Starting a restaurant in Spain

Licences

Spain has a small number of licenses. This is done to prevent the opening of new businesses at every turn and to safeguard restaurant owners and their financial investments. These permits were secured for each of the premises and are typically perpetual, but they can be revoked if broken.

The provision for an alcohol license in C licenses eliminates the requirement for a second license to be obtained.

C1 This is a regular bar. In the kitchen, there is no food and no hood. Food cannot be cooked, however it can be offered as cold snacks.
C2 This restaurant offers limited cooking options, but also has a small selection of culinary utensils.

C3 The most comprehensive license allows for weekend hours of work until 3:00 a.m. The most important requirement is that the kitchen have an extractor hood.

There are 3 main restaurant licenses and it all depends on the hood in the kitchen:

Premises

There are two ways to formally state a premise in Spain. Owns or rents the property. You must also pay the traspaso, which is the sum agreed upon for the transfer of the restaurant lease with the present tenant. This sum often originates with the licensing type.

In other words, you purchase the right to rent this commercial premises along with all of the furniture from the restaurant, including the tables, chairs, glasses, and silverware.

It is important to verify the licenses, make sure they are current, and ensure that the owner and tenant have no issues.

Taxes

Paying taxes in Spain requires extreme caution and seriousness because even the smallest error could result in questions from the tax office and issues such as the freezing of working accounts.

IVA or VAT is the first and primary one, and it is paid every three months. Either favorable or unfavorable.

The IRPF, a personal income tax, is the second tax. This tax is paid by both employers and employees who operate with independent contractors or rent space.

Seguridad Social is the third tax. Employees must pay this tax each month. And of course there is income tax, which varies depending on the design but is typically 25% of profits for businesses.

Employees

Every employee sets up a job in his or her own field of employment. The assistant waiter's wage is less than that of the hall's director. Based on the rates for each employee, the state determines the minimum wage. The monthly Seguridad Social tax payment amount is also impacted by this.

You need to choose the number of hours to work after figuring out the fee. The most typical weekly hours are 20, 30, and 40. The state outlaws working more than 40 hours per week.

Each employee must have a schedule, which must be signed with the number of hours they worked each day.