This survey could cost in excess of 500.000. - Pesetas depending on the condition of the premises.

The “licencia fiscal” - then authority to enter into a specific business activity - is issued by the local or nearest Hacienda office.

Under the licencia fiscal, you are required to maintain accurate books on the IVA or value added tax (VAT) for goods bought in, and the IVA for goods sold out. Additionally, all taxes must be settled on a quarterly basis with the taxman. Businesses with a small turnover can opt for a special scheme that simplifies the IVA (VAT) process.

Once up and running, there are several other important matters to consider and rules to adhere to.

You must join the Spanish Social Security Scheme.
If self-employed, you are required to pay into the social security system at a rate of approximately 40.000. - Pesetas each month.
Consequently, all self-employed people are entitled to medical benefits through the Spanish National Health System.

Finally,
the Spanish authorities require documentary evidence called “certificado penal”, which states that you have no prison record or criminal convictions in your home country.

Besides these key documents, the Spanish authorities require proof of purchase or a lease or “traspaso” of business premises.
Where a lease is taken, it is important that the remaining lease period is long enough to guarantee that your investment will be realized. It is also crucial that you are aware of your obligations under the lease.

Next, consider whether to set up as a sole trader, partnership or as a corporation (Sociedad Anonima or S.A) or a limited liability company (Sociedad Limitada, or S.L) or a Spanish branch company - a sucursal - of a company already existing in your home country.
To start an S.A company the minimum capital requirement is around 10 million pesetas. All capital must be subscribed and paid in full at incorporation. The liability of owners is limited to their contribution to capital, and therefore they may not be held personally liable for S.L debts.
Where large scale activities are concerned, you may be better off as a limited company. Your residency status does not come into play here. Anyone can set up a company in Spain regardless of whether they are resident or non resident.

If you form a company, its deed of incorporation must be signed before the Spanish Notary and registered in a Mercantile Registry.