This is my first post here, though I’ve been reading things on the site for quite some time. I lived in Madrid for more than 4 years teaching English illegally (I’m American). I left for a bit to live in Asia, but now I’m heading back with the intention of finding a way to be legal and, hopefully, not teach English.
I’ve heard that if I have about 3,000 euros in a bank account, I can apply for autonomo status, and then pay a certain amount each month for taxes/social security and after a year or so apply for residencia. I have a few questions, and I’d greatly appreciate any help from anyone familiar with the topic. I’m moving back to Spain in about 10 days and want to be ready to act upon arrival!
1) If I get autonomo status, am I limited to doing work such as teaching and translation (i.e., work typical for independent contractors)? Or can I use it as a way to get hired by a company to work full-time and eventually sponsor me for a normal work visa?
2) If I do freelance work for American companies (via Internet) while living in Spain as autonomo, do I pay taxes for the U.S. work in Spain? Or do I have to pay taxes for U.S. company work in the States and Spanish company work in Spain?
3) Do I need to apply for an NIE number before applying to be autonomo, or is it a one-shot deal?
I have a million more questions, but these are the most important ones (for now!)...
Woah! We have a smarty in the midst! Good job, you’ve obviously checked into this quite extensively.
My experience comes from one of my best friends, a Canadian that was in the same situation.
Also note that that 3000? can also consist of other assets like laptops, furniture, etc, that the company will own/use.
1. You’ll be limited to working freelance/independently, yes. But why would you want to get a full-time job working for someone else when you can set your own schedule, determine your pay rate, etc? Go autonomo and try it out for a while, I doubt you’d want to go back to being an employee later. As for whether or not it’s possible, then yes, in fact what it does is provides a potential employer with an opportunity to try before buying you, so to speak. I’m sure they’d be more receptive to sponsoring someone they already know works well for them.
2. That depends. But if you have a company in Spain that is invoicing an American company, then you’ll pay Spanish taxes. If you’re representing yourself as an American freelancer without a company or entity or particular place of business, then you should probably pay US taxes (which, I believe are higher in most cases). You shouldn’t ever have to pay them both however, as there is a double taxation treaty.
3. Good question, I’m not 100% sure, but I believe you apply for the NIE first… yeah, almost sure about that. When you arrive, go get your empadronamiento at the local council, then stand in the huge lineup at the police station for the NIE, then go get yourself autonom-ized. 😉
Thanks so much for the fast response!!! I’m still a bit confused about two things:
1) The tax thing… I do freelance writing for two U.S. companies—one pays me through PayPal and the other wires it to a bank account in the U.S., but this can be switched to Spain (not sure if it matters where the bank account it). Anyways—since taxes are lower in Spain, I’d love to be able to pay taxes on that work in Spain rather than U.S. But since I won’t actually have residence in Spain, and the companies are American…. I just assumed I’d have to pay those taxes in America. But you’re saying I may be able to just pay Spanish taxes, as long as I’m set up as autonomo? (Sorry if this is confusing…)
2) OK, in order to get an NIE, I need to empadronarme. I never did this the first time around in Spain because I heard that I needed to have my name on a lease… In about 7 apartments I rented (either fully or just rooms), I only had my name on the lease twice… So if I’m just renting a room from someone, how do I do it?
Yeah, theoretically if you’re living in Spain then you can get the US companies to pay you into your Spanish account and you won’t pay taxes (but still have to file them of course) in the US. You might even split income sources between the two countries… but you didn’t hear it from me. Talk to an accountant.
You can get your empadronamiento by either showing a bill in your name that’s been sent to your address (your bank statements if they’re mailed to you there) or by having the titled leaser come down with you and showing their passport or NIF.
We have some new information about a visa for freelance workers. I’m hoping to see it published in the next week or so. It’s interesting and should be right up your alley. If you’re still interested let me know and I’ll post here about it when it’s up.
You dont need an empadron to get an NIE number. This number is your tax identification number and people buying holiday homes have to have one before they make the purchase. These people don’t go on the empadron if they only use the place for holidays and don’t live here on a permanent basis.
