Can I register as self-employed for just a couple of months a year?

This is one of the asked questions by our clients and we are going to try to give a proper answer.

If it’s not worth your while paying your Social Security contributions the whole year round, it is possible to register only for the months you work. This could be the case for self-employed language teachers, or for people employed in seasonal activities such as tourism.

What happens if I’m not registered as self-employed and I get caught?

If you don’t register as self-employed when you should, and you are caught, you will have to pay all of your outstanding contributions since you first started working for yourself, along with a 20 percent fine, with interest. And remember, having registered with the tax office will not make a difference. You have one month to regularize your situation as a self-employed worker after registering with the IAE.

Can I bill clients without being registered as self-employed?

“Being registered with the tax office is obligatory if you want to issue any kind of commercial document,”. So if a client asks you for an invoice, you will have to register your specific activity with the tax office – this is called the impuesto de actividades económicas (IAE), or tax on economic activities. This doesn’t cost anything and doesn’t mean you are registering as self-employed – which is done at your local Social Security office.

When should you register as self-employed in Spain?

Have you been offered occasional work in Spain and you’re not sure what to do regarding tax and social security? Have you been offered regular work with a Spanish firm outside of your regular job? If you have, then you might have asked yourself if you need to register as self-employed, or autónomo, as it is called in Spain. And you might also have wondered whether, if you have to pay tax and social security on what you earn, it’s really worth taking it.

Spanish Social Security system now has 527,335 more workers than in 2014

The General Regime grew by 2,317 people (0.02%), with noteworthy growth in Education (up 24,859 people), Trade and Repair of Motor Vehicles (up 19,585 people), Construction, (up 9,770) and Manufacturing Industry (up 8,362 people).

The Special System for Agricultural Workers posted an increase of 17,936 contributors (up 2.4%), to stand at a total of 766,182 average contributors. The Special System for Domestic Workers grew by 1,818 contributors (up 0.42%) to stand at a total of 429,897 workers.

In contrast, the greatest decline was posted in the Hotel and Catering Sector, with 85,884 fewer contributors in November.

THINKING ABOUT MOVING TO ANOTHER COUNTRY?

In a previous article we explained the necessary requirements to become fiscal resident in Spain and the most significant was living in Spain for more than 183 days in a year, but what happens if you want to comeback to your country or going to a different country than Spain for living? 

Are deductible Christmas dinners and Christmas hampers?

Christmas time is almost here and in this time of the year many companies celebrate Christmas lunchs or Christmas dinners with their employees and there are still companies that give their employees a basket full of food and drink as a gift.Companies will ask the suppliers for an invoice to deduct the expenditure but is correct the deduction of such expenses?

Spanish Tax Office signs tax information exchange agreement with Isle of Man

This exchange extends to the information held by banks, other financial institutions and any individual acting as a representative or trustee. It also covers information relating to the legal owner and effective beneficiary of companies.

The agreement falls in line with those signed in November with the representatives for Guernsey and Jersey at the Spanish Embassy in London. These agreements were made possible after the United Kingdom authorised the three British Crown Dependencies to negotiate and sign them on their own behalf.

Unemployment Benefits for Self-employed People

Can't believe there was a time when self-employment people couldn't get unemployment benefits but since August 2010, self-employed people (known in Spain as “autonomos”) can perceive unemployment benefits. The protection system gives access to unemployment benefits for a maximum period of 12 months and 70% of the base. Law 32/2010, of August 5, did justice to one of the oldest demands for self-employed : to collect unemployment benefits. Finally established and a 3 years after its adoption continues to generate some questions that we will try to solve.

CONVEYANCING: NON RESIDENT SELLING A PROPERTY IN SPAIN

At this moment, many people are thinking in Selling their property in Spain and coming back to their country or to face the purchase of another holiday home. Today we are knowing more about the process and costs involved in the selling of a house. 

Thinking on the mainly taxes and costs, the fiscal law for Non Residents sellers obliges the buyers to keep the 3% retention of the selling price to pay it to the tax office in behalf of the sellers as an advanced payment of the Capital gains tax.

