# Automino/SIP/Pensionista!!!



## xicoalc (Apr 20, 2010)

Buenos Dias!

I don't know if anyone can shed any light on this. I have a friend who is in receipt of some small UK benefits due to being retired early with ill health (very seriously ill). He lives here and is bored and wants to do a little work from home.

Because he is medically retired in the UK he gets "pensionista" status here despite his age, meaning free healthcare and free prescriptions.

He wants to work a few hours a week from home and register autonomo in spain. UK have said he is permitted to work up to 20 hours a week without his benefits being affected.

If he becomes autonomo in spain how will this affect his "pensionista" status? His problem is that to buy all his meds and stuff would cost hundreds of euros a month (even with the 40%), so if he looses this then there is no point at all in working because he will be worse off and might as well take up a hobby instead!

Any info would be appreciated for him.

Gracias a todo!


----------



## Alcalaina (Aug 6, 2010)

You mean autónomo - self employed?

I would imagine it depends on his earnings. Best talk to a _gestor (asesor fiscal) _or the _trabajador social_ at his health clinic.


----------



## xicoalc (Apr 20, 2010)

Alcalaina said:


> You mean autónomo - self employed?
> 
> I would imagine it depends on his earnings. Best talk to a _gestor (asesor fiscal) _or the _trabajador social_ at his health clinic.


jeje yes i did mean that - god knows what i was thinking, its been a mad day! :doh: (changing it now!!)

This is what I advised he does, just wondered if anyone has any hands on experience!


----------



## Beachcomber (May 10, 2009)

Registering as autónomo in Spain means paying at least €250 per month in social security payments as well as quarterly returns for income tax and VAT regardless of the number of hours worked or income earned.

However, there may be some added advantages in respect of Spanish healthcare and prescriptions issued by a Spanish doctor.


----------



## xicoalc (Apr 20, 2010)

Beachcomber said:


> Registering as autónomo in Spain means paying at least €250 per month in social security payments as well as quarterly returns for income tax and VAT regardless of the number of hours worked or income earned.
> 
> However, there may be some added advantages in respect of Spanish healthcare and prescriptions issued by a Spanish doctor.


Yes I know this, the problem is, my friend doesn;t want to work to earn, he is not well enough to do that, he just wants to perhaps bring in a few extra coppers but fill some of his time.

He knows he wil pay the 250 a month (170 actually as he is under 30), but he already gets state healthcare and FREE prescriptions because he is pensionista due to his health.

What he doesn't know is if this free prescription status will be affected by the fact he is paing in and becomes autonomo


----------



## 90199 (Mar 21, 2010)

There is a Yorkshire saying, that he may apply in these circumstances:

Hear all, see all, *say nowt*

Eat all, sup all, *pay nowt*


----------



## Beachcomber (May 10, 2009)

Very true but if everyone paid 'nowt' there would be no money for his free prescriptions!


----------



## 90199 (Mar 21, 2010)

Beachcomber said:


> Very true but if everyone paid 'nowt' there would be no money for his free prescriptions!


I was only referring to this person and his personal circumstances, insomuch, that will he ever earn enough to be able to afford the charges? from the previous posts it seems not.

However it does seem that the Spanish penalise the potential entrepreneurs, by the €250 a month social security charge. In Britain I started my own business and my National Insurance charges were reduced to £2.


----------



## Beachcomber (May 10, 2009)

Yes, I was being a little facetious (just this once you understand). 

When my wife and I moved to Spain we both registered as autónomo and, although the contribution at that time was considerably less, relative to our income it was much higher and it was a while before either of us started to break even let alone make a living profit.

There was no VAT then and no-one declared a realistic amount on their tax returns so the social security payment was probaly the only source of income from the self-employed assuming they were registered at all.

Unless the OP's friend is going to be carrying out a high profile activity he would probably do well to follow your politically incorrect Yorkshire advice.


----------



## VFR (Dec 23, 2009)

steve_in_spain said:


> Yes I know this, the problem is, my friend doesn;t want to work to earn, he is not well enough to do that, he just wants to perhaps bring in a few extra coppers but fill some of his time.
> 
> He knows he wil pay the 250 a month (170 actually as he is under 30), but he already gets state healthcare and FREE prescriptions because he is pensionista due to his health.
> 
> What he doesn't know is if this free prescription status will be affected by the fact he is paing in and becomes autonomo


In that case I would work for free & would not object if those I helped took my car away and bought it back serviced etc etc etc


----------



## Alcalaina (Aug 6, 2010)

playamonte said:


> In that case I would work for free & would not object if those I helped took my car away and bought it back serviced etc etc etc


I would (still) ask the_ trabajador social_ at the clinic about maximum earnings!


