Jorge, a programmer from La Rioja, opened My Casa in Da Nang (Vietnam) twelve years ago. His business pays a 20% corporate tax, an 8% VAT on food and a 10% on drinks.
Jorge, originally from Logroño, arrived in Vietnam twelve years ago intending to travel for a year through Southeast Asia. However, the trip turned into a business project that he now runs: the restaurant My Casa, in Da Nang, a meeting point for the Spanish-speaking community.
The establishment, serving Hispanic-Italian cuisine, is taxed in Vietnam with a 20% corporate tax on profits, as Jorge explains on the channel @MeVoyAlMundo. In addition, there is an 8% VAT on food and 10% on drinks.
An Initial Investment of 1,000 Euros
The project started with a very modest investment. Jorge and his two partners each contributed 1,000 euros to open a small venue. "The most expensive thing we bought was the fridge," he recalls. They had no big expectations, but customers kept returning, so they decided to continue.
More than a decade later, My Casa has established itself as a reference point. "We make traditional and fusion food with Italian; this is like a small embassy of Spain," Jorge states. The restaurant attracts both expatriates and Spanish-speaking tourists looking for a familiar taste in Southeast Asia.
Taxation and Ease of Starting a Business in Vietnam
One of the key aspects for any entrepreneur is the tax burden. Jorge details that, once the profit is calculated, a 20% tax is applied. After that, the partners receive a salary that is taxed progressively. "Once you declare the profit, there are no other taxes to pay," he assures, based on advice from his accountant.
Moreover, he highlights that in Da Nang there are facilities for opening small businesses with reduced costs. The quality of life is high and daily expenses are low, which attracts foreign entrepreneurs. However, one of the main challenges is managing staff due to differences in work culture.
For Spaniards considering starting a business in Vietnam, the key is to be well-informed about local regulations and to have an accountant. The 20% tax rate is lower than in Spain, where the Corporate Tax is 25% (or 23% for newly established companies). Additionally, the reduced VAT in the restaurant sector (8%) is also lower than the general Spanish rate of 10% for hospitality.
Jorge advises anyone looking to take the plunge to "thoroughly research the market and seek advice from a local accountant." His experience shows that with a low initial investment and a quality product, it is possible to build a profitable business in Southeast Asia.
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