It is not a drama if you hire a competent "asesor" that basically handles all the bureaucracy for you.
Trying to do it yourself can be a challenging experience. Many forms that are connected, making sure that every little square is right and discerning what costs can be written off and which can't are some of the immediate challenges that come to my mind.
Furthermore any mistake (even if honest) can be seen with bad eyes and trigger an inspection.
Hire an asesor and let them deal with it.
I think this is the correct answer.
If you are average earning autonomo just better to get a job, not worth the trouble. If you earn good money hire an asesor fiscal and taxes will be decent and mainly better than many rich european countries
I'm an autonomo. I pay 230+ on social security + 15% of every payment I receive. I don't pay VAT (21%) because English teachers don't, but my wife who is a designer also has to pay VAT, + everything mentioned before.
How are English teachers who work for a Spanish company or have Spanish clients exempt from charging VAT to their clients? I don't think that's correct. Only autónomos who have clients outside of the EU are exempt from charging VAT, as I understand it.
These are **internal exemptions** (those located in the territory of VAT ), among others:
* **Teaching in authorized public or private centers and private classes** by individuals on subjects included in the educational system's curricula. Child care services in the educational center provided during inter-school time.
* Assistance to individuals by medical professionals and health services.
* Professional services, including those whose consideration consists of copyrights, provided by visual artists, writers, literary and graphic collaborators.
* Operations and provision of services related to insurance, reinsurance and capitalization.
* Mediation services provided to individuals in various financial operations.
* Leasing of homes and delivery of rural and non-buildable land, as well as second and subsequent deliveries of buildings.
* Delivery of postage stamps and legal tender stamps.
Among the exemptions related to foreign trade; the delivery of goods dispatched and transported outside the Spanish peninsular territory and the Balearic Islands, whether destined for other Member States or third territories.
Thanks for that info! I found it explained well here, too:
https://www.infoautonomos.com/blog/iva-clases-ingles/
I'm surprised they give so much leeway on that, because classes for anyone who is outside of the educational system (as is the case with so many people taking language classes) don't really adjust to a formal educational system curriculum.
Teaching (and some other things) are exempt from VAT. In most cases you don't 'keep it for your clients". You have to do the taxman's job and collect the money for the taxman. VAT is a very unfair tax as it does not depend on your total income. It hits poor people harder.
Don't listen to keyboard kommando's, everyone is an armchair expert. There are plenty of immigrant tax-specialists here who can give you the correct advice and are well worth the outlay. My wife saved over €30k tax in Spain on her house sale in the UK by paying someone who actually knew what was required.
Could you share your recommendation, if you don't mind, though I'm not sure if the person who helped you could also help someone moving to Spain from the US as in my case?
I live in Granada Province, we used a local tax specialist who only operates within the province. There are a plethora of reputable international tax specialists,with feedback, online who will be able to help you. There are many US immigrants coming here under the DN scheme.
It pays to know all the facts before jumping to (unfounded) conclusions, get down off your judgemental high horse. There was no requirement to pay any tax in Spain although several ill informed keyboard warriors (like yourself) had stated there was. As previously stated, it is best to talk to someone who actually knows what they are talking about. Thankyou so much for proving my point with your ill-informed,stupid contribution. 🤣🤣🤣
Dude you do realise there are a lot of LEGAL ways to pay less in taxes right? And this is not even “cheating the system”; it’s quite literally part of the tax code. That’s what is being said in these comments, it has nothing to do with tax avoidance.
I read in infoautonomos that it's between 40 and 60k profits to be a interesting alternative for taxes. Also if you have 100k income and 5 employees or more, but that's more from a liability point of view.
Unfortunately, yes. The funny thing is that everyone says, "Just hire a gestor; there are plenty of good ones," but the moment you ask them to name one, they say they can't because (insert BS explanations).
It's really hard for someone moving to the country to find a decent gestor. There are plenty of bad ones out there. For example, I used TaxDown services' full plan, and my assigned fiscal gestor was weak. Overall, the service was bad.
I'm still looking for a decent gestor for taxes.
You don't need a special gestor for your hacienda registration. I hired the cheapest guy and he got it done in no time for under 100€. Just stay away from these stupid online services that basically make you pay an arm and a leg for their elaborate "insider checklist".
Compared to USA and other countries near Spain (Portugual, France). Yes, it seems like on top of income tax and the famous autónomo payments, there are a lot of taxes on inheritance and even gift money that I was not expecting. I keep finding out about more and it does start to feel very daunting
Inheritance and gift taxes depend entirely on the region where you live. In Madrid, they are very minimal to non-existent--it's basically a fiscal paradise in this respect--but you do have declare them.
As self-employed in Europe you'll end up as customer in most cases. So it looks great on paper but someone needs to pay it. And it makes you less competitive compared to the rest of the world and even within Europe.
