| Working in Spain |
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Relocation isn’t just about finding the right house,
it’s about starting a new life and for many, that
involves either the need to work or the want to
work. By doing your research before you pack your
bags, you will have a realistic idea of the work
opportunities available in Spain. Here’s a few
pointers to help you. |
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Visa Requirements? |
Citizens of the EU may freely travel, settle and
work in any member country, enjoying the same rights
as the nationals of their country of choice. This
free circulation also extends to their families,
whatever their nationality.
As a British Citizen this means that you have access
in Spain to any labour activity, both as a
self-employed worker as well as employee working for
third parties, without the need to request a work
permit. Furthermore, you can enjoy the same rights
as the Spanish workers with regards to salaries,
working conditions, housing access, professional
training, social security or union membership.
As a community citizen, to enter Spain all you need
is a valid identification document such as a
passport. |
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NIE Number |
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Whether you want to work for someone else or start
up on your own, the first thing that you will need
is your NIE number. See our section on NIE numbers
for further information and the application form. |
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Working for Someone
Else - Where to Start |
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Employment agencies are few and far between in and
around Torrevieja, although there are some in
Alicante and Murcia, including some familiar names
such as Manpower and Adecco. The local English
newspapers are a very useful source for job hunters
and most of them are free publications with the
exception of the Costa Blanca News. Check out their
websites before traveling to get an idea of what’s
out there: |
www.costablanca-news.com
www.roundtownnews.co.uk
www.coastrider.net
www.yourlocalnewspaper.info |
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Spanish employers are generally very accepting of
foreign workers, especially those you are bilingual
or have some Spanish language skills. Without the
language, you may find yourself limited in what
roles you can take on so it is always advisable to
go a language course before you leave the UK. Just
by having some basic Spanish you are in a better
position then those that have none and you will find
that this will be considered even for positions
where essentially Spanish isn’t a prerequisite. |
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Contracts & Laws |
Contract laws are very strict to ensure that workers
are protected from exploitation. When you start a
new job, you will more than likely initially be
offered a temporary contract for three months, after
which time you may then be offered a further
temporary contract for six months and then, your
employer must either offer you a permanent contract
or cease employing you altogether. It is against the
law to be continuously employed on a temporary
contract.
Your contract will be in Spanish, if you don’t
understand Spanish well enough yourself to
understand all the in’s and out’s, make sure you get
it translated before you sign it.
It is illegal to work in Spain without being
registered for Social Security. Your employer will
make the arrangements for your registration and
payment in to the Spanish Social Security System. |
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Working Hours and
Holiday Entitlement |
Working hours vary considerably to the UK with many
companies still respecting the traditional siesta. A
typical working day would be from 09.00 - 14.00 and
then 16.00 - 19.00. The long break allows Spaniards
to enjoy a long lunch with their family, something
that plays a big part in the Spanish way of life.
By law, if you are in full time employment on a
permanent contract, you are entitled to 30 natural
days holiday per year. Natural days also includes
weekends so really, you are looking at 22 working
days holiday. You will have to check with your
employer as to whether there are any specific
company policies regarding when you are allowed to
take it etc. |
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Wages |
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As far as the wages are concerned, don’t be
surprised if you are earning lower than you did in
the UK. However, put it in to perspective and
evaluate it against the cost of living and you will
soon see that it is all relative. You will be taxed
at source, meaning that your employer will take care
of paying your contributions and the amount will be
deducted from your wages. Social security payments
will contribute to both the local health service as
well as your pension. However, you must pay in to
the system for at least 15 years before you can
claim a state pension. |
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Starting up a business |
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Many people decide that they don’t want to work for
someone else and set up on their own. There are many
golden opportunities waiting for you as with more
and more foreigners moving to Spain the demand for
quality products and service in all manner of
industries is growing. However, be prepared, it can
be a frustrating process in an alien environment so
preparation is the key. Most people fail through
lack of forethought, planning and preparation and
there are several fundamental factors that you
should carefully consider before rushing in to
anything. |
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Language |
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Some people ignore the language issue, and whilst
the Costa Blanca and Costa Calida have a large
British expat community, remember, there’s still
more Spaniards that live there. From a business
point of view, the more people you can communicate
with, the better and being able to converse, even
poorly will make life in Spain much more acceptable
and enjoyable. Communication leads to integration
with your Spanish neighbours, a much more enjoyable
lifestyle and also leads to referrals and work
opportunities. |
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Marketing |
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Even being a highly skilled technician, computer wiz
or in one of the professions is not enough, unless
you are very lucky. You have to be able to market
yourself. No one is looking for you; you have to
find the clients/customers. This is a skill that the
majority of people lack, regardless of how well
qualified they may be in their particular trade or
profession. Marketing ability or lack of it is often
the win or fail factor. Get this right and you are
half way to success. |
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Staying Power |
Don’t expect a Self Employed venture to take off
like a rocket, it can take many months. You have to
put the effort in to get that all important
reputation and you need enough money to sustain
yourself in the early days whilst you are
establishing yourself.
