Victor(44)

I had an e-commerce business in Rotterdam for twelve years — a BV with four employees. Revenue was good, but costs increased every year: rent, salaries, taxes, and increasingly strict regulations. When I heard about Valencia's startup culture at a conference, I started calculating.

The first step was setting up a Sociedad Limitada (SL), the Spanish equivalent of a BV/Ltd. The minimum capital is only €3,000 (in the Netherlands it's €0.01, but in practice you need more). Through an abogado and a notary in Valencia, the SL was established within four weeks. Total costs: about €2,200 including notary, registro mercantil and the gestoría. You need an NIE, a Spanish bank account at a business bank — I'm with CaixaBank — and a certificado digital for all online government matters.

Corporate tax (Impuesto de Sociedades) is 25%, but for the first two profitable years new companies pay only 15%. That makes a huge difference. VAT (IVA) is 21%, comparable to the Netherlands. Where I really save is on lower office costs and salaries: my office in Ruzafa, a trendy neighborhood in Valencia, costs €650 per month for 60 square meters. A junior developer costs €28,000 gross per year here — in Rotterdam that was €42,000.

Spanish business culture is fundamentally different from Dutch culture. In the Netherlands you call, send a quote and sign the contract the same week. In Spain you go for lunch first. Twice. Maybe three times. Business relationships here are built on personal trust, not PowerPoints. That took adjustment, but the result is that my client relationships here are deeper and more loyal.

Valencia as a city is a hidden gem for entrepreneurs. It's cheaper than Barcelona and Madrid, but has excellent infrastructure, an international airport, and the Ciudad de las Artes y las Ciencias attracts innovative companies. The local government offers subsidies for foreign entrepreneurs through the IVACE program. I received €8,000 in subsidies for hiring my first Spanish employee.

My advice to Dutch entrepreneurs considering Spain: get a good asesor fiscal (tax advisor) who knows both systems. Be aware of the modelo 720 — the mandatory declaration of foreign assets above €50,000. And be patient with the bureaucracy. It pays off. I now generate more revenue than in Rotterdam, with lower costs and a life where I'm sitting on a terrace at seven in the evening instead of stuck in traffic on the A16.