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HAYES CARPENTRY

Fighting the Spanish system to make a successful and profitable business

Working in Spain - the high´s and low´s
Friday, August 1, 2008 @ 2:20 PM

Hi all,
For anyone coming to Spain to work, I´d like to give you some really usefull advise.  Only come if you can afford to pay 300 euros out every month and then a IVA (VAT) and TAX bill every 3 months!  This is for being self employed and there are many other little ways they get money out of you.  If there are two or more and you are not married or a relative one can go self employed (autonomo) and the others be employed by them. This way you can work part time (about 60 - 80 euros per month) . However (as we have found out only recently) it is illegal to employ your wife, husband, children etc.  so if this applies to you, you BOTH have to be autonomo!
We have been here for 6 years now and have had our business for 4 years. It is very hard and you are up against people who have decided to risk not being legal.  We also have a music duo and recently we were fined for having a friend help us into the bar with some gear. Even though we weren´t paying him, we were still fined.  It´s not illegal to work for someone for nothing, but the Spanish don´t believe that somebody would!
Anyway, I will update my blog as we go on through this funny life in Spain.
I hope this bit of info will help some of you decide on whether or not to set a business up here.
Lisa Hayes
P.S. The fines for illegal business start at thousands and I´ve heard of a 30,000 one being handed out!


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6 Comments


Karen said:
Saturday, August 2, 2008 @ 8:56 PM

Lisa, That just sums up the Spanish system to me and personally I have had enough of all the corruption and deceit that goes with being living here, it seems to me there is one set of rules for the Spanish and another set of other northern europeans! I have never heard of a Bulgarian or Rumanian being fined!!!
I am sure my comments will upset some but I don't care anymore, the UK is suddenly looking extremely welcoming. I too have been here 6 years.


Max Kite said:
Monday, August 4, 2008 @ 11:16 AM

Hi,
Yes, you will pay 250€ per month per person whether "Autonomos" or "Comunidad de bienes".
Also, when you go bust, you will not be entitled to a single centimo in benefits.
What you are actually paying for is a very good health care system (certainly in our area).
Another way of revenue collection (Zapatero has learnt this from Blair) is road traffic fines. I was done for 150€ and 4 points for not stopping at a non-existent STOP sign. No road markings either. Oh, and I was travelling at less than 2km/h. This is just a case of bleeding us dry.
In spite of all this, I still love my life in Spain more than anywhere I have been in the world, and sorry Karen, you can stuff Britain - I think you will be making a terrible mistake going back.



Lisa Hayes said:
Monday, August 4, 2008 @ 12:20 PM

Hi Max,
Thanks for your comment and I know that you should pay into this system. It seems alot but when you realise what your getting its OK. But you would think that when I am already on the health system and we are paying tax on our earnings through our business, I would be able to work with my husband. Stupid rules, anyway I have been in touch with a solicitor who says thats rubbish and I don´t have to be autonomo. Will keep everyone posted!


Rob in Madrid said:
Monday, August 4, 2008 @ 9:21 PM

the bureaucracy here is just unbelievable. It took me 18 months to get my stupid NIE. What a nightmare it was. Then recently I got my car impounded (yes you can drive with foreign plates but I don't recommend it) 4 months on it's still not sorted out.

I spent 7 years in Germany and the Brits there love to complain to high heaven about how bad the German bureaucracy is, trust me it's nothing compared to here. Germans are very rules (surprise surprise) based, but once you learn the rules things are very efficient.

The real issue has been getting information, no one seems to know what the current rules are, everyone tells you something different. The police said go to customs, customs said get a Modela 576 (WHAT A !@##%^ NIGHTMARE THAT WAS) finally a friend told me his neighbour imports cars from Germany. Turns out he speaks English and Germany and was able to help. All I needed was the original sales contract, ownership and copy of the Wife's NIE, easy as pie. I pick up my green import plates tomorrow and Wednesday the car goes to the ITV finally this nightmare is coming to a close.

The real secret to getting anything done in Spain is to hire a gestoria.

In spite of all this we are planning on putting roots down here, I do like it here, just wish I had the motivation to learn Spanish.


Richard said:
Tuesday, March 17, 2009 @ 12:33 PM

I don't know if I am posting this in the right place but anyway.....

I am after a bit of advice. I have a business (bar cafetería) which is set up by means of a comunidad de bienes. My partner has financial problems, due to a number of reasons too long to list, and is almost certianly about to have an embargo placed on his house and assets sooner rather than later.

Before I go any further, should state that there are no confidence issues here, as we have known each other for 25 years and have worked together in the past!

Now, as is usual here, we have receieved conflicting advice as to the legal implications (as pertain to the company). Some gestores say that the comunidad de bienes cannot be affected by any embargos placed upon one of the partners (in other words, the embargo cannot be extended to include up to 50% of the busnesses assets). Other gestores believe that the business can embargod as well and that the best way forward is to put everything in my name, in other words, by means of my operating as an empresario individual (autónomo).

Now, am inclined to go for the second (worse case scenario) possibilty.

So, I have two questiosn, really:

a) What does is the law really say regarding comunidades de bienes and the personal debts of on of the socios?

b) If we try to change the whole enterprise from a comunidades de bienes to an empresario individual, putting my socio on contract, does this mean closing the comunidad and starting the whole process again, with all the expenses that that would imply, or is there a simpler way - of trading under the same name without changing the licencia de apertura, etc., etc.

Any advice gratefully receieved.


Richard


PS I have been living in Spanish speaking countries for 25 years and am bilingiual so will not have a problem looking through sites written in castellano.







Richard said:
Tuesday, March 17, 2009 @ 12:41 PM

I don't know if I am posting this in the right place but anyway.....

I am after a bit of advice. I have a business (bar cafetería) which is set up by means of a comunidad de bienes. My partner has financial problems, due to a number of reasons too long to list, and is almost certianly about to have an embargo placed on his house and assets sooner rather than later.

Before I go any further, should state that there are no confidence issues here, as we have known each other for 25 years and have worked together in the past!

Now, as is usual here, we have receieved conflicting advice as to the legal implications (as pertain to the company). Some gestores say that the comunidad de bienes cannot be affected by any embargos placed upon one of the partners (in other words, the embargo cannot be extended to include up to 50% of the busnesses assets). Other gestores believe that the business can embargod as well and that the best way forward is to put everything in my name, in other words, by means of my operating as an empresario individual (autónomo).

Now, am inclined to go for the second (worse case scenario) possibilty.

So, I have two questiosn, really:

a) What does is the law really say regarding comunidades de bienes and the personal debts of on of the socios?

b) If we try to change the whole enterprise from a comunidades de bienes to an empresario individual, putting my socio on contract, does this mean closing the comunidad and starting the whole process again, with all the expenses that that would imply, or is there a simpler way - of trading under the same name without changing the licencia de apertura, etc., etc.

Any advice gratefully receieved.


Richard


PS I have been living in Spanish speaking countries for 25 years and am bilingiual so will not have a problem looking through sites written in castellano.







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