Hi All, I have lived in Spain for 6 years and am married for 3 years and about to have my first child.

I am employed as an English teacher and happily work under a "filo discontinuo" contract. This summer my employer is also granting me paternity pay and I appreciate that very much.

However, my query is about my side-gig/hobby. Since March 2023, I have been also doing a few (not a large amount) of classes online via an online platform, initially from March til about September 2023, it was incredibly minimal both in output and also financially too. I am essentially earning between 10 - 12€ an hour on this app. The classes are a means for a little extra cash and also because I actually enjoy teaching and see it kind of like a hobby whereby I interact and learn about other people from other countries, it also helps my teaching here in Spain by doing this too.

I'm at a point where basically I do these classes in my spare time, between academy and business classes and I would say I can earn now between 200- 400€ in any given month (at least since about November of 2023) Obviously it varies and fluctuates greatly.

The EU has recently introduced the DAC7 to many online platforms and the one which I am using is now fully-engaged with this compliance law and I am wondering if any of you can tell me is there a "TAX" threshold in a fiscal year whereby I wouldn't need to declare taxes on this?" I have already filled my declaracion de la renta for the 2023 year. But I am wondering more about next year given that these side-gigs have increased during this year for me. But even though the payment is 10-12 euros an hour, it seems incredibly harsh to be taxed on this, that would be that each class could only amount to 6 or 7 euros after taxation. Which means its very stupid to do it. Some would even say doing it for 10-12 euros is stupid, but needs must in this country. Especially with a family on the way.

The DAC7 in particular seems like its targeting the hard-working and poor and will be trying to paint these people as tax dodgers and criminals. I especially don't understand how someone using Wallapop or a teenager using Vinted, should even be scrutinised for selling second-hand products?? It seems incredibly dystopian and Big Brother to me.

Other questions I have for the community is can someone be autonomo and employed at the same time? Would this be something i need to consider? is it even worth it?

All advice is welcome, as I said, I am expecting a baby and would prefer to be legally above board and doing things to the correct way, but as it's Spain, its not easy and I have no idea where to realistically begin.



Any help, will be gratefully received.

Thanks,

Many countries still aren't legally and technically ready for DAC7, including Spain. So Hacienda hasn't received 2023 tax year data from platforms.

For second-hand sales platforms, Hacienda will only receive the data for those people who make more than 2000€/year or sell 30 times a year or more.

For teaching platforms, I'm not sure if there's a lower limit or not.

For private tutors who give private classes as bit of extra income, you don't have to be set up as autonomo, you don't charge 15% IVA unless the customer is a business or autonomo, and each class or series of classes should be billed. You just need to declare the amount as IRPF. This is the case regardless of whether or not DAC7 is working. You might want to declare anyway in case the 2023 data is received later this year.

I guess it'll be working this time next year and your 2024 tax return will be magically filled in with this data and you'd just need to confirm it.

Disclaimer: I'm not a financial advisor, I could be wrong...

Interesting thanks, I think for 2023, the earnings were definitely on or just a little above 2000€ from March - December 2023, I have already filled in my declaracion de la renta and didn't declare this at all because well, life and stuff and in fact got money back from hacienda due to my academy likely having me pay more during the year the tax year.

For 2024 I will make individual invoices for each month I guess in order to cover myself. But do I deduct 15% to the final earning OR add 15% that's what I don't get at all.

But the online platform, which is an American owned business, I suppose would be considered a "BUSINESS" but I am not invoicing them? they're the ones paying me, so how exactly would this work??

No idea, its absolutely confusing for me.

Any other teaching experiencing this?

If I go to speak to someone who do I need to see a gestoria or asesoria??

There is no point in arguing whether the system if fair or not as it is irrelevant in face of the taxman If you are earning around 400€ a month without a contract then you either need to stop or you need to go automino. You can go automino with your school and do the online work too as that means you effectively have clients so it is not a false automino however of course the automino payments will eventually swallow most of the online work. In the past people were paid in cash for this type of work so it was quite common but now anything done online will mean electronic payment so it is harder to disguise. If you do go automino then you can always look at it like this- you and all your family get free healthcare, you can get benefits and you are effectively investing in a pension so it doesn't have to be seen as a totally negative thing. If you have made contributions in UK but not reached your maximum limits you should make sure you pay type 2 voluntary (£179 a year) and any gaps. This will give you a UK pension. If you have 6 years Spanish contributions then 9 years of automino will give you a separate Spanish pension ( not a full one but possibly up to 700€ a month). So despite the large automino payments now you could end up with 2 national pensions -which would be more than even Elton John gets!!!

Could you give me more information about the Type 2 payment for the UK please, I have worked and paid my NI contributions since I was 17 until I was 32 and moved to Spain. I never even knew about that option to top up my UK contributions.

