# self-employment



## davewilks (Jul 15, 2012)

Hi,
I'm just casually thinking of moving to the Spain. I'm self-employed and believe the tax is 250 euros with a lower rate in certain cases.

Does this apply in all situations, for example if I was selling on Amazon Uk from uK sourced products shopped within UK.

Also if for example someone just sells Avon cosmetics or something similar as an extra income, do they still need to pay?

Regards


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## jojo (Sep 20, 2007)

It applies to everyone who works self employed - regardless of how much your earn or even if you dont earn. Its not tax, you also have to pay tax on any income too. and you need to pay a gestor (similar to an accountant/lawyer) who will guide you thru it, help to set you up and monitor it. However, on the positive, being an autonomo means that your healthcare will be covered and you will have books to prove income which will enable you to become a resident in Spain - as long as your income is enough to support you and any family

Jo xxx


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## m3mpower (May 1, 2010)

jojo said:


> It applies to everyone who works self employed - regardless of how much your earn or even if you dont earn. Its not tax, you also have to pay tax on any income too. and you need to pay a gestor (similar to an accountant/lawyer) who will guide you thru it, help to set you up and monitor it. However, on the positive, being an autonomo means that your healthcare will be covered *and you will have books to prove income which will enable you to become a resident in Spain - as long as your income is enough to support you and any family*
> 
> Jo xxx


Hi
I have a question please,
How does someone register as autonomo? and how long does the process take?
Also, to become resident or to register as resident in Spain, you must prove your income ( according to new law? ), and as autonomo, that takes time ( tax return at end of year..?).
So how can someone as autonomo, new arrival in Spain, register as resident ?

Thanks in advance


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## jojo (Sep 20, 2007)

m3mpower said:


> Hi
> I have a question please,
> How does someone register as autonomo? and how long does the process take?
> Also, to become resident or to register as resident in Spain, you must prove your income ( according to new law? ), and as autonomo, that takes time ( tax return at end of year..?).
> ...


You get three months to sort everything out. You will get a temporary NIE and then you can become an autonomo. You'll need to see a gestor to do this and he'll register you and give you all the necessary information. Obviously you wont have any books to prove an income, but you'll be able to prove that you are paying 250€ into the system, so thats your healthcare covered. I dont know as this ruling is new, but I assume that your gestor would be able to give the authorities a roung idea of how much you will potentially earn??? - I'm guessing tho

Jo xxx


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## m3mpower (May 1, 2010)

jojo said:


> You get three months to sort everything out. You will get a temporary NIE and then you can become an autonomo. You'll need to see a gestor to do this and he'll register you and give you all the necessary information. Obviously you wont have any books to prove an income, but you'll be able to prove that you are paying 250€ into the system, so thats your healthcare covered. I dont know as this ruling is new, but I assume that your gestor would be able to give the authorities a roung idea of how much you will potentially earn??? - I'm guessing tho
> 
> Jo xxx


OK thank you for your help


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## Solwriter (Jan 10, 2012)

davewilks said:


> Hi,
> I'm just casually thinking of moving to the Spain. I'm self-employed and believe the tax is 250 euros with a lower rate in certain cases.
> 
> Does this apply in all situations, for example if I was selling on Amazon Uk from uK sourced products shopped within UK.
> ...


If you are running a business online in the UK, based at a UK address and dealing with UK customers, you could, in theory, carry on paying tax in the UK and just fill in a tax return here, showing your earnings and tax already paid. You may pay extra tax to the Spanish government, or you may not - depends on the situation.

Proof of income would be your bank statements, showing monthly earnings.

However, that way you will not get health cover here and would have to set up private health insurance to cover you, plus to show when you apply for residencia.

So, if you want state health care here, you will need to apply to become autonomo, and at the same time it would be a good idea to transfer your earnings to your Spanish address and to a Spanish bank account.

As to selling Avon, I would doubt that anyone would make enough money selling that to break even, leave alone to declare as income.


