How to find successful business opportunities in Spain for foreigners?

I was born in Kazakhstan. My career in law and economics, along with my MBA in corporate governance, has shaped my professional path. Before moving to Spain in 2005, I worked as a lawyer for a large oil company. The beaches of Costa Dorada have truly become my home. When my friends and former colleagues learned about my move and that I had studied Spanish, they began to reach out to me for consultations on real estate, transactions, and business registration. This is how I slowly started to immerse myself in this field. In 2008, I founded my first company, and by 2012, we had already completed significant development projects, including the construction and modernization of hotels, restaurants, residential complexes, and multifunctional buildings.

In this article, I want to share my 15 years of experience living in Spain. I hope the information will be useful to you. If you have any questions, feel free to reach out to me - I will be happy to respond.

Starting a business in Spain: important aspects

Foreigners wishing to do business or make investments in Spain should remember that this country is open for international investments. There are no restrictions for non-residents to buyreal estate, organize a business or carry out various transactions.

In addition, there are certain advantages. If a foreigner invests in Spanish real estate or business, he or she can obtain a simplified residence visa, which also implies the right to work for the whole family. This right was established by the law “Support for Entrepreneurs and their Internationalization” in 2013.

Which destination to choose for your business depends on your preferences. Spain is a country with a rich history and diverse culture. In coastal areas, tourism remains the main source of income, but it is not the only area for business.

Promising areas for entrepreneurship in Spain

• Tourism.More than 80 million tourists visit Spain every year and spend more than 90 billion euros here. Although the 2020s have been challenging for the industry, once the borders open, the flow of tourists is sure to recover.
• Construction and related industries.There is a shortage of quality housing in some popular regions. Demand for real estate is supported by both locals and foreigners. Thousands of Europeans, especially retirees from northern countries, spend most of the year in Spain.
• Agricultural sector.Spain is one of the main food suppliers for Europe, thanks to its favorable climate and centuries-old tradition in agriculture.

These areas are just a small part of the opportunities available to active people. If you are thinking of starting a business in Spain or need more information, I am here to help! All the charms of living and working here lie in the opportunities this unique country offers. Spain is a place where you can combine business with pleasure: while enjoying the cultural heritage and history, you can develop your business and open new horizons for yourself and your family.

Investment Opportunities in Spanish Agriculture

In the world of agriculture, where wines, oils, fruits, vegetables and cheeses are prominent, there is an opportunity to own an established farm. Such businesses have established technology, a proven customer base and a recognizable name in the marketplace. Logistics and infrastructure play a key role in the process.

Spain is renowned for its modern infrastructure projects such as roads, bridges and airports, with even the Spanish company that runs one of the largest airports in the world, Heathrow in London, having an impact. This creates many opportunities for investors looking to invest in this area.

Modern Trends and Energy Saving Technologies

According to current trends, modern society is increasingly emphasizing the need to introduce energy-saving and eco-conscious products. Therefore, investments in such activities are becoming more and more attractive. My work experience shows that companies from different fields can find promising options for business development in Spain.

Some of our clients continue to develop their practices carried over from their home countries, while others are looking for new directions and forms to implement their initiatives.

Example of a Successful Project

An example of a successful investment project realized by our company Tidex is the conversion of a frontline restaurant in Torredembarra, near Barcelona, into a new leasehold property. This demonstrates how good asset management can lead to successful outcomes.

Buying Real Estate in Spain

It is necessary to pay attention to the issue of purchasing real estate in Spain, which many foreigners perceive as a profitable way to invest capital. However, such an opinion does not always correspond to reality.

• Revenue Objective.If your goal is to generate income, simply buying an apartment or villa may not meet expectations.
• Investment attractiveness. Certainly, you will be able to enjoy some kind of country house or preserve the asset for future generations, but it is unlikely that you can count on a stable rental income.

Real Estate Market Analysis

Let us consider the situation in more detail. A quality apartment in Barcelona can cost at least 800 thousand euros, but the rental rates are quite moderate. A long-term rental option can provide you with an income of several thousand euros per month, but after deducting real estate taxes, building maintenance fees and income tax, the final profit will be extremely low - about 1% per annum.