----------



## xabiaxica (Jun 23, 2009)

Alcalaina said:


> I would (still) ask the_ trabajador social_ at the clinic about maximum earnings!


me too - that seems like the most sensible advice


----------



## Classified (May 9, 2010)

Beachcomber said:


> Registering as autónomo in Spain means paying at least €250 per month in social security payments as well as quarterly returns for income tax and VAT regardless of the number of hours worked or income earned.
> 
> However, there may be some added advantages in respect of Spanish healthcare and prescriptions issued by a Spanish doctor.


Hi Beachcomber, I have just registered as autonomo, how much tax and vat will i have to pay at the end of my first quarter?:ranger:


----------



## JBODEN (Jul 10, 2009)

Classified said:


> Hi Beachcomber, I have just registered as autonomo, how much tax and vat will i have to pay at the end of my first quarter?:ranger:



?????
What a strange question for a person that has just set up a business! 
Tell me what your turnover and profit margin will be. 
Tell me what your overheads will be. 
Tell me .... (*** it, I give up)


----------



## Stravinsky (Aug 12, 2007)

JBODEN said:


> ?????
> What a strange question for a person that has just set up a business!
> Tell me what your turnover and profit margin will be.
> Tell me what your overheads will be.
> Tell me .... (*** it, I give up)


Another helpful post then!


----------



## xicoalc (Apr 20, 2010)

Classified said:


> Hi Beachcomber, I have just registered as autonomo, how much tax and vat will i have to pay at the end of my first quarter?:ranger:


Hi

I hope you don't mind me answering this one for you?

If you have jsut registered autonomo you will be paying approx 250 euros per month in social secrity. You will then each quarter have to account for IVA & Income tax. Your IVA will be the 18% you add on top of your factura (minus the IVA on any purchases that you can reclaim) - for example. If you buy 1000 euros worth of supplies, and sell 2000 euros worth of goods you will only have to pay the IVA on the difference, assuming that both your purchases and sales were rated for IVA at the standard rate.

Your income tax will be roughly 20% of your NETT profit each quarter, and at the end of the year this gets finally calculated and you pay the difference or reclaim it if you have overpaid.

There are a few other things here to consider...


If you sell business or professional services you may have to deduct 15% from your factura for your client to pay that element of tax for you - likewise, some of your businesses suppliers may reduce their factura by 15% for this reason, and you pay that element to the tax man rather to the supplier.
You may be on the modular tax system, rather than book keeping, whereby you aree a fixed rate of tax to pay regardless of your actual turnover/profit.

What is alarming me a touch is that if you have just set up you seem unsure. Did you use Gestor or an Asesoria to start up? If so, and they have not explained all of this to you then they want shooting!!

All of the above are rough guidelines (even social security cab be lower in some cases). My advice would be to find a good Gestor (administrator who often get involved in book keeping and accounts), or better still an Asesor (a full blown accountant) and go through all of this with them because ANYONE becoming self employed, particularly in a foreign country needs to realy get clued up on things.

What are you going to be doing as autonomo? What accounting system are you on?


----------



## JBODEN (Jul 10, 2009)

Stravinsky said:


> Another helpful post then!


   
where have you been for the last 2 weeks?


----------



## Classified (May 9, 2010)

steve_in_spain said:


> Hi
> 
> I hope you don't mind me answering this one for you?
> 
> ...


Firstly i did not find the comments from boden helpful in fact he was rude, anyway its a long story of how i have aquired this business, to be honest it was never something i wanted to take on. I do not need the money, i have just helped a friend out. My new accountant is spanglish and is very helpful, its just me wanting things a little clearer from my expat forum. I think i will be on the modular system Steve, so i will wait and see what happens now. The business is a small typical british bar in a village. Thank you Steve and i also take this opportunity to thank anyone else with any imput regarding this post.


----------



## Beachcomber (May 10, 2009)

I can't really add much to Steve_in_Spain's post. If you earn nothing during a particular quarter you can submit a 'sin actividad' return but you still have to pay the social security and if you do that too often they may begin to wonder what you are living on.

You have to do an annual IVA return in January for the previous year and an annual income tax return in May/June to see if you will be entitled to a refund or have to pay more.

The quarterly returns are fairly easy to do but the those for the annual IVA and income tax can be rather daunting until you get used to it. However, unless you can read and understand Spanish pretty well you will be left completely bewildered.


----------



## Stravinsky (Aug 12, 2007)

JBODEN said:


> where have you been for the last 2 weeks?


Getting wet in the UK without a decent internet connection


----------



## xabiaxica (Jun 23, 2009)

Stravinsky said:


> Getting wet in the UK without a decent internet connection


and you've come back to get wet here instead


possible Gota Fria on the cards this weekend/early this week


----------



## Stravinsky (Aug 12, 2007)

xabiachica said:


> and you've come back to get wet here instead
> 
> 
> possible Gota Fria on the cards this weekend/early this week


Dont care as long as it clears up before I go to Roses


----------

