If you’re an entrepreneur and looking to start an online business in Spain, the Beckham Law may be the answer to your prayers. The law, also known as Law 16/92, allows small businesses to take a tax break for their first year of operations. This is usually referred as the ‘Beckham Law’ after former Real Madrid footballer David Beckham who helped get it passed. Before we dive in with details, it’s important to understand what the law does and doesn’t have as far as an online business goes. After reading this post you will know if starting your own business in Spain is right for you and understand how much time it will take to set things up properly.
What is the Beckham Law?
The Beckham Law is a Spanish corporate tax break law that allows enterprises to reduce their first year of income taxes by 67%. It’s a kind of ‘fast-track’ incorporation law that allows entrepreneurs to get a company established more quickly, but with some hoops to jump through. The Beckham Law applies to all business sectors, though it’s most commonly seen in the technology sector.
spain entrepreneur visa requirements
Before we get into how to set up a business in Spain using the Beckham Law, we need to talk about the entrepreneur visa requirements for Spain. The Spanish government is still very hesitant about legalizing ‘income generating activities’, so the entrepreneur visa process is extremely slow. You will be required to set up a company in Spain, apply for an spain entrepreneur visa requirements, hire local staff, and then wait for your visa to be approved. The whole process can take 1-2 years and is not guaranteed. Simply put, the best way to start an online business in Spain is to find a local Spanish partner and get a job with them.
When does the Beckham Law apply?
The beckham law spain is only valid for one year, so it’s crucial that you apply before January 1st. You will be required to submit all required documents to the Spanish Ministry of Economy and Finance 60 days in advance. Once everything is submitted and processed, you will be issued a tax number and a business license. After you have these two things, you are officially an online business in Spain and can start filing taxes. To protect your investment, you’ll want to think long and hard about how you’re going to make money. Taxes will be collected once a year, and you don’t want your business to be on the rocks and in need of a major revamp come tax season. So keep your goals in mind and make sure to take a step back once you get started.
non-lucrative visa in Spain
If you’ve applied for the Beckham Law before January 1st, you’ll be issued a non lucrative visa in Spain business license and a tax number. Once this happens, you can start filing taxes. Filing taxes is straightforward and can be done with the help of a business accountant or online tax filing software. The good news is that the Spanish government has made it extremely easy to file taxes. If you’re running a non-lucrative online business. All you need to do is fill out a couple of online forms. And then file your taxes with a business accountant. If you do this yourself, you’ll be required to pay a lot of attention to detail. This way, you’re not missing anything and don’t have a large amount of taxes to file. Tax season can be a bit nerve-wracking for online business owners, but it doesn’t have to be.
How to set up a business using the Beckham Law
Now that you know when the Beckham Law is in effect. Let’s talk about the actual process of applying and operating under the law. You can start your business using the Beckham Law as soon as you have a tax number and business license. Once you have these two things, you are officially an online business in Spain. And can start filing taxes. To protect your investment, you’ll want to think long and hard about how you’re going to make money. Taxes will be collected once a year, and you don’t want your business to be on the rocks. And in need of a major revamp come tax season. So keep your goals in mind and make sure to take a step back once you get started.
If you’re looking for a partner to operate under the Beckham Law, or simply someone to help you get set up, MySpainVisa is a great place to start your search. MySpainViza provides entrepreneurs with information about how to set up an online business and how to start filing taxes. They’ve also got a partnership program that connects local Spanish business owners with immigrant entrepreneurs who are operating under the Beckham Law. This is a great way to connect with local investors who may be interested in investing in your company.
The Final Word
The Beckham Law is a tax break law that allows entrepreneurs to hold onto 67% of their first year’s income. This can be a great option for those looking to start an online business in Spain. But you need to apply early and follow the process carefully. Once you have your business up and running, you can start filing taxes to investment. And make sure that you’re getting the most out of your taxes.
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