Hi Guys,

Hope this is not too confusing, any help would be greatly appreciated…

I am thinking of moving to Spain this summer for a maximum of 5 months, and would really like to try to abide by the system and do everything possible to be legal. I am self employed in the UK and am also the director of a registered UK ltd company.

I am basically wanting to work as an aerobics instructor and personal trainer as “autonomo” in Spain, to avoid all the time consuming, expensive paperwork involved with setting up a Spanish company. I will be needing to employee a couple of other staff, can i do this as a sole trader? Is it possible for me to either set up a second UK ltd company and then work in Spain for 5 months return to the UK and have my UK accountant work out my tax. Or do I have to pay taxes in Spain for the duration of my work. It seems like a very long winded process for 5 months work???

Obviously I want to do the bare minimum in order to be legal to keep set up costs to a minimum.

I?ve have also heard that if you pay more than 3,500 euros into a Spanish bank account, and you are not Spanish… the bank are to inform Spanish authority to try to prevent illegal working and money laundering. Is this true? I hope to earn a larger sum than this and would therefore need to be legal in order to transport profits back to the UK??? As i don’t think UK customs would take too kindly to me waltzing through security with 10K in cash in a briefcase.

Am i right in thinking that as an EU citizen, i can enter Spain and can reside/ work there for 90 days without informing any Spanish authority of my self employment, and then if i intend to stay for MORE than 90 days I would need to apply for residency permit and a NIE number, and register my self as autonomo?

I will be earning my income in Spain but paying outgoings both in Spain and at home in the UK as it will cost me a bit to set up before the move, and all marketing materials will be shipped out to Spain from the UK. I understand that if i was to pay tax in Spain i wouldn’t also have to pay tax in the UK. But how does it work if you are earning in one country and paying out expenses in another? Confusing or what!!!

Also I pay for an accountant in the UK, so it would be nice if i didn’t have to hire the services of a Spanish accountant also.

How would it work for example if I was an English company touring in Spain for a few months, like a band for example? Could this maybe be a way round the system?

I also read on this site that if you work for a non Spanish company you are not necessarily required to register as autonomo and pay taxes, is this correct? If i can get away with this that would be amazing!!!

I also have a million more questions, but these are the most important ones at this point.

Thanks to anyone who can help me, and sorry this email is sooo long.

Hol xxx

sole trader in spain open you to many problems there , get you company in the Uk to open in spain via spanish embassy  
that will tell you what you need to do and fine tax in spain is cheaper in spain some tax brakets for companys

Hello jurdyr

Thank you for your help, i will definately get on to the embassy and find out how to open a branch in spain, it seems this would be much less confusing and faster that going throught the spanish system.

Thanks Again

Hols xxx

To set up an S.L. you have to follow the steps below (remember to always bring all your papers and your identification (+ at least 5 copies) to all the meetings you have with different Spanish institutions):

1. First of all you need a certificate (Certificacion Negativa del Nombre (CNN)) stating that the company name you intent to use is not taken. This can be bought in the Registro Mercantil for about 10?.

2. The next step is to get a temporary CIF number (company identification number). To get this you have to fill in the model 037, bring 2 copies of you identification and the original CNN. This can be done in the ‘Camara de Comercio’ or the ‘Ventanilla Unica’ in your town.

3. Thereafter you need to deposit 3003? in a bank account opened in the company’s name. You need a certificate from the bank stating that you have made the deposit.

4. The next step is to prepare the official statement of the company (Escritura) and make a public notary sign it. The official statement of the company is saying who is the owners, the address of the company, what the company will be doing etc. Normally the elaboration of this statement is included in the public notary fee (which can range between 200 and 1000?).

5. The company now need to pay a tax of 1% of the initial capital, which is 1% of the bank deposit (minimum 30.03?). This should be done in the tax administration office using the form 600. Remember to bring a copy of and the original ‘Escritura’ and a copy of your temporary CIF number.

6. When you have paid the above tax you need a certificate from the Registro Mercantil (the same place where you got the CNN) of your Escritura.

7. Now you need to fill in the following forms 36 or 37 (a declaration of starting your activity) and the inscription of the company with social security (form TA6) at the ‘Camara de Comercio’ or the ‘Ventanilla Unica’. You also need to acquire and bring a book called Libro de Visitas, which is an official book used by the government when they do official inspections of your company.

8. The next step (also at the Camara de ‘Comercio’ or the ‘Ventanilla Unica’) depends on the number of employees there is going to be in the company. If the only workers are the owners then you need to fill in the form TA 0521/B. If you need other employees you need to get a pre-contract for social security.

9. At this stage you also need to apply for licenses with the local government if it is needed. In generally all public places like bars and shops and also manufactures need a special license (In the ‘Camara de Comercio’ or the ‘Ventanilla Unica’ they can inform you about licenses needed to run your business. It is also a very good idea to also seek professional help for this issue).

10. If your company is going to have employees (apart from the owners) you need to register them with a local INEM office (unemployment office).

11. The company can start to operate as soon as you have received all your licenses. The last step is to get the final CIF number at the ‘Camara de Comercio’ or the ‘Ventanilla Unica’ by showing the original certificate from the Registro Mercantil of your Escritura.

hope that helps

Did we miss anything on our start a business in Spain article? 😉

The starting a business in Spain article looks very good, BUT it doesn’t address the original question.

I am in exactly the position of the original questioner. I do not yet have the definitive answer.

I work in the UK through a Ltd Company.

I have the opportunity for various short term training contracts in Madrid.

As far as I can tell so far there should not be a problem with my carrying out the work, my company invoicing the Spanish client and my company paying me my usual salary in UK plus unavoidable expenses. Spain and the UK have a double taxation treaty so I won’t have to pay twice. Spain allegedly takes about 25% of gross income whereas the UK is 35% (with NIC) so this may not be the most efficient arrangement.

I have written to the Spanish Embassy in London:
Work and Social Affairs office of the Spanish Embassy in the UK
Oficina Laboral
20 Peel Street,
London W8 7PD
 
and to HMRC and will post any response I get

Hi Canillas, welcome to the site. Indeed, that article would not address that question.

So you’re asking whether or not the Spanish government is going to tax you on contract work you perform in Spain? First of all I’m not sure how they would find out about it, secondly there is a double taxation treaty (albeit, the logistics of which I’m not very familiar).

Great that you wrote the Embassy. I’ll look forward to hearing from you when they get back to you!

Sorry Im confused :(

Is a SL (sole comapnay)  and or starting a business in Spain the same thing as an Autonomo visa?

Thanks! x

Autonomo is working as self employed paying a fixed amount into the Spanish system every month for National Insurance.

Setting up an S.L. company is equivalent to a Limited Company (Ltd. in UK) this is more complicated and involves keeping accounts etc.

A double taxation treaty means that you cannot be taxed twice by different countries on the same income.

Thanks for your reply.

Ok so If im registering for Autonomo its not a S/L and I dont have to follow the above steps.

What process do I have to go through for Autonomo?

Register with someone and pay social security? (sorry to be so vague)

Thanks,

Kristen

See this sites home page, working, autonomo. The short cut is find a gestoria who will do the form filling etc for you.

It takes about a day to register a company and another 30 minutes to fill out forms to register with the Tax Office. I wonder if the problem is with obtaining a Sub contractor’s certificate, which can take a while?