was around the autonomo? LTD company? Advice please.
#1
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Joined: Mar 2013
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was around the autonomo? LTD company? Advice please.
Hi all.
so after my last thread i am guessing if i dont want to be robbed of €260 per month before i have earned via the autonomo payment i will have to look at alternatives?
is it better for me to:
1. turn my companies in to a LTD or Vat registered company, registered here in the uk and live+work in spain (are they different or the same thing?) then pay myself dividends or a wage. If its either of these can i still use the money as and when i like as long as the figures add up at the end of the tax year? also is it allowed so you have a varied wage dependant on what comes in as the income will vary from month to month. I've also read to do this you put one of your family as a non earning director so that it can remain registered in the UK.
2. if i am paying myself a wage and living+working in spain do i pay tax here or in spain on that wage?
3. how do i avoid double taxation? if i have a uk & spanish bank account will i only be taxed dependant on where the source of the money comes from? i.e if i do a job for a uk company and they pay into my uk bank account will i have to pay uk & spanish tax on this or just one of them // also if i do a DJ gig for a spanish company and get paid in euros in my spanish bank account do i pay just spanish tax on this or will i be taxed from both countries.
i just need to be clear on what is the best possible out come so i am paying the least tax and it is best financially for me?
hope you can help.
Speak soon.
Dan
so after my last thread i am guessing if i dont want to be robbed of €260 per month before i have earned via the autonomo payment i will have to look at alternatives?
is it better for me to:
1. turn my companies in to a LTD or Vat registered company, registered here in the uk and live+work in spain (are they different or the same thing?) then pay myself dividends or a wage. If its either of these can i still use the money as and when i like as long as the figures add up at the end of the tax year? also is it allowed so you have a varied wage dependant on what comes in as the income will vary from month to month. I've also read to do this you put one of your family as a non earning director so that it can remain registered in the UK.
2. if i am paying myself a wage and living+working in spain do i pay tax here or in spain on that wage?
3. how do i avoid double taxation? if i have a uk & spanish bank account will i only be taxed dependant on where the source of the money comes from? i.e if i do a job for a uk company and they pay into my uk bank account will i have to pay uk & spanish tax on this or just one of them // also if i do a DJ gig for a spanish company and get paid in euros in my spanish bank account do i pay just spanish tax on this or will i be taxed from both countries.
i just need to be clear on what is the best possible out come so i am paying the least tax and it is best financially for me?
hope you can help.
Speak soon.
Dan
#2
Re: was around the autonomo? LTD company? Advice please.
Hi all.
so after my last thread i am guessing if i dont want to be robbed of €260 per month before i have earned via the autonomo payment i will have to look at alternatives?
is it better for me to:
1. turn my companies in to a LTD or Vat registered company, registered here in the uk and live+work in spain (are they different or the same thing?) then pay myself dividends or a wage. If its either of these can i still use the money as and when i like as long as the figures add up at the end of the tax year? also is it allowed so you have a varied wage dependant on what comes in as the income will vary from month to month. I've also read to do this you put one of your family as a non earning director so that it can remain registered in the UK.
2. if i am paying myself a wage and living+working in spain do i pay tax here or in spain on that wage?
3. how do i avoid double taxation? if i have a uk & spanish bank account will i only be taxed dependant on where the source of the money comes from? i.e if i do a job for a uk company and they pay into my uk bank account will i have to pay uk & spanish tax on this or just one of them // also if i do a DJ gig for a spanish company and get paid in euros in my spanish bank account do i pay just spanish tax on this or will i be taxed from both countries.
i just need to be clear on what is the best possible out come so i am paying the least tax and it is best financially for me?
hope you can help.
Speak soon.
Dan
so after my last thread i am guessing if i dont want to be robbed of €260 per month before i have earned via the autonomo payment i will have to look at alternatives?
is it better for me to:
1. turn my companies in to a LTD or Vat registered company, registered here in the uk and live+work in spain (are they different or the same thing?) then pay myself dividends or a wage. If its either of these can i still use the money as and when i like as long as the figures add up at the end of the tax year? also is it allowed so you have a varied wage dependant on what comes in as the income will vary from month to month. I've also read to do this you put one of your family as a non earning director so that it can remain registered in the UK.
