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Date Published: 17/10/2024

How to successfully operate an online business as an expat in Spain

Starting and running an online business in Spain as an expat is an exciting and possibly fulfilling journey, but it also comes with its own unique challenges. If you can anticipate these hurdles and find solutions to them, you will give yourself the best chance of thriving in this online landscape. Here are some of the challenges you may encounter, as well as some tips on how to overcome them.

Understanding Spanish bureaucracy

Spain is well-known for its complicated and confusing bureaucratic processes, which can be particularly daunting for expats who have not been exposed to them before. The types of permits, registrations, and licences you need to apply for can vary significantly depending on your business type and location. You may also find yourself overwhelmed by the sheer volume of paperwork needed to comply with local laws. For example, obtaining a business licence in Spain involves multiple lengthy steps, including registering with the local tax office, securing a municipal licence, and then obtaining special permits depending on the industry you operate in. This complexity can lead to delays that might hold you back from launching or operating your business effectively and on time.

Alongside this, Spanish bureaucracy is known to be slow-moving, which can be especially frustrating if you are used to a more streamlined and speedy process back home. There may also be misunderstandings or mistakes in the paperwork, which can result in fines or additional delays and add to the stress of launching your new business. If you’re keen to speed up the application process, consider hiring a local business consultant who specialises in assisting expats with business ventures. These professionals can streamline the bureaucratic process by helping you gather the necessary documents and ensuring you meet all legal requirements, as well as letting you know about any insider tips or potential roadblocks you may not have anticipated.

You should also familiarise yourself with the numerous online resources provided by the Spanish government. Luckily, many of these resources specifically offer step-by-step guides in English for various administrative processes, making it easier for you to navigate the system as a foreigner. You could also consider joining local expat groups where you can share experiences and gain insights from others who have successfully established their businesses in Spain. More than anything, remember that patience is crucial when dealing with Spanish bureaucracy and most things will not happen overnight! You should plan for longer processing times than you’re used to and always keep copies of all your documents and correspondence to refer back to months later if needed.

Overcoming language barriers

Image: Camila Bou / Pexels

Of course, although English is widely spoken in tourist areas and international business circles, Spanish still remains the primary language for official documents and business applications. This language barrier can present ongoing difficulties when dealing with local authorities, suppliers, or potential Spanish-speaking customers. For example, misunderstandings due to language differences can lead to incorrect orders or miscommunications about services offered. Not to mention, if all of your company’s contracts and legal documents are in Spanish, you may be left feeling vulnerable about what exactly you have agreed to in each document!

This language barrier applies to more than just spoken communication, because cultural nuances that occur naturally in any language can affect how messages are translated and understood. If you fail to grasp these subtleties in the Spanish language, it may result in strained relationships with clients or partners who expect a certain level of fluency or cultural understanding. Not to mention, you risk offending clients and customers if you accidentally say the wrong thing! It’s advisable for you to invest some time into learning Spanish, even if it's just the basics. This will not only help you when running your business but also show respect for the local culture, which can go a long way in building business relationships.

You should strongly consider eating the cost and hiring a day-to-day bilingual assistant or translator to help with important business documents and communications. This can ensure that you don't miss crucial details due to language misunderstandings, which could negatively impact your business operations. You should also make sure your website and marketing materials are available in both English and Spanish to enable you to reach a wider audience effectively. You could invest in professional translation services to ensure accuracy, effectiveness, and cultural appropriateness in both languages.

Additionally, you should practice speaking Spanish whenever possible, because even simple conversations can improve your confidence and skills over time. You may want to engage with locals through social events or community activities, to both improve your language skills but also to help you understand cultural norms better and build friendly connections within the community. Remember, there’s nothing wrong with asking locals for help or clarification when listening to or speaking Spanish, as most will appreciate that someone is trying to learn their language and will be happy to assist you.

Implementing secure payment solutions

As an online business owner in Spain, offering secure and convenient payment options to your customers is crucial for building trust and creating a trustworthy brand image. Unfortunately, setting up payment solutions that cater to both local and international customers can present challenges, due to varying regulations and preferences depending on the region your buyer is from. For example, many traditional payment processors may not support certain types of transactions or might charge extortionate fees that cut into your profits over time. Additionally, making sure you are compliant with European financial regulations such as GDPR (General Data Protection Regulation) for data protection can add another layer of confusion and complexity when trying to select the right payment gateway provider.

If you do not understand these regulations properly, you risk facing penalties that could negatively impact your business operations down the line. You should research which payment processors are popular in Spain and wider Europe while also offering multi-currency support and complying with European financial regulations. You should also look for a payment gateway with a user-friendly interface for both suppliers and customers.

It's also advisable to consider offering multiple payment options to cater to different customer preferences, such as credit cards, bank transfers, or even cryptocurrency for more privacy-focused buyers. By providing multiple payment options, you make it easier for customers to complete their purchases without frustration and improve their overall shopping experience. This can lead to more positive reviews and subsequently more repeat customers, as well as lower rates of cart abandonment, which is when shoppers add items to their online cart but do not proceed with the check-out process.

Although running an online business in Spain as an expat can be challenging, it also offers many rewarding opportunities for growth and long-term success. However, instead of charging ahead and dealing with issues as they arise, it may be more sensible to plan in advance and anticipate roadblocks where possible. This will help you understand Spanish bureaucracy, overcome language barriers, and implement secure payment solutions, ensuring you build a solid foundation from which your business can continue to grow. Remember, ask for help whenever and wherever you need it to prevent costly misunderstandings, and consult with professionals at every step of the process to make the experience of launching and maintaining your online business as low-stress as possible.