Originally Posted by missile (Post 9386793)

Shell companies are perfectly legal in the UK. It is a system where the "employee" works for the shell company as a self employed person. The client company pays the shell company who deduct the appropriate taxes before paying the employee.

http://www.companiesmadesimple.com/s...d-company.html

Your friend may have misunderstood and he may be required to establish a shelf company? This is very simple, see here > http://www.spanish-companies.com/she...nies-spain.htm

Originally Posted by jdr (Post 9387964)

When I was there you were not allowed to be self employed if you only had one customer, they felt that you should be an employee of the client. :D

Originally Posted by jdr (Post 9387964)

When I was there you were not allowed to be self employed if you only had one customer, they felt that you should be an employee of the client. :D

Originally Posted by missile (Post 9386793)

Shell companies are perfectly legal in the UK. It is a system where the "employee" works for the shell company as a self employed person. The client company pays the shell company who deduct the appropriate taxes before paying the employee.

http://www.companiesmadesimple.com/s...d-company.html

Your friend may have misunderstood and he may be required to establish a shelf company? This is very simple, see here > http://www.spanish-companies.com/she...nies-spain.htm

Originally Posted by whitelinen (Post 9386498)

Many choose to pay the 2.50 per week class 2 contributions in the UK, thus ensuring a UK pension.

Originally Posted by HBG (Post 9388960)

When taxes are too high in a country, or the collection system is too harsh, a black economy thrives. It's very hard for a small business or a self employed person to thrive in Spain, I don't know the percentages, in fact there can't be any reliable ones, but all the people I know here in Spain try their best to beat the system.

Originally Posted by avocados (Post 9389162)

A black money thrives for no other reason than greed and selfishness.

Nothing whatsoever to do with taxes.

The Spanish only care for themselves...me me me. If they can get away with paying no tax, it's a pat on the back.

The so called "Crisis" is the current excuse for not paying taxes. People are even quite open about it on official business......"There's a crisis. Why would I pay tax?!"

Just like the unemployment statistics.....doesn't give a real indication of what's happening in the country. Many have opted out of legal employment for the black market, cash in hand method.

Impossible to police, as it's endemic.

Originally Posted by angiescarr (Post 9389210)

I agree with you. That's The main reason many can't even start working. Nearly 50% of my income from sales within the EU goes in IVA and income tax. IVA of course is charged on sales. Not sales minus costs! I like it better when I don't have to charge IVA (i.e. to customers in the rest of the world) At least I don't have to save it up and give it to the tax man when I'm counting every penny on the other side! I'd prefer it if we were all completely legal and all paying equally. That way we'd all have a voice and speak out when taxes are too high. Now the weedy voice of the honest will never get heard because everybody is keeping shushhhhhhhh.

Originally Posted by JLFS (Post 9389294)

You really have a way with words, I have been looking over your posts and just wondered what has happened to make you so bitter.

You hate everything, eveyone on the forum is treated with the same attitude, such a know all, what are you doing here in Spain?

Originally Posted by HBG (Post 9389933)

I'm not a tax expert, far from it, but for many years I've been an employer in Spain, to start with, and I'm still self employed paying autonomo. Both are an absolute minefield, and advice, from the right quarters, is essential. It's the right advice that is the problem, charlatans abound, and many of them are fellow expats.

For me, it's the carrot and the stick. My current Gestor guides me although he thinks I'm mad for declaring what I do declare, but I'm concentrating on the carrot, I can smell it, it's right in front of me - what I currently earn after paying as much of the costs as I have to, is risible, if it was my only source of income I would have to be sitting outside Mercadona with a begging bowl.

But I can see the light at the end of the tunnel, I'm going to get a pension if I carry on for a bit longer, quite a decent one, based on my contributions for at least 15 years.
I play blues guitar;-) (At least I did, until I had to sell my beloved Dobro:-( Between us we should be able to manage a bit of Cajun

It's hard, and I'm learning to play the accordion, it earns more than a begging bowl from what I've seen.

Originally Posted by angiescarr (Post 9390196)

I play blues guitar;-) (At least I did, until I had to sell my beloved Dobro:-( )
Between us we should be able to manage a bit of Cajun:lol: