Tips for starting a business in Ibiza

21 October, 2019

Starting a business in Ibiza is more simple than it seems. For anyone dreaming of their very own beachside bar in Ibiza, coffee shop, souvenir stand or perhaps a seafood restaurant in San Jose, there’s plenty of things to consider before diving in. Ibiza has drawn business people, entrepreneurs and self-starters to its shores for many years, with the breathtaking scenery and laid-back lifestyle giving business owners the chance to balance work and pleasure in a way not found in other parts of Spain or even the world.

Nonetheless, for wanna-be business owners, it is all too tempting to procrastinate and fall for the “mañana” trap and let essential tasks fail. Here we look at a few top tips that will help you start a business and keep you focused—despite the magnificent sunshine outside.

Tips for starting a business in Ibiza 1

Be Realistic

Tourism in Ibiza is the primary source of opportunity for new business owners. So, if you had a bleeding-edge tech project in mind, there are probably better places to incubate your startup. The key at the beginning is to be realistic about your chances of success on an island so that depends almost entirely on the tourist trade. Whether your business will focus directly on tourists, or you will work closely with other companies that do, you stand a much better chance of succeeding on the island if you tap into the pre-existing economy.

 

Tips for starting a business in Ibiza 2

Get Registered
Make sure you apply for a Número de Identificación de Extranjero (NIE) as early as possible to ensure you are fully legal from the start. This number identifies you to the relevant tax authorities and is required for all transactions and procedures in Spain. You’ll need your passport and proof of residence, and the process usually takes around 2-4 weeks.

 

Hire a Professional
Spanish bureaucracy is a law unto itself and navigating its idiosyncrasies can be a nightmare for the uninitiated. Perhaps the two most important people in your life, when you begin your journey, will be a lawyer and an accountant. Ideally, both should be fluent in both Spanish and English, and with some knowledge of the local business situation in your area.

 

Incorporate Your Company
Choose a name that’s not already in use and register it at the Mercantile Registry. You will then receive a Negative Name Certificate that will allow you to apply for VAT (IVA) and a tax identification code (CIF). With this information, you can go on to open a company bank account and deposit any capital you might have. Finally, ask your lawyer to draw up the incorporation deeds and ensure they are signed in front of a notary.

 

Visit the Town Hall
Take a trip to your local town hall and inquire about any licenses you will need to operate legally. You should allow time for officials to make inspections that may be required for these to be granted. Additionally, businesses operating in Spain will require the following:

  1. Health and Safety Certificate
  2. Building License – if you plan to make any alterations to the premises
  3. First Occupation License – if it is a new location and you are the first to use the premises
  4. Food Handler’s Certificate – for staff handling food
  5. Opening License

If you need someone to help you find the best office or commercial space to let or buy for your new business project in Ibiza, do not hesitate to contact our Estela Exclusive Homes Agent for more details.