It’s expensive, having staff is ridiculously pricy, and there is no help for small businesses. | NIPITPHON
Palma 10/01/2025 09:44
When I first moved to Mallorca I didn’t understand the nature running a business on an island: the seasonality, the ebb and flow of visitors and the revolving door of international residents.
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Morgan WilliamsNot according to this : https://www.visualcapitalist.com/ranked-the-15-fastest-growing-european-economies-in-2024/#:~:text=At%20the%20top%20of%20the,exports%2C%20particularly%20electronics%20and%20pharmaceuticals.
I'd agree that the bureaucracy here is pretty heavy, but my gestoria manages that quite well. It's all relative. I came here from Germany, where your tax declarations need to be perfect, or else the finanzamt will pummel you into oblivion for a 20€ questionable declaration, and simply take whatever they assess from your bank account, and it's up to you to spend the next year fighting it. The Spanish system is far less oblique and far less demanding or petty. Frankly, my gestoria doesn't reject any proper expense declaration of and it seems you might need to change your gestoria. Salaries here are predominantly and famously sub par, and it's difficult to to understand how you can claim it to be ridiculous. One argument in your favour is services, such as construction, or say, air conditioning installers, who all gouge the public for minor work. Installing an air conditioner can cost 1000€ for a couple hour's work. I sense this is because there's so much work in demand, that they can command these prices because if you don't hire them, someone else will. And if they actually show up when they say they will, it's a blessing. This lack of customer service orientation needs to change. It's going to come back to bite them eventually. Like is has with retail. Lastly, it may be worth considering that Spain is currently Europe's leading economic wonder. Growth rates are beyond all predictions. Highest in Europe. It's a mystery, considering how bad everything is as you mention :-)
Vicki, I have a good British friend who is of the same opinion as you. He has told me that foreign residents have literally no idea in regards to what it entails to own a business here, let alone run it (before the business runs you) and make a profit, let alone a decent one. He is also of the same opinion about being an outsider. Anyone who thinks differently are fooling themselves. He wishes you the best of luck.
The incredible number of small enterprises which last a year or maybe at a push, two, then close, is largely down to the discount in autonomo for a year then full payment kicks in. It’s hardly any time to get a fledgling business off the ground and becoming viable. The Spanish tax system is incomprehensible, hence the need for gestors, but they seem to be best guessing most of the time too. No wonder people quit, relocate to a friendlier business environment or try to go under the radar. Unfortunately, It never seems to be an election issue, so it’s never going to change until it is.