Hi, I have just moved to Spain and was self-employed in UK as an entertainer, I want to rent a shop here selling beauty products, but someone told me i have to pay 250 euros every month for social security, regardless of how much you earn. However I dont see how I can pay that when I probably wont even be making that amount every month, after rent etc. can anyone tell me if this is true. The shop is to rent through the town hall, and unfortuantely with my limited spanish at the moment (only been here 2 months) I was unable to get any help from them regarding this. Any info would be appreciated.
Spanish friends are surprised that in the UK a years NI contributions for Self Employment comes to ?124.00 a year.
I know, they don`t pay council tax (common misconception as Spain does have council tax) but have to pay Seguridad Social every month, even if they earn nothing.
As for being self employed in Spain, if you cannot speak Spanish your gonna get ripped off something senseless and mistakes/ over payments too Tax office etc etc are all likely.
Your in for some serious headaches and heartaches I`m afraid.
I dont think that’s fair Santi, if you retain an asesor who knows what theyre doing you should not get ripped off - to my knowledge I have not yet been. And my Spanish is still at a level where I would not dream of trying to navigate the system alone.
For what its worth though Beverley it’s absolutely true as everyone’s saying - got to pay your Autonomos month in month out, even if you dont earn anything or have to pay any income tax in a given month or quarter.
This doesnt mean a great many expats aren’t successfully, profitably (and legally!!!) self employed in Spain. The very best of luck to you in your enterprise. Maybe you can find a way to lower outgoings at the kick off, eg by trading from home and avoiding renting premises…?
Thank you BuenosDiasPet for your more positive reply! It seems so many people on this Forum are negative about almost everything! I often read the damning stories about Spain on here and wonder why these people are living in Spain! I made a decision to move here and make it work and thats what Im going to do, hard times and good times, you have to go with the flow. It would be the same at home at the moment, things are very hard there too. I like your idea about working from home though. We will pay our social security and work hard to make a go of it.
I would agree. There are definitely opportunities out there even in the midst of the crisis. If your clients are English-speaking then you’ll probably manage to avoid the rip-offs and difficulties, but indeed, pick up Spanish as soon as possible!
Moving anywhere is always a bit daunting especially when its a foreign country, but if youre determined it could be the best thing u ever did. It was in my case. (9 years ago)
Im a freelancer and I work from home, the 250 euros a month is a bit upsetting but thats just the way it is at the moment although things are slowly improving over here for the self employed. If your worried about all the paper work you can do what most do and look for a gestor. (basically an accountant) Mine’s an english guy which makes things very easy. There may be someone similar in your area. Hope it works out for you…
I can’t believe that amount, 250 Euros!! My husband had an idea for a business which would be a summer venture only, does that mean that he has to pay 250 euros when he won’t be earning a penny? It seems very excessive.
Sure you can sign up and sign off when you lie, just make sure to sign off at the end of the month as theyll make you pay the whole month regardless of when you sign off.
Sure you can sign up and sign off when you lie, just make sure to sign off at the end of the month as theyll make you pay the whole month regardless of when you sign off.
Probably the best advice in this thread.
This is exactly what I do. I do all my accounts and paperwork through my abogado. I let him know at the end of each month if I have work or not and sign off/on as required.
Legally, even if I only contribute for three months of the year, I’m still covered for healthcare, etc… No matter what anyone says, it’s worth paying the extra ?30 or so to ensure you’re fully covered with healthcare, including accidents at work and such.
It is a large chunk to pay, which is why so many expats don’t bother, but it the risk they take getting caught. Fair enough if your activities are small enough to stay under the radar, but once you’re more easily noticed, it’s simply not worth the risk.
That said, if you think that your business will do well, then on the whole, I believe that offset against other outgoings, it’s generally cheaper.
Maybe you can find a way to lower outgoings at the kick off, eg by trading from home and avoiding renting premises…?
Beverly - If I were you I’d do the above to a certain extent. That way your switched on Accountant can offset your electric, water, Mortgage or Rent against the % of floor-space you are using to “operate your Business”.
Be careful though as a lot of either Landlords or Mortgage Companies may have under writings about running a Business from home as it were.
Until 31 Dec, my wife and I as early retirees are in the Canarian health system with E106 (S1) and we have residencias, seguridad social numbers etc. We then have a 27 month gap until I hit 65 and my wife hits 61 and 11 months - her UK state pension age and we become eligible for free health care again. We both have UK public service pensions taxed in UK, and I have a private UK pension taxed in Spain under the dual taxation scheme.
As I understand it, one of us could register as self employed (but not actually do any work) and pay around ?250 seguridad social, whereupon we could both stay in the state health system. If that is true, would it be better for my wife to register, as she pays no tax in Spain, or would it be better for me to do so, in which case how does that affect my Spanish tax affairs.
Or is it possible for me just to pay the seguridad social based on my current position as someone paying Spanish tax on a private pension?
Finally, could someone give me an example of what I might have to pay a gestor to submit self employed taxes -assuming no income?
