Self Employed
 

A quick question for all of you.
My husband and myself are currently employed in Spain, we get the usual salary and pay national insurance and social security. The problem is we would like to set up our own business to run around our current jobs. Now we have been told this is possible but we would then have to pay social security on the business which is about 250€ a month, regardless of what we earn on the business. Is this correct? That would mean that between the two of us we will be paying in 3 times but the small business may not make anything for a while? Any help or advice from people who have set up or set up and folded would be great, It seems to me we are going to be paying an awful lot for the first year, which is always the trickiest time and may have to fold... due to paying social security and having limited earnings for a while.

Re: Self Employed
 

I expect that is why many people set up and work on the black until they get established here as it is expensive getting it all going

I do know you can "freeze" a company if its not going so well but I dont know what the implications of that would be

Re: Self Employed
 

You have been given good advice. there is noway around this if you want to run an S.L.
Even if you earn all the money black, the company would have to pay up for the Social.

Sorry should have added; that although you will get medical cover whilst paying into the system. To obtain some sort of pension you have to pay into the system for a minimum of 15 years before you get anything back. Another bummer!

Re: Self Employed
 

There´s no easy way round this...in any business in the first months, you earn very little and spend a fortune as I´ve found out. You have to pay the minimum social security stamp and you have to present your accounts from the first quarter even if you don´t earn anything. If you´re setting up on your own, you have to make sure you have sufficient to last probably from 9 months to a year at least. Once again, they don´t make it easy for anyone but I can tell you that I´m enjoying working for myself much more than I ever did working for someone else.

Re: Self Employed
 

To start off you can probably get away with just one worker in your business. I imagine you'll set up the SL on a 50:50 basis. Nominate one of you Sole Administrator while the other is effectively silent partner. Pay the SS on the administrator. Your company then has somebody legal on its books and unless your new company is going to be massive, quickly, the taxman won't come sniffing around. (Unless someone grasses you up of course, so be nice!!!)

Re: Self Employed
 

For a while it will just be me and my husband in the business. Does that mean we pay the social security just once a month for the business or do we have to pay it for each person??? Confused now!

Re: Self Employed
 

As we understand it depends on how you have set up the company. If you are both owners then you will pay a different amount to if only one of you was an owner with the other being a worker.

Here is a link to one web site which gives some more information. There must be other web sites with more information on this but this one was in our favs so it was handy to post the link.
http://www.spanish-living.com/telegr...s-in-spain.php


However if you have already set up an SL maybe it is a good point to go back and ask for more information from the Gestoria.

Re: Self Employed
 

So what does someone pay who is not working or have their own business but living off funds until they retire? Are they classed as self employed?


Helen

is it cheaper to get private healthcare for whole family?

Re: Self Employed
 

Someone who is not working would not pay social security at all.

If you have your own business but have to live off savings, then the business obviously isn't profitable which probably makes it better sense to fold.

Reading between the lines, you have your paid employment which you want to keep and then want to have a sort of business-hobby on the side. I would say that unless your business/hobby can be profitable and keep its head above the water without you having to dip into savings to support it, then I just wouldn´t declare it as a business and do everything black.

As you both already pay into the Social Security system I can´t see the taxman coming knocking at your door, unless your hobby really starts to see the money rolling in.

As for private health care, we have chosen to go down this route (pay about 60 euros a month for health care anywhere in Spain, europe and beyond plus dental). As you contribute to the SS you are also covered there. We have chosed private as it gives us access to better quality clinics, shorter waiting times, etc.

Re: Self Employed
 

If you can afford it, my advice would be to purchase private medical care., especially if you currently have no pre-existing illnesses.
If your business did not work out and you stopped paying into the spanish social scheme and you were still not of pensionable age then you would have no health cover here.
That would be fine as long as you had not developed any pre-existing illnesses but if you had then getting cover may be difficult. You would be amazed what they consider as illnesses, just having mild hypertension means they will not cover you for anything to do with your heart.

Re: Self Employed
 

So if you don't work you don't have to pay social security but are not covered for healthcare so you need private care which is cheaper than 250 euros a month. So if you have a part time business is it illegal to not pay your social security ?


Helen

Re: Self Employed
 

What is a part time business? Surely a business is a business regardless of how many hours you put in?

If you have a legally registered business, you have to pay SS. So if you only plan to put a few hours in a week and not really get much out of it, I personally would just deal black.

The OP is in paid employment, so is already making SS contributions.

Re: Self Employed
 

As stated you need to pay the minimum NI self employed contribution every month, you also have to rgister for IVA (vat) its compulsary un like the UK.
If you do not receive an income for a whole month you can avoid that months payment for NI, most self employed in Spain holiday in August and dont pay NI for that month.

Paul


Paul can you just post a link to the site, as copying and pasting it is a breach of copyright. thanks jdr

Re: Self Employed
 

Yes, self employed people pay the minimum which covers healthcare. A lot of people take out emergency cover with Helicopteros Sanitarios which covers for doctors and transfer to a hospital for treatment if seriously ill and is reasonably priced. However, although the hospital is obliged to treat you, if you have no national health cover, you could be landed with a large bill at the end.

Re: Self Employed
 

As for private health care, we have chosen to go down this route (pay about 60 euros a month for health care anywhere in Spain, europe and beyond plus dental)

Keith you coundn't give me details of the company you are using for your health cover etc could you, or a link to a web page
cheers steve