This creates serious doubts about the profitability of such an investment.

Daily Rental and Property Management

Of course, you could consider daily rentals, but keep in mind that this requires a license and will also require you to manage the apartment. For example, our company charges 30% of your income for providing such services.

It is not an easy task: you have to welcome guests, make sure that the correct paperwork and payments are made, organize cleaning and carry out minor repairs. Managing just one apartment can lead to significant costs and high risks associated with ensuring a steady flow of tenants.

Such investments can be justified only if you have a large real estate portfolio. It is the volume that will allow you to optimize costs and achieve higher profitability - about 5-6% per annum.

Investing in real estate in Spain

If you are looking to invest in real estate in Spain to generate income, it is worth considering apartment buildings, apartment hotels, as well as investments in development and redevelopment of properties. In my experience, these types of investments can provide a much higher return than simply buying a residential property.

Where is the best place to invest in Spain?

When it comes to where to invest effectively in Spain, it is important to note that the country is one of the key countries in Europe, and each autonomous community has its own characteristics and interesting opportunities for investors. I will share information aboutCatalonia- the region in which I live and which I know well. However, I am sure that these tips can be useful in other areas of the country as well.

Limited choice of location

It is worth recognizing that many foreign investors often focus on only one or two cities located in a particular region. ВCataloniathe most popular city for investment is, by far,Barcelona. Most entrepreneurs start their activity in this very city. I cannot disagree that Barcelona has its own particular appeal, but it is not always suitable for all business ideas. In some sectors there is oversaturation and entry into the market involves huge costs and high competition.

Tips for Investors

My advice to foreign investors: don't limit yourself to well-known locations. It is necessary to analyze the region in depth, preferably with the involvement of local experts. This will allow you to identify more promising options for investing your money.

Recommendation: Cambrils

In our area, I would recommend paying attention toCambrilswhich is located a hundred kilometers from Barcelona. It is famous for its rich gastronomic culture and is often referred to as the capital of BarcelonaCosta Dorada. There are many prestigious Michelin-starred restaurants, extensive beaches, picturesque mountain landscapes, flamingo parks and a luxury yacht club with fishing port. Definitely, this place is spectacular.

Tourism in Cambrils

Cambrils is known to both locals and tourists, especially from France. Every year during the season, this resort receives about five million tourists. It is important to note that quality luxury accommodation is clearly in short supply here.

Successful investment project

A few years ago, we successfully completed an investment project and acquired an old two-story house in the center of Cambrils, which previously housed a restaurantGatelMichelin-starred. The previous owners, having retired, decided to realize their business. We built a modern five-storey building on this site:

• A restaurant has once again opened on the ground floors.
• On the upper floors, there are four apartments available for short-term rental.

These apartments have become the most expensive and sought-after on the coast, and by November, they were already booked for the entire year.

Project results

This project has become a vivid example of successful investments made by our company.TidexWe completed the redevelopment of a building in the center of Cambrils, leased the restaurant space for long-term rental, and the apartments on the upper floors are now available for short-term rental.

Currently, the income from investments amounts to8% per year.

Construction of residential complexes

Currently, we are engaged in the construction of premium residential complexes in Cambrils. For example, a new project.Rubikincludes modern villas with an area of 155 square meters. These properties will meet the highest standards and will undoubtedly attract the attention of both locals and foreign investors.

Real estate on the coast of Spain

Real estate on the coast of Spain attracts the attention of many people looking to buy cozy summer residences. One of the appealing options is the magnificent villas in the Rubik residential complex, located in Cambrils. These luxurious homes are offered at a price of €630,000 and are just a minute's walk from the beach at the famous Costa Dorada resort.

The total area of such villas reaches 500 m², making them an ideal choice for those looking for comfortable and high-quality housing.

Features of the villa in Kunin

The new house, located in the picturesque area of Kunin, occupies a plot of 800 m², featuring flat terrain. The interior space is impressive in its size:

• 4 bedrooms
• 2 bathrooms
• Living room with an area of 48 m²
• Dining room of 35 m²
• Kitchen size 25 m²
• Terrace with an area of 20 m²
• Porch with an area of 25 m²

The garage in this house occupies 30 square meters. Additionally, the home is equipped with modern technologies, such as a central air conditioning system and underfloor heating.

