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self employed in spain, help please

self employed in spain, help please

Old Jan 30th 2011, 1:01 am
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Default self employed in spain, help please

Hi, I am looking at working in Spain and think i will need to be self employed. Can anyone advise what tax free allowances I will have before i pay tax. I see there is a personal allowance of 5151 but then also see an earned allowance which varies from 4000 something. Do I just get the 5151 or is it 9000 + before I start paying tax and am i right in thinking it is at 24% then. I am aware I have to pay social every month on top. I will have no income or assets anywhere else. Hope some of you very knowledgeable people can help. Thank you
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Old Jan 30th 2011, 2:56 am
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Default Re: self employed in spain, help please

I dont know about any tax payments or allowances, but if you are going to be self employed you have to become "autonomo" which I think means a flat rate payment of around €260 a month regardless of income

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Old Jan 30th 2011, 3:04 am
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Default Re: self employed in spain, help please

Originally Posted by jojojojojo
I dont know about any tax payments or allowances, but if you are going to be self employed you have to become "autonomo" which I think means a flat rate payment of around €260 a month regardless of income

Jo xxx
I think the OP already covered this when they stated "I am aware I have to pay social every month on top. " It's the level at which tax needs to be paid that they're after. I'm very interested to see what this is - I'll be surprised if it's the 9k figure, the 5k figure looks more in line with what we have here in the UK.
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Old Jan 30th 2011, 3:08 am
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Default Re: self employed in spain, help please

Originally Posted by julespalmmar
Hi, I am looking at working in Spain and think i will need to be self employed. Can anyone advise what tax free allowances I will have before i pay tax. I see there is a personal allowance of 5151 but then also see an earned allowance which varies from 4000 something. Do I just get the 5151 or is it 9000 + before I start paying tax and am i right in thinking it is at 24% then. I am aware I have to pay social every month on top. I will have no income or assets anywhere else. Hope some of you very knowledgeable people can help. Thank you
This is said every time this sort of question comes up. I hope you really are sure your product/skill will be in demand here and that you have checked and also have the language skills unless you are dealing exclusively with expats.
We made a mistake in this dept and my OH is still without work because of it.
Believe me, money runs out quickly if the customers aren't there!
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Old Jan 30th 2011, 3:53 am
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Default Re: self employed in spain, help please

Thank you for your reply and concern. I am aware of the issues regarding availability of skills and work, however, I have enough money behind me to live on for 2 years to give me time to build up trade. I have tried asking accountants via email but cannot get replies, seems they keep info close to their chest so you have to use them!!! And yes I also know as i said that ss is about 280 a month, then there is the accountants fees, it is just the tax free bit of pay i cannot get to the bottom of, have looked on websites and they quote the two figures i mention above but it is not clear what applies to who. Thanks again for your help

Originally Posted by angiescarr
This is said every time this sort of question comes up. I hope you really are sure your product/skill will be in demand here and that you have checked and also have the language skills unless you are dealing exclusively with expats.
We made a mistake in this dept and my OH is still without work because of it.
Believe me, money runs out quickly if the customers aren't there!
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Old Jan 30th 2011, 4:38 am
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Default Re: self employed in spain, help please

www.spainaccountants.com..................free info on website
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Old Jan 30th 2011, 5:13 am
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Default Re: self employed in spain, help please

Originally Posted by whitelinen
Thank you, they show the figures I quoted above but do not say if the 5151 is in addition to the 4080 or it is either or. I am assuming the level is 5151 if self employed or 4080 if employed, seems to make the best sense of it.
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Old Jan 30th 2011, 5:26 am
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Default Re: self employed in spain, help please

Originally Posted by julespalmmar
Thank you, they show the figures I quoted above but do not say if the 5151 is in addition to the 4080 or it is either or. I am assuming the level is 5151 if self employed or 4080 if employed, seems to make the best sense of it.
The 4080 allowance is added to the personal allowance but is reduced to the lower figure on a sliding scale based on income.

It applies to all earned income, including pensions but not to investment income.
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Old Feb 16th 2011, 5:34 am
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Default Re: self employed in spain, help please

If not got then "You and the Law in Spain" David Searl is v useful.
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Old Feb 16th 2011, 5:53 am
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Default Re: self employed in spain, help please

Originally Posted by emlu
If not got then "You and the Law in Spain" David Searl is v useful.
I am afraid the laws change quicker than the book reprints.
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Old Feb 16th 2011, 5:56 am
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Default Re: self employed in spain, help please

I think SS in 2011 is nearer 300e pcm, it has gone up from last year.

I'd echo what the others say about working in Spain, if all yr competitors are paying taxes it's a level playing field. If they aren't & you are you haven't a chance of competing.
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Old Feb 16th 2011, 6:51 am
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Default Re: self employed in spain, help please

Originally Posted by poolboy
I think SS in 2011 is nearer 300e pcm, it has gone up from last year.

I'd echo what the others say about working in Spain, if all yr competitors are paying taxes it's a level playing field. If they aren't & you are you haven't a chance of competing.
it's linked to your age, too - the nearer you are to retirement age the more you pay
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Old Feb 16th 2011, 7:51 am
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Default Re: self employed in spain, help please

Originally Posted by jdr
I am afraid the laws change quicker than the book reprints.
To be fair to David Searle, they either do a new edition every year or, more recently, a cheaper update edition.

Of all the similar books on the market, his is usually the most up to date,
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Old Feb 16th 2011, 9:03 am
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Default Re: self employed in spain, help please

Originally Posted by Fred James
To be fair to David Searle, they either do a new edition every year or, more recently, a cheaper update edition.

Of all the similar books on the market, his is usually the most up to date,
Granted, but probably still out of date before you buy it.
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Old Feb 18th 2011, 8:45 am
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Default Re: self employed in spain, help please

Originally Posted by poolboy
I think SS in 2011 is nearer 300e pcm, it has gone up from last year.

I'd echo what the others say about working in Spain, if all yr competitors are paying taxes it's a level playing field. If they aren't & you are you haven't a chance of competing.
I suspect it's down to who your customers are. A lot of English teachers (especially in Madrid) go autonomo as business clients often won't hire their services otherwise (to reclaim tax I believe). But it's worth it for them as the business will often pay 30-40 Euros per hour - at least that's what my contacts in Madrid generally earn. If however, you're selling your services to customers who only pay 10 or 15 per hour, and prefer to pay cash, then maybe it's not worth going autonomo.
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