If you failed in business in the UK, don’t come to
Spain thinking it will be so much easier. Analyse
why you failed in the UK. Change your tactics. If
you bring your family it must be a united decision,
unwilling partners are an inbuilt time bomb to
failure. |
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Opportunities |
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They are there waiting for you and as with anything,
the more you put in, the more you get out. Do your
research, visit the area and assess the
opportunities for your particular skill or product
to determine if the demand is there. And don’t do
what a lot of people tend to do when they relocate
to Spain and leave your common sense behind. Use
your head and you won’t go much wrong. |
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Employ an expert |
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If you have decided to go for it, and start up your
own business then employ the services of a
professional to help you. You can’t afford to make
mistakes in this area and by employing the services
of a “Gestor” (official agent - a bit like a lawyer
for menial bureaucracy) and a good accountant, you
can be safe in the knowledge that the company
has been started on the right track from day one and
that all ongoing obligations are being taken care
of. If you don’t speak the language, you really
should find a bilingual gestor and accountant or
employ the services of a translator to attend
meetings and assist you. |
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Company Structure |
The next step would be to decide on the format of
your business, similar to in the UK with PLC and Ltd
companies. You will need expert advice as to which
type best suits your business.
Empresa Individual
Is the equivalent of a UK sole trader with the
business being run in one persons name only.
Sociedad Civil
Is a partnership where several individuals will come
together to form a business.
Sociedad Limitada (S.L)
Is a limited company with registered shareholders
and a set minimum trading capital in the bank. Fees
are higher than for a sole trader but if sued then
only the assets of the limited company are at stake.
Sociedad Anonima (S.A)
Is a larger company with a large minimum trading
capital. This S.A. company also has shareholders. |
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Registration,
Registration, Registration. |
Once you have established the set up of your
company, the next step is to register it with all
the necessary authorities. In Spain there are two
levels at which a business must be registered:
At local level you need to register your
business with the town hall and obtain an opening
licence (Licencia de Apertura) which will clearly
define your business and the way in which it will
trade.
At national level you will need to register
your business in with the IVA office (Agencia
Tributaria) which is the equivalent of the Revenue
and Customs in the UK. Your business in Spain will
receive an identification number known as a CIF. The
Agencia Tributaria collect your tax on any profit
you make in your business in Spain. You also need to
register with the Social Security office. |
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Tax contributions |
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Whether you are a resident in Spain or not, if you
have an income here, you may be liable for tax
payments, as in any other country. As a foreigner it
can be a complicated and costly situation so you
will without doubt need specialist
advice. Your accountant will be able to help you. |
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Social Security
payments |
All businesses are registered with the Social
Security Office and as such will be liable for
social security payments which vary according to the
status of the business. If you are a sole trader
(Empresa Individual) expect to pay approximately
€235 a month. This gives you entitlement to the
local health service such as doctors and hospitals
(not dentist, these are all private) and if you pay
in for 15 years you qualify to receive a pension.
If your business in Spain is structured as a company
then you have to pay social security on behalf of
any employees and they have to have a proper written
contract providing guidelines for both parties. |
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Buying An Existing
Company |
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If you are buying an existing business in Spain it
is vital that you examine every aspect of the
business before signing anything or parting with
your money. It is crucial that you ensure the
company has no debts or tax liabilities that would
be transferred with the business. |
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BEWARE |
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When you buy a business in Spain, you buy the
business debts too ! See a good guide here If you do
take the plunge and start a business in Spain, you
will find that you are accepted by the Spanish as a
foreigner and you will have the respect that you
earn. |
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Spanish Pensions and
Benefits |
The Spanish social security system is much like the
British one, in that you pay your contributions
every month, and that entitles you to a pension,
unemployment benefit, sick pay, maternity pay and
the right to receive free healthcare. The amount of
pension or benefit you receive depends on the level
of contributions you have been paying. You should be
a little careful too: some small businesses pay all
their staff cash in hand and those staff will not be
eligible for Social Security benefits, including
health care. Other employers may register you, but
claim you are working less than you are, thus saving
themselves some money in contributions. In this
situation you will still be eligible for health
care, but if you become unemployed or have to take
sick leave, your benefits will be lower. Obviously
you may not have much of a choice as to who you work
for, but we would strongly recommend that you do not
work cash-in-hand and all contracts are carefully
checked for content.
If you have been employed in Spain for 6 months and
you lose your job, you will generally be entitled to
Spanish unemployment benefit. If you are employed or
self-employed, you will also be entitled to sick
pay, maternity pay and, when you retire, a pension.
All benefits are paid at variable rates depending on
the level of your contributions. If you have been
paying minimum social security contributions the
amount you will receive in benefits is currently
around 750 EUR per month. If you are planning to
live in Spain long term you should contact the DSS
overseas department (above) in order to get your UK
National Insurance contributions transferred to the
Spanish system. |