Apartment in the Costa del Sol area

If you are interested in buying an apartment, you should consider the offer in the Costa del Sol area for €460,000. This wonderful residence has an area of 141 m² and includes:

• 3 bedrooms
• 2 bathrooms

The apartment is located in the Las Nayades urbanization, just a few steps from the beach. The complex offers:

• Round-the-clock security
• Indoor heated pool
• Jacuzzi
• Gym
• Sauna
• Open pool

A spacious living room, a functional kitchen, and a covered terrace create an atmosphere of coziness and comfort.

Apartment on the Costa Blanca

There is also a fantastic offer for those looking for an apartment on the Costa Blanca, priced at €165,000. This 68 m² property is located on the first floor and includes:

• Cozy salon
• American cuisine
• 2 bedrooms
• 2 bathrooms
• Terrace
• Private garden

The complex also features a communal pool and a jacuzzi. The apartment's convenient location provides easy access to supermarkets and other infrastructure facilities.

Housing in La Sinhuélica

In the La Sinuyelika area on the Costa Blanca, you can find other housing priced at €214,000, located in a modern complex in a quiet and developing area, surrounded by the residential neighborhoods of Punta Marina and Los Altos. Locals and visitors can take advantage of:

• Sports complexes
• Popular shopping centers such as Zenia Boulevard and Abaneras

The pleasant transport connection with the AP-7 motorway makes this area particularly attractive for living.

Townhouse in Villamartin

And finally, we can consider a townhouse in Villamartin, located in Orihuela Costa, which is priced at €207,000. The total area is 137 m² and includes:

• 3 bedrooms
• 3 bathrooms
• A terrace with a solarium
• Private garden with an area of 103 m²

The complex features a communal pool and underground parking. Villamartin is becoming increasingly popular among foreign buyers due to its good infrastructure and convenient location just 5 km from the sea.

This area offers numerous opportunities for relaxation and active recreation, making it ideal for living and vacationing on the sunny coast of Spain.

Apartments in Lloret de Mar

At sale are attractive apartments in Lloret de Mar, Spain, priced at €270,000. This comfortable corner property covers an area of 74 m² and includes two bedrooms, one of which has an en-suite bathroom.

The spacious living room connects to a 10 m² balcony that offers a charming view of the pool and the green surroundings, facing southwest.

La Nucía: Comfort and Nature

La Nucia is an amazing corner known for its tranquil climate and stunning natural landscapes. It perfectly combines access to beaches with the conveniences of urban infrastructure. This region is located in a picturesque part of the Costa Blanca, famous for its resorts and breathtaking scenery.

Commercial Proposals in Barcelona

In Barcelona, you can come across unique commercial offers. For example, there is an opportunity to purchase a space of 493 square meters for 422,760 euros. This area is perfect for various commercial ideas and services, located in a densely populated area with extensive infrastructure.

All the necessary facilities are available in the area:

• stores
• supermarkets
• pharmacies
• banks
• medical institutions

There is also a medical center and several educational institutions here, including schools.

Villa in Finestrat

An interesting offer is a villa in Finestrat with a total area of 269 square meters, which can be purchased for 980,000 euros. This house hasfive bedroomsandfour bathroomsWhen purchasing this property, there is an opportunity to obtain a residence permit. The project also includes a virtual tour and the possibility of a remote transaction with payment in rubles.

A distinctive feature of the house is its stylish design and proximity to nature.

House in Barcelona

Among other real estate properties, there is a house in Barcelona, priced at 880,000 euros. The area of this residence is 311 square meters, and it is equipped withfive bedroomsThis beautiful residence is located in a quiet area of Bellaterra, surrounded by greenery.

It provides its residents with a homely atmosphere and clean air, just ten minutes away from the train station. The building has two floors, thoughtfully designed for comfortable living.

