strategy.
  • A description of the product or service you will be offering, including the innovative aspects.
  • A market analysis – an assessment of the market and expected evolution, description of the possible competitors, assessment of potential consumers and an analysis of supply and demand.
  • Financing – including the investment required, sources of financing and a financial plan.

You must also show what added value your business will have to the Spanish economy.

You may want to include things such as patents and recommendation letters to ensure it will be accepted.

You must submit it to the Spanish Economic and Commercial Office in the same area where you request the visa.

Can I bring my family members with me on this visa?

Yes, one of the good things about this visa is that you can apply for residency for you and for your family simultaneously.

You are able to bring your spouse or unmarried partner, children under 18 years old and parents who are dependent on you.

You must make sure you have the sufficient funds mentioned above to support them. 

How to apply

In order to apply you will need to submit:

  • The relevant completed application form and fee
  • Background checks
  • Proof of sufficient funds
  • Your business plan and the favourable report on it from the Spanish Economic and Commercial Office
  • Proof of private health insurance with no co-payments

All this must be sent to the Spanish consulate in your country of origin or residence.

Can I renew the visa?

Yes, you are able to renew it. In order to renew it, you will need to continue to meet all the requirements you met for the initial application. You will also have to prove that your business still enhances the Spanish economy.

This renewal will enable you to continue living in Spain for a further two years.

What about Spain’s new law for start-ups?

Spain’s new Startups Law, announced in 2021, hopes to attract foreign companies by making it easier for startups to choose Spain by giving them tax reductions. It will also entice foreign remote workers and digital nomads to Spain by creating a new special visa for them, however this is different from the current entrepreneur visa. 

The Spanish government hasn’t released all the details concerning the start-up law yet or the new remote workers visa and whether this will be connected in any way to the entrepreneurship visa, but we will be sure to keep you updated when they do. 

READ ALSO – Tax cuts and visas: Spain’s new law for startups, investors and digital nomads

What if I’m already in Spain on a different visa?

If you’re already legally living in Spain and want to change over to a residence permit in order to set up a business (trabajo por cuenta propia) you can also do so.

According to the Spanish government, you will need to send your application to Large Business and Strategic Groups Unit (Unidad de Grandes Empresas y Colectivos Estratégicos (UGE-CE).

You will need the form or modelo EX-07.

The requisites are similar in that you need to prove that you have the realvant qualifications and experience, proof that you have sufficient economic investment.

You will also need to create and present a business plan and will need to submit it to one of these following organisations for approval. 

·       Federación Nacional de Asociaciones de Empresarios y Trabajadores Autónomos (ATA)

·       Unión de Profesionales y Trabajadores Autónomos (UPTA)

·       Confederación Intersectorial de Autónomos del Estado Español (CIAE)

·       Organización de Profesionales y Autónomos (OPA)

·       Unión de Asociaciones de Trabajadores Autónomos y Emprendedores (UATAE)

Your residence permit will also be initially for two years, instead of one. The only downside is that it will take 30 working days to process, rather than 10.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PENSIONS

What Brits should know about SIPP and QROPS pensions if moving to Spain

This Q&A offers some key information on SIPP and QROPS pension plans for British pensioners thinking of retiring in Spain, to help them decide which option is better for them.

Published: 9 May 2024 09:39 CEST
What Brits should know about SIPP and QROPS pensions if moving to Spain

Q: What are SIPPs?

A: SIPP stands for Self-Invested Personal Pension and is a UK-based pension plan. If you open an international SIPP then you can draw from this while you’re living in Spain.

Q: What is QROPS?

A: QROPS stands for Qualifying Recognised Overseas Pension Scheme. It allows you to transfer your UK pension out of the country. They are outside the UK tax regime, but must be inside the European Economic Area (EEA) if you want to avoid charges from HMRC. They also need to have similar rules and regulations to a UK-registered pension plan. Many QROPs from those wishing to retire to somewhere in Europe are transferred to Malta. As there is a dual tax treaty between Spain and Malta you will not be subject to Maltese tax when you draw your pension from there.

Q: What do I need to consider when opening a SIPP?

A: If you choose to open a SIPP, as it is self-invested, you will be responsible for managing it and making all the investment decisions. It is therefore best for those who already have some knowledge of investing or those who have the time and who are willing to put the work in to learn. It does, however, mean that you also have greater control and flexibility over your finances. You can choose to have the SIPP managed by a professional advisor, but of course this is an extra expense. Your SIPP could also be potentially subject to UK tax laws. 

Q: What do I need to consider when opening QROPs?

A: This is best for those wishing to cut all ties with the UK and permanently retire to Spain for the rest of their lives. You could lose UK domicile if you choose to do this and don’t have any other assets there, but it could mean you could also avoid UK inheritance tax. It’s also ideal if you wish your family also live outside of the UK

Q: I intend to return to live in the UK at some point in the future, which is best for me?

A: As SIPPs are UK-based, if you plan on returning there to live at some point during your retirement, that option is best. If you have QROPS, you could be subject to a large tax payment if you want to transfer it back to the UK.

READ ALSO: Six factors British people need to consider before retiring to Spain

Q: Which option will be cheaper for me?

A: SIPPs are generally cheaper than QROPs as you are managing it and investing yourself. If you choose someone else to manage it for you, however, this may not be the case.

Q: Will my SIPP be subject to tax in Spain?

A: Yes, if you are resident in Spain then you must follow Spanish tax regulations meaning that any withdrawals from SIPPs will be subject to income tax here. Pensions in Spain are subject to progressive tax rates ranging from 19 to 47 percent.  While SIPPs are also subject to UK tax rules, due to the double tax treaty between Spain and UK, you will not be taxed twice.

Q: Will my QROPS my subject to tax in Spain?

A: Yes, again if you’re resident in Spain you will be taxed on pension income. You must report income from a QROPS on your annual tax return. If you’re already a Spanish tax resident when you move your pension, it’s important to be aware that you’ll pay Spanish income tax on the whole value of the fund, therefore it’s much better to move it beforehand and then make your permanent move to Spain. 

Q: I want my pension to be paid in Euros to avoid exchange fees, which option will be best for me?

A: If you want to be paid in Euros, then QROPS will be the best as you will have completely transferred it out of the UK and into the EEA. This means that when you draw your pension, it will be paid out to you directly in Euros.

SHOW COMMENTS