Spain - 300 Euros per month fixed tax for self-employed people

Hi,

I've just recently found out that if you want to work as self-employed in Spain, you have to give €300 per month.

I'm told that for new starters of their self-employed company, this is risky because if you are not making more than €300 per month than you could potentially be losing money.

Is this true?

I've never heard of such crap? I've always thought this works on percentages? You give a percentage of the money you make.

Is there anything like that if you haven't got a company, and you are just starting out. Wonder if I what I heard is related to any other thing like fees, or first time payments.

At the end of the day, the only difference between working full-time for a company(that is not ours) and working self-employed (for ourselves) is the paperwork is done by the person by themselves for themselves. Right?

Any clarification would be appreciated.

Regards,

Mike

Mike you have fallen into the trap of thinking that laws and practices are the same everywhere, or same as in UK.

That is a very common misunderstanding, by Brits in particular.

See https://www.healthplanspain.com/blog/ex … n-spain.ht

PS  IVA (VAT) in spain is also changed from the first euro, very different from UK

PPS. It’s not c**p it’s different !

Hello!

I think this is lowered to €50 a month for the first year, and then I think it increases gradually to €137 for the next 6 months and €192 for the 6 months after that, then going up to the full amount so it's a little less daunting when you're just starting out!

This is quite a good article on it:
https://www.healthplanspain.com/blog/ex … spain.html

Good luck :)

Thank you[at]Elle for the information and the link. I checked with an accountant who has worked in Madrid for 20 years but she said it's not true. It's the same rate with no discount. Be lucky if it's not higher after the pandemics! While I'm asking around for a second and even 3rd opinion, anyone here who knows or could share a link to the official announcement for this discount would be very much appreciated.

That's a shame! There's always so much conflicting information, seems like you can research until you're blue in the face and still not know anything 😑 I've got a Skype appointment to speak to a Spanish lawyer tomorrow about a few different things, so I'll add it to my list of questions for her and hopefully get another opinion, and I'll let you know!

Extract from:-

https://i-marbella.com/News/news/Busine … onomo-2018


What are the charges for being Autonomo in Spain?

Registering as a self-employed person in Spain counts today with a small initial impulse: the flat rate. A support measure in which the new self-employed person will only have to pay 50 euros per month, Only during the first six months.



However, many criticize this measure because when this initial aid ends, the monthly cost that the self-employed person must pay will be at least 275 euros per month.

We hope to move to Spain, from France, and set up dog friendly B&B. It's becoming very apparent, that the rules are very different! Our son and his wife live there, and want us to move, but sometimes it seems a very complex option! Is it really as hard as it appears?

Hey guys, little update from the lawyer, if you register as self employed there are two monthly contributions you have to make, one for income tax which starts at 19% (and goes up depending on how much you earn) of your total earnings.

The second contribution is your social security, which gets you access to free health care and contirbutes to your pension, and that's the one that starts at the lower amount and increases first after the first year, and then again after 6 months until it becomes the full amount.

So you'll always pay at least 19% of your earnings for tax, and then the social security on top, but you do get 2 years of that being lower than the full amount!

Sorry if I've explained this a bit janky or over explained, my brain feels like jelly today 😂

Thank you Elle. So you are talking about an autonomo (sole trader) not a Sociedad Limitada ( private limited company)?

Typo  :P

Yes I'm talking Autonomo! If I find anything out about setting up as a sole trader I will post it on here :)

We just need to get through the move first! :p

I have talked to a couple of lawyers (unofficially) a while ago. My understanding is that if you register as a limited company the tax rate is at 24% flat. For autonomo the rate is the same as personal income which is lower at lower income level but could go as high as 45%. So it really depends on how much you project to earn.

Hi Mike, I work as freelancer (autonomo) since 2017 in Spain, yes you have to pay a rate per month, but this is not a tax, its for the social contribution for health insurance, pension and unemployment insurance. BUT you pay in the first year and longer only around 50Eur/Month and it grows later if you earn more money. The minimum right now is about 305 EUR/Months. The TAX will be calculated all 3 months by your income, you have to pay approx. 20% from the gain of your income.
This is very great deal, since I am from germany you have to pay much much much more per month for the health system and so on.

Hi. It's a standard rate. You do get health care with it and it goes towards a pension. You can pay more in if you. Want too. And some of the private health cover companies will top you up to private for about 100 more.   3500 a year is not bad value really as health care is pretty good in Spain. You will get the fee discounted for year one to 60 euros. Then the first half of year 2 is something like 120 euros, later its 180 and then at the start of year three it's 280 or 300 if over 49 years old...  At least it's 300 and not 500!.. And you get to live and work in an amazing country...

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