HIRING WORKERS? DO NOT FORGET ABOUT THE HEALTH AND SAFETY AT WORK

Today we will talk about the obligation to carry out the Health and Safety at Work prevention (HSW) by the self-employed or companies. The Law 31/1995 states among other things that as entrepreneurs, exist the obligations to:

• Take the necessary measures for the protection of workers
• Inform and train workers regarding the HSW.
• To act facing an emergency situation and facing serious and imminent risk .
• Monitoring the health of their workers.
• Establish an organization and tools for prevention.

The Spanish economy grows by an annual 3.4%, the highest rate in nearly eight years, and creates 511,600 jobs

This growth rate is the highest since the fourth quarter 2007; that is to say, a year before the recession of the Spanish economy kicked in. Job creation grew by an annual rate of 3.1%, one tenth higher than in the second quarter, and 511,600 jobs were created with compensation per employee growth of 0.3% in a context of falling prices.

Turning down the volume in Spain’s noisy bars and restaurants

It’s probably happened to you before: you go to a restaurant with a group of people, you sit down and start talking at a normal volume.

But little by little, the place fills up, you stop hearing what your friends are saying, and you end up having to scream just to make yourself heard.

Average annual Spanish salary falls to lowest level since 2007

Tax filings by Spanish companies show that the average annual salary of a worker last year was €18,420, the lowest since 2007.

Salaries withstood the economic crisis relatively strongly until 2011, but dropped significantly the following year, when the government introduced a sweeping labor reform.

The drops continued in 2013 and 2014, according to figures released on Tuesday by the Finance Ministry.

Can I recover the VAT paid abroad?

 

We must first make a distinction with regard to purchases that are made outside our borders. If these are done to a country of the European Union and imply that consumption of the good or service is made ​​within our borders, we must fill up our registration as intra-Community VAT operators. By filling up the registration with the tax authorities we will get an European VAT number which will be used as a common reference in dealings with the customs authorities throughout the Community. If we have the European VAT registration number purchases from other country of the European Union shall bear no VAT on your bill, while if we do not have it the seller will apply the VAT tax of its country and this cannot be deducted as such and must be accounted as a greater amount of the purchase.

Prices fall 0.7% in October

 

The Consumer Price Index fell by 0.7% in October year-on-year, according to figures published by the National Institute of Statistics (Spanish acronym: INE). This rate is two-tenths higher than in September and coincides with the figure advanced by the INE at the end of October. This increase in inflation can be explained by the majority of the main components of the CPI, except processed foods, the rate of inflation of which has remained constant.

May an association perform an economic activity?

 

As a general rule associations are groups of individuals (a minimum of 3 people) that are created for social purposes. Promoters and members share a certain goal (civic, cultural, sports, etc.) and are feed economically by fees paid by members and also they can get grants for promoting their purposes. Under these premises can the associations run economic activities?

We must clarify that associations generally reach the

Government distributes 1.42 billion euros among regional governments for employment policies

​

The Council of Minister approved the regional distribution of subsidies at an employment level for this financial year.

The Vice-President of the Government, Soraya Sáenz de Santamaría, explained that a total of 1.42 billion euros will be made available for the implementation of services and programmes of active employment policies, as well as for the modernisation of the Public Employment Services and subsidies prior to ordinary retirement through the Social Security system.

VP Advisers - Solicitors and Tax Specialists

VP Advisers has been helping people in Orihuela Costa since 2009. It was created by leading lawyers and economists in order to provide accounting advisory services, tax and labour advice to local home-owners and residents, the self-employed and businesses of all sizes. 

 

The team comprises expert solicitors who specialise in different areas of the law, such as civil issues, labour rights, criminal law, administrative and tax regulations. This enables VP Advisers to provides its customers with the highest quality legal advice they require and have come to expect from the team. The services of the company’s solicitors can be adapted to a wide range of client needs, particularly those purchasing or selling property.

Over 19 million tourist holidays mainly taken for cultural reasons

According to the results contained in the 2015 Yearbook of Cultural Statistics, the culture sector is the driving force behind the development of other sectors of great economic significance, such as the tourism sector. The 2015 Yearbook of Cultural Statistics contains a selection of the most important culture-related statistical results, offering information on the status quo in terms of culture in Spain, its social value and its condition as a source of wealth and economic development in Spanish society.

