Brit abroad! IVA, Social Security and NIF in Spain
Thread poster: Anna Moorby DipTrans

Anna Moorby DipTrans  Identity Verified
Local time: 21:44
Spanish to English
+ ...
May 5, 2003

I\'ve just moved to Spain to try and set up as a freelance translator. i\'ve been translating part-time for a year now and am studying for my IoL DipTrans.

I need some advice about the financial minefield of setting up as an autónima in Spain (it all seems rather horrendous!!)

Firstly, is it true that i have to include IVA on any invoice I emit?

secondly, do I really have to pay nearly 200 euros in social security payments per month regardless of whether I earn anything or not?? Is there any way around this? Is it worth waiting before I get my NIF and declaring myself autónima until I\'m earning enough to pay my taxes??

Any financial info regarding Spain would be helpful. I\'ve looked at some webpages regarding setting up in Spain, but I\'d like some advice from a Brit who\'s set up in Spain and has experience on the ground of Spanish (especially Andalucian) bureaucracy!



many thanks

xx


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smorales30  Identity Verified
Local time: 21:44
English to Spanish
+ ...
Autónomos May 5, 2003

Hi and welcome to being a freelancer in Spain



My advice: go to a an accountant right away. They do not cost much and take care of all the stuff. Yes, for invoices in Spain: you must add a 16% IVA and deduct 15% IRPF (The company deducts this amount for the IRS).



So a Spanish invoice looks like this:

Description Amount

Translation 100Euros

IRPF (-15%) 15

IVA (+16%) 16

TOTAL FOR YOU 115 Euros



Both the IRPF and IVA are for the IRS.

If the client is in Spain, you\'ll just pay quarterly the IVA. If the client is abroad, your invoice won\'t include IRPF or IVA and you\'ll have to pay the IRPF for that invoice.





Plus, every month you have to pay 200 euros just to work.. and you\'re lucky because another yearly amount has been just removed by the Government.



So... go to an accountant: you\'ll save a lot of time...the accountant will go to the IRS to deliver your papers, etc. It will save you tonz of time



Silvia


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xxxncfialho  Identity Verified
Local time: 20:44
German to Portuguese
+ ...
Move to Portugal ;) May 5, 2003

You can earn 10.000€ a year (ok I hope you will earn more ) with out paying anything.

Natália


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Bo Hellenbrandt  Identity Verified
Sweden
Local time: 20:44
Spanish to Swedish
+ ...
IVA-IGIC May 21, 2003

Hi everybody!



I´m living on Gran Canaria and there we have IGIC instead of IVA. I don´t put IGIC on my invoices when sending an invoice within or outside Spain. The tax office told me that if you earn less than 24.000€/year you don´t have to. Is this correct?

Thanks for advice.



Bosse H



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Charlie Rey-Beckstrom
Spain
Local time: 20:44
Spanish to English
Re: autónomos May 29, 2003

Silvia and Moomel,

Silvia you're right, but the first two years as a recently established "autónomo" the IRPF or "income tax" is 7%.

On the other hand, getting started can be quite expensive since you need to consider other "essential" costs such as an ADSL line, office supplies (ink cartridges, laser printer toner, paper, arrgh!!), etc etc.

I have been working as a freelancer for 3 years and the average monthly cost is never below 300/400 Euro a month.

If you want to read a funny approach on "starting out", check the "recent articles" section of www.transref.org, I have an article published in English for anyone who wants to know the basic info on starting out and battling the Spanish bureaucracy (always with a BIG sword).

Or, send me an email and I will be happy to answer any questions that are giving you nightmares ;-P(charliebeckstrom@telefonica.net).

Saludos,

Charlie


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Charlie Rey-Beckstrom
Spain
Local time: 20:44
Spanish to English
IGIC / IVA Jun 9, 2003

Howdy Bosse,

That's right, if you earn less than 24,000 Euros a year you are exempt from paying IGIC (which is the same as IVA in the Canary Islands).

For an explanation on IGIC check:
http://www.canaryislands-usa.com/factsheets/special_tax_regime/igic.asp

It says the following:
-exemption from IGIC for good deliveries and rendering of services made by natural persons in the case where their volume of operations for a year does not exceed a certain amount (it is adjusted every year according to consumer prices’ variations);

When working with Spanish clients (peninsula and Canary Islands) you only have to subtract 15% or 7% IRPF from the total value of the invoice (7% is only during the first 3 years as an "autónomo").

Best Regards,

Charlie B.

Bosse H wrote:

Hi everybody!

I´m living on Gran Canaria and there we have IGIC instead of IVA. I don´t put IGIC on my invoices when sending an invoice within or outside Spain. The tax office told me that if you earn less than 24.000€/year you don´t have to. Is this correct?
Thanks for advice.

Bosse H


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