autonomo, iva for car refundable?

Information and questions about the Law in Spain and Andalucia.
qe2ex
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autonomo, iva for car refundable?

Postby qe2ex » Thu Apr 04, 2019 2:20 pm

Hello, I'm moving to Spain (Malaga) with my little family in a few months. I'll keep working for my non-Spanish employer from Spain most of the year, so I understand I will have to register as an "autonomo" to do this legally, and to also get social security benefits (medical mainly) for myself and my family.

I will need to purchase a car and I am wondering if there is any chance of getting back some or all of the IVA on the car if I'm already registered as an autonomo?

I'll be spending some holiday-time in Spain before moving there to set things up, and will need to purchase a car at that time. At that time I do not plan to have registered as an autonomo yet, as I don't want to start paying the costs associated with being an autonomo before I move to Spain two months later and start working from Spain. However if I can deduct the IVA as an autonomo, it may be be worth it to register as an autonomo during the "holiday-time".

I've found two websites that show somewhat contradictory information regarding this:

http://cervantesalarcon.com/en/2018/03/ ... ed-in-2018:
"Private vehicle
A self-employed worker can claw back part of the IVA of the expenses of their personal vehicle.

The capital of fuel, insurance, parking costs, tolls and routine garage work expenses can all be claimed for, but only up to 50% of the invoice cost, although if the vehicle is used exclusively for work purposes up to 50% of the fuel IVA can be claimed back, although a strict record of usage must be kept."

http://www.advoco.es/home/22-latest/46- ... guide.html:
"If a car or van has been bought specifically for the autonomo's business and is used exclusively for it, then the cost is allowable. The VAT is reclaimable right away but the allowable expense for income tax purposes is spread over 8 years (12,5% of the cost is deducted every year). "

Does anyone know what is correct? I'll be working as an engineer for my non-Spanish employer from my home, so I don't expect the car will be used for my business.

As a side note: from what I've read, it will be quite difficult for me to be able to buy a car on finance in Spain, especially since I will just have arrived and will not have any payment slips related to work in Spain. Only payment slips from where I'm living now (also an EU country, should it matter). If anyone knows different, please let me know.

Thank you.

Gasman
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Re: autonomo, iva for car refundable?

Postby Gasman » Fri Apr 05, 2019 10:24 am

It is over ten years since we did all that but I do not think much will have changed.

We imported our work-horse Defender Land Rover from France when we moved and set up the Autonomo. As it was our only car, it was considered dual use as business and family, so was considered at 50% for all costs, which in your case for a new vehicle would be including your purchase costs and IVA. Your two quotes, as I see it, are not at all contradictory - but just point out the difference, in that if the car is only for business use you can reclaim all the charges on it, but if it is partially for personal use, then it is only possible to claim 50%.
First thing to do when you come over to make all your arrangements is to decide on your Gestor - english speaking, preferably with some international knowledge for tax affairs, and of a friendly disposition - you will make mistakes and need their help!!
You have to have a Gestor as Autonomo, as the tax affairs and declarations have done be done by him/her on line on your behalf. You are not allowed to do it yourself in that business class. The Gestor will be able to advise, for instance if it is better to get a certain type of car to benefit from certain tax arrangements etc. and when is best to set up your business. Autonomo is done on a quarterly tax basis, so for instance if you start your business 1st March, you will have to account for the first quarter of the year - Jan-March - if you start on 5 April, you miss out that first quarter, and start your accounting from the second quarter of the year ... unless things have changed since we did it!
Your Gestor will not be expensive, and goes down in the accounts as a legitimate charge on your business.

I do wonder, though, you say your "employer" ... you cannot, as I understand it, be employed by someone else for the autonomo work you do - you would be perhaps contracted to him/her, but would not be salaried staff. Autonomo is the equivalent of UK self-employed ... so you would invoice (factura) your work to your former "employer". Are you sure you are going to be Autonomo, or are you "salaried staff moved abroad", which is a whole different ball-game?