Villa on the Costa Blanca

There is also a villa on the Costa Blanca priced at 1,148,861 euros. This property has an area of 417 square meters, which includesfive bedroomsandfive bathroomsThe villa is ready for living and includes spacious open-plan rooms, terraces, a pool, and a barbecue area.

It is additionally equipped with an underground garage for three cars and an elevator, which provides extra comfort in everyday life.

New Apartments in Alicante

When it comes to Alicante, you can find new apartments with an area of 66 square meters, priced at 169,900 euros. This convenient one-bedroom accommodation is located in the heart of the city, near El Tossal Park. The space is filled with natural light and features modern decor.

An ideal environment for rest and relaxation has been created here in the urban oasis.

Bungalow in Torrevieja

Another interesting option is the new bungalows in Torrevieja, priced at 329,000 euros for 79 square meters. These two-bedroom homes are located in close proximity to the La Mata lagoon and the natural park. The bungalows offer their residents private gardens on the ground floor and magnificent terraces on the upper floor, providing breathtaking panoramic views.

Each building includes underground parking for the comfort of the residents.

Bungalow in Orihuela Costa

It is worth mentioning a bungalow in Orihuela Costa with an area of 65 square meters, priced at 166,000 euros. This property offers cozy conditions with two bedrooms and is located on the first floor in the picturesque area of Las Chismosas. These real estate options are perfect for those seeking tranquility and comfort in sunny Spain.

Conclusion

Thus, Costa Blanca and Barcelona offer a rich selection of real estate with diverse characteristics that are suitable for both comfortable living and investment purposes.

Apartment in a picturesque area

The apartment, located on the first floor, has two bedrooms and two bathrooms and is situated in the picturesque area of Las Chismosas. This residence is fully furnished with new furniture and equipped with air conditioning, allowing for easy temperature control—both cool and warm. The complex where the apartment is located is gated and offers spacious relaxation areas, including well-maintained green spaces.

Bungalow in Pilar de la Horadada

Ole International Homes S.L. offers a unique opportunity to purchase a bungalow in Pilar de la Horadada for239,900 eurosThe residential complex consists of 30 modern bungalows, each featuring two to three bedrooms and bathrooms. A unique aspect of this offering is the presence of a solarium on the top floor and a cozy terrace on the first floor, located near the pool. The open kitchen perfectly complements the comfortable living room, creating ideal conditions for relaxation.

House in Torrevieja

Also for204,900 eurosYou can purchase a house in Torrevieja. It is a semi-detached house in the San Luis residential complex with an area of...93 square meterswhich includes:

• three bedrooms;
• two bathrooms;
• a separate kitchen with a laundry room.

This house features unique characteristics, including two terraces, one of which is located on the second floor, as well as a solarium that offers a stunning view of La Mata Lagoon. The adjacent area is...100 square metersequipped with parking, a barbecue area, and a small storage room, and it comes furnished.

Trends in the real estate sector

Interest in such housing is significantly growing, and there is considerable potential for new developments in this area. There are many modern projects, and property prices in this category are 3-4 times lower than in Barcelona. The main goal remains attracting interested investors.

Doing business in Spain

When it comes to doing business in Spain, the main rule is that all projects should be carried out through a legal entity. In the case of commercial activities, it is necessary to pay value-added tax (VAT), which in Spain is21%However, companies can offset this tax using existing mechanisms, which makes doing business more profitable.

Taxes for legal entities and individuals

Another important point is that the corporate income tax rate depends on the level of income. If the income is less than300 thousand eurosper year, the tax rate is25%with the possibility of increasing to35%For individuals, the maximum income tax rate can reach56%Depending on their income. This makes conducting business through a legal entity a more profitable option.

Choosing the type of legal entity

The choice of the type of legal entity in Spain should depend on the goals and objectives of the business. The status of a sole proprietor is undesirable, as personal assets are liable for all obligations. For development projects, it is advisable to choose the Spanish equivalent of an LLC —s limited liability companyHowever, in each case, the question of the form needs to be discussed individually.

Company registration

The process of registering a company in Spain takes abouta month and a halfA significant amount of time is spent preparing the necessary documents for the bank that confirm the source of the funds being contributed to the authorized capital.

