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WORKING IN SPAIN

Ten business ideas that could work in Spain (Part II)

Spain's Startups Law is now in force, so if you're thinking about moving to Spain and starting up a business, here are ten niche ideas that have been successful abroad, but are still fairly new in Spain.

Published: 22 March 2023 17:27 CET
Ten business ideas that could work in Spain (Part II)
Ten business ideas you could set up in Spain. Photo: Edgar Castrejon / Unsplash

Back in November 2022, we published a list of nine bright business ideas that haven’t been exploited yet in Spain and now we’ve come up with 10 more to give those of you thinking of creating a startup here, lots of inspiration. 

Spain’s new Startups Law has many enticing perks and reduced tax rates for foreign digital nomads, entrepreneurs, investors and remote workers who want to start a business or work in Spain.

READ ALSO – New details: Spain’s rules and benefits for foreign startups

Networks against food waste

Food waste is a big issue in our society and lots of perfectly good food gets thrown out every day because it’s past its sell-by date. Companies like Too Good To Go have already started tackling this issue here in Spain, but there is still room for many more. The idea is to ​​create a sustainable business model that has a network of shops that can avoid throwing away perishable products by connecting them with customers who want discounted products that they have to consume quickly. 

DIY decoration stores

There are of course stores in Spain such as Leroy Merlin and Bricorama that sell everything you need for your home DIY projects, but what about a simpler type of shop that focuses just on décor instead of all the tools and technical parts that professionals use too?

In France, there are several chains of shops such as 4murs and Saint Maclou that do exactly this. They are solely dedicated to the decoration of walls and floors and sell items such as paints, tiles, wallpaper, rugs and curtains, items that the everyday person can use.

Machines to re-charge mobile phones and sell accessories

We’ve all been in that situation where we are out and our battery is really low and we’re scared of using our mobiles in case we run out of power and then we’re stuck, unable to contact anyone or even use Google Maps and find out where to go. While there are occasionally places to recharge your phones in airports or shopping malls in the larger Spanish cities, dedicated mobile charging stations could be the next great business idea.

In China, this is already a successful startup and now mobile charging vending machines can be found all over. They also allow customers to buy batteries, cables, headphones and chargers, something which some of the vending machines in Barcelona metro stations already do.

READ ALSO: Buying a franchise in Spain – the cheapest and best businesses to set up

A business that will look after the needs of your car

Busy car owners these days may not have the time to take care of their cars and carry out all the necessary cleaning and repairs. Here’s where your business could come in, offering a range of services from simple tasks like washing or something a little more complicated such as taking your car to the garage to pass its ITV (MOT) test.  An example of this is Cafler, which has been dubbed the Glovo of the automotive sector.

A one-stop shop for all car services for the busy professional could be a successful idea. Photo: Dariusz Sankowski / Pixabay

Services for the over 65s

Spain has an aging population and experts predict that by 2035, in just 14 years, around one in four (26 percent) of Spaniards will be 65 or older. This opens the door for many types of businesses directly serving this age group. Examples of this are startups such as Viejenials, a company that is committed to alternative aging through modern dance for people over 50 or Sasoibide, a company that takes older people on nature walks to help combat loneliness.

Services to help students move abroad

Many Spanish students dream of moving abroad temporarily to help improve their English language skills, but an international move and all it entails can be quite a difficult and daunting task. As a foreigner, you could be in a great position to be able to market and organise relocation services and language packages in English-speaking countries such as the UK, US or even Australia.

Companies such as YouTOOProject have already been successful at helping to solve problems that arise during students’ stays in their new countries.

Rent a butler  

Butlers may just be for the upper classes you think, or only if you lived in the past, such as during the time of Downton Abbey, but renting a butler for events or parties is becoming more and more popular. ByMayordomos is web portal that offers people the possibility of having a specialised butler at short notice, but there are lots of possibilities for more companies to do something similar.

A business to rent a butler could take off in Spain. Photo: Vic Padilla / Pixabay

Services for the self-employed and small businesses

Spain has around 3.3 million self-employed people or autónomos, which accounts for 16 percent of the population. This means that there’s plenty of scope to set up businesses aimed at this sector. There are plenty of gestores (similar to accountants) helping freelancers with their taxes, but there are lots of other services that could be offered such as consulting services, and helping people digitise their businesses by creating website, design or software.

Sustainable packaging companies

In January 2023, a new tax came into force in Spain on the use of non-reusable plastic packaging, and companies, particularly food manufacturers, as well as others, are desperately looking for ways to make their packaging more sustainable.

More and more entrepreneurs are betting on zero-waste business models and are looking for everything from boxes and labels to protective packaging to be sustainable and plastic free. Creating these types of solutions for other businesses could be a profitable idea.

