# Relocating to Spain - Self employment questions



## Eugeo (May 22, 2014)

Hi all,

I am new here and I have a few questions.

I am planning on relocating to Spain in 2016, I am currently a self employed Technical Illustrator sole trader operating under the VAT threshold. I am in my mid thirties so I will be doing this for a while, I have a strong client base and regular payments from my clients into my UK business bank account. 

My questions are:

What are my options when I move to Spain? I am guessing I have to register as autonomo? But do I have to have my payments paid into a spanish business account? or can I keep my uk account which would be preferable?

Looking into becoming an autonomo on the internet, it does look a little pricey 

Also would I have to add IVA to my services? 100% of my work is done via internet and in electronic format and is it anything like the UK with a IVA threshold etc?

Sorry if some of the questions are a bit dumb, I just wanna be clear on what I'm getting myself into.

Many thanks in advance for the help.


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## xabiaxica (Jun 23, 2009)

Eugeo said:


> Hi all,
> 
> I am new here and I have a few questions.
> 
> ...


:welcome:

if you're self-employed & living in Spain, you have to register as such here - the good news for you is that there is a 'start-up' scheme atm where new registrations pay just +/-50€ a month initially, gradually increasing to the full amount over a couple of years - I pay about 280€ a month + income tax

there's no knowing if that scheme will still be in place in 2016 though!

the autónomo payment does however cover you & any dependents for healthcare & you will eventually get a pension from Spain

there's no minimum threshold for VAT/IVA - if the service or product attracts IVA you have to be registered & it has to appear from the very first invoice

you'll need a bank account in Spain in any case, in order to register as resident, and for utility payments etc


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## houselannister (May 26, 2014)

Yes Eugeo, you will have to add IVA 21% (VAT) to all your services no matter where your business is. Unless you plan to move to Tenerif, in that case you only have to pay IGIC which is 7%


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## StewartL (Sep 5, 2013)

Hi Eugeo

My advise would be to obtain specific international tax advise from an adviser with experience of Spanish and UK business tax who will be able to provide you with the specific rules and maybe various options so that you can make a totally informed decision.

Yes if you are working as self employed in Spain you will need to register as autonomy and declare income to the Spanish Authorities.

IVA is chargeable but same rules apply as in the UK that if you are supplying services to a business in another EU member state that that business is VAT registered then your invoice to them can be zero rated for VAT with the companies reporting the zero rated supply. (There are rules to follow as to what you must hold to justify the zero rating and what has to be denoted on the invoice.) If you are supplying services to an non vat registered customer then you will have to charge IVA at the prevailing rate.

You may still have a GBP bank account as part of your Spanish business invoicing and receiving payments in GBP (for ease of your clients) but you will need to follow the rules of the tax office as to the rate of exchange to use for each transaction as your tax books in Spain will need to be in EUR.


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## Eugeo (May 22, 2014)

Many thanks for the replies guys, that helps a lot. I've found myself a good Gestoria so I will start to make the steps forward with my move :thumb:


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