the tax system for the self-employed
May 2nd 2014, 9:05 am
#1
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Joined: Feb 2014
Posts: 167
the tax system for the self-employed
Can you guys explain me how does it works over there please?
thanks
thanks
May 2nd 2014, 9:16 am
#2
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Joined: Apr 2009
Posts: 7,749
Re: the tax system for the self-employed
Social security payments will be between 260-700 euros per month (in reality most people choose to pay the minimum). If you pay social security then you get state healthcare coverage and a pension, but you are not eligible for illness or unemployment pay unless you take out a mutua (insurance).
Every 3 months you pay your IVA and 20% of your profits for that period in tax. Then at the end of the year, everything gets tallied up, and you will either get a tax rebate or be asked to pay more tax depending on how much you have earnt
May 2nd 2014, 9:56 am
#3
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Re: the tax system for the self-employed
You are responsible for paying your social security payments, IVA (VAT) and taxes
Social security payments will be between 260-700 euros per month (in reality most people choose to pay the minimum). If you pay social security then you get state healthcare coverage and a pension, but you are not eligible for illness or unemployment pay unless you take out a mutua (insurance).
Every 3 months you pay your IVA and 20% of your profits for that period in tax. Then at the end of the year, everything gets tallied up, and you will either get a tax rebate or be asked to pay more tax depending on how much you have earnt
Social security payments will be between 260-700 euros per month (in reality most people choose to pay the minimum). If you pay social security then you get state healthcare coverage and a pension, but you are not eligible for illness or unemployment pay unless you take out a mutua (insurance).
Every 3 months you pay your IVA and 20% of your profits for that period in tax. Then at the end of the year, everything gets tallied up, and you will either get a tax rebate or be asked to pay more tax depending on how much you have earnt
May 2nd 2014, 10:03 am
#4
Lost in BE Cyberspace
Joined: Apr 2009
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Re: the tax system for the self-employed
No, the income tax rates range between 0 to 47% depending on how much you earn
You have to pay 20% each quarter, but at the end of the year, if you have earnt 100,000 euros for example, then you would get a big tax bill as income over 45k euros is taxed at 47%. I you only earn 12k euros then you would get a big tax rebate because you dont pay any tax on the first 10-12k euros you earn
You have to pay 20% each quarter, but at the end of the year, if you have earnt 100,000 euros for example, then you would get a big tax bill as income over 45k euros is taxed at 47%. I you only earn 12k euros then you would get a big tax rebate because you dont pay any tax on the first 10-12k euros you earn
May 2nd 2014, 10:06 am
#6
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Thread Starter
Joined: Feb 2014
Posts: 167
Re: the tax system for the self-employed
No, the income tax rates range between 0 to 47% depending on how much you earn
You have to pay 20% each quarter, but at the end of the year, if you have earnt 100,000 euros for example, then you would get a big tax bill as income over 45k euros is taxed at 47%. I you only earn 12k euros then you would get a big tax rebate because you dont pay any tax on the first 10-12k euros you earn
You have to pay 20% each quarter, but at the end of the year, if you have earnt 100,000 euros for example, then you would get a big tax bill as income over 45k euros is taxed at 47%. I you only earn 12k euros then you would get a big tax rebate because you dont pay any tax on the first 10-12k euros you earn
May 2nd 2014, 1:16 pm
#9
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Joined: Oct 2010
Posts: 46
Re: the tax system for the self-employed
May 2nd 2014, 1:41 pm
#10
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Joined: Feb 2014
Posts: 167
Re: the tax system for the self-employed
moving to italy (in my opinion ) now unless you are retired or they offer you a very well paid job would be plain madness!
May 2nd 2014, 2:03 pm
#11
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Re: the tax system for the self-employed
(this isn't advertising and I have posted this a number of times previously)
Full guide to going self-employed / autonomo in Spain
http://www.advoco.es/hot-topics/43-g...mo-system.html
When do you have to register and what's involved.
http://www.advoco.es/advice/26-auton...istration.html
What you can and can't claim to offset your tax liability as a self-employed person in Spain
http://www.advoco.es/home/22-latest/...ses-guide.html
A full list of all the information sheets which include starting a business (as opposed to taking the Autonomo route) and personal taxation etc is shown in
http://www.advoco.es/advice.html
Dependent on the time of year and availability of funds there can be access to seed money and funding for the start of a new business. There are also a few business incubators around that can provide you with an office space, but alot of that goes to people who have attended certain courses and the local uni, but there is still an element of merit for the right sort of business sector that is the current flavour of the day.
hth
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