Snats

I gather from threads & articles on here it's pretty tough trying to set up any business in Spain. Has anyone successfully copied their UK business into Spain, and if so, what's the dangers to try and avoid, apart from making sure you speak the language?

keithwalters

It isn't necesarily a difficult thing to do. You just need to be well informed, qualified and be an expert at what you do. And check out the market that you intend to enter. I would say that most businesses that fail, do so due to a lack of homework.

My wife's business wasn't exactly a copy of what she did in the UK as she wasn't self employed there, but she is doing the same job. She has found it really easy to get clients and business is booming.

What business do you have in the UK?

Snats

Hi Keith, thanks for answering

We've been running our business for 8 years now, so kind of have a formula for what we do. It's a lifestyle product and service really and a bit of a luxury so we think that means we'd have to look at going to the Costa Del Sol for the larger affluent communities of any nationality, but mainly brit expats. It will depend on domestic side on people having disposable incomes. Plus on cultural difference if expat people are mainly renting(?), there won't be such a market for us. And it's a very 'British' idea for your home to be your 'castle' isn't it, I suppose because our weather's so rubbish you have to make it as comfy as possible! But of course that won't apply in Spain . . .

What would be handy would be any info on any exhibitions/networking groups for expats / aimed at expats etc that are active in the area as a starting point to find out if your idea will work? I would like to try and get it all up and running before we ship ourselves out rather than the other way round and then find out it won't work.

What line of work is your wife in? Has she gone self employed in Spain?

Nathalie.

Rixxy

I would strongly recommend you ensure you have enough money to cover you while you build up the business.

When I first came to spain 12.5 years ago, I had 'retrained' as a childrens entertainer! Hubby was an electrician so he could find work anywhere, so I reckoned a 'skill' would see me in good stead anywhere in the world - I enjoy it as well and although ut of it now I would go back to it.

Anyway - in the UK, the ad would come out thursday and the phones would go mad.

Came here, took 2 weeks to get the phone line in, placed the ad in Sur and waited....and waited...and waited...! NADA!

An agency called me and gave me a few bits of work but it took a good 12-18 months to get established!

Things have changed a lot now and people do read the local papers for services etc, but even so it takes a while and I reckon lack of capital is what sends people running back to the UK. There are many official things you should do and everything costs money - you will be obliged to charge iva from the first cent you earn - no lower threshhold, unless you work illegally with cash!

So - be prepared and good luck!

Snats

Hi Rixxy!

Were your customers spanish/english or complete mix?? Once you'd got established, was there lots of word of mouth business for you? I've heard quite a few mentions of the Sur newspaper both on internet and TV, it that the main one to go for then?

We'll keep our UK side going anyway as the main company which is still expanding, my OH is going to be very busy backwards and forwards between countries while we build it up, so at least our income will be maintained. And we won't come out to Spain until it is established. From what you say a 2-3 year plan is probably being realistic then. And am I right in thinking that tax wise at least if we are opening a spanish branch of a UK company, then the company taxation laws will be UK governed? Soooo so so many questions . . .

Rixxy

OK - firstly customers were english speaking hence the ad in the sur which is the largest engish speaking paper here. Then became a mix. Afterwards word of mouth meant I had no time to go to the loo!!!!! Which of course is great becaused although there are many people out here doing similar jobs, the ones who stay busy are the good ones with good customer care!

I did look into a sucursal (branch) here in spain and at the time yes the UK was the main office and the one here would have been the admin branch - but best to check that with a gestor when you get here, look at all the options and decide which is best business tax wise, personal tax wise etc!

Good luck!

jdr

If you are earning money in Spain I am sure the Spanish taxman will have his hand out....

keithwalters

Yes, she is self employed. She teaches English. I doubt she would have been so successful on the Costa del Sol though due to the high number of British that are there which equals competition!!

Snats

oooooowwwww Rixxy, I hope it didn't get too messy!

Good to know though that once you'd got going the work was there, that's promising.

And jdr, if the tax man is asking for a cut, at least on the positive, it means you've got to be making some too! But I thought it wasn't double taxation between UK and Spain so I think it's a trip to my accountant with a very large notepad. Big learning curve about to begin

andyrich666

I am wanting to come to Spain later this year and bring my business over there selling 2nd user laptops as I do in the UK. Ive thought about this so hard and there are people on here who have give me serious food for thought (ValenciaTim for one), Certainly made me open my eye's wider and in fact held it back, But im sure I can do it. My only really big worry is getting robbed of stock.

If you cant speak Spanish well, I dont think it ould be a huge problem to employ a young lad / lady who can speak both for a while at not a lot of cost, you can then advertise to the spanish with a spanish speaker answering the phone, ive met Receptionists in Hotels on 3 Eur an hour, Every Phone call is a potential sale.

Im not sure how I would be able to implement that in my business as im out for myself but im sure it would be of some benefit, I guess paying a spanish speaker to answer a mobile and giving them commision on a sale is best, even if its a local barman

Rixxy

It can get messy!!! But worth it. Yes the taxman cometh with lowest rate at 15% but bank on 18%!! AND always add on the iva (vat) at 16% for services otherwise its a huge chunk out of your earnings! There isnt double taxation - and yes go see your accountant and try to get your head around it.

All good honest fun!

Rixxy

Hi Keithwalters - not sure about that comment re the costa del sol. Mu husband has a friend who is a tefl english teacher. She came out to try to make a living, found someone who had so much work that she couldnt cope, our friend took over and now is 100% fully booked. If you are good at what you do then the work comes mainly by word of mouth but it takes time. There is a high density of people here and with the spanish desperate for their kids to learn english fluently, its a good business to be in.

Enjoy the weather today!

Snats

It would be interesting to know how your service fees have compared with what you would have been charging people back in the UK. Is it significantly lower in line with cost of living and lower salaries in Spain, or does it just depend entirely on how niche what you're doing is?

And do the Spanish as a rule like to bargain a cost down?

Hi Andy, wow €3 an hour, that is cheap, very handy to know! I'll see if I can see some of your threads for the eye openers. . .

Rixxy

It would depend on varying factors - whether its a eplacable service, if it is a niche, what costs there are to you to provide teh service and what others around you are charging

3€ per hour certainly seems very very cheap!

Good luck guys

jdr

Paying anyone 3 €`s an hour is extortion and immoral.....