2. if i am paying myself a wage and living+working in spain do i pay tax here or in spain on that wage?
3. how do i avoid double taxation? if i have a uk & spanish bank account will i only be taxed dependant on where the source of the money comes from? i.e if i do a job for a uk company and they pay into my uk bank account will i have to pay uk & spanish tax on this or just one of them // also if i do a DJ gig for a spanish company and get paid in euros in my spanish bank account do i pay just spanish tax on this or will i be taxed from both countries.
i just need to be clear on what is the best possible out come so i am paying the least tax and it is best financially for me?
hope you can help.
Speak soon.
Dan
you'd be contributing towards a country you choose to live in - I see nothing 'robbing' in that...........
#3
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Joined: Mar 2013
Posts: 18
Re: was around the autonomo? LTD company? Advice please.
Regardless of that I can get private health insurance for less than that a months and I will probably still be paying tax to the country but obviously I want to keep this as low as possible and having to pay €260 a month then tax in top is a bit much really.
#4
Re: was around the autonomo? LTD company? Advice please.
I believe there are ways of continuing to work for a UK company - but I always understood that this was only possible for 2 years, though I might be wrong - I know some other posters here will know more about this
#5
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Re: was around the autonomo? LTD company? Advice please.
I have posted this several times before
http://www.advoco.es/hot-topics/43-g...mo-system.html
which will get you started on what is required to register as Autonomo
As to going S.L. (Spanish eqvt of Ltd)
http://www.advoco.es/most-requested-...-in-spain.html
but the first director is treated in exactly the same way as Autonomo and has to pay the necessary dues. All others are employees and they have to pay the employee tax and the company pays the employers.
It isn't really much different to the UK, except that you have to remember the charges start on Day 1, irrespective of how many or how few customers you have. Even if you have a 3month period where you are developing the business and generating sales interest you still have to pay the Autonomo charge.
The only way to get an IVA number is to register as A or SL, and when A you have to take into account that your customers can withold 15% (IIRC) of the nett value to ensure the govt/hacienda get their dues.
If you have a UK Ltd and operate from Spain you will be expected to have a Branch office, which is subject to the same rules
Its complicated, its different to that of the UK, but it is Spain's way and there is nothing you can do about it if living here.
the full list of advice pages is on
http://www.advoco.es/advice.html
I am sure (in fact I know) there are others who offer help, assistance, advice etc and a google with the right keywords will get them for you.
I have information on EU initiatives and a couple of things about SP initiatives but there are more why's and wherefore's involved with those
hope this helps
Dom
http://www.advoco.es/hot-topics/43-g...mo-system.html
which will get you started on what is required to register as Autonomo
As to going S.L. (Spanish eqvt of Ltd)
http://www.advoco.es/most-requested-...-in-spain.html
but the first director is treated in exactly the same way as Autonomo and has to pay the necessary dues. All others are employees and they have to pay the employee tax and the company pays the employers.
It isn't really much different to the UK, except that you have to remember the charges start on Day 1, irrespective of how many or how few customers you have. Even if you have a 3month period where you are developing the business and generating sales interest you still have to pay the Autonomo charge.
The only way to get an IVA number is to register as A or SL, and when A you have to take into account that your customers can withold 15% (IIRC) of the nett value to ensure the govt/hacienda get their dues.
If you have a UK Ltd and operate from Spain you will be expected to have a Branch office, which is subject to the same rules
Its complicated, its different to that of the UK, but it is Spain's way and there is nothing you can do about it if living here.
the full list of advice pages is on
http://www.advoco.es/advice.html
I am sure (in fact I know) there are others who offer help, assistance, advice etc and a google with the right keywords will get them for you.
I have information on EU initiatives and a couple of things about SP initiatives but there are more why's and wherefore's involved with those
hope this helps
Dom
#6
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Joined: Mar 2013
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Re: was around the autonomo? LTD company? Advice please.
Thanks for that. That guide on the adcovo website is mega helpful. In short even if I set up a ltd company here I will still have to pay autonomo. So I might as well be registered self employed in Spain.
All though no one has mentioned or commented on the idea that I could set up a uk based/registered ltd company put one of my parents as a non earning director here in the uk then employ me as an employee based in Spain, could that work? Then I would pay the reduced employee tax & social security right? And would not have to deal with Spanish vat?
