Residence in Spain: Not an employee, but not unemployed
Spain’s social policy makes it difficult for foreign workers to find work during periods of unemployment. Spain’s unemployment rate is one of the highest in Europe, with around 4.7 million people unemployed according to official figures. These people are forced to rely on state support or look for work outside the country.
Health workers, teachers, educators, miners are protesting against the reduction of subsidies as part of state austerity. In the current situation, only qualified specialists and people with special knowledge, for example in the field of high technology, can obtain a work visa and residence in Spain.
The Spanish government, taking this situation into account, wisely allows foreigners to open their businesses in Spain, but with the condition of attracting local workers. Foreigners, while in the country, can hardly count on jobs that could be provided to the local population.
In this case, a foreigner can become the owner of a business and receive income from his business, instead of living on a salary: thus, residency in Spain will be practically in his pocket.
One of the most promising areas of business remains the service of tourists – one of the main sources of income in Spain. Today, open-air discos, 24-hour hypermarkets, cafes and souvenir shops are the basis of the economy of coastal cities.
However, before opening a business in the food industry, it is worth considering this decision carefully. Many tourists prefer to visit world-famous fast food restaurants, fearing unfamiliar and unknown food.
If you are applying for a D visa on the basis of running a business, you will need a business that is already operating in Spain (assuming you have been legally present in Spain and have taken care of the organization or acquisition of the business) or a detailed business plan for its creation.
The ideal option would be if your business plan is approved by the authorities and you have enough money in your Spanish bank account to implement it.
Long-term residence in Spain is likely to await you if your existing business has created several jobs for local residents and you have no tax debts. However, the final decision is made by the reviewing authorities and it is not possible to guarantee residency in Spain.
According to Spanish law, foreign investors can open businesses of various forms of ownership, the most common of which are joint-stock companies and limited liability companies. Another option is to open a permanent representative office of a foreign company in Spain.
A joint-stock company is more suitable for creating large enterprises (with a share capital of about 60,000 euros), and a limited liability company is most often chosen for organizing small and medium-sized businesses, since a minimum share capital (approximately 3,000 euros) is required to register an enterprise of this form of ownership.
Once you have decided on the form of ownership, you will need to decide how to finance your business. Will you use your own funds, a loan from a Spanish or foreign bank, a grant, or perhaps funds from a private investor known as a “business angel”? Finally, you will only need to obtain the necessary licenses and permits for your industry in Spain.
Good luck in your business!