THE LIMITED LIABILITY OF THE ENTERPRENEUR

One of the main advantages of using a limited company with respect to carry on the business compared with doing it as a self-employed person is that the personal assets of directors and partners are protected against any corporate debt. The recent Entrepreneur Law creates limited liability through which individuals may avoid liability for business debts concerning their main house under certain conditions.

Simplified invoices, forget about tickets

Although the new concept of simplified invoice is not (it came into force in 2013), there are still questions about what they are and when to use them.

What is it? Current law sets aside the figure of the old tickets and invoices simplified situate them halfway between the bills we already know and the tickets, the content on simplified invoices is wider than the tickets but lower than the ordinary invoices.

ARE YOU RESIDENT IN SPAIN FOR TAX PURPOSES?

The way in which individuals and bodies corporate pay tax in Spain varies depending on whether or not they are residents of Spain.

1. INDIVIDUALS

Individuals shall be deemed to have their principal residence in Spain if they meet any of the following conditions:

• They spend more than 183 days per calendar year in Spain. Occasional absences shall be taken into account to calculate the period of residence, except when said individuals prove they have their tax residence in another country. In the case of countries or territories classified as tax havens, the Spanish tax authorities may request proof of residence in the tax haven for 183 days per calendar year.

Cash revenue from contributions to Social Security system exceed 74.18 billion euros to September

In terms of budget performance, the Social Security system accounts posted a negative balance to September of 5.56 billion euros, equivalent to 0.52% of GDP.

This balance corresponds to the difference between recognised revenue from non-financial transactions of 94.68 billion euros (up 3.68%) and recognised expenses of 100.24 billion euros (up 6.15% in year-on-year terms).

Why is important to produce a spanish will?

We should know about how important is having a will in Spain in case of people national of other countries when they have property in Spain as it can be a house, and being or not residents in Spain.

Average number of foreign citizens registered with Spanish Social Security system stands at 1,645,874 in September

The average number of foreign workers registered with the Social Security system stands at 1,645,874 in September, up 0.14% on the previous month (2,229 more workers).

The number of foreign workers contributing to the Social Security system has risen by 4.02% year-on-year, with 63,539 more workers than in 2014. This is the largest increase in foreign workers in a month of September since 2008.

VP Advisers - Solicitors and Tax Specialists

VP Advisers has been helping people in Orihuela Costa since 2009. It was created by leading lawyers and economists in order to provide accounting advisory services, tax and labour advice to local home-owners and residents, the self-employed and businesses of all sizes.

The team comprises expert solicitors who specialise in different areas of the law, such as civil issues, labour rights, criminal law, administrative and tax regulations. This enables VP Advisers to provides its customers with the highest quality legal advice they require and have come to expect from the team. The services of the company’s solicitors can be adapted to a wide range of client needs, particularly those purchasing or selling property.

Prices fall 0.9% in September due to downward trends in liquid fuels and electricity

According to the data published by the Spanish National Statistics Institute (Spanish acronym: INE), the Consumer Price Index (CPI) fell by 0.9% year-on-year in September. This rate is five-tenths lower than last August and matches the figure announced by the INE at the end of last September. The downturn in inflation can be mainly explained by the sharp fall in energy prices, both liquid fuels and electricity.

The price of energy products recorded a year-on-year rate of -13.6% in September, compared with -9.8% the previous month. This decrease was caused by all components of the energy index. The year-on-year rate for solid and liquid fuels fell by 2.3 percentage points to -16.4%, particularly due to the falling cost of liquid fuels and, to a lesser degree, gas. Electricity posted a reduction of almost nine percentage points on August in its year-on-year rate, to stand at -6.3%.

Do not forget to fill up the Non Resident Tax before the end of the year.

A person who is non fiscal resident in Spain and is getting any kind of income in this country during the year has to be declaring and paying taxes for the incomes received. The most common case is a Non Resident person who owns a holiday house or property in Spain.