Most new cars these days seem to be sold on finance ... it is the way the car dealers make some commission on the side of the sale from the finance houses - again, your Gestor would advise you how best to go about it. As Autonomo you won't have "payslips" just your accounting ....

Whereabouts are you headed? perhaps someone local to you can advise on a good recommendation for a Gestor !

Gasman
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Re: autonomo, iva for car refundable?

Postby Gasman » Fri Apr 05, 2019 10:29 am

PS - it will be a lot easier to do all you need to do, having registered as becoming Resident first, which gives you your NIE number, gets you onto the Padron at the local Town Hall, gives you the right to apply for Social Services, giving your intended status as Autonomo, or whatever status you decide on, but the first thing is the Gestor who should also help with all of this!

qe2ex
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Re: autonomo, iva for car refundable?

Postby qe2ex » Fri Apr 05, 2019 12:52 pm

Gasman, many thank for your reply. Very helpful.

I was a bit imprecise regarding my work relation. I will indeed be working as a contractor to, what will at that time become, my ex-employer, invoicing them monthly.

We will be living in Benalmádena, Málaga, so should anyone be able to recommend an English-speaking gestor not to far away, that would be most welcome, as I have not yet decided on one.

Thank you.

Beachcomber
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Re: autonomo, iva for car refundable?

Postby Beachcomber » Fri Apr 05, 2019 1:47 pm

Bear in mind that to work legally as autónomo you need to be invoicing different clients, not just working for one person. This is something that any gestor will impress upon you most forcibly.

qe2ex
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Re: autonomo, iva for car refundable?

Postby qe2ex » Fri Apr 05, 2019 2:00 pm

I have read some references to that, but what I read made it sound like it was mostly intended to avoid Spanish businesses hiring workers for what is in practice regular employment, but forcing the workers to got the autonomo route to benefit the business in some shady way, perhaps regarding various benefits. We have some rules similar to that in my country too, but they are not intended to cause problems for people who by their own choice prefer to work as contractors, even if they have worked as contractors for only one business for several years. In practice, it would be the contractor who would have to lodge a complain claiming the business should hire him properly for anything to happen in cases like this.

Is it not like this in Spain too? If not, how can I avoid getting into trouble over this?

Beachcomber
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Re: autonomo, iva for car refundable?

Postby Beachcomber » Fri Apr 05, 2019 3:56 pm

In Spain the law is the law. As in the Catholic doctrine that you are born a sinner so, in law, you are guilty unless you can prove you are innocent. You stand a good chance of getting away with being an 'autónomo falso' but if you are caught they will throw the book at you and your employer. Perhaps you should have a read of this:

https://www.limitconsulting.com/2015/11 ... omo-trade/

qe2ex
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Re: autonomo, iva for car refundable?

Postby qe2ex » Fri Apr 05, 2019 8:07 pm

Thank you. I have read it before and it is one of the articles I read that gave me the impression that it was mostly a thing to protect workers.

I think the warnings as stipulated there do not put me at a serious risk and I would bill my sole client by the hour, but I appreciate the warning and it will allow me to be better prepared for the meeting with my future gestor.

Perhaps I can, if the gestor thinks it is necessary, register as a "dependent autonomo", though I would prefer not as I don't want to make it more complicated for the company to contract with me than to contract with other consultants.

With kind regards, qe2ex.

qe2ex
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Re: autonomo, iva for car refundable?

Postby qe2ex » Thu May 02, 2019 1:16 pm

Should anyone else be interested, from the gestor company I will likely be using I'm told that in my case (engineer working from home), I have little to no chance of getting back any IVA/car expenses.

markwilding
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Re: autonomo, iva for car refundable?

Postby markwilding » Thu May 02, 2019 10:16 pm

I have never been able to claim VAT back or even use the expense against my income tax but there is a discount for Autonomos which is taken off the price at the time of the purchase.
You need to justify the payment by showing bank receipts.

qe2ex
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Re: autonomo, iva for car refundable?

Postby qe2ex » Fri May 03, 2019 11:36 am

Hello, can you provide any details about this discount? How could I get it?


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