Can I run a business from my flat or house in Spain?
For many self-employed foreigners in Spain, setting up their own business from home is the easiest and cheapest option. But what does Spanish law say about receiving customers if you live in a shared building, or even if you live in a separate house?
Having a home office or home business offers savings on the costs of premises or an office, as well as on daily commuting.
Picture pilates classes on your terrace, piano lessons from your studio, or therapy sessions from your living room – whatever your field, it’s often more convenient to kick off a new work venture from home.
For this reason, many self-employed people and small business owners in Spain choose this option and skip the separate premises altogether.
However, it’s not simply a case of setting up shop (or whatever other business you’re considering) and Spain’s strong housing law protections mean that there are rules to follow, as well as neighbours to keep on your side.
La Comunidad
Firstly, there’s a chance that your building already has rules banning businesses in the building as part of la comunidad – the homeowners’ association.
The so-called ‘articles of association’ governing your building, as well as the bylaws incorporated in la comunidad, set out the rights and obligations applicable to each individual property.
If that document or any building bylaw expressly states that the flats in the building are for “exclusively residential or housing” use, the ban is binding on all owners and by extension tenants.
Before launching your business, check the rules with the community president of your building.
READ ALSO: What property owners in Spain need to know about homeowners’ associations
What does the law say?
If there is no specific rule written into the community statues, you may be able to run your business from your home.
Spanish housing law doesn’t explicitly outlaw businesses in apartment buildings, but there are rules and your neighbours do have rights.
According to Jose Silva insurance brokers: “neither the Horizontal Property Act (LPH) nor the Civil Code strictly prohibit the setting up of a physical business in a flat. However, all the requirements laid down by both sets of regulations and the registered Articles the Homeowners’ Association must be complied with.”
So yes, you can legally speaking, but it all depends on your neighbours and the rules in your building, as mentioned above.
Often this comes down to Article 7.2 of Spain’s Horizontal Property Act (LPH).
What is Article 7.2?
Article 7.2 explicitly prohibits the carrying out of activities not permitted in the articles of association, or those that are nuisance-causing, unsanitary, harmful, dangerous or unlawful.
“The chair of the owners’ association, either on their own initiative or at the request of any of the owners or occupants, shall require any person carrying out the activities prohibited by this clause to cease them immediately, on pain of appropriate legal action being taken.”
Therefore, unlike setting up a large-scale commercial business in the building, setting up a private office practice (think giving English lessons, a law firm, a psychology practice) is in theory not prohibited by default.
However, there are limits set out in Article 7.2.
Although office work is, in principle, considered a quiet activity and thereby legal, it could lose its legal protections if that said work, or office space, produces problems for the neighbours, whether by clients arriving, overcrowding of the lift, the ringing of doorbells at unsociable hours or a lack of security disrupt the peace and quiet and the normal use of the communal areas by the other home owners.
Which businesses are usually allowed in a residential property?
In keeping with the above caveat, common businesses that may be established in residential properties include those that offer digital services such as marketing, design, writing, data analysis, advisors, the list goes on.
Because all you need is a desk and computer and internet installed, you’re generally not causing a nuisance to your neighbours at all. There’s no extra noise, waste or even clients walking through the building.
Also permitted are the manufacture and distribution of products, collection and delivery services and property management.
Remember, the legal key is that these businesses do not cause a nuisance or disrupt the lives of neighbours.
Client-facing businesses
If you’re opening a client facing business such as a holistic practice, centres dedicated to health and beauty, a psychology office, law firm etc, you will need to apply for what’s known as a ‘licencia de apertura‘ or opening licence from your town hall.
In order to be granted this, your business can only occupy a maximum of 50 percent of your total property, no more than that. To get the licence you will need to submit your business plans, a project report, the property deed or lease agreement if apartment is rented. Of course, you will also need the landlord’s permission before to operate a client-facing business.
It’s likely you will also need approval from your neighbours’ association because there will be lots of people coming and going within the building. If for example, your clients are using the lift and lights a lot all day, the association may ask you to increase your community fee to help pay for the extra costs.
If you’re offering private tuition from your home like private language lessons for example, you may be able to get away with not getting an opening licence if you just a few per day and there’s only one of them at a time. If, however, you have a whole class of students it’s likely your neighbours are going to notice and they’ll want to make sure you have the correct licences in places, as well as have their day on whether it’s ok or not.
What about if I live in a house?
If you don’t live in a shared building, this process should be much easier, depending on the business.
You won’t need permission from la comunidad, but you may still need to apply for the licencia de apertura, as well as other specific licenses from your local town hall if your business is welcoming clients into your home.
If you intend to adapt your home in any way to make room for your business, you may also need a building licence.
Remember, wherever you intend to open your business, if you’re self employed you need to make sure you register properly in order to legally operate and be able to invoice. You need to make sure you register with both social security and the Hacienda separately.
