1. Spain
A Trip Across Europe –
Entrepreunerhip And
Tourism

2. A)ABOUT THE PRODUCTS

3.  In Spain the purchase tax that it is charged on
products is VAT (VALUE ADDED TAX). The rate
depends on the type of product. On anything
purchased in travel agencies, customers pay VAT at the
rate of 8%.
 Consumers are liable to pay VAT whereas the
companies act only as tax collectors. Depending on
where they contract their products, travel agencies are
faced with different types of VAT depending on the
countries they work with and their legislation.

4. 1.b. FOUNDING THE COMPANY
 Tax and expenses associated with setting up a Private
Limited Company.
APPLICATION AND CERTIFICATE OF AVAILABILITY OF THE NAME
(tariff+ courier) 21'92€
APPLICATION AND CERTIFICATE FROM THE REGISTRY OF
TRADEMARKSAND PATENTS (Apply for trading name and logo) 138'94€ + 16'40€
BOND INCORPORATION (Responding to the obligations applicable to
offering services to a third party) 300€
MONIES INVESTED IN THE ACCOUNT OF THE COMPANY WHICH
CONSTITUTE THE CORPORATE CAPITAL 3000€
MEMORANDUM OF DEED OF ASSOCIATION AND NOTARIAL
APPROVAL 210'45€
PROPERTY TRANSMISSION TAX AND LEGAL DOCUMENTS 1% of
corporate capital 30€
APPLICATION FOR UNIQUE TAX CODE (ID Number) FREE
REGISTRATION ON THE PROVINCIAL BUSINESS REGISTER 123'78€
LEGALIZATION AND APPROVAL OF OFFICIAL BOOKS ON THE
BUSINESS REGISTER 50€
ADQUISITION AND APPROVAL OF BUSINESS BOOKS AND
WORKERS´ REGISTER 35€
REGISTRATION IN THE REGISTER OF THE ANDALUSIAN TOURISM
BOARD 130€

5. 2. PERMITS REQUIRED
The most important permits are:
a) Opening Permit.
b) Travel Agency License.

6. 2.a. OPENING PERMIT
 This is the document which certifies that the premises are suitable for the
stated activity to be carried out without causing nuisance to others.
 All premises must have this license. Only artists and craftsmen are
exempted as long as they are carrying out their activities in their own
home, not making direct sales to the public and without disturbing or
causing a nuisance to the neighbors. The opening permit is non-
transferable and belongs to the owner of the business. The license is issued
by the Town Hall.
 A.1) How long it takes to obtain a license.
 When all the appropriate documents have been presented, it is necessary
to wait for a response from the Town Hall. They may accept your request
or ask you specific changes. The time it takes the Town Hall to make its
response will depend on each individual. Town Hall, but normal
circumstances should be no more than three months.

7.  A.2.Cost of the licenses
 Establishments with such activities are subject to a declaration of
responsibility or to an opening permit. In the next chart, S represents the
surface area assigned to the activity and K is the equivalent to 272.69 €. The
premises we have chosen are in Málaga centre with a total area of 72 m2 .The
formula works as follows:
 272,69+272,69/25 (72-50) = 512,66 €
Intervals (m2)
Rate (€)
S greater than 50 less
than or equal to 100
K + K/25 (S - 50)

8.  A.3) What kind of qualification is necessary to
obtain the license.
 You do not need any special qualification to obtain
this license
 A.4) Business Plan
 It is not necessary to present officially a business
plan.

9. 2.b. TRAVEL AGENCY LICENSE
 To obtain a license to start a travel agency you have to fill an
application form addressed to The Tourism Board that will be
put before the Provincial Tourism and Sports Office. The
application should include:
 - Company unique tax code ( you can obtain it in your local
tax office).
 - Insurance: To fulfill the obligations for the provision of
services.This should cover three blocks of a minimum of
150,253 euros each.
 1st Operating civil liability.
 2nd Derived or subsidiary civil liability.
 3rd Responsibility for damage to private property.

10. 2.b. TRAVEL AGENCY LICENSE
 - A copy of the rental contract of the premises attributed to the
company or to the civil person who has applied for the license.
 - The premises must have the following characteristics:
 1st It must be clearly different from other premises and offices
adjacent/ attached to it. It must have a clearly identified free public
entrance.
 2nd In a visible place, a sign which clearly identifies the company,
including its unique identification number pertaining to the
Tourism Registry, must be placed.
 - Bond incorporation documents.
 - Documentation requested by the Registry of Trademarks and
Patents, to guarantee the company has applied for the trading
name. If the trading name is different from the legal name, this
should have been communicated to the Tourism Board.

