Moving to Spain and Setting up self employed (autonomo)

Do you have a query about moving to Andalucia and buying property in Andalucia. Find out by posting questions and reading about other peoples experiences.
rdr31
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Joined: Tue Jun 21, 2016 1:14 pm
Location: UK

Moving to Spain and Setting up self employed (autonomo)

Postby rdr31 » Thu Jun 23, 2016 9:28 pm

Hello, I am new to this site but just looking for advice, please.

My husband and I are considering relocating to Spain, along with our two children (5 and 1). I work from home, and will increase my hours if we do decide to move. We would rent a house for the meantime, and our son attend either a bilingual or state school. We have enough money to cover us for over a year (this is all advice I seem to have read or been offered on different forums). Is there anything else I need to consider? I have obviously asked more in depth questions, but this is just a brief outlay.

I have also been researching info re setting up as self employed

Could someone just confirm that I have understood things properly, please?

1 - social security payments are around 260€ a month, this would include my husband and children? There is a discount of 80% for the first 6 months, 50% 6-12 months, 30% for 12-15 months.

2 - income tax would be 19% paid quarterly (although I have seen conflicting advice at 20%). The first 3 years income tax is at 9%, but only read this on one site.

3 - VAT, I am not VAT registered. Would this just be the same in Spain?

Are social security payments taken before tax deductions or after?

I'm currently paid via PayPal, and into my UK bank account from other companies. Would I need to be paid direct into a Spanish bank account, or can I simply transfer the money from UK account and PayPal?

Thanks in anticipation

markwilding
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Location: Bilbao Spain

Re: Moving to Spain and Setting up self employed (autonomo)

Postby markwilding » Thu Jun 23, 2016 9:50 pm

As an autonomo I can answer a couple of your questions. The Autonomo payment you make is the only social security payment you need make. It's every month even if you're not earning until you tell them to stop.

There are various ways you pay the tax. If you invoice a company. you have to invoice the full amount less the 19 per cent which the company pays on your behalf.

If it's an individual you invoice the full amount and pay the tax every three months.

The tax is 21 per cent not 19, although the 19 per cent is the amount you invoice,,,confusing eh?

So once a year you have to pay the other 2 per cent, although it might be that you are due a rebate when all the accounts are taken into consideration.

rdr31
Newbie
Posts: 3
Joined: Tue Jun 21, 2016 1:14 pm
Location: UK

Re: Moving to Spain and Setting up self employed (autonomo)

Postby rdr31 » Fri Jun 24, 2016 7:48 am

Okay that's great, thank you!

Beachcomber
Andalucia Guru
Posts: 9369
Joined: Tue Jun 15, 2004 11:11 pm
Location: Guadalhorce Valley

Re: Moving to Spain and Setting up self employed (autonomo)

Postby Beachcomber » Fri Jun 24, 2016 10:41 am

Maybe my wife is on a different tax régime but her quarterly fractional payment is 20% regardless of the prevailing rate of income tax. See Box 4 on this form:

https://www2.agenciatributaria.gob.es/w ... /index.zul

This is then adjusted accordingly when the annual tax return is submitted.

VAT is paid at 21% from the first céntimo earned. There is no threshold. This is also paid quarterly with an annual return then being made in the following January.

mountainlass
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Joined: Fri Nov 23, 2012 9:50 pm

Re: Moving to Spain and Setting up self employed (autonomo)

Postby mountainlass » Wed Jun 29, 2016 4:34 pm

1 ) Depends on your Age. I am 58 Autonomo and initially paying $75 pm
2) 20% quarterly
3) Depends. As far as I know ( and I am no expert) IVA (VAT) is paid on all works accept certain professions. I offer English Conversation Classes and Education is exempt. So I think it depends what you are hoping to do.
4) Social Security payments are taken from your bank Monthly, as a separate payment

All other questions I do not know the answer

Others on here are FAR more knowledgeable

Stupot
Andalucia.com Amigo
Posts: 90
Joined: Wed Apr 30, 2008 10:31 am
Location: axarquia

Re: Moving to Spain and Setting up self employed (autonomo)

Postby Stupot » Mon Aug 22, 2016 9:46 am

Hi
Sorry I can't be of help to you but to relieve your stress have a look on youtube at a video entitled 036

Even the Spanish have a sense of humour about their own bureaucracy!
Stupot

hangoverocks
Tourist
Posts: 6
Joined: Sun Oct 09, 2016 3:10 pm
Location: Granada

Re: Moving to Spain and Setting up self employed (autonomo)

Postby hangoverocks » Sun Oct 09, 2016 3:45 pm

Stupot wrote:funny video! My experience wasn´t quite as bad as that, but you will need help from another expat who has done it before


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