Regardless of whether or not the real-estate property is leased out, income from said property shall be subject to IRNR. However, the tax treatment varies depending on whether or not the property is leased.

Largest year-on-year fall in unemployment in a month of September since records began, with 353,608 fewer unemployed

In seasonally-adjusted terms, recorded unemployment fell by 9,746 in September. The monthy variation in easonally-adjusted unemployment figures has fallen in 27 of the last 29 months.

Recorded unemployment has fallen by 353,608 over the last 12 months, the largest reduction since current records began for the month of September. The year-on-year fall in unemployment stands at close on 8% (7.95%), a rate not seen in September since 1999.

Government eliminates double commission for withdrawal of cash from ATMs belonging to another financial institution

The Council of Ministers regulated, though a Royal Decree on financial issues that will come into force on Saturday, commissions on withdrawing cash from ATMs from a financial institutional other than the issuer of the debit or credit card.

The Vice-President of the Government, Soraya Sáenz de Santamaría, pointed out that the measure responds to the social concern generated in recent weeks over the possibility that financial institutions will charge a double commission on the withdrawal of cash.

August international tourism in Spain generates record 305 million euros per day, 4.1% higher than in 2014

​International tourism therefore generated an average of 305.2 million euros per day for the Spanish economy in August.

This increase in spending was due to an increase in tourist numbers in August (up 1.6%), increases in the average spend per person (up 2.4%) to 1,026 euros and an increase in the average spend per day (up 4.6%) to 107 euros. The United Kingdom and the Asian markets made significant contributions to this result in August.

Early figures on budgetary performance indicate Spain will meet its deficit targets in 2015

This is the first General State Budget to be presented since the start of the crisis with a primary surplus of 0.35 points of GDP, meaning that the ratio of public debt over GDP will continue to fall.

The General State Budget for 2016 is based on the same objectives as the four previous budgets drawn up by the Government of Spain during this legislature: economic growth, job creation and meeting fiscal consolidation commitments. The State Secretary for Budgets and Expenditure, Marta Fernández Currás, said today that these commitments will also be met in 2015, as she announced the positive results from the budgetary performance data to be released next week, which show a reduction in the deficits posted by both the Central Government and the regional governments. They also reflect the excellent health of the local authority accounts. "We are on the right path to meeting our stability target", she said.

TAX FINES AND SANCTIONS ON TAX FORMS OBLIGATIONS (II)

This new article we will see about other different tax fines and sanctions that can affect to people or corporations.

Penalties for not paying a tax when the result is to pay. 

This penalty is avoided when the taxpayer pays the tax without the previous requirement of the Tax Office. Or when the tax is submitted in time but without paying the deposit, because in this case the executive process to collect that debt is beginning.

Five things Spain’s ‛gag law’ will stop you doing from today

The countdown has ended. The government’s new Citizen Safety Law went into effect on Wednesday despite widespread rejection from opposition parties and many sections of society.

“Demonstrations will be freer because they will be protected from violent elements,” claims the ruling Popular Party (PP).

But the opposition accuses the government of creating “a police state” because law enforcement officers will have the power to hand out administrative sanctions that were, until now, the sole preserve of judges.

TAX FINES AND SANCTIONS ON TAX FORMS OBLIGATIONS (I)

Today we are going to explain with some detail what are the consequences of not complying with our tax obligations, or do it out of time.

Penalties for submitting tax forms after the deadline
 

If there is not a financial damage to the Tax Office , then apart from the surcharge addition , the following sanctions shall be established .

• Fixed pecuniary penalty of 200 euros . The fine would be 400 euros in the case of census tax forms.
• For cases of  informative tax forms , a pecuniary fine of 20 euros for each item or set of data referring to the same person or entity that has to been included in the statement with a minimum of 300 euros and a maximum of 20,000 euros.

Inbound tourist spending in Spain sets new record of 21.81 billion euros between January and May, up 8.4%

In May, total spending by inbound tourists rose by 11.8% to 5.89 billion euros. This is a new record for May and the largest year-on-year increase ever recorded in May.

