Setting up as an autonomo
 

I am about to do a 5 month contract in Spain and will be paid by an agency located in Belgium.

I want to set myself up as autonomo in Spain but have no idea of what I need to do.

Therefore I was hoping someone could advise me of how I get the NIE number and how I go round registering as an autonomo?

Many thanks

Re: Setting up as an autonomo
 

I have noticed that I need an NIE number first and this takes 2 weeks minimum.

So can I start my contract before the NIE number comes through and obviously, not set up as an autonomo?

Re: Setting up as an autonomo
 

Hope you are getting a good wage for the contract, it`s going to cost 250€s a month just for your ss cover.

Re: Setting up as an autonomo
 

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Re: Setting up as an autonomo
 

Yes, I have already researched that side of things. Bl**dy taxes ;)

However, I have just been talking to someone about going through an umbrella company and this looks like a better option. Provided I am not in Spain for over 6 months anyway.

But thank you very much for the response. :)

Re: Setting up as an autonomo
 

that +/- 250€ isn't tax...............tax comes on top of that

Re: Setting up as an autonomo
 

there was a thread about the legality of ripoff umberella companies. ;);)

Re: Setting up as an autonomo
 

Even under an umbrella company (and my advice would be not to use one), you will still need to pay about 270 euros/month for social security (health etc.) - this is obligatory.

Re: Setting up as an autonomo
 

Well it turns out the umbrella company was very shady indeed...

So I am now back to my original idea of going autonomo. A friend of mine seems to think that it will be fine waiting for my NIE number whilst I am working and then taking a day off work to sort out setting myself up as an autonomo. Do you knowledgeable people think so too?

After seeing what needs to go into setting this all up in Spain, I'm not sure I would agree to do this again :lol:

Re: Setting up as an autonomo
 

it would seem you have been bounced around a fair bit and that if you have a limited time scale before commencing work you need to get it sorted out.

have you not considered started your own ltd co in the uk ?
this is very low cost, especially compared with Spain where you would need to have a bank account with about €3,600 to get started.

your uk ltd then employs you to do the work in spain for the company in Belgium. You will be then paying uk tax as per the Dual Tax Agreement.
you can mitigate that by taking minimum wage and paying yourself high dividends from the ltd where the tax is already paid but at only 20%
your costs for being in spain will become allowable as expenses and the co will get the vat back.

suggest you do a google for "IR35" and have a look at the things that are allowable on this.

if you need details of a company registration co that will set up an ltd for you online in 48hrs send me a private message
rgds

Re: Setting up as an autonomo
 

Even if the OP was considering a Spanish SL (which he is not) he would still have to register as Autonomo, so what would be the point of that?

Re: Setting up as an autonomo
 

why?
6m temporary contract thru a Belgian company who are being paid by the spanish company.
as a member of an eu state he has a right to work where he wants

when an employee of a uk co is sent to work in spain for a contract period there is no requirement for the employee to register under autonomo as tax is paid in the uk under the DTA, medical is covered by a uk S form.

the system of autonoma employed by Spain and Italy is a restriction on the individual which at such high sums before you have even got a customer restricts the start of new legal businesses and sends people into black areas.

the uk had that problem with working "on the lump" which was common in the construction industry. payment of tax and ni was a pass the parcel where the taxpayer lost.

so.....are you suggesting that when IBM sends a guy from London or the US to Madrid for a 6m assignment they will all have to register on autonomo ??

Re: Setting up as an autonomo
 

Thanks for the suggestions. They are great :)

I have thought of setting up my own UK company but not sure how messy it gets with being paid in euros and paying tax and NI in pounds. I also strongly suspect I will fall outside of IR35 :unsure:

The other alternative is to pay for a UK umbrella company who will know how to get round the different currencies etc. I have contacted two (after lots of reassurance that these are legimate this time!) to see if they can help me.

I have now found another alternative too. A company called niein1day.com claims they can get me the NIE in approx 1.5 days. If this is so, perhaps I could get over to Spain 5 working days in advance of the commencement of my contract to sort out the NIE, a Spanish bank account and setting myself up as an autonomo.

With this latter option, this means I am going to be in Spain muy, muy pronto!

I am going to be so skint once this contract finishes with all these extra expenses but at least it's a chance of the sun and for me to use my Spanish ;)

Re: Setting up as an autonomo
 

Obviously the company are ducking out of this cos it costs them money and have told him to sort out the expensive bit for himself. ;);)

Re: Setting up as an autonomo
 

as I always say - its down to the individual at the end of the day

and you want to be OUTSIDE IR35, inside it and you could have problems, outside you own your life
thats why there are so many "umbrella" co's set up to help people to circumvent the overzealous requirements of IR35.

setting up your own ltd is low cost in the uk compared with many other eu countries. and you can run it how you want, to buy and sell products, buy and sell your expertise.

as I hope I said, its a suggestion, it can work but only if you feel it is right for you

kr

Re: Setting up as an autonomo
 

IMHO a waste of time if there isnt something in the pocket at the end of it.

if having to maintain a base in the uk and then another in spain (or anywhere else in the world) that is in itself a dual taxation. to have to pay dual Income and Medical as well leaves nothing at the end of it.

as I say, IMHO, others will (and do) have other views on it all and I leave it up to the individual, but if someone has skills and experience that can be used across the eu then things should be made easier for them to meet the much vaunted "freedom of movement and labour" or whatever it is without having to cope with dual taxes etc etc.