Business organization in Spain

An important aspect to consider when organizing a business in Spain is the need to justify your entrepreneurial activity. For example, if your goal is to open a company that specializes in property renovation, you will need a preliminary agreement to purchase the property, which will serve as proof of your work. However, it is worth noting that the mandatory submission of business plans is not required.

Procedure for registering a legal entity

The procedure for registering a legal entity in Spain is quite simple and quick. We have been working with major banks like BBVA and Santander for a long time, and we can confidently say that all stages of the process are organized at a high level. An interesting fact is that you can register a company in Spain remotely, without the need to travel to the country, through an authorized representative.

Example of a successful project

One successful example of project implementation is the complex developed by Tidex. This project includes three luxurious villas located on the first line by the sea, in close proximity to the center of Cambrils. This complex has been successfully built and sold to clients.

Comfort of doing business

Based on our clients' feedback and personal experience, we can confidently say that doing business in Spain is quite comfortable. Although taxes in this country are not the lowest in Europe, they are still lower than in several other European countries. It's important to note that business processes here are organized and systematic. By adhering to local laws and having well-structured accounting, one can effectively offset tax expenses. We have encountered numerous tax audits, and this actually has a positive effect.

Tax audits and their features

In Spain, there are no practices of unexpected unplanned tax inspections. Tax authorities always provide advance notice of any audits and request consent from businesses. However, there can sometimes be unexpected inspections by the Ministry of Labor, where an inspector arrives at the office or construction site without prior notice. Their task is to check compliance with labor safety regulations, inspect workplaces, verify the existence of employment contracts with workers, and other important matters.

Hiring employees

One of the most challenging tasks for entrepreneurs in Spain remains the issue of selecting and hiring employees. The country is characterized by strict labor laws that closely monitor workers' rights. Once an employment contract is signed, significant obligations are imposed on the employer regarding:

• Creating safe working conditions;
• Provision of social guarantees;
• Payment of taxes and contributions.

Thus, if you pay an employee 1000 euros, their actual cost to you is about 1600 euros. Moreover, even in the case of dissatisfaction with the employee's work, their dismissal can turn out to be an extremely complicated process.

Process optimization

When discussing how to optimally organize these processes, each entrepreneur must make decisions independently. In cases related to development projects, international investors typically enter into a project management agreement with us. This is a civil law contract under which we provide a complete set of services necessary for the successful completion of the project, freeing the client from the need to search for employees, rent office space, or organize accounting.

This approach turns out to be beneficial both financially and in terms of time.

Conclusion

I believe that my story shows that the opportunities for entrepreneurship in Spain are limitless, and anyone willing can find their niche in this thriving country. Since my move in 2005, I have seen how a new lifestyle, culture, and economy can harmoniously intertwine, creating incredible opportunities for business growth and development.

Wise decisions and a willingness to learn are key factors that enable adaptation and successful business management. Spain, with its openness to foreign capital and numerous attractive offers, draws entrepreneurs from all over the world.

Advantages of doing business in Spain

• Lack of restrictionsfor non-residents regarding the purchase of real estate and business organization.
• Simplified process for obtaining a residence permitfor investors, which allows them to provide a comfortable place for their family to live and work.

Furthermore, it is important to note that investments in areas such as:

• Tourism,
• Construction,
• Agricultural industrial complex,
• Infrastructure,
• Green technologies

They offer great opportunities in terms of profitability and stability in the long term. I take pride in having witnessed various projects successfully come to fruition, and the joy from the work done inspires me to come up with new ideas.

Moreover, I have made sure thatreal estate purchase- it's not always an investment, and it's important to approach the issue strategically. If your goal is simply to relax and accumulate capital for the future, that's one thing, but if you're aiming for a stable income, you'll need a more mature approach and possibly work with multiple properties.

In general, my goal is to share the knowledge I've accumulated over these 15 years of living and working in Spain. I hope that my experience and advice will help you make the right choices and avoid common mistakes. If you have any questions or need assistance, feel free to reach out. I will be happy to offer support and share my experience.