Can anyone please help with advice and info: in England I’m self employed and sell on markets and the internet. I want to stay in Spain and continue my trade but in a shop rather than on markets if I can understand all the formalities…...I know more or less what to do but not sure about the order to do them in. I have a rental for a house with my name on, so a spanish address. Found a shop, agreed the price, willing to sign but completely confused about order of formalities as I have to go back to england to sort things out there before hopefully opening in May - what should I do and in what order please anyone who has done all this before!!
Also I have heard there is some kind of autonomo for “collectives” which I think may be like a union whereby you pay less per month and tax only once a year (as at home) but have to be a sole trader (no employees). I’m in the Malaga area if this makes any difference.

Did you see our article on the types of business entities in Spain?

Actually, I hadn’t seen this despite looking quite hard (I thought), this does help a bit regarding status (although I already figured I would be a sole trader) but I still have questions as to the impact of taking these steps before actually starting trading, and I still need advice on the implications for market traders should I continue in this direction rather than a shop. In England the National Market Traders Federation exists to support and represent, but I can’t find anything similar here.
Anyone else? are there no English market traders around??

There are not any market traders professional federations in Spain similar to the UK.

A lease on a shop should be a straight forward process. BUT!

1. Are you getting a straight rental contract? or is it a proper Lease?
2. Take care that you have a right to continue renting after the intitial term.
3. You should be looking at a 5 + 5 year rolling agreement.
4.If your business is a success, will the lease allow you to sell your business.
5. To cover yourself get a clause written in that allows you to give a months notice at the end of the first 12 months, but allows you to continue to the full term if you wish.

The number 1 rule is sign nothing until you have had the contract looked at by a lawyer.
The number 2 rule, never trust a landlord or agent.
The number 3 rule use a lawyer who speak good English.

Recently had a long conversation with some English people who signed a “lease” on a shop, paid 3 months rent as an ingoing plus 2 months rent up front. After 5 months the landlord wrote to them to remind them the lease was ending - They had signed a 6 month contract! For which they paid 9 months rent with no right to stay once the shop was up and running!

You will need your NIE number sorted before you can sign a lease. Go find a local English speaking Gestoria, they will sort this for you and get you set up as a sole trader, advise you of the best system for your particular business to pay your taxes and deal with the tax office for you. If it is a small business you may be best to go on a ” modular” tax payment and pay a set tax every few months. Remember the monthly social security payments are quite expensive.

You will also need a licence which can vary from 700 to over 2000+ euro depending on your type of trade.  You will also likely require an architects plan of the premises to submit with your licence application, these can cost up to 1,000 euro.

You may find this of interest http://www.spainbusinessguide.com/guide-to-buying-a-business-in-spain.html
(it is about opening a bar in Spain but does have some useful tips and do?s and dont?s that apply to most businesses)

Thankyou so much for such a lucid reply, a few more loose ends tied neatly; I think maybe I just need to trust a good gestor and not worry so much about trying to understand it all from an english perspective! The proposed contract is for 12 months with the option to renew and with a notice period (not a lease) and I am aware of the need for an architect’s certificate but no new licence needed here according to the town hall. A fire extinguisher seems to be all!
I would still like to understand what happens (if anything) in terms of tax and social security payments and when, related to when I obtain forms or declare autonomo or whatever if anyone has anything further to add?

We also have a great article on starting a bar in Spain that will have some useful info. There’s also a nice on on business taxes here. Some of that stuff will be answered by the government or by gestores and accountants.

Good luck with everything BWA…
Just a note of caution ...
My partner went to a ‘reputable lawyer’ to do all the legal side of things, but on opening their treatment centre they were closed down within a few months by the town hall as the type of business (even though fully declared to said lawyer) was not on the licence for the office they rented. 

There is much red tape I know, and many pitfalls. I truly hope you over come these and wish you success in your new venture.

Thanks for your kindness, hope you got things sorted out; I’ve had some advice on the licence which is sound and it’s just being brave enough to take the plunge now I guess, such a mixture of opinions from everyone - plenty saying don’t do it and plenty more saying go for it, why not? But anyone self employed knows the risks, here or in England, no guarantee of income, but then whose job is safe these days either? I guess all any of us can do is try - and especially try not to upset the authorities by doing it wrong!!