Re: Setting up as an autonomo
 

But that would be sensible and far to easy for the bureaucrats and cut out jobs for the boys. :)

Re: Setting up as an autonomo
 

jeez r u saying I am sensible ?
thank you

eu here I come
:rofl:

Re: Setting up as an autonomo
 

I have rung the HMRC guys in the UK and they have advised that I only need to fill in a self assessment tax form at the end of the year showing all my earnings made in Spain :)

This is fantastic news for people who are only going to be working in Spain for a very short period of time!

So there is a very simple way round things :)

Re: Setting up as an autonomo
 

thats good news, but not sure how you can mitigate the dual cost of living in spain during the contract.
funnily enough the spanish system can allow for that :sneaky:

well done, your happy and will be out here soon
rgds

Re: Setting up as an autonomo
 

From what I understand, as I am only doing a short contract, I only need to pay all tax related fees (tax and NI for the UK or NIE, social security etc for Spain) to only one country.

So as I am doing a short contract, I can choose to pay in Spain or the UK. As I am not set up in the Spanish system, it's going to be a lot easier to stick to the UK one.

Re: Setting up as an autonomo
 

yup, think that is what I was trying to say earlier, and as you are based in the Uk, pay your taxes in the Uk, it is much simpler to pay tax on your world wide earnings in the Uk rather than have to register in Spain and then in France and then in wherever. It leaves little bits all over the place.

just make sure you get the right form to cover you for any medical you may need whilst here

rgds

Re: Setting up as an autonomo
 

Thanks Domino :)

Re: Setting up as an autonomo
 

Lets hope the Spanish taxman sees it the same as you, as after you have been in Spain for 3 months you legally need to sign on the foreigners register at the National Police Station and you will be given an NIE number whether you like it or not. ;);)

Re: Setting up as an autonomo
 

Bl**dy hell! For such a short contract, this is turning into a red tape inferno...

I am leaving for Spain tomorrow too so it looks like I am going to have to suck it up and go along with the Spanish system.

I'm never doing a short contract in Spain again; that's for sure!

It's either I join their system or I ask to end the contract at 3 months instead :(

Re: Setting up as an autonomo
 

Whats wrong with just ignoring the system, doing the 6 months (making sure you have private medical cover) and moving on?

From what I read on here thats what the majority do.

Re: Setting up as an autonomo
 

Well not really, you'll find that the people here, although well intentioned, are not entirely sure what the situation is.

You need 30 mins advice from an accountant/tax lawyer who has the right expertise. Your company should be able to help you with that.

My feeling is that you are going to be in the country less than the 185 days (something like that) cut off, so you wont need to pay tax in Spain as long as you declare in the UK, but then I am not an expert either

Re: Setting up as an autonomo
 

don't get upset - you have certain buffers on yourside

1. you are employed by an agency in Belgium
2. agency in Belgium are issueing you with your work instructions
3. the client should be paying the agency in Belgium
4. the agency in Belgium should then be paying your - so long as you get the timesheets signed and faxed through to them each week

you should not be accepting any money from the Spanish client

IMHO I still believe that if you are going to do this sort of thing regularly your own Ltd in the UK would be a better wall around your taxation problems, but you will need the time to sit down with a UK accountant and discuss further. That way your living costs in Spain can go down as expenses against the company and not out of your pocket.

Please - enjoy yourself in Spain, both at work and play, its a great place, great people and their taxation is not alot different to many others in Europa, only a bit different to the UK.

regards
Dom

Re: Setting up as an autonomo
 

But he will be living, working and earning his money in Spain.

Re: Setting up as an autonomo
 

that is between his employer in Belgium and the client in Spain
it is not stated he will be employed on a Spanish employment contract so the charge from Belgium will include TVA which opens another can of worms

if anything it could be Belgium that may have the greater interest
but then I am not an international lawyer or accountant
but
whilst still domiciled in the UK must pay tax on worldwide earnings
as spain has a DTA with the Uk covering earnings but not inheritance there should be a positive side to this in favour of the country where domiciled.

irrespective, the op deserves every recognition for wanting to do things properly irrespective of the tax regime he will come under, rather than sliding in on a midnite flite and not declaring to anyone