Income Tax & Social Security

Hi

I have been searching the interenet for hours and can't seem to find the answer, so hopefully someone on here will be kind enough to help me.

I am moving to Malage with my Partner in May. I currenty work as a travel agent on a self employed basis from home, and I am able to continue with this job from Malaga.

I can gather that I have to pay social security of around 220 euros per month, and it seem tax at 25%, after a personal limit of around 5000 euros, thisseems really high.

Does anyone know what my nett pay would be on a salary of around 20'000 Euros a year? Can I deduct costs such as broadband/telephone lines that I need for my business?? Also in the UK and I can offset a % of my rent that I use as an office, can I do this in Spain?

Any advise would be really appreciated!!

Thanks

good question mate, i had this when i moved here. i cant remember off the top of my head, but if your in malaga one day pick up a euroweekly, which contains the B2B magazine, in there youll find thair website and youll be able to find that info there.

alternativley just have a look for B2B, spain on google! hope this helps mate

alex

 Dear Kevin,

I assume that you would like to work in Spain as Spanish self-employed. In that case you have to register at the Police (for your .I.E. number) , and at the Inland Revenue as self employed.

You have to pay Social Security monthly around 250 € and your taxes quarterly but without any specific %. That is depend on your income, in Spain is not always the same %. 

When you are self-employed you do not need a salary, just declare your income you take in and your expenses involved in that activity. 

Hello

I am also planning to work on a self employed basis. I have my NIE but not residencia. I am a builder/ plasterer and would like to register my self as a one man company if this is possible?

I gather I will have to pay around 250/month but I wonder what happens if I don't get work? Do they still make me pay if I am not earning? Can I claim money back if I have no work(i.e dole?). Are my wife and children covered for doctors etc. through my payments?

Any help would be great. Thank you

A Guide to Social Security in Spain was published on this website last month - it's under Articles/Working in Spain and may be a good starting point.

Kevinphall

i see no reason why you cannot continue to trade under a uk ltd company and be paid in £ and yes offset all however would imagine you would still need to pay ni or equivalent in spain

 Hello Stephen,

It is possible to register yourself as a one man company. You have to pay 250 € month to the Social Security even if you aern no money during your register time, as well as, make your IVA and IRPF return quartely. You could claim your IVA back if you have more expenses than income but not the Social Security. Your wife and your children will be covered for doctors through your payments. 

Mar Durio
Calle Ancha 30, 2º
E-11201 Algeciras
(t) +34.956.092.687
(f) +34.956.092.697
m.durio@costaluzlawyers.es
www.costaluzlawyers.es

Hello Stephen

Were you paying social security back in the UK?  You and your family may be entitled to healthcare under the reciprocal agreement.  If so, you will need to apply for the form E106.

Sue