autonomo benefits

Hi

I've started a small business in Spain, and in my attempts to claw back input IVA, it looks like I have to register for IVA and pay autonomo contributions.

I am not a Spanish resident and do not spend more than six months a year in Spain. I qualify for state healthcare elsewhere.

I was idly wondering whether anyone had a clue if - since I will pay autonomo contributions like it or not, whether I would qualify for Spanish healthcare even though not a resident.

Thank you, Guy

GuyT

I think that setting up a business in any country you wil be required to be a resident and register for VAT/ IVA etc.

Guy, I am not a Spanish resident and do not spend more than six months a year in Spain.

The tax residency rules mean that if one has their main home, family,  or their centre of economic actively,  in Spain then they are tax resident immediately. 

That situation over rules the 3 months permanently and 183 day rules.

As you pay autonomo contributions,  you may well be tax resident now.

There is no reason why you  cant have businesses in multiple countries but they must be registered in accordance with the countries that you operate in

You personal taxation etc. will be determined by may factors as johnzx points out and Spain would not necessarily be the default.

Is your business in Spain set up as self employed or as an SL (ltd) company.

What is your employment / business interest in UK

Their is also EU directives on the claiming back of VAT / IVA payments made in EU countries

Again speak to a professional

Thanks for the replies. While what I am doing is "a business", it's really more of a hobby. I've planted out a couple of hectares of grapevines on my finca. There won't be any income for a couple of years, and even then it wouldn't be much, I'd be happy to be able to pay a couple of workers to look after the place and break even. It's just that what with the irrigation, tractor & equipment and other stuff, there is quite a lot in input IVA which I'd like to claw back.....hence the IVA & autonomo registration. I don't have my main home or centre of economic activity in Spain and spend less than six months a year here.....so it's really a question being happy to pay autonomo costs, but I'd like to get my IVA back - especially because I know that if I ever sell a bottle of wine or kg of grapes they'll want their cut. If, because I am non-resident they don't want to register me as autonomo or for IVA, then so be it. There's more than one way to skin a cat.

I was just wondering whether paying autonomo fees would entitle me to Spanish healthcare. It's a bit of an academic question because I've got my EHIC for emergency in any case. But, thanks for the interest.

Guy:   I was just wondering whether paying autónomo fees would entitle me to Spanish healthcare. It's a bit of an academic question because I've got my EHIC for emergency in any case

This is one of the regulations to be entitled to an EHIC:    

If you are insured by another EEA country but live in the United Kingdom, you are not entitled to a UK-issued EHIC.

http://www.nhs.uk/NHSEngland/Healthcareabroad/EHIC/Pages/about-the-ehic.aspx

Guy.  (An uninformed in Spain contribution!)

i think the rate for Iva in Spain is 21%, and registering for IVA will mean your end products / end sales from now in will be 21% more expensive than any of your competitors who are not registered 

so what's the threshold for having to register as a business?, look up the options (in the UK the threshold is around £73k before you register).  If it's a similar system you may be looking at a short term clawback of Iva which long term costs sales and revenue.  

Leasing equipment as start ups can bring taxation claim benefits over your first three start up years, and still you may be able to trade IVA free.

im sure someone may jump all over me by claiming Spain has some different rules etc., but have a chat with an accountant informally / formally and consider options.   

VAT people don't like claims for buying equipment followed by years of minimal trading as a 'hobby', they could make your life a bit of a misery!    Just thought I would add a bit more thinking into the mix mate.  

GuyT

Seek some professional advice.

In the past I have found calling HMRC and DWP very helpful in these matters. Then go and see an accountant in UK & Spain. Once you have the details from the experts you have a btter chance of getting it right

Having a company registered in Spain with all income going to you in the UK as a UK citizen would IMO not require you to pay autonomo or income tax in Spain,  but you would be subject to Spanish corproation tax and probably IVA (which can be claimed back in UK where applicable and subject to normal VAT rules) 

The  company would have to be registered as SL (Ltd) in Spain not autonomo (which is in effect self employed), if you employ people you would also have to pay employers NI contirbutions in Spain etc.

Good luck

The threshold for a business charging in Spain is ZERO ethere is no allowance

You can clain and you have to charge IVA on every invoice, even if autonimo

If you emply people and pay them to do work then it is evem more of a minefield, if you get caught with unregistered workers, big problem, big fine

If you register auntonimo you will pay your €270 a minth but there are special terms for agricultural workers, see below

There is a also a regime for people who work on their own account in agriculture who pay a specially reduced rate. You have to be registered as such and show you have been working and been paid by official agricultural employers to get this. You cannot just claim to be an agricultural worker by virtue of working on your own land.

Speak to a spsnish accountant becaus yes you will qualify for full medical for you and your family plus a pension

http://www.advoco.es/hot-topics/63-iva-vat-rates-in-spain.html

may help.