At-home cooking classes

Most people sign up for a cooking class or school if they want to be taught by the professionals, but what about chefs who can go directly to your door? It could be a novel idea for parties or even as gifts for foodies.

As a foreigner, you could think up ideas that might not already be available here, such as sushi-making classes or learning how to make Mexican tortillas from scratch. It could focus on vegan cuisine, gluten-free cooking or even private classes for children or beginners. One company – Summumm, in Madrid has already made a success of similar services such as show-cooking at home too. 

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AMERICANS IN SPAIN

EXCLUSIVE: What the new Spain-US social security deal means for Americans

The Local speaks to the Spanish government and tax experts to understand what the new social security and pensions agreement between the United States and Spain means for American workers, digital nomads and pensioners in Spain.

Published: 15 May 2024 11:10 CEST
EXCLUSIVE: What the new Spain-US social security deal means for Americans

In early April, the United States and Spain announced a new social security and pension agreement.

The first update to the bilateral agreement between the two countries since 1986 was announced by US Ambassador to Spain, Julissa Reynoso, and Spain’s Minister of Inclusion, Social Security, and Migration, Elma Saiz.

The official agreement is unpublished so The Local spoke with a representative from Spain’s Ministry of Inclusion, Social Security, and Migration as well as international tax experts to understand the agreement in more detail.

Key aspects of the agreement

The Ministry told The Local Spain that the agreement is a step towards, bolstering mobility between Spain and the United States by improving pension calculations and social security protections.

The agreement has to do with the accumulation of benefits and affects working Americans living in Spain. There are two main components; the first affects which system people pay into (Spanish or American) and the second maximises the amount people can collect from social security.
 
Regarding paying into social security, the new agreement extends the “posting period” from three years to five years, with the possibility of extending it to seven years.

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This is meaningful for US employees who are working in Spain and means that they can now pay into the US social security system, rather than the Spanish social security system for longer.

Whereas the employee contributions in Spain and the United States are similar, 6.4 percent in Spain and 6.2 percent in the United States, the rate that employers pay differs greatly. In the United States the employer pays 6.2 percent into social security, whereas in Spain they pay 31 percent.
 
Why does this matter? “Previously when Americans moved to Spain, US employers were cutting the amount that they paid in salary because the cost of employment went up so much”, Louis Williams, Co-Founder and CEO of Entre Trámites, told The Local Spain.

It’s also made employers hesitant to grant digital nomads an Employer of Record (EOR) which would allow American workers to be on a Spanish contract.

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In terms of collecting benefits, the representative from Spain’s Ministry of Inclusion, Social Security, and Migration says, “In the calculation of the Spanish pension there have been technical modifications that will benefit especially those people who developed their last working life in the United States, without this harming those who have worked in Spain immediately before requesting the benefit.”

In other words, under the new agreement, after calculating a person’s benefits under each country’s system, the recipient will be awarded the most beneficial of those two calculations.

Impacts for self-employed workers and digital nomads

According to the Ministry, “The agreement allows self-employed workers to temporarily move to the other State while maintaining their legislation, a possibility that was previously restricted only to employed workers.”
 
This has big implications for people who avoid moving to Spain because of the complicated social security contributions scheme, as they’ll now be able to continue paying US social security taxes (rather than Spanish) for up to seven years.
 
“The interesting thing is if this is extended to digital nomads because it would make the digital nomad visa more attractive,” says Williams.

“Why? Because if you’re posted by an employer (who can now avoid high Spanish social security taxes) you’re eligible for Beckham’s Law.” The law, which does not extend to autonomous works, can cap tax liabilities at 24 percent.
 
Being posted could make life much simpler, according to Elliott Locke, ACSI, co-founder of abroaden, a financial wellbeing and education start-up for people living abroad headquartered in Barcelona.

“The calculus is harder for freelancers given the different legal structures and methods for freelancing between the two countries. In many ways, if an American moves here to work remotely, it could be beneficial for them to have their US-based employer hire them on a local contract through an employer-of-record,” Locke told The Local.
 
In short, the new agreement could make it more attractive for U.S. companies to post employees in Spain, making them eligible for Beckham’s law and allowing autonomous workers to pay into the U.S. social security system, making it more beneficial and easier to be a digital nomad in Spain.

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Who benefits from the new agreement?
 
The people who will feel this new agreement the most are employers, digital nomads, retirees who have paid into both systems over the years, and finally, civil servants. “Spain has incorporated as possible beneficiaries of the Agreement those people who have contributed to the civil servant’s regime (passive class regime), who were excluded in the previous Agreement,” says the Ministry.
 
When can we expect the new agreement to come into force?

Don’t hold your breath; this is Spain after all, but we can expect the agreement to come into force within the next two years.

The deal has to pass through Congress before approval, which is likely why it has not yet been published. If things move quickly, people could expect to benefit within a year.

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