When we rent premises to be used in a business activity ( office, garage, warehouse, shop….) tax regulations puts the tenant under the obligation to withhold part of the payment due to the owner, called retention, and pay it directly to Spain’s Tax Agency in concept of owner’s own tax.
When an individual or company buys an asset that will have a utility life over a number of years the tax system does not allow for the deduction of its cost as an expense in the year in which it was purchased.
If working from home putting your rent as a business expense might be an option. Is it always worth-doing? This is not a straight forward issue. You rent your house with residency purposes and therefore IVA is not included in the monthly payment. That is not so when you rent for business purposes.
There are many variables that have a bearing on the costs of setting a business up. But we can give you an estimate of legal and administrative costs in Spain. This site contains ample information about costs. On this occasion we are going to put all this together for a quick reference.
After finding a suitable place for your business it is time to fit it for the trading that you mean to carry out there. A bit of paint or more than that? It is customary to rent premises out “as it is”. Any necessary fitting, additional features, or changes must be undertaken (and paid for)
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