As for My work in Spain, I have to say I haven't actually earned 400 euros a month, that was a rough figure 200-400.

I don't really know how being autonomo will help me as my academy have me on a decent contract and I am a favoured teacher, this will change once I have my child.

Thanks for your reply.

You need to get a UK government Gateway account
This will show you how many years you have. You can then pay to fill up your pension. As for Spain - you cannot just declare your private classes on your renta. You need to be automino for that money to be legal.

What do you make of my link where it talks about the specific exemption for teachers giving private lessons as secondary income?

To the original poster, I was going to say maybe your teaching platform has information about how to declare the income on your tax returns, but it's an American platform so the chances are they won't know or care. If the platform has a teachers forum you may find somone there who knows? Also you should think about going to a gestor or asesoria now to see if income from this platform also counts as secondary income or it's something more complicated.

​​​​​​Yo u can only do sporadic private work for la Renta If you already have a contract as an employee. If you receive money monthly from private work you need to be automino. The OP works privately each month so they need to be automino. This is why teachers are allowed to work as examiners in the summer whilst still under contracts- it is sporadic so they don't do it every month.

But the OP's main job is under a fijo discontinuo contract.

I agree if they weren't renewed in September then they would have to consider going autonomo but while it's renewed every year there shouldn't be a problem, surely?

His fijo discontinuo is a contract that every teacher has now- that is his principle job. His monthly private online work is regular too. He can't have both. He needs to be automino or stop doing private classes. He can get Paro when he is bajo or can do other work but will still need to be automino even if it is summer work
​​​​​​

The OP could (and does) give private classes in person, but is free to set when that happens. Likewise unless the teaching platform demands that she works a certain pre-agreed timetable every day then they are also not regular classes. The main test appears to be if the extra income is less than the sueldo minimo interprofesional.

I don't think it's possible to get unemployment benefit while in set up as autonomo.

I think there are three things which need to be checked at a gestor:

1. How exactly to declare any IVA for in-person private classes given to companies/autonomos or if it is the company/autonomo which does this.
2. Is it possible to give and receive payment for private classes over summer while collecting accrued unemployment benefit?
3. How exactly to declare the income from private classes given on the online platform and what data from the platform should be kept to back that up (in the same way as you keep invoices from in-person private classes which usually aren't looked at by a tax inspector unless they ask for more details).

Unfortunately no. The OP has classes online which will obviously be scheduled by the platform they use plus they receive monthly payments. The exception is simply for very sporadic work now and then- not every month with same client. I am a teacher of 20 years so have been through this argument numerous times. Lots of teachers do this admittedly but they are simply kidding themselves that it is allowed. A few years ago many did it face to face and it was cash in hand so that was easy to get away with. Online with an actual platform setting up payments and dealing with client it is impossible to hide it. So again , he needs to stop it or go automino. The bit about Paro means they get it in the summer when their contract is paused. Or they can go automino for a couple of months but obviously they can't be working and getting Paro at same time. Also the OP shouldnt think that if they declare it along with their salary they will be okay. The hacienda always checks the retenciones you get from your employer so it is easy for them to see that there is an extra source of earned income. Incidentally it is not just teachers. Everyone who is employed can do this irregular one off work and not be automino.My wife does a yearly translation of magazine. Last year she was employed and could do it as it was irregular and once a year. However she wanted to do Teaching online a few hours a week but couldn't as it would be regular. She has done lots of jobs in Spain mainly teaching, translation and administration so she know all the laws of employment and tax inside out.
​​​

Thanks for all the replies guys. My mother in law told me apparently you need to earn 3000€ in a fiscal year or more to go autonomo but i would still need to declare these classes. I think I need to speak to a gestoria first. Once I do that I will let everyone know the score.

Your mother in law is wrong but probably means that you would need to pay approx 3.000€ to be automino as you have to pay around 270€ a month irrespective of your earnings.

Putting the Tax question to one side, and not really knowing the nature of your tutoring, have you thought about approaching it from another angle?
If the goal is to generate extra income and at the same time get some extra fun out of teaching, have you considered YouTube as your platform instead?
Rather than sitting behind the PC each time for those 12 Euro's, you can earn it while you sleep and still have the option to give one on one tutoring as well.

If you have an office/workroom and you are prepared to invest a little in decent equipment it will take some practice but you could start producing your own video content.
The threshold is low (aka. cheap) for the users but your income is driven more by advertising and not the end user. You build likes and subscribers as time goes on.
You'd be surprised how well it works, but like I said, it does require some investment both in time and financially.

With careful planning you CAN target your audience to a specific group or groups, and of course there are probably many English lessons online already.
Give it a go!