Starting a business in Malaga

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Starting a business in Málaga, like anywhere in Spain, involves a few key steps that vary slightly depending on whether you’re an EU or non-EU citizen, and what type of business you want to set up (freelance, small company, online service, etc.). Here’s a clear and simple explanation of how to do it:

Starting a business in Málaga

Step 1: Decide on the Business Structure

The two most common options are:

  • Autónomo (self-employed/freelancer): Easiest and fastest. Ideal for solo professionals, small services, or online businesses.
  • Sociedad Limitada (SL – limited company): Best for businesses with multiple partners, employees, or higher risk. More paperwork, but offers liability protection.

Step 2: Get Your NIE and Register with the Ayuntamiento

Before anything, you must have a NIE (Número de Identificación de Extranjero) — your foreigner ID number — and empadronamiento, which is your official registration as a resident in Málaga. You’ll need both for legal and tax processes.

Step 3: Set Up as a Freelancer or Register a Company

If going freelance (Autónomo):

  • Register with the Tax Office (Agencia Tributaria)  Complete form Modelo 036 or 037 to declare your business activity (choose from official activity codes).
  • Register with Social Security (Seguridad Social)  You must register within 30 days of declaring your business at the tax office. You’ll get a Social Security number and start paying a monthly fee (quota). As a new autónomo, you usually get a discounted rate (tarifa plana) starting at €80/month for the first year.

If creating a company (Sociedad Limitada):

  • Request a company name certificate from the Central Mercantile Registry (Registro Mercantil Central).
  • Open a bank account in the company’s name and deposit the minimum capital (€3,000 for an SL).
  • Create company statutes and sign them before a notary.
  • Register with the Mercantile Registry in Málaga.
  • Get your company’s tax number (CIF).
  • Register for taxes and social security, just like a freelancer would.

Step 4: Understand Your Tax and Accounting Obligations

Freelancers and SLs have different tax rules, but in both cases, you’ll deal with:

  • Quarterly VAT returns (IVA) if applicable.
  • Quarterly income tax or corporation tax payments.
  • Annual tax declarations.
  • Invoices must include specific details and follow legal formatting rules.

Hiring a gestor (accountant/administrator) is highly recommended. They will take care of registration, taxes, social security, and ongoing paperwork. Their fees typically range from €50 to €150 per month.

Step 5: Get Any Required Licenses or Permits

Depending on the type of business (e.g., café, shop, bar), you may need:

  • Opening license (Licencia de apertura)
  • Health/safety permits
  • Municipal permissions if you use public space (e.g., terraces)

For online or service-based businesses, usually no additional license is needed.

Step 6: Consider Joining a Coworking Space or Local Network

Málaga has a growing startup and remote work scene, with many coworking spaces and networking groups. These are great for meeting clients, collaborators, and staying in the loop.

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Tina Kok

A Danish woman who has lived on the Costa del Sol for over 20 years, she offers her personal and professional experience to help those looking to move to Málaga.

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