11. 2.b. TRAVEL AGENCY LICENSE
 - Declaration of the initiation of the commercial activity and
census declaration. This document can be obtained in the local
Inland Revenue Office.
 - In the case that all has been presented correctly, the Tourism
Board will give the appropriate license together with an
identification number and the legal classification of the company.
 - Once all the documents have been submitted, it will take the
General Tourism Board a maximum of 3 months to make a
response.
 If there has been no response, then by default, the license has been
awarded to the company.

13. A)INTEREST FOR LOANS
Companies can ask for money from banks and financial
institutions. Among others they can grant:
 Credit Lines: The company has only to pay interest for the
amount of money spent. The rate of interest varies
depending on the duration of the loan and the guarantee
provided by the company.
 Loans: interest can be from 9% to 12% approximately,
depending on the loan rates and the repayment schedule.
 Leasing: This is a type of rental with purchase option for
property. The company can rent goods for a period of time
depending on the type of good, and once the rental
contract has finished the company has the option to
purchase the product at its residual value.

14. B)SUBSIDIES
-Loans to young businessmen have been offered by the
Ministry of Industry, Energy and Tourism ( ICO) . The
aim is to encourage young people to start their own
company and give them better access to credit.
-Investments financed by ICO are:
• Fixed assets purchase
• Current assets purchase

15. •Loan to a maximum value of 50.000 €.
•6% tax rate
•0,5% Opening price
•0.% Profitability study
•No bank guarantee
•The company designed as beneficiary of these credit facilities
should provide at least a 15% of the loan as a own capital
•4 years repayment period
•proprietors´ age limit: 35
•Early repayment: 2% expenses on the paid capital

16. These subsidies can be given to any SME (Small, Medium size
Enterprise) if they comply these requirements.
•The commercial activity and the loans should be based in
Spanish territory
•The market research should include some innovative aspects
regarding the products, the activities, the management
•Promoters´ declaration of the company owner’s commitment
to develop the business plan
•To be a SME as stated by 2008 European Union rules
It must not be a real estate company or a
financial institution

18. ONE QUALIFIED PERSON:
 AVERAGE SALARY:
Basic wage is 1.220,24 € * 16 payments for a worker with
civil responsibility at level 2, i.e. a manager of a branch,
main office…
 TAX:
The employer must deduct a percentage of the
employee´s salary for tax purposes and pay it into the
local Inland Revenue office account according to the
following:

19. Intervals- Personal income tax 2011/2012
Tax base
From To Deduction Add Total 2012
0,00€ 17.707,00€ 24,oo% 0,75% 24,75%
17.707,00€ 33.oo7,00€ 28,00% 2,00% 30,00%
33.007,00€ 53.407,00€ 37,00% 3,00% 40,00%
53.407,00€ 120.000,00€ 43,00% 4,00% 47,00%
120.000,00€ 175.000,00€ 44,00% 5,00% 49,00%
175.000,00€ 300.000,00€ 45,00% 6,00% 51,00%
300.000,00€ - 45,00% 7,00% 52,00%

20.  INSURANCE:
-Travel agencies should subscribe to an insurance
against workers´ invalidity or death insurance of
27.000 €
-Every businessmen running a company must deposit in
the Department of National Insurance account:
29% of the worker´s salary as employer´s contribution
and deduct a 6,25% of the employee´s salary as worker´s
contribution.

21. RENT BY M2:
 The best placement for our Travel Agency is Málaga
city centre, the average price is 18 €/m2 .Premises with
electrical system, sanitation facilities, and telephone.

22. ADVERTISING:
Web pages and advertising.
Type of advert
(Banner)
Load Place Cost by one
thousand
printings
(CPM)(*)
Measure 728 x 90 25 k Horizontal- Heading or central 25 Euros
Measure 728 x 90 15 k Horizontal- Heading or central 15 Euros
Measure 234 x 60 10 k Horizontal- Heading or central 10 Euros
Measure 120 x 600 25 k Vertical- Right side 20 Euros
Measure 120 x 240 15 k Vertical- Side 15 Euros
Measure 250 x 250 15 k Square into central part 20 Euros
Measure 180 x 150 10 k Rectangle into central part 10 Euros

24.  This company will hire a worker who is suitable for the
job as described in the contract. The employee will be
offered an indefinite contract to promote employment
and to allow us apply for subsidies to pay the National
Insurance contributions.
 In case of a worker´s dismissal the company must pay
the worker 20 days’ pay for each working year
calculated proportionally with respect to those who
have been employed for less than a year.

25. By: Alvaro Hernández, Manuel Núñez y Sandra Cortés.