Thinking of Setting Up an Active Tourism Business?

What Are the Rules?

Tourism and Leisure Business Rules in Spain

The demand for active tourism activities in Spain, such as paragliding, cycling, kayaking, and more, is substantial. However, foreigners interested in establishing tourism-related businesses of this nature should ensure they are well-versed in the relevant regulations.

Spain’s favourable climate encourages outdoor leisure activities, whether along its extensive coastline or within its rugged mountain ranges, making it an ideal location for active tourism, locally known as “turismo activo.” As the world’s second most visited country, Spain offers ample opportunities for establishing tourism and leisure enterprises.

Nevertheless, individuals dreaming of launching a tourism and leisure company in Spain should be aware of the significant legal and administrative requirements involved. A recent crackdown on active tourism businesses in the Canary Islands, many of which were operated by foreigners (primarily Italians and other Europeans) without proper documentation, highlights the potential pitfalls of not complying with Spanish law.

Understanding Regional Regulations:

It is crucial to recognize that in Spain, the registration of tourism and leisure businesses is conducted at the regional level. Each region holds authority over the registration of companies in its Register of Active Tourism Companies. Consequently, rules and regulations can vary from one region to another, although they are not entirely dissimilar. Location plays a pivotal role in determining the paperwork, processes, timeframes, and even tax considerations associated with setting up a business. To make informed decisions, thorough research of regional rules and consultations with regional authorities are essential.

Application Procedures:

Applications for registration and authorization are typically submitted to the regional Ministry of Tourism. Applicants may be required to provide basic information about their companies, including a business plan, physical address, anticipated workforce size, equipment inventory, and other relevant details.

It is crucial to recognize that in Spain, the registration of tourism and leisure businesses is conducted at the regional level.

Civil Liability Insurance:

Civil liability insurance is mandatory when seeking authorization, and businesses may also need to establish an action protocol for responding to accidents.

Activity Licenses:

The primary license required is an activity license issued by the regional authority, permitting the operation of companies in the sector within the region. This license informs the tourist authorities of any changes, such as the initiation or cessation of business activities, name changes, headquarters or ownership alterations, and other developments that may impact other companies in the sector. If a business intends to operate in multiple regions, the activity license from its fiscal domicile region should generally be valid throughout Spain, provided it adheres to specific regional requirements.

Types of Companies Requiring Activity Licenses:

Companies engaged in regular and professional recreational, sports, and adventure tourist activities conducted in natural environments—be it air, land, underground, or aquatic—with inherent levels of risk, are subject to activity license requirements.

Additional Compliance Measures:

There are several other rules and regulations businesses in this sector must adhere to:

  1. Register the company under the appropriate sections of the IAE (Tax on Economic Activities), typically 967 and 721 for leisure businesses.
  2. Register the company with Spain’s Social Security system.
  3. Obtain necessary licenses and building permissions for any infrastructure or developments related to the business.
  4. Declare the commencement of business activities to the census.
  5. Establish official financial records, which may necessitate the assistance of an accountant for non-Spanish speakers or individuals.
  6. Register for VAT (IVA) and Personal Income Tax (IRPF) payments.
  7. Some regions may require the maintenance of an official visitors’ book.
  8. Depending on the region, minimum staffing levels (typically between 2 and 5 employees) and specific facility requirements may apply.