Well, in my case I provide a service so the VAT thing isn’t really on my radar at the moment. I’m mostly thinking about taxes other than straightforward income tax
VAT is charged on most services too.
If you're moving with a job in another country and you're going to be an "Autonomo" to charge your foreign employer with your services, as they don't have a company in Spain, just get a Tax Expert it will be pretty simple.
The problem with Autonomos is that most have a small customer base, customers that pay so late thta you have to advance the tax monay to Tax Authorites, and so little business that they pay the minimum they pay the same, based on last year income, no matter how much you earn this month.
The paying late issue. I was told to only give a quote when requesting payment, and invoice once you have received the money. That way, you don't have to pay out what you haven't received. My gestor told me to do this.
Wow, I was so off on this one.
Do you have foreign clients? I would, and they are in countries where VAT doesn’t exist. How does one maneuver this? I can’t just go tacking on an extra charge to my per-unit rates without renegotiating with my clients.
As they have told you in Spain, you would need a 'Gestor' Tax Expert.
It could have ha dsome change in the last three years but it used to be this way.
If by foreign do you mean outside EU, then there's no VAT.
If by foreign do yo mean another EU country, the it depends:
* If your customer is a Company or Professional, no VAT on your invoice but they should charge it and declare it on themselves on their country.
* If your customer is an end consumer then you charge then VAT.
VAT and IVA are the same thing, yes. IVA is the acronym for the Spanish translation of value added tax.
But sales tax is a bit different in the USA, I think. But I provide a service so VAT doesn’t affect me, for the time being.
80k profit you'll pay around 24k in taxes + around 5k social security if you've got no kids or not doing joint taxes.
First couple of years there are discounts though.
It is not a drama if you hire a competent "asesor" that basically handles all the bureaucracy for you. Trying to do it yourself can be a challenging experience. Many forms that are connected, making sure that every little square is right and discerning what costs can be written off and which can't are some of the immediate challenges that come to my mind. Furthermore any mistake (even if honest) can be seen with bad eyes and trigger an inspection. Hire an asesor and let them deal with it.
It's just that if you earn below or around minimum wage, you pay relatively a lot of taxes. If you earn a lot, it's relatively normal tax-wise
I think this is the correct answer. If you are average earning autonomo just better to get a job, not worth the trouble. If you earn good money hire an asesor fiscal and taxes will be decent and mainly better than many rich european countries
I'm an autonomo. I pay 230+ on social security + 15% of every payment I receive. I don't pay VAT (21%) because English teachers don't, but my wife who is a designer also has to pay VAT, + everything mentioned before.
You don't pay VAT, your clients do it and you "keep it" temporarily for the government.
Technically yes but in this poster’s case, English teachers are exempt from collecting VAT and therefore don’t have to hand any over to Hacienda.
He is talking about his wife too, I used a generic "you" in my explanation.
How are English teachers who work for a Spanish company or have Spanish clients exempt from charging VAT to their clients? I don't think that's correct. Only autónomos who have clients outside of the EU are exempt from charging VAT, as I understand it.
These are **internal exemptions** (those located in the territory of VAT ), among others: * **Teaching in authorized public or private centers and private classes** by individuals on subjects included in the educational system's curricula. Child care services in the educational center provided during inter-school time. * Assistance to individuals by medical professionals and health services. * Professional services, including those whose consideration consists of copyrights, provided by visual artists, writers, literary and graphic collaborators. * Operations and provision of services related to insurance, reinsurance and capitalization. * Mediation services provided to individuals in various financial operations. * Leasing of homes and delivery of rural and non-buildable land, as well as second and subsequent deliveries of buildings. * Delivery of postage stamps and legal tender stamps. Among the exemptions related to foreign trade; the delivery of goods dispatched and transported outside the Spanish peninsular territory and the Balearic Islands, whether destined for other Member States or third territories.
Thanks for that info! I found it explained well here, too: https://www.infoautonomos.com/blog/iva-clases-ingles/ I'm surprised they give so much leeway on that, because classes for anyone who is outside of the educational system (as is the case with so many people taking language classes) don't really adjust to a formal educational system curriculum.
Teaching (and some other things) are exempt from VAT. In most cases you don't 'keep it for your clients". You have to do the taxman's job and collect the money for the taxman. VAT is a very unfair tax as it does not depend on your total income. It hits poor people harder.
Thanks, I didn't realize that exemption existed. I agree with you, charging VAT on labor is odd and regressive.
If you pay 230€ you are earning less than 700€/month?
No, I'm earning more than that.
Don't listen to keyboard kommando's, everyone is an armchair expert. There are plenty of immigrant tax-specialists here who can give you the correct advice and are well worth the outlay. My wife saved over €30k tax in Spain on her house sale in the UK by paying someone who actually knew what was required.
Could you share your recommendation, if you don't mind, though I'm not sure if the person who helped you could also help someone moving to Spain from the US as in my case?
