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UK business opening a shop in Spain questions

UK business opening a shop in Spain questions

Old Apr 17th 2013, 10:49 pm
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Default UK business opening a shop in Spain questions

Hi everyone I'm new here.
I have a shop in the UK which is doing well and I've got a number of customers from Spain who think there is a demand for our products and services over there. Ive been interested in getting a holiday home in Spain although i'm not sure whether to make the plunge and move permanently!

I was wondering if a UK ltd company can own and run a shop in Spain?
Or would it be better to start a Spanish company?

Any advice would be gratefully received,
thank you!
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Old Apr 17th 2013, 10:57 pm
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Default Re: UK business opening a shop in Spain questions

You would have to start a Spanish company

Whether it would be successful not will depend mainly on location - and of course what you sell and for how much

Do you have an online store as well? Spanish people have really got into online shopping over the past year or two. Why not put your site in Spanish and do some advertising to the Spanish market. Then you'll see if there is any demand or not
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Old Apr 17th 2013, 11:03 pm
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Default Re: UK business opening a shop in Spain questions

Originally Posted by louise1985
Hi everyone I'm new here.
I have a shop in the UK which is doing well and I've got a number of customers from Spain who think there is a demand for our products and services over there. Ive been interested in getting a holiday home in Spain although i'm not sure whether to make the plunge and move permanently!

I was wondering if a UK ltd company can own and run a shop in Spain?
Or would it be better to start a Spanish company?

Any advice would be gratefully received,
thank you!
As Concierge for the Spanish section of BE I would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary
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Old Apr 17th 2013, 11:11 pm
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Default Re: UK business opening a shop in Spain questions

Originally Posted by cricketman
You would have to start a Spanish company

Whether it would be successful not will depend mainly on location - and of course what you sell and for how much

Do you have an online store as well? Spanish people have really got into online shopping over the past year or two. Why not put your site in Spanish and do some advertising to the Spanish market. Then you'll see if there is any demand or not
Yep, we have an online shop and very little competition have online shops in our industry!
It's just a shame because postage for our products is about £30 a time from the UK so it'd be better to have someone over there to sort the orders out, but I'm thinking of buying a .es and converting the site into spanish to target the phrases in Spain, it makes sense to test the waters that way before investing a huge risk in a shop over there (and the headaches of legislation etc).
Do you have a shop or business in Spain cricketman?
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Old Apr 17th 2013, 11:15 pm
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Default Re: UK business opening a shop in Spain questions

Originally Posted by louise1985
Hi everyone I'm new here.
I have a shop in the UK which is doing well and I've got a number of customers from Spain who think there is a demand for our products and services over there. Ive been interested in getting a holiday home in Spain although i'm not sure whether to make the plunge and move permanently!

I was wondering if a UK ltd company can own and run a shop in Spain?
Or would it be better to start a Spanish company?

Any advice would be gratefully received,
thank you!
Have you done any research? are there already places over there offering what you can offer. Remember you will be in one place, so are these people from Spain all from the same place, if not then there may well be only a small amount of interest from the area you settle on, will this be enough to cover the costs, setting up, buying or renting the property? Will you be offering your product/service online, if so is your Spanish fluent so you can write to/converse with people making enquiries. You will certainly need a fair amount of money in savings to cover the time your shop is getting known enough to make you a profit. You will have to show you have healthcare provisions set up before you can become resident, and you will have to become resident to get the necessary licenses.
If you are planning on keeping your UK shop running remember that if you are a resident of Spain you will have to declare all your income, including the UK one, in Spain and be taxed in Spain.
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Old Apr 17th 2013, 11:26 pm
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Default Re: UK business opening a shop in Spain questions

Originally Posted by louise1985
Hi everyone I'm new here.
I have a shop in the UK which is doing well and I've got a number of customers from Spain who think there is a demand for our products and services over there. Ive been interested in getting a holiday home in Spain although i'm not sure whether to make the plunge and move permanently!

I was wondering if a UK ltd company can own and run a shop in Spain?
Or would it be better to start a Spanish company?

