Spanish national insurance contributions

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Bongtrees
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Spanish national insurance contributions

Postby Bongtrees » Tue Dec 13, 2005 8:41 pm

A friend who has several pre existing medical conditions, lives in Spain full time and obtains income from her UK Ltd company.

She has been paying Spanish contributions for 6 months or so and has now been told that she must dereisgter as she has no occupation in Spain.

This will leave her in a difficult situation in the event she requires medical asistance.

Does anyone have any ideas?

TIA

Mike

Sad K

Postby Sad K » Tue Dec 13, 2005 9:15 pm

I would suggest to your friend that she explores the possibility of paying for a private medical plan in Spain, through her UK limited co, if she has a good accountant she can make this a legitimate tax deductable expense, so in reality it should be free, This is what my family plan to do until we are established in business in Spain, Sadique.

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Postby campo babe » Tue Dec 13, 2005 10:15 pm

I think it is probably the fact that she has pre-existing medical conditions that is the problem here, and not how to pay for the private insurance. This is always a problem with private healthcare, they will not cover you for pre-existing conditions.

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Contributions?

Postby nigel_t » Fri Dec 23, 2005 12:41 am

Does having no occupation make a difference when making contributions??

Surely paying into the system is enough?
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Bongtrees
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Re: Contributions?

Postby Bongtrees » Fri Dec 23, 2005 12:52 am

nigel_t wrote:Does having no occupation make a difference when making contributions??

Surely paying into the system is enough?


Obviously not!

The friend was summonsed to the offices and unceremoniously de-registerered.

She was told that it is impossible to make contributions without declaring any kind of business activity within Spain.

She now faces the prospect of selling up and returning to UK because with her prexisting medical conditions, no insurance company will cover her.

Also to confuse matters further, she has received notification from UK stating that she must pay NI contributions for any period she is in the UK
and that they could check travel details!

Mike

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silver
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Postby silver » Fri Dec 23, 2005 11:52 am

She has been paying Spanish contributions for 6 months or so and has now been told that she must dereisgter as she has no occupation in Spain.

Cant she " create "an occupation..eg cleaning services...english teacher...da de alta as autonomo...and do the VAT declarations...with nothing or minimum to declare..
Or get someone who has a company to give her a "job" (she could cough up the costs)
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Minimum contributions level

Postby olive » Fri Dec 23, 2005 5:39 pm

Can anyone tell me the minimum Spanish income level (e.g. from olives) that social security payments made then qualify you to be in the system?

I seem to remember that the minimum payment is about 200 euros a month from a previous thread. If so does that mean your minimum Spanish income has to be 2400 euros per annum?

olive

McT
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Spanish national insurance contributions

Postby McT » Thu Feb 09, 2006 5:29 pm

Forgive me for resurrecting this thread, but I am interested in the outcome of the original story. Bongtrees: Are you able to enlighten us, did your friend have to return to the UK, or was there some other solution?

I too hope to continue to work for my UK employer whilst residing in Spain. I posed a question about Social Security payments here:

http://www.britishexpat.com/expatforum/country/viewtopic.php?t=6672

but didn't receive any replies. If anyone is in a similar situation, I would very much like to know how he/she fared.

A supplemental question: My wife will be employed by a Spanish company, will her Social Security payments cover me too?

McT

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Postby katy » Thu Feb 09, 2006 6:07 pm

I have a retainer from a family co. and pay social security here as representing them in Spain, a gestor fixed it up. I also heard of some registering as part-time agricultural workers and they only pay a pittance, think you need a friendly farmer to help you do this. I think if your wife is in the system you will be covered.

Any pe-existing conditions, dont take out private medical as its not worth it they will link anything to the condition.

McT
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Postby McT » Thu Feb 09, 2006 6:22 pm

Thank you. Getting covered doesn't appear to be a problem then; either as a result of my wife's contributions, or by getting a pretend job! But is there any danger of the Spanish government wanting a slice of my UK earnings for Social Security? (I know that they will want their share in tax.)

McT

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Postby McT » Fri Feb 10, 2006 10:45 am

Katy - I assume that the Spanish government classify your retainer as earned income. What percentage do they take for SS? Is there an upper limit?

McT

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Postby katy » Fri Feb 10, 2006 1:46 pm

Yes, its taxed here, but only as a basic minimum. Sorry I don't know if there is an upper limit maybe...beachcomber will know.

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Postby McT » Fri Feb 10, 2006 3:14 pm

Thanks Katy, but it was social security payments I was wondering about rather than tax. The original post in this thread suggested that social security payments would not/could not be paid on foreign earnings.

McT

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Postby katy » Fri Feb 10, 2006 4:59 pm

Think you are right about foreign earnings, we are down as having a subsidary office here. I know an architect who lives here (can't practice here) but he is in the system as self-employed and his earnings comes from other countries.

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Postby Bongtrees » Fri Feb 10, 2006 7:57 pm

McT wrote:Thanks Katy, but it was social security payments I was wondering about rather than tax. The original post in this thread suggested that social security payments would not/could not be paid on foreign earnings.

McT

Just to clarify our friends situation. She lives full time in Spain working on computer and commuting as and when necessary.

She pays tax and NI in the UK on the earnings and dividends from UK Ltd companies. She earns in excess of 60K sterling p a. She was stopped from paying autonomos in Spain and has to pay for medical treatment here in Spain.

I had hoped one of the 2 gurus would reply at some stage because I dont know how or why she doesnt elect to pay tax in Spain especially as she has a 300 K Euro Spanish mortgage and is not receiving any tax relief.

Clear as mud

Mike

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Re: Spanish national insurance contributions

Postby Colineric » Thu Jan 03, 2019 8:00 pm

she should register as self-employed in Spain and invoice her UK company for her services.
She should not be paying tax in the UK as she is resident in Spain.
Her company will of course be taxed in the UK on the profit remaining after her fees from Spain.
The dividends will be taxed in Spain.

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Re: Spanish national insurance contributions

Postby gerryh » Thu Jan 03, 2019 8:22 pm

Welcome to the forum.
I assume you realised you replied to a nearly 13 year old post?
Cheers
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costakid
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Re: Spanish national insurance contributions

Postby costakid » Thu Jan 03, 2019 8:40 pm

Bloody hell, that is an old post for a newbie to get involved in. Welcome anyway.

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Re:

Postby Manchesteral » Fri Jan 04, 2019 2:13 pm

Bongtrees wrote:
McT wrote:Thanks Katy, but it was social security payments I was wondering about rather than tax. The original post in this thread suggested that social security payments would not/could not be paid on foreign earnings.

McT

Just to clarify our friends situation. She lives full time in Spain working on computer and commuting as and when necessary.

She pays tax and NI in the UK on the earnings and dividends from UK Ltd companies. She earns in excess of 60K sterling p a. She was stopped from paying autonomos in Spain and has to pay for medical treatment here in Spain.

I had hoped one of the 2 gurus would reply at some stage because I dont know how or why she doesnt elect to pay tax in Spain especially as she has a 300 K Euro Spanish mortgage and is not receiving any tax relief.

Clear as mud

Mike


I may be wrong and if so someone will be along to correct me but surely if your friend lives in Spain for more than 183 days then she is tax resident, meaning she/he will pay tax on her worldwide earnings in Spain, you can't expect to live in Spain, not contribute and get all the benefits of a genuine resident !

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Re: Spanish national insurance contributions

Postby El Cid » Fri Jan 04, 2019 5:06 pm

I'm closing this thread as it is far too old to be relevant. Most forums do this automatically on threads that are inactive - sadly this forum does not have that option.

Sid


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