Laws and by laws – We constantly try to keep abreast with the laws and by laws, although similar for most of the Local Authorities, there are many individual exceptions. If not fully checked this can mean at the least extra costs or, the worst, restrictions on trading.
We constantly update our information with any changes to licensing and permissions, from all the Local Authorities. These will be checked against any of our clients’ business requirements for your initial start.
Debts are tied to the Premises – Debts on a premises are inherited in Spain. For this reason we check that there are no outstanding debts on utilities such as electricity and water, also community charges from the previous business and debts registered with the local authority. We also include a clause in both the Option to Purchase Contract and the Transfer (traspaso) Contract that the seller is responsible for all payments and debts up to the date of completion and signing over of the business.
Checking suppliers and other possible sources of debts is not always so easy. We have an extensive network of contacts with many of the suppliers and providers of services to all types of businesses on the Island.
Opening / Trading licence (Licencia de Apertura) is checked prior to you parting with any money. There are many businesses trading throughout Spain that have never been registered, or are registered under a category that does not cover the type of business you wish to run. Both our Fiscal Advisor (Gestor) and ourselves will check all is in order.
Foreign National Identification Number - N.I.E. (Numero Identification Extranjero) is a foreigners identification number (similar to the National Insurance Number in England). This document is needed to enable a business to be established, buy a car, a house or participate in any other major financial transaction. To apply for this you will be required to take your current passport to a Notary to have a photocopy carried out and notarised. This then allows you to apply for your N.I.E. etc.
Company Registration Document – N.I.F. (Numero de Identificacion Fiscal) will be obtained to register your company and allow you to reclaim your VAT (I.V.A.)
If you are going to be a Sole Trader (Empresario Individual) your N.I.F number will be the same as your N.I.E (but will require an extra company formation registration process).
If your business is set up to be the equivalent of a:
Partnership (C.B. – Comunidad de Bienes) or a
Limited Company (S.L. – Sociedad Limitada) or a
P.L.C. (S.A. – Sociedad Anonima)
The N.I.F number will differ to your personal N.I.E number as it will relate directly to the company (not you as an individual).
Your N.I.F. registers you with the Spanish taxation authorities and more importantly will allow you to claim back any I.V.A pronouced “Eva” (VAT) that may be charged on the business purchase.
Many agents do not make you aware of this possibility and this can lead to an extra 16% cost to your purchase that you had not accounted for.