In regards to real estate investments, it is important to be aware of the significant drop in prices in recent years. If the plan is to open a new business in Spain, finding the adequate venue will be very easy, not to mention cheap. In some areas of Spain, real estate is at an alluring 45% low, as opposed to other EU states such as the UK. For more information about optimum places to invest, Check Opportunities
Another incentive is the steady decrease of taxes in the past few years. Once issued a Golden Visa, a foreign investor is required to pay taxes on the totality of his or her assets owned around the world and on his or her Spanish earnings. These are called the Net Asset and the Capital Gain taxes.
For example, the current rate for a net estate valued at 700,000€ or more is between 0.2% and 2.5% depending on the Spanish city the investor wishes to reside in.
As of now, there are no ceilings or restrictions on a new company’s earnings. In fact, Capital Gains taxes have been reduced from a rate in the mid-20s to 20% in 2015, and is projected to be set at 19% in 2016.
While it is clearly a good time for companies to be profitable with all the advantages provided, the failure rate of new companies is quite high.
Upon a closer look, the companies that have failed have two things in common:
1) the lack of completing a due diligence, and
2) the failure to understand the vital need for legal assistance.