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Not becoming an Automonos

Not becoming an Automonos

Old Jul 16th 2016, 5:04 pm
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Default Not becoming an Automonos

Hi

Hope someone may be able to offer advice here. My son is living in Spain as an actor and earning some money through films and adverts. When he earns through this means he pays taxes at source.

He has been offered some work teaching English but as a self employed. We understand that as an automonos he would need to pay taxes plus a monthly fee for social security. We also believe this is paid even when you don't earn.

He has a UK Ltd Company for working in the UK. This is entirely based and run in the UK. Could he use this company to invoice the school and then pay himself a dividend. He would then pay tax on that dividend in Spain as earnings but not the monthly social security fee.

Just wanting to check if other people can see flaws or if anyone has done this.
Don't want him landed with huge fines or time inside!!
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Old Jul 16th 2016, 5:28 pm
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Default Re: Not becoming an Automonos

Originally Posted by Worriedmum
Hi

Hope someone may be able to offer advice here. My son is living in Spain as an actor and earning some money through films and adverts. When he earns through this means he pays taxes at source.

He has been offered some work teaching English but as a self employed. We understand that as an automonos he would need to pay taxes plus a monthly fee for social security. We also believe this is paid even when you don't earn.

He has a UK Ltd Company for working in the UK. This is entirely based and run in the UK. Could he use this company to invoice the school and then pay himself a dividend. He would then pay tax on that dividend in Spain as earnings but not the monthly social security fee.

Just wanting to check if other people can see flaws or if anyone has done this.
Don't want him landed with huge fines or time inside!!
If he is living in Spain, then he MUST pay tax on his worldwide income in Spain, there is no way round this, doing anything else will be illegal. He should also be registered as an autonomo as that will give him access to the Spanish health service
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Old Jul 16th 2016, 5:29 pm
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Default Re: Not becoming an Automonos

Originally Posted by Worriedmum
Hi

Hope someone may be able to offer advice here. My son is living in Spain as an actor and earning some money through films and adverts. When he earns through this means he pays taxes at source.

He has been offered some work teaching English but as a self employed. We understand that as an automonos he would need to pay taxes plus a monthly fee for social security. We also believe this is paid even when you don't earn.

He has a UK Ltd Company for working in the UK. This is entirely based and run in the UK. Could he use this company to invoice the school and then pay himself a dividend. He would then pay tax on that dividend in Spain as earnings but not the monthly social security fee.

Just wanting to check if other people can see flaws or if anyone has done this.
Don't want him landed with huge fines or time inside!!
Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

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Old Jul 16th 2016, 6:18 pm
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Default Re: Not becoming an Automonos

Originally Posted by mikelincs
If he is living in Spain, then he MUST pay tax on his worldwide income in Spain, there is no way round this, doing anything else will be illegal. He should also be registered as an autonomo as that will give him access to the Spanish health service
Hi and many thanks for your rapid response. He is very happy to pay taxes in Spain and does already through the agency earnings and has a TIE (if that is right!) number to pay his NI on employed earnings. The issue was more around the monthly E230 as an autonomo. There will be months when he doesn't earn that much money but will still have to pay it. Hence looking for a legal alternative.

He has been told that as he is paying taxes and NI as an employee he would already have the Health Service benefits. But is that not the case?
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Old Jul 17th 2016, 6:00 am
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Default Re: Not becoming an Automonos

Originally Posted by Worriedmum
Hi and many thanks for your rapid response. He is very happy to pay taxes in Spain and does already through the agency earnings and has a TIE (if that is right!) number to pay his NI on employed earnings. The issue was more around the monthly E230 as an autonomo. There will be months when he doesn't earn that much money but will still have to pay it. Hence looking for a legal alternative.

He has been told that as he is paying taxes and NI as an employee he would already have the Health Service benefits. But is that not the case?
He will be covered if he has a job with a legal, Spanish, contract.
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Old Jul 17th 2016, 11:14 am
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Default Re: Not becoming an Automonos

If an Autonomo is not working he can claim benefit just like an employed person provided he has worked for a minimum of twelve months and paid his Social security contributions during this period. The difficulty is proving "Cese de actividad", proof of end of contract / unemployment.
The government Social Security website is very good on explaining everything, if you cannot read Spanish stick in Google Translate
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Old Jul 19th 2016, 4:32 pm
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Default Re: Not becoming an Automonos

You do not have to become autonomo in Spain, everyone thinks you do because people only know of this type, there are other options, especially better for his circumstances.

I posted similar on another thread the other day, look up on google "factura sin ser autonomo"

This way you just pay by the day you work, still having payed into the system.
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Old Jul 20th 2016, 3:33 pm
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Default Re: Not becoming an Automonos

Originally Posted by Worriedmum
Hi

Hope someone may be able to offer advice here. My son is living in Spain as an actor and earning some money through films and adverts...

Your son needs to find an English speaking Gestor.

I am assuming he doesn't have fluent Spanish (this is irrelevant really). The link above explains what Gestorias do in Spain. In short; they are sort of unqualified soliciters and accountants who are familar with the system and will tell you when you need to use a 'professional'.

Many gestors will be happy to give a free initial consultation on the basis of good will. They will give your son all the advice they can, search for grants and other financial assistance in the hope that you continue to use their services when you are up and running.

In most circumstances grants are available to cover the first 6 months of NI payment (€265/month) if you choose to go automono, but as someone else has stated, it may not be necessary for occasional/casual self-employed work.

Find a good gestor.

Last edited by TheLostPhotographer; Jul 20th 2016 at 3:35 pm.
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