Any advice would be gratefully received,
thank you!
Yes, a UK Ltd can run a shop in Spain, but it would have to be a subsidiary and be started in a similar manner to a new SL (eqvt to Ltd).
Any employees would have to have proper contracts and a director appointed.
Remember that the VAT/IVA are slightly different

try out
http://www.advoco.es/advice.html
and
http://www.advoco.es/most-requested-...-in-spain.html
as well as
http://www.advoco.es/hot-topics/62-e...-in-spain.html

But just because a few people think that it would be "a good idea" doesn't mean it will actually float.

when my BIL was looking at starting a haulage business in the UK he had a few people saying to him "how good an idea", and "Yes I will use you all the time". He started the business which operated with varying success for 5-6 years before folding insolvent. Two of those who told him it was a good idea never ever gave him any work...

But dependent on the area you can get a shop from about €350/m + IVA and other taxes. If you do go ahead ensure it is a shop that is clean and tidy, already fitted out and in a "walk-in" condition where you don't have to spend much on fittings. This will keep your startup costs to a minimum.

let us know what you do
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Old Apr 17th 2013, 11:30 pm
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Default Re: UK business opening a shop in Spain questions

Originally Posted by louise1985
Yep, we have an online shop and very little competition have online shops in our industry!
It's just a shame because postage for our products is about £30 a time from the UK so it'd be better to have someone over there to sort the orders out, but I'm thinking of buying a .es and converting the site into spanish to target the phrases in Spain, it makes sense to test the waters that way before investing a huge risk in a shop over there (and the headaches of legislation etc).
Do you have a shop or business in Spain cricketman?
No I don't, but I have some experience in it, I'll send you a PM
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Old Apr 17th 2013, 11:41 pm
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Default Re: UK business opening a shop in Spain questions

But dependent on the area you can get a shop from about €350/m + IVA and other taxes. If you do go ahead ensure it is a shop that is clean and tidy, already fitted out and in a "walk-in" condition where you don't have to spend much on fittings. This will keep your startup costs to a minimum.
Good advice. But also consider location - not just numbers of passers-by/footfall (which is obviously important), but accessiibilty for visitors by car, and supplier vans.
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Old Apr 17th 2013, 11:48 pm
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Default Re: UK business opening a shop in Spain questions

Here in the UK we're a destination shop that people will travel to, we've had customers drive a 3 hour journey to us, so I'd assume it would be similar over there. I'd be looking at a small shop with as low overheads as can be managed, and focusing with selling online,
I'm going to do a lot of market research, I'm on level 1 of rosetta stone lol! I've never been particularly good with languages but i'm enjoying learning this way, so i'm not nearly good enough to deal with enquiries yet!
Even market research and finding what people are searching for is a bit of a headache with the language limitations so I've got to persevere!
I'll have a sit down and read all the links
Thanks everyone!
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Old Apr 18th 2013, 12:03 am
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Default Re: UK business opening a shop in Spain questions

Originally Posted by louise1985
I have a shop in the UK which is doing well and I've got a number of customers from Spain who think there is a demand for our products and services over there.
Hi Louise,
The thing to remember is that Spain's a big place and very, very diverse. So you shouldn't really think of "Spain" as a single entity. It would be better to look in detail at the various cities: Madrid, Barcelona, holiday resorts and the like. Then see which of those would be most likely to buy your goods.

Maybe consider franchising out the spanish side initially. The cost would be lower and the people selling to the public would already know the in's and out's of the spanish retail trade.
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Old Apr 18th 2013, 12:13 am
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Default Re: UK business opening a shop in Spain questions

3 hours drive to visit your shop????? What on earth are you selling?
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Old Apr 18th 2013, 12:40 am
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Default Re: UK business opening a shop in Spain questions

Originally Posted by Chiclanagir
3 hours drive to visit your shop????? What on earth are you selling?
Wild guess: archery equipment or some similarly rare sports equipment? My son travels 3 or more hours across 3 countries to an archery shop. Although there is a (very) small one within 10 minutes.
Maybe its worth to provide also a place for using your goods? Set up a club?
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Old Apr 18th 2013, 2:57 am
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Default Re: UK business opening a shop in Spain questions

Originally Posted by steviedeluxe
Good advice. But also consider location - not just numbers of passers-by/footfall (which is obviously important), but accessiibilty for visitors by car, and supplier vans.
good one Stevie, I was looking at a franchise that required lots of access but couldn't get anywhere with good access for customers with vehicles in the city letalone deliveries and despatches so I dropped as it was high volume access that would be needed.

perhaps I will pick it up again one day if the right place comes up, but it really would have to meet strict access criteria.

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