We have some new information about a visa for freelance workers. I’m hoping to see it published in the next week or so. It’s interesting and should be right up your alley. If you’re still interested let me know and I’ll post here about it when it’s up.
As far as I’m aware, as an American, you cannot stay legally in Spain (or in any
European Union country, come to that) for longer than 3 months without
a student visa or a work permit (both of which you must obtain in the
USA before arriving in Spain). Without a visa, you will not be able to
become autonomo. One of the first steps to becoming autonomo is to
obtain a NIE. You won’t get a NIE if you don’t have a visa or permit.
It’s a vicious circle. You say you taught English in Madrid illegally
for 4 years. You’re lucky that no one reported you. The authorities are
getting pretty tough with Americans who stay here longer than 3 months
without a permit, let alone those who are caught working. If they catch
you, not only will you be in a great deal of trouble, you’ll also get
deported. I’m surprised that no one else on the forum has pointed this
out to you.
fropie - 31 January 2007 09:17 PM
Hi all,
This is my first post here, though I’ve been reading things on the site for quite some time. I lived in Madrid for more than 4 years teaching English illegally (I’m American). I left for a bit to live in Asia, but now I’m heading back with the intention of finding a way to be legal and, hopefully, not teach English.
I’ve heard that if I have about 3,000 euros in a bank account, I can apply for autonomo status, and then pay a certain amount each month for taxes/social security and after a year or so apply for residencia. I have a few questions, and I’d greatly appreciate any help from anyone familiar with the topic. I’m moving back to Spain in about 10 days and want to be ready to act upon arrival!
1) If I get autonomo status, am I limited to doing work such as teaching and translation (i.e., work typical for independent contractors)? Or can I use it as a way to get hired by a company to work full-time and eventually sponsor me for a normal work visa?
2) If I do freelance work for American companies (via Internet) while living in Spain as autonomo, do I pay taxes for the U.S. work in Spain? Or do I have to pay taxes for U.S. company work in the States and Spanish company work in Spain?
3) Do I need to apply for an NIE number before applying to be autonomo, or is it a one-shot deal?
I have a million more questions, but these are the most important ones (for now!)...
Sorry, kizzy, but you are wrong. A NIE is not a tax identification number. It’s a ‘Numero de Identidad de Extranjeros’ (Identity Number for Foreigners). People applying for a NIE used to get a plastic card the size of a credit card, but this is no longer the case. The new NIE is just a piece of paper with your name and number and an official stamp on it. With respect, you should get your facts right before posting misleading information.
Paul
kizzy - 26 May 2007 01:15 PM
You dont need an empadron to get an NIE number. This number is your tax identification number and people buying holiday homes have to have one before they make the purchase. These people don’t go on the empadron if they only use the place for holidays and don’t live here on a permanent basis.
You are right Just Landed, the NIE is now an A4 sized piece of paper with your details on it and a number something like X-0000000-V (for example). This NIE is for all foreigners and yes you would need it if you buying property. Everybody in Spain has to pay what they call “Wealth Tax” whether you work here or live here full/part time, however, the Spanish struggle to keep up with this tax and generally people don’t pay it, although it is a requirement by law, if they catch up with you, they can legally charge you the previous 5 years (but no more)
Im EU citizen now living in spain. NIE, social security, empadronamento, health card all obtained. Was wondering re being autonomo. I have the option of working with a company, in which case they take care of the social security and tax, but i get less pay, or autonomo, in which case i have to apply for it and take care of things.
Is there a monthly quote i must pay as autonomo, irrelevant of income, or does this apply cause i have a social security number?
If i only stay in the country for a few years, will the tax and social security payments be lost, or can i transfer them to my mother country for my pension there?
As an autonomo when compiling invoices, what are the extras i must add on top of my salary? i heard 16% vat, but 7% deducted for something.
Upon collecting from the various jobs, i believe there is a quaterly paper thing to be compiled.