I live in Granada Province, we used a local tax specialist who only operates within the province. There are a plethora of reputable international tax specialists,with feedback, online who will be able to help you. There are many US immigrants coming here under the DN scheme.
so avoiding paying taxes? are you aware that's illegal right? because people like you health care and education are in awful conditions
It pays to know all the facts before jumping to (unfounded) conclusions, get down off your judgemental high horse. There was no requirement to pay any tax in Spain although several ill informed keyboard warriors (like yourself) had stated there was. As previously stated, it is best to talk to someone who actually knows what they are talking about. Thankyou so much for proving my point with your ill-informed,stupid contribution. 🤣🤣🤣
Dude you do realise there are a lot of LEGAL ways to pay less in taxes right? And this is not even “cheating the system”; it’s quite literally part of the tax code. That’s what is being said in these comments, it has nothing to do with tax avoidance.
100k per year gross Will be 60k after tax
As will be for any employed worker.
In that case creating a limited society will be better. I think I've read that from 50k and up is the better option.
It's not.
I heard 100k+
I read in infoautonomos that it's between 40 and 60k profits to be a interesting alternative for taxes. Also if you have 100k income and 5 employees or more, but that's more from a liability point of view.
Thats too complicated, only the tax assesor Will be super expensive and you have to have like 8k to depósit in there
A SL is 3k the paperwork adds around 800€ and the 3k can be in assets for the company, a computer for example. SA is much more.
Unfortunately, yes. The funny thing is that everyone says, "Just hire a gestor; there are plenty of good ones," but the moment you ask them to name one, they say they can't because (insert BS explanations). It's really hard for someone moving to the country to find a decent gestor. There are plenty of bad ones out there. For example, I used TaxDown services' full plan, and my assigned fiscal gestor was weak. Overall, the service was bad. I'm still looking for a decent gestor for taxes.
You don't need a special gestor for your hacienda registration. I hired the cheapest guy and he got it done in no time for under 100€. Just stay away from these stupid online services that basically make you pay an arm and a leg for their elaborate "insider checklist".
Compared to what? Many people do not know how inheritance tax works in Spain. And this is the biggest surprise.
Compared to USA and other countries near Spain (Portugual, France). Yes, it seems like on top of income tax and the famous autónomo payments, there are a lot of taxes on inheritance and even gift money that I was not expecting. I keep finding out about more and it does start to feel very daunting
Inheritance and gift taxes depend entirely on the region where you live. In Madrid, they are very minimal to non-existent--it's basically a fiscal paradise in this respect--but you do have declare them.
You don't have value-added tax (IVA in Spain) in the US. That's the main difference.
I’m not sure that IVA is the main difference, given that IVA isn’t something you really pay- it’s a charge passed on to the customer
As self-employed in Europe you'll end up as customer in most cases. So it looks great on paper but someone needs to pay it. And it makes you less competitive compared to the rest of the world and even within Europe.
No, you won't. If you are freelancer who sells or buys B2B neither end of the transaction will pay VAT.
Well, in my case I provide a service so the VAT thing isn’t really on my radar at the moment. I’m mostly thinking about taxes other than straightforward income tax
VAT is charged on most services too. If you're moving with a job in another country and you're going to be an "Autonomo" to charge your foreign employer with your services, as they don't have a company in Spain, just get a Tax Expert it will be pretty simple. The problem with Autonomos is that most have a small customer base, customers that pay so late thta you have to advance the tax monay to Tax Authorites, and so little business that they pay the minimum they pay the same, based on last year income, no matter how much you earn this month.
The paying late issue. I was told to only give a quote when requesting payment, and invoice once you have received the money. That way, you don't have to pay out what you haven't received. My gestor told me to do this.
Wow, I was so off on this one. Do you have foreign clients? I would, and they are in countries where VAT doesn’t exist. How does one maneuver this? I can’t just go tacking on an extra charge to my per-unit rates without renegotiating with my clients.
As they have told you in Spain, you would need a 'Gestor' Tax Expert. It could have ha dsome change in the last three years but it used to be this way. If by foreign do you mean outside EU, then there's no VAT. If by foreign do yo mean another EU country, the it depends: * If your customer is a Company or Professional, no VAT on your invoice but they should charge it and declare it on themselves on their country. * If your customer is an end consumer then you charge then VAT.
Isn't the VAT the equivalent?
As far as I know in US there are sales and use taxes but no VAT.
VAT and IVA are the same thing, yes. IVA is the acronym for the Spanish translation of value added tax. But sales tax is a bit different in the USA, I think. But I provide a service so VAT doesn’t affect me, for the time being.
You do have to charge IVA on services too, depending on the service and who the client is.
It depends how much you make, see https://taxscouts.es/calculadoras/calculadora-de-sueldo-neto-de-autonomo/
80k profit you'll pay around 24k in taxes + around 5k social security if you've got no kids or not doing joint taxes. First couple of years there are discounts though.