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## davewilks (Jul 15, 2012)

Hi,

Thanks for your replies. If someone is in emlpoyment in Spain, would that mean tha they don't need to register as autonomo to sell Avon, FM or Oriflame if it's just an extra income?


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## jojo (Sep 20, 2007)

davewilks said:


> Hi,
> 
> Thanks for your replies. If someone is in emlpoyment in Spain, would that mean tha they don't need to register as autonomo to sell Avon, FM or Oriflame if it's just an extra income?


oh, good question!! I dont know lol!!!! I guess its one of those undeclared earnings type thing?????????? But it shouldnt be should it??????????

Jo xxx


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## snikpoh (Nov 19, 2007)

jojo said:


> oh, good question!! I dont know lol!!!! I guess its one of those undeclared earnings type thing?????????? But it shouldnt be should it??????????
> 
> Jo xxx




But you can still declare the other money as 'other income'. That's what we have to do for our rental income as the b***ards won't let us go autonomo.

We still declare the income but we are not in employment nor are we self-employed.:confused2:


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## NickZ (Jun 26, 2009)

Doesn't Spain have a special tax rate for rental income?


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## 90199 (Mar 21, 2010)

NickZ said:


> Doesn't Spain have a special tax rate for rental income?


We were told by the tax authorities here, that you only have to declare the rental that is on contract. Casual short term rentals do not have to be declared.

Yes I know, it is hard to believe, but that is what they told us when we visited the tax office for our first declaration.


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## NickZ (Jun 26, 2009)

Did they think you meant using the special 25% tax rate rental? In which case I could guess they expect short term rentals to be business income.

The other thing. Looking around you need to earn more then €1000 before rental income is declared. Allegedly. But I haven't found a government source yet. Just many web accountants -)


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## 90199 (Mar 21, 2010)

I have no idea what they thought. 

My objective was just to get into the system, having previously sought and paid for incorrect advice from a gestor, I just wanted to be upfront and within the law. S

So I want straight to the persons that are supposed to know what they are doing, took all details of income, and the very nice people sorted it all out and gave us a refund!!


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## Solwriter (Jan 10, 2012)

davewilks said:


> Hi,
> 
> Thanks for your replies. If someone is in emlpoyment in Spain, would that mean tha they don't need to register as autonomo to sell Avon, FM or Oriflame if it's just an extra income?


As Jo said that's a very good question and I don't know for sure either.
Because if someone is in contracted employment, their employer will be taking their deductions at source.

All I can say is that when I'm in the UK I do both - my employer takes the usual deductions and I fill in a tax return also (with the help of a friend who is an accountant) and declare the rest that way.

I would imagine it might be similar in Spain - in that you could fill in your own tax return as well as your employer making deductions on your behalf, but as I'm only self-employed in Spain I really don't know.
A gestor should be able to help, lol!


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## chefinla (Jul 27, 2012)

*Income verification*



jojo said:


> It applies to everyone who works self employed - regardless of how much your earn or even if you dont earn. Its not tax, you also have to pay tax on any income too. and you need to pay a gestor (similar to an accountant/lawyer) who will guide you thru it, help to set you up and monitor it. However, on the positive, being an autonomo means that your healthcare will be covered and you will have books to prove income which will enable you to become a resident in Spain - as long as your income is enough to support you and any family
> 
> Jo xxx


If you are making free lance income is it the same as the states where you are responsible for making estimated tax payments?


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## xabiaxica (Jun 23, 2009)

chefinla said:


> If you are making free lance income is it the same as the states where you are responsible for making estimated tax payments?


I don't know how it works there, but here in Spain I have to keep detailed records with clients' NIE numbers (sort a fiscal number) & produce invoices for each of them - even though none of my students actually _want _an invoice.............

my work doesn't attract IVA, but I have to get IVA invoices for anything I buy/service I use such a mobile phone, which is business related

then every 3 months my gestor works out how much tax I should pay..........& I pay it

if i'm lucky I don't owe anything more at the end of the year - if I'm _very_ lucky I might get a bit back


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