Thoughts people....
All though no one has mentioned or commented on the idea that I could set up a uk based/registered ltd company put one of my parents as a non earning director here in the uk then employ me as an employee based in Spain, could that work? Then I would pay the reduced employee tax & social security right? And would not have to deal with Spanish vat?
Thoughts people....
#7
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Joined: Apr 2008
Posts: 3,081
Re: was around the autonomo? LTD company? Advice please.
Thanks for that. That guide on the adcovo website is mega helpful. In short even if I set up a ltd company here I will still have to pay autonomo. So I might as well be registered self employed in Spain.
All though no one has mentioned or commented on the idea that I could set up a uk based/registered ltd company put one of my parents as a non earning director here in the uk then employ me as an employee based in Spain, could that work? Then I would pay the reduced employee tax & social security right? And would not have to deal with Spanish vat?
Thoughts people....
All though no one has mentioned or commented on the idea that I could set up a uk based/registered ltd company put one of my parents as a non earning director here in the uk then employ me as an employee based in Spain, could that work? Then I would pay the reduced employee tax & social security right? And would not have to deal with Spanish vat?
Thoughts people....
Hitting the ground running with all in place to "play the system" from day one, is something they may admire.
On the other hand they may hate it, because they probably worked for a least a year or 2 and paid their dues like good citizens before they found the loopholes.
Whereas you will have a headstart over them.
#8
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Re: was around the autonomo? LTD company? Advice please.
It's not about not paying my dues I just want to make sure I am not over paying my dues and my move is financial viable. Happy to pay spanish and uk tax, just of the combination is better and pays less then that makes more sense to me rather than me paying all Spanish and it becoming more expensive for me to run as self employed.....
#9
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: was around the autonomo? LTD company? Advice please.
Thanks for that. That guide on the adcovo website is mega helpful. In short even if I set up a ltd company here I will still have to pay autonomo. So I might as well be registered self employed in Spain.
All though no one has mentioned or commented on the idea that I could set up a uk based/registered ltd company put one of my parents as a non earning director here in the uk then employ me as an employee based in Spain, could that work? Then I would pay the reduced employee tax & social security right? And would not have to deal with Spanish vat?
Thoughts people....
All though no one has mentioned or commented on the idea that I could set up a uk based/registered ltd company put one of my parents as a non earning director here in the uk then employ me as an employee based in Spain, could that work? Then I would pay the reduced employee tax & social security right? And would not have to deal with Spanish vat?
Thoughts people....
They either must set up a Spanish version of the company (very expensive) and pay your social security, or you must bill them as a client and pay your own autonomo fees (the last option has its complications that I wont go into now)
There is no legal way of avoiding the autonomo payment
To be fair, if you are earning a semi-decent salary then the autonomo payment is only the same, or even less than UK national insurance payments. If you arent going to be earning that much, then you may want to think twice about the kind of lifestyle you will be having in Spain
#10
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Re: was around the autonomo? LTD company? Advice please.
So are you autonomo?
#12
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Re: was around the autonomo? LTD company? Advice please.
So as autonomo do you have a personal bank account or a business one?
Also do you pay vat now you are spanish based, as I'm self employed and below the thresh hold here so I'm not vat registered here.
Also do you pay vat now you are spanish based, as I'm self employed and below the thresh hold here so I'm not vat registered here.
#13
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Re: was around the autonomo? LTD company? Advice please.
I charge IVA (VAT) at 0% for cross-EU invoices and at 21% for Spanish invoices. What IVA you charge will depend on your business
You may need to use a gestor to work these things out for you. I'm OK because my wife is also autonomo and she went on a short autonomo training course and her sister is a tax lawyer
#14
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Re: was around the autonomo? LTD company? Advice please.
Ha you have it sorted then ;-).
Most of my invoicing will be to Europe and USA as I promote releases for record labels. So I guess it'll be 0% for eu ones and what would it be for USA based companies?
Most of my invoicing will be to Europe and USA as I promote releases for record labels. So I guess it'll be 0% for eu ones and what would it be for USA based companies?
#15
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Re: was around the autonomo? LTD company? Advice please.
The IVA rate depends on the nature of your business and the geography. So it may not be 0% in the EU. You will need to check with a professional or do some research on the Spanish tax sites