Relocating company and it's assets from another EU country to Spain

Hi,

I would like to know if someone wants to move to Spain and stay there for longer than 6 months per year, and start an Autonomo (self employed) business there, what are the options if you are already self employed in another country in the EU and have your own company there? I have a small self-employed company in another EU country and I wonder if I can move the capital from the existing company to a new company in Spain? The reason for this obviously so that I don't lose the small amount of capital that my business has acquired in the other country.


Is there a general rule or common practice for self employed or people with small business when moving to Spain so that you can keep your life's savings in the company :)  ?

@expatboyz


Welcome to the expat.com forum and good luck with your potential move to Spain!


You're mentioning several issues here: residence in another EU country, being self-employed (or "autonomo" in Spain), and owning a limited company.


You can obtain legal residence in any EU country very easily as you're an EU citizen (strictly speaking, it's an "EU Citizen Registration"). This is entirely separate from your employment status. It is also (at least until you start spending more than 183 days a year in your new country) separate from your tax residence.


If you're currently self-employed in Sweden, I see no reason why you can't continue as self-employed there, if you want to, even if you spend many months a year elsewhere. But Spanish tax, while not low, is lower than Sweden. So it's probably more tax-effective to change from self-employed in Sweden, to self-employed in Spain. It's probably even possible to be registered as self-employed in both countries, but it sounds a bit cumbersome to me.


Limited companies are independent entities, they continue to exist regardless of your residence status, self-employment status, or tax residence. Although it's not very common for someone to be both self-employed and have a company. Usually, you'd pick one or the other as most appropriate for your business/personal situation.


Moreover, there is "portability" within the EU. You can have a limited company incorporated in any EU country, and you can use it to invoice customers in any/all EU countries. Thus, if you move to Spain, there is no requirement for you to incorporate a new Spanish company. Indeed, this is why many choose to utilize an Irish or Bulgarian limited company instead of either a Swedish or Spanish one (portability + lower corporate tax rate in the country of incorporation).


If you don't need Company A (in Sweden, say) anymore, then you can disburse its funds, and close the company. Then you can incorporate Company B (in Spain, say) and deposit your funds into it.


Separately, I'm not sure it's advisable to keep your "life's savings" in your company! I would suggest you should be squirreling it away somewhere safe. :-) But it's certainly possible that Company A is very valuable: perhaps it's very profitable, and there's lots of money in its bank account; perhaps you used these funds to acquire a property for its business premises, rather than renting; perhaps you've enjoyed the tax-favourable treatment of pension saving to build up a large company pension pot over the years. This is a bit harder to unwind, and I don't think it would be advisable. Instead, this is a case where you'd be better off keeping it as is, and using EU portability to continue the business even though you have personally relocated elsewhere.