Being a student - tax implications
 

Summary: What taxes / social sec. insurance / contributions / etc do students need to pay whilst they are resident in Spain?

We're planning on spending a couple of years in Spain studying the language/culture and whatever else takes our fancy. (We have EU citizenship so don't need visas)

Reading through the Australia/Spain double taxation treaty I noticed that students were explicitly exempt from being taxed in the 'second' country, so long as those payments were made to support the students' activity in the second country.

This could be an alternative to registering as an Autonomo - especially given that we're not planning on working at all whilst in Spain.

Seems like a handy way to avoid the complex nightmare of double taxes rebates, etc.

From what I read an Autonomo is liable for a minimum of > EUR200/month even if they earn zero. I presume this is not also the case for students?

Re: Being a student - tax implications
 

Autonomo is for people who are self-employed. If you are a full-time student you wouldnt be able to pay autonomo.

I dont know the case exactly, but I'm sure it will depend on what you call a student. If you are going to university then there will be agreements with the UK that mean you will be covered for health insurance, contact the uni for more info.

If you just want to do a few private Spanish courses, then you will need to cover your own medical expenses/insurance, unless you are over 65.

If you want to work then the employer will pay your social security contributions and you will pay tax if you earn over a certain amount. Just like in the UK. However, not many students work while they are university, so research the chances of getting a job before you go.

Re: Being a student - tax implications
 

I'm wondering, is it actually possible to opt out of the national insurance system and just pay for your own health insurance?

I won't be working. I own a company in Australia and I can choose to receive dividends from it, or not, depending on the tax implications.

It seems to me that to be resident - as an EU national - you need to be a student, a worker, or a pensioner. There don't appear to be any other options.

As I'm not really any of these, it's tricky to work out which one I should "become"!

Re: Being a student - tax implications
 

I am assuming you hold an EU passport

In which case you can become resident in Spain, but you dont need to become any of those things. You will need to declare your worldwide income and pay taxes depending on the double taxation agreements. For heath insurance, you do not need to contribute to the state heath system or social security if you are not working. You can contract private insurance or just pay the bills as you use the Spanish state system.

Re: Being a student - tax implications
 

The OP has referred to Australia in both their posts so they'd be unlikely to hold an EU passport...unless they've moved Australia ;)

Re: Being a student - tax implications
 

ah - but he also says he has EU citizenship:)

Re: Being a student - tax implications
 

I'm none of those and yet am both resident here and also am fiscally resident (pay tax).

However, to get state health care (for any length of time), then you do have to be one of those three.