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Starting as a freelancer in Spain
Thread poster: Diego Soto de Lucas
Sheila Wilson
Sheila Wilson  Identity Verified
Spain
Local time: 13:33
Member (2007)
English
+ ...
No 'seguridad social' Oct 9, 2015

Not having to pay the high contributions would certainly be nice, I agree. But there's a downside: what about health cover?

Pensions etc would be a worry in the long term, but health cover would be problematic from day one. If you don't contribute in Spain, you don't get state health care. Would you have to pay for private medical insurance? To cover everything (every GP appointment, blood test and X-ray as well as major hospital stays) would probably be very expensive.

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Not having to pay the high contributions would certainly be nice, I agree. But there's a downside: what about health cover?

Pensions etc would be a worry in the long term, but health cover would be problematic from day one. If you don't contribute in Spain, you don't get state health care. Would you have to pay for private medical insurance? To cover everything (every GP appointment, blood test and X-ray as well as major hospital stays) would probably be very expensive.

However, there's nothing to stop you doing it, tax-wise. This is what I think happens:

You'd declare the company profits/salary or whatever in the UK and pay taxes on it there, but you'd also have to declare it in Spain with all your other sources of income. There's a double taxation agreement between the two countries which would mean that Spain too would calculate how much they thought was due from your company. If their total came out higher then you'd pay them the extra.

If anyone disagrees with the above do let me know - I find tax matters so confusing!
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Eugenio Garcia-Salmones
Eugenio Garcia-Salmones  Identity Verified
Spain
Local time: 14:33
Member (2015)
Russian to Spanish
+ ...
I've hear about Oct 10, 2015

I've hear about this variable, but I think what you need to go to the UK several times each year for maintenance.

 
Álvaro Espantaleón Moreno
Álvaro Espantaleón Moreno  Identity Verified
Spain
Local time: 14:33
Member (2015)
English to Spanish
Careful Oct 10, 2015

It is not 100% correct that it is not compulsory to sign up with Social Security if your earnings are below some threshold.

This what the law says:

CAPÍTULO II
Campo de aplicación
Artículo 2.- Concepto de trabajador por cuenta propia o autónomo.
1. A los efectos de este Régimen Especial, se entenderá como trabajador
por cuenta propia o autónomo aquel que realiza de forma habitual, personal y
directa una actividad económica a título
... See more
It is not 100% correct that it is not compulsory to sign up with Social Security if your earnings are below some threshold.

This what the law says:

CAPÍTULO II
Campo de aplicación
Artículo 2.- Concepto de trabajador por cuenta propia o autónomo.
1. A los efectos de este Régimen Especial, se entenderá como trabajador
por cuenta propia o autónomo aquel que realiza de forma habitual, personal y
directa una actividad económica a título lucrativo, sin sujeción por ella a
contrato de trabajo y aunque utilice el servicio remunerado de otras personas.

The key here is the word "habitual". It is true that there are three verdicts from TS saying that earnings should be above SMI for "habitualidad", but the Spanish government has ignored this "jurisprudencia" and hasn't amended the laws, which basically means that your activity may be subjected to an inspection and you may be fined. After being fined you will have to appeal and you may win the case, but who knows.

Another option is to sign in and out Social Security 4 times a year (last month of the quarter) and invoice then. Then you will pay around €1000 a year. Not a completely legal option either and your client must agree to it.

[Edited at 2015-10-10 07:44 GMT]
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Helena Chavarria
Helena Chavarria  Identity Verified
Spain
Local time: 14:33
Member (2011)
Spanish to English
+ ...
Think of the future Oct 10, 2015

Alvaro Espantaleon wrote:

Another option is to sign in and out Social Security 4 times a year (last month of the quarter) and invoice then. Then you will pay around €1000 a year. Not a completely legal option either and your client must agree to it.


We're all aware that a freelancer's retirement pension is really low in Spain but I'm 56 years old and retirement age doesn't seem so far away! The longer you contribute to the Social Security whilst you're working, the higher your retirement pension will be in the future. People born in 1959 or later will have to contribute for 38.5 years if they want to receive a full pension!

http://www.seg-social.es/Internet_1/Trabajadores/PrestacionesPension10935/Jubilacion/RegimenGeneral/Jubilacionordinaria/Requisitos/177422#6157

In addtion, social security payments are taken into account when income tax payments are calculated. If you don't contribute to the Social Security, you'll have to pay more income tax!


 
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Starting as a freelancer in Spain







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