Moving to Spain: Advantages and disadvantages

Table of contents:

1. TOP 5 Disadvantages of Living in Spain

2. The right way to do it

3. Company formation Bulgaria

The 5 biggest disadvantages of living in Spain.

"The Spanish dream: Living on your own finca in Mallorca, telling yourself and your family, “Ay caramba, I made it!” Absolutely! But aren’t there alternatives to Spain? Yes! We have the ultimate insider tip!"

Spain is one of the most popular countries for Western European expatriates. Madrid, Barcelona, Alicante, Marbella, and, of course, Mallorca are trending destinations. As an employee, you often have to expect significantly lower salaries in most cases. The main appeal is undoubtedly the mild climate, the Spanish lifestyle, and proximity to the sea.

But what if I work independently, remotely, or even start a business in the South, far from my home country? Does it really make sense as an entrepreneur, or are there better alternatives?

Here are the 5 biggest disadvantages of emigrating to Spain as a self-employed person:

1. Generally high taxes

Income over EUR 60,000 per year is taxed at 45%.

There is one exception: the so-called Beckham Law.

This regulation states that income from employment up to €600,000 per year is taxed at only 24%. It also excludes foreign income from taxation, meaning the worldwide income principle does not apply up to this threshold.

A permanent employment contract and an immediate move to Spain are required; otherwise, it is considered a simulation (tax avoidance scheme).

The Spanish dream: Living on your own finca in Mallorca, telling yourself and your family, “Ay caramba, I made it!” Absolutely! But aren’t there alternatives to Spain? Yes! We have the ultimate insider tip!

Is there still a country where costs and taxes are in balance and an entrepreneurial mentality prevails?

Yes, it exists—in Eastern Europe. Our example: Romania.

Please ask yourself the following question:

Do you want to give it your all for a few years in your self-employment and build private wealth, so that on average

90% of your income remains in your personal account? Affordable rents and moderate living costs, as well as employees you can afford?

Here is the solution:

Short and simple: Emigrate to Romania and pay only 1-3% tax when founding a corporation? (+8% tax on profit distribution to private assets) Yes, you heard that right! If you live in Romania, you could keep around €900,000 from a €1 million company profit at the private level.

Be skeptical and question this, but we at GO EU have accompanied hundreds of entrepreneurs based in Romania who only pay exactly 10% in taxes, with the rest going into their private accounts.

If you are interested in company formation or emigrating to Romania or Bulgaria, we would be happy to hear from you.e. You can find more information in the video description.

Based on this expertise, we have created a setup that allows us to Set up a company including bank account 100% remotely, i.e. without any travel. And it's completely legal and can be implemented by almost everyone via GO EU!

2. Inheritance tax

In some cases, foreign citizens may be subject to inheritance tax in both Spain and their country of residence if either the heir or the deceased is considered a resident at the time. Does double inheritance tax really have to be the case?

3. Lower salaries and high youth unemployment

Fulfilling the dream of working in Spain can be challenging if you don’t find a job right away. Since Spain has one of the highest unemployment rates in Europe, the job market is highly competitive. Additionally, average salaries are 20-40% lower than in other parts of Europe such as Western Europe.

4. Dependent on tourism

The local economy depends on tourism, which can mean limited employment opportunities.

5. Bureaucracy

If you need to deal with government authorities, it can be quite frustrating and take a long time.

I hope you enjoyed this post! If you are interested in company formation in Romania or saving taxes, we would be happy to hear from you. Feel free to get in touch!

Starting a company in Bulgaria