|(Impuesto sobre la renta de las personas fiscas). This tax is payable by all non-residents in Spain. The amount depends on the value noted in the land register as well as the property in question. 1.1% will be taxed as income with an applicable tax of 25 %. This tax is payable yearly; payment is to be effected until 31 December of the following year. Before opening a business, you should check with the town council as well as the municipality whether the business or restaurant is in accordance with the "Plan de Ordenacion urbana" and whether the
intended utilization is suitable for the zone in which is lies. This should be done before signing the contract. After the decision of the location is finalised, a technical expert (engineer, master builder, architect) should be consulted, who must evaluate whether the locality adheres to the rules and regulation and whether renovations have to be undertaken. Should this be the case, a "plan for technical execution" (proyecto tecnico) has to be comprised, which is not only required for the installation of electricity, water etc, but also in
order to receive a "building permission" (licenencia de actividad" and later the "Permission to open the locality" (licencia de apertura), once the technical experts have confirmed that all the work has been executed in an orderly manner. The licence is compulsory for nearly all businesses and needs to be received before opening. If need be, the "proyecto tecnico" must be presented to other authorities (Ministry of Health, Tourism and Environmental Affairs). If one starts one's own business as a sole proprietor ("trabajar por cuenta propia"),
it is important to contact the "jefatura superio de policia" and to apply for an identity number for foreigners (N.I.E.). This number is also necessary to become registered with Inland Revue Services (Delegacion de Hacienda). The applicable fiscal terms which will need to be adhered to are laid down based on various criteria. The following aspects will be taken into consideration: resident or not, will the applicant have to pay sales tax (I.V.A.) and where the business activity takes place. After all the formalities at the Inland Revenue Services have been completed, one is given 30 days to register with social insurance.