moving to spain help required 3 main questions. thank you.
Jul 18th 2018, 11:14 am
#16
BE Forum Addict
Joined: Aug 2009
Location: Costa Blanca
Posts: 3,142
Re: moving to spain help required 3 main questions. thank you.
The financial overhead of being self-employed here is legendary (bad news) maybe the new government that seems to be blitzing through changes may also get around to this issue.
A friend of mine decided to close her business due to this overhead (and other issues in fairness) and took early pension so now the government pays her.
A friend of mine decided to close her business due to this overhead (and other issues in fairness) and took early pension so now the government pays her.
Jul 18th 2018, 11:27 am
#17
Retired and loving it!
Joined: Sep 2007
Location: Ontinyent - Valencia region (campo)
Posts: 5,158
Re: moving to spain help required 3 main questions. thank you.
Look at the start-up rate of just 50€ per month!
Jul 18th 2018, 1:41 pm
#18
Forum Regular
Joined: Mar 2018
Location: Gandia
Posts: 201
Re: moving to spain help required 3 main questions. thank you.
Being fair the cost of running a LTD company in the UK is somewhat like this
£1200 + VAT for the accountant
£380 for business insurance, public liability etc
£13 for the companies house return
£1593 or £133 a month
Lloyd, on your stated earnings there would not be any NI to pay... but if you took a larger salary there would be NI contributions.
So think of the autonomo payment as more like National Insurance
€3480 Autonomo payment
€ 400 + IVA Gestor Acoountant fees
+ Any insurance that you may/may not need
£1200 + VAT for the accountant
£380 for business insurance, public liability etc
£13 for the companies house return
£1593 or £133 a month
Lloyd, on your stated earnings there would not be any NI to pay... but if you took a larger salary there would be NI contributions.
So think of the autonomo payment as more like National Insurance
€3480 Autonomo payment
€ 400 + IVA Gestor Acoountant fees
+ Any insurance that you may/may not need
Jul 18th 2018, 2:02 pm
#19
Forum Regular
Joined: Mar 2018
Location: Gandia
Posts: 201
Re: moving to spain help required 3 main questions. thank you.
The financial overhead of being self-employed here is legendary (bad news) maybe the new government that seems to be blitzing through changes may also get around to this issue.
A friend of mine decided to close her business due to this overhead (and other issues in fairness) and took early pension so now the government pays her.
A friend of mine decided to close her business due to this overhead (and other issues in fairness) and took early pension so now the government pays her.
Social Security is 9.7% in France (tax deductible)
If you own a limited company in the UK - you pay the employee contribution of 12% (after £8424) and the employer's contribution of 13.8% - Not Tax deductible! > So the UK isn't cheap either at 25.8% contributions for NI as a freelancer!
If you are only an employee of a company you may not realise this, but working as a freelancer in the UK is also expensive!
The €290 automono payment gives you healthcare for you an your immediate family and a minimum pension after 15 years > it is also tax deductible - assuming you earn enough to pay tax!
Last edited by Smithy73; Jul 18th 2018 at 2:06 pm.
Jul 18th 2018, 2:24 pm
#20
BE Forum Addict
Joined: Jan 2016
Posts: 2,320
Re: moving to spain help required 3 main questions. thank you.
It may be more expensive, but is a lot easier to become self employed here than say in France, where the bureaucracy is massive.
Social Security is 9.7% in France (tax deductible)
If you own a limited company in the UK - you pay the employee contribution of 12% (after £8424) and the employer's contribution of 13.8% - Not Tax deductible! > So the UK isn't cheap either at 25.8% contributions for NI as a freelancer!
If you are only an employee of a company you may not realise this, but working as a freelancer in the UK is also expensive!
The €290 automono payment gives you healthcare for you an your immediate family and a minimum pension after 15 years > it is also tax deductible - assuming you earn enough to pay tax!
Social Security is 9.7% in France (tax deductible)
If you own a limited company in the UK - you pay the employee contribution of 12% (after £8424) and the employer's contribution of 13.8% - Not Tax deductible! > So the UK isn't cheap either at 25.8% contributions for NI as a freelancer!
If you are only an employee of a company you may not realise this, but working as a freelancer in the UK is also expensive!
The €290 automono payment gives you healthcare for you an your immediate family and a minimum pension after 15 years > it is also tax deductible - assuming you earn enough to pay tax!
Jul 18th 2018, 3:48 pm
#21
Just Joined
Thread Starter
Joined: Jul 2018
Posts: 7
Re: moving to spain help required 3 main questions. thank you.
In our case going Limited is the best option as my wife and I are both self-employed.
Via a UK Limited company we can channel our earnings collectively and then declare in Spain.
Via a UK Limited company we can channel our earnings collectively and then declare in Spain.
Jul 18th 2018, 3:58 pm
#22
Retired and loving it!
Joined: Sep 2007
Location: Ontinyent - Valencia region (campo)
Posts: 5,158
Re: moving to spain help required 3 main questions. thank you.
You'll also have to factor in private health care in Spain for both of you unless, somehow, you manage to get an S1 from DWP.
