Gel101

Hi,

i have recentley moved to Spain and have accepted a autonomo position.

After some research I have found out my position is actually classed as autonomo dependiente.

Does anyone know about this category of autonomo and could you please explain the difference? It is soo confusing!

Thank you in advance!

lynnxa

I'd never heard of it - but found this http://gestionpyme.com/la-nueva-situ...-dependientes/
or in English http://translate.google.es/translate...tes%2F&act=url (if that works with google translate)

an ordinary autónomo will have several clients

it seems you will only have one?

Domino

A Google search for the thread title brings up the alternative of
autonomo economicamente dependiente

which brings up some interesting responses
still ploughing through them so cant tell you anything for definite but my guess is they are saying you are self employed for a contract period with only one client

a online dictionary response comes up with "self employed economically dependent" but what is that ?

anyone else ?

JuanSolo

As far as I understood it is a sort of contract but bound to an unique client. Autónomo refers to an individual who runs his/her own business (i.e. plumber), and autónomo económicamente dependiente (which is a contradiction on itself) has rectrictions (such as working for an unique client).

At last, and under my point of view, it is a trick for the company to have an employee but without payed vacations or illness and without firing indemnification. Just the money for the hours of work. If you need office stationery, special clothes or so, it goes on your expense, too.

You have to pay your social security, your VAT (IVA), and they can finish their contract with no liability.

I recommend you to read carefully the contract to avoid surprises, and get advice from the employment office.

Good luck with your new job!

Domino

so, as I was thinking, not an employee but a contractor who undertakes to do a specific job for a term\sum i.e. write a piece of software, prove it, run it and handover.

jay01

As someone who will be self employed you will need to make sure that what you are likely to take home exceeds what your monthly expenses will be,

approx 250 towards social
allowance for tax
fees for your accountant or hestaria
plus your living expenses and any thing else they can think to throw at you as your self employed, working for yourself here is very different from the UK, you will need to go get a social security number from your local ss office.

angiescarr

A gestor may be well worth the money even if just for a consultation on this. If you are Autonomo, even with only one client you should have a Tax number based on NIE. I'm not sure whether under this status you pay IVA (VAT) or your only client does. there is no amount you can earn without VAT in Spain. Certainly you need to start keeping receipts for anything that you use transport, workwear, office expenses etc. All should have your tax number and the tax number of the supplier. It may be that you have to submit three monthly declarations to Hacienda. Ask the company who employs you for guidance but check with a Gestor. Good luck with your job!

whitelinen

You should also factor in that the company paying you will withhold a percentage of the payment (Retenciones) which they later send to Hacienda (tax office) on your behalf.

Keep all your bills but be prepared for some of them to be disallowed. There are strict rules re for instance use of vehicle and not being able to claim for it.

A good Gestor based in the local area is invaluable.

Domino

I presume from all this that Spain has no equivalent of the UK's IR35 rules.

angiescarr

Ahh, Is that what they do. Actually that seems easier. Almost like PAYE!
Oh yes. If buying a vehicle, make sure it's considered by Hacienda to be a works van and not a 'turismo' otherwise they only consider half of your petrol costs. Which is a bit unfair because more than 80 percent of my car usage is for business. But I can't afford to change.
:-(

EsuriJohn

This would appear to be the exact opposite of IR 35 you can be contracted to work for just one company and not be an employee!

steviedeluxe

Well you can do this in the UK (and many do - done it myself). The point is that you don't get away with paying lower tax.

jdr

Not where I was, you could only be self employed if you had multi customers, if it was a single customer then they had to employ you.

steviedeluxe

Well I was talking about contracts via agencies - you could either use your own company or use an umbrella company. In both cases it's possible (or was) to work for a single company, but not be employed by them. IR35 (if I understand it correctly) was brought in to stop contractors paying less tax if they only had one main customer.

Domino

IIRC IR35 was brought in because contractors were advised by accountants that if they formed their own ltd co that would act as the interface with the client. The individiual would accept employment (by their own co) at minimal wage, paying tax at that rate, also employing wife in a similar manner.
Any extra money was taken as a "loan" from all that sloshing around in the company bank acct at minimal rates. At the end of the year the company would pay dividends to the shareholders, as this was already taxed money at a lower rate than the higher rate of tax then the income was not (or minimally) taxed when taken by the individual(s).

one of the main thrusts by HMRC in this was
"does the individual have control over what work he does, what hours, what rate of work, provide cover when not in due to sick\holiday etc."
failure of this meant the individual had to pay full taxation on the income irrespective of the umbrella being provided by the ltd co.

As I suggested earlier, this isnt (or doesnt appear) to be the case in Spain and under certain circumstances the employer is required to deduct tax at the basic rate, along with the social payment, to ensure the individual is correctly taxed.

I have read reams about this until my head wants to explode so I will have to come back to it in a week or so to put it all back in the right places, but....that is how I see the situation at this moment.

rgds