The process for formalising the opening of a workplace in Spain
Opening a business is an opportunity for any type of business, however, it is essential to follow a legal process that takes into account both fiscal criteria, as well as other legal requirements. At Asesoría Orihuela Costa we advise you throughout the whole process, so that you can secure the future of your business.
What circumstances are considered as opening a workplace?
The opening of a workplace refers to the start of operations at a place intended for the conduct of work activities, where employees and employers interact within the framework of a formal employment relationship. This event marks the start of production, services, or any economic activity planned by an enterprise or institution. The circumstances surrounding the opening can vary widely, including the creation of a new enterprise, the expansion of existing operations to new locations, or the resumption of activities after a significant break due to renovations, restructuring or external situations such as economic or health crises.
For example, an entrepreneur who decides to start his own restaurant will open a workplace when the premises are suitable, the staff is recruited and trained, and all necessary permits are in place. Similarly, a technology company experiencing growth may open a new workplace in the form of a development office, to tap into local talent or expand its market. Another example is a factory that, after a period of closure to modernise its facilities, resumes operations, marking the opening of a renewed workplace. These scenarios reflect how the opening of a new workplace is a crucial step in the life of a company, representing growth, adaptation to new circumstances or the start of a new project.
The legal steps for opening a workplace
The management of the opening of a new work centre in Spain involves a complex process, which encompasses various legal, administrative and operational stages, ensuring compliance with current labour, safety and sectoral regulations.
Initially, it is essential to conduct a feasibility study that includes market analysis, location selection, and financial planning, to confirm the sustainability of the project.
Subsequently, the necessary licences and permits must be obtained. This includes an opening licence granted by the relevant local council, registration of the company with the Social Security and registration in the Commercial Register, although depending on the regulations and the specific sector of the company, further permits are often required. In addition, it is crucial to ensure that the workplace complies with all regulations on occupational risk prevention, accessibility and environmental protection.
Hiring staff is another vital step, which requires following Spanish hiring regulations, including labour contracts, social security registrations and compliance with working conditions such as wages, working hours and holidays.
Opening a new workplace in Spain is a complex project that requires detailed planning and a thorough knowledge of local legislation. However, with careful and strategic management, it can be a significant opportunity for growth and expansion for any company.
The tax implications of opening a new workplace
Opening a new workplace in Spain also brings with it a series of tax implications that are crucial for the proper functioning and legality of the business activity. Firstly, the company must register with the State Tax Administration Agency (AEAT) in the census of entrepreneurs, professionals and withholders, which implies the obligation to periodically file VAT returns, personal income tax withholdings if there are employees, and corporate income tax instalments. This registration determines the applicable tax regime and establishes the entity’s formal tax obligations.
Secondly, the acquisition or rental of the property where the work centre will be located may entail the management of taxes such as VAT, Transfer Tax (ITP) in the case of purchase, or Real Estate Tax (IBI) levied on real estate property. These costs should be assessed in the initial financial planning to avoid unanticipated tax surprises.
In addition, depending on the economic activity carried out in the new workplace, specific obligations may arise in relation to special taxes or contributions for the use of natural and environmental resources. Spanish tax regulations are rigorous in terms of environmental protection, which may imply additional taxes for activities that have a significant impact on the environment.
Finally, the opening of a new work centre implies an increase in the taxable base subject to corporate income tax, which may have an impact on the company’s overall tax burden. Correct tax planning and advice is essential to optimise the tax burden. At Asesoría Orihuela Costa we have the best team at your disposal, so that your new business project starts successfully from the very first moment.
