Tax for the Self Employed
#1
Tis me (again!),
Seeing as I shall be resident and shall be paying taxes as an autonimo, can someone please give me an idea how the "modulos" amounts are calculated?
As always, thanking those in advance, Jonathan
Seeing as I shall be resident and shall be paying taxes as an autonimo, can someone please give me an idea how the "modulos" amounts are calculated?
As always, thanking those in advance, Jonathan
#2
BE Forum Addict






Joined: May 2004
Posts: 1,059
From: Guadalhorce Valley, Málaga











Unless you are going to be earning vast sums of money or, alternatively, running a bar you may be well advised to steer clear of módulos. Check it out with an asesor fiscal.
#4
Thankyou for the prompt replies.
Beachcomber: I'm not sure what might qualify as "vast amounts"....is over 150,000 Euros/p/year vast? Many many moons ago I did infact have a bar/restaurant in Barcalona, paid modulos, but I can't for the life of me remember how the thing was calculated.
Keith: Errrr....I didn't realize there are many. I have on-line businesses that pay directly into my (Hungarian) bank account. And I know that I shall have to speak with a professional accountant once there, but am just trying to establish some ball-park figures so as to minimise any finacial surprises that might jump out of the paella and poke me in the eye!
Beachcomber: I'm not sure what might qualify as "vast amounts"....is over 150,000 Euros/p/year vast? Many many moons ago I did infact have a bar/restaurant in Barcalona, paid modulos, but I can't for the life of me remember how the thing was calculated.
Keith: Errrr....I didn't realize there are many. I have on-line businesses that pay directly into my (Hungarian) bank account. And I know that I shall have to speak with a professional accountant once there, but am just trying to establish some ball-park figures so as to minimise any finacial surprises that might jump out of the paella and poke me in the eye!
#5
there are many modulos - and it depends on what you are earning - what your job is - where you live - how much you earn - if you have people working for you............. it goes on and on
speak to a gestor would be the best advice
(going through the same thing myself at the moment - and its giving me a headache I can tell you - but Im sure after a few months it will all become clearer
)
speak to a gestor would be the best advice
(going through the same thing myself at the moment - and its giving me a headache I can tell you - but Im sure after a few months it will all become clearer
)
#6
Forum Regular

Joined: Jul 2003
Posts: 47
From: Girona, Spain

It never becomes clearer. I've been self-employed here for 4 years now and I still have no idea how much I'll pay every 3 months..
Then again, I'm a designer. If I understood the tax system and all that I would would probably have become an accountant.
t0rie
Then again, I'm a designer. If I understood the tax system and all that I would would probably have become an accountant.

t0rie
#7
oh now thats a worry
thought I would be able to get my head around it all in timeI have tried to break it down to simple terms as in earnings, IVA charged - IVA paid, then pay a certain (perhaps set) amount each month so that at the end of the year it all balances out so I dont get a big bill (which happened before)
hhhhmmmmmmmm
#10
t0rie, Have you not yet paid anything? In 4 years!
PS From your blog, your view seems to be in a constant state of flux.
SmartiesUK: Oh dear, you mention pocket money and then I note that your little byline mentions pockets.
PS From your blog, your view seems to be in a constant state of flux.
SmartiesUK: Oh dear, you mention pocket money and then I note that your little byline mentions pockets.
#11
Forum Regular

Joined: Jul 2003
Posts: 47
From: Girona, Spain

Stupid english verb tenses. I've finally gotten my head around catalan verb tenses and now I'm getting confused with english. Argh. And it's probably not complicated, the whole taxes thing, it's just that I'm not one for accounting.
View in a constant state of flux..? Yea, I go through my ideas and just jot them down. Can't say they'll be the same the following week, but heyho - that's life!
#12
Forum Regular


Joined: Aug 2006
Posts: 69
From: Spain, Costa de la Luz

Hi, there is a web site you can go to that gives pretty good explanations. It is the national site for the social payments.
www.seg-social.es
the site is in english which makes things easier. A lot depends on whether you pay in for pension receipt, whether you want disability benefit etc as an autonomous (self employed). The average payment at 29.6% is 249.60 euros per month or without disability payment 26.5% is 221.96 euros per month.
It also gives details of all the modulos and their types. You will need an accountant (and these aint cheap either) and these generally charge per month.
Hope some of this helps.
www.seg-social.es
the site is in english which makes things easier. A lot depends on whether you pay in for pension receipt, whether you want disability benefit etc as an autonomous (self employed). The average payment at 29.6% is 249.60 euros per month or without disability payment 26.5% is 221.96 euros per month.
It also gives details of all the modulos and their types. You will need an accountant (and these aint cheap either) and these generally charge per month.
Hope some of this helps.
#13
Thanks for the link helen I will put it in the Free Beer sticky thread for future reference. ;-)
#14
Just Joined
Joined: Mar 2007
Posts: 10

Hello littlelambfound,
The tax method you are referring to is known as Estimacion Directa por Modulos.
It's a method whereby Hacienda estimate your profits subject to certain criteria.
The profits estimated have nothing to do with the real profit. For example 2 bars with 100m2, with the same bar length, and same number of tables pay Hacienda the same amount of tax, even though one bar is empty and the other is always full of people.
Hacienda offers this tax method so that smaller businesses don't have worry about accounting, or working out their taxes, in exchange this businesses pay a higher rate of tax. Under modulos you will normally pay more in taxes than you would otherwise. There is however another side. If according to your modulo you earn 150,000€ but in reality earn 1,000,000€ you only pay for the 150,000€ estimated by Hacienda, the rest is yours.
Be aware however that not every type of business can declare under Estimacion Directa por Modulos.
The tax method you are referring to is known as Estimacion Directa por Modulos.
It's a method whereby Hacienda estimate your profits subject to certain criteria.
The profits estimated have nothing to do with the real profit. For example 2 bars with 100m2, with the same bar length, and same number of tables pay Hacienda the same amount of tax, even though one bar is empty and the other is always full of people.
Hacienda offers this tax method so that smaller businesses don't have worry about accounting, or working out their taxes, in exchange this businesses pay a higher rate of tax. Under modulos you will normally pay more in taxes than you would otherwise. There is however another side. If according to your modulo you earn 150,000€ but in reality earn 1,000,000€ you only pay for the 150,000€ estimated by Hacienda, the rest is yours.
Be aware however that not every type of business can declare under Estimacion Directa por Modulos.
#15
Straw Man.










Joined: Aug 2006
Posts: 46,302
From: That, there, that's not my post count... nothing to see here, move along.