​According to the Tourist Expenditure Survey (Spanish acronym: EGATUR) drafted by the General Sub-directorate of Tourism Information and Studies of the Ministry of Industry, Energy and Tourism, total spending by inbound tourists travelling to Spain between January and May was the highest since records began, standing at 21.81 billion euros. This represents growth of 8.4% on the first five months of 2014.

Average number of foreign citizens registered with Spanish Social Security system rises by 55,334 in May, the largest rise since 2005

The number of foreign citizens registered with the Spanish Social Security system stood at 1,663,217 in May, an increase of 3.44% - or 55,334 National Insurance contributors - on April. The increase in contributor numbers to the system was the largest for the month of May since 2005 (the year in which the status of immigrants was regularised).

When compared with 2014, the number of foreign workers has increased by 3.42% - equivalent to 54,996 more NI contributors. The rate has returned to positive figures for the first time in six years.

Spain and Russia increase collaboration on industry, energy, transport and tourism

The 8th Session of the Spain-Russia Inter-governmental Mixed Commission on Economic and Industrial Cooperation was held in Madrid today. The meeting was jointly chaired by the Spanish Minister for Industry, Energy and Tourism, José Manuel Soria, and the Energy Minister of the Russian Federation, Alexander Novak.

The meeting was attended by senior members of both governments and executives from large Russian and Spanish companies to assess trends in economic and trade relations in recent years and analyse the possibilities of future cooperation.

Ranks of Spain’s rich have grown by 40% since start of crisis, study finds

The number of people with large fortunes in Spain has grown by 40 percent since the crisis began in 2008. In 2014 alone, the amount of wealthy individuals rose 10 percent to reach 178,000 people, a new report finds.

A study by consulting firm Capgemini and RBC Wealth Management found that there had been a seven-percent global increase in the number of high net worth individuals (HNWI) in 2014. People who fall into this category have a million dollars or more in investable assets without counting the value of their primary residence or consumer goods.

Prices fall 0.2% in May, 0.4 points down on the April figure, due to energy and fresh food

The Consumer Price Index (CPI) fell by 0.2% in May year-on-year, according to figures published by the National Institute of Statistics (Spanish acronym: INE). This rate matches the figures published by INE at the close of May and is 0.4 percentage points (pp) higher than April.

The acceleration in prices has been reflected in the main CPI headings, particularly fresh food and energy products, which are the most volatile elements in the general index. Month-on-month, prices rose 0.5%, particularly in the case of energy and fresh food.

IMF calls on Spain to raise VAT and enable cheaper layoffs

The International Monetary Fund (IMF) has said it is pleased that the Spanish economic recovery is gaining traction, but that it still wants to see more reforms.

In statements made on Monday ahead of the release of the organization’s annual report on Spain, IMF officials called on the government to make it cheaper for companies to lay off workers, to increase value-added tax (VAT), and to introduce healthcare co-payment in order to bolster the Spanish economy.

Spain and United States step up bilateral collaboration on employment issues

The Minister for Employment and Social Security, Fátima Báñez, held a meeting with the Secretary of Labor of the United States, Thomas Perez, at which they reviewed the situation of the Spanish labour market and agreed to enhance bilateral collaboration between the two countries on employment issues.

​This meeting provides continuity to the previous meeting held between Minister Báñez and Secretary Perez in Melbourne in September 2014 within the framework of the meeting of employment ministers of the G-20.

Non Resident Tax

A person who is non fiscal resident in Spain and is getting any kind of income in this country during the year has to be declaring and paying taxes for the incomes received. The most common case is a Non Resident person who owns a holiday house or property in Spain.

Regardless of whether or not the real-estate property is leased out, income from said property shall be subject to IRNR. However, the tax treatment varies depending on whether or not the property is leased.

ARE YOU RESIDENT IN SPAIN FOR TAX PURPOSES?

The way in which individuals and bodies corporate pay tax in Spain varies depending on whether or not they are residents of Spain.

1. INDIVIDUALS

Individuals shall be deemed to have their principal residence in Spain if they meet any of the following conditions:

• They spend more than 183 days per calendar year in Spain. Occasional absences shall be taken into account to calculate the period of residence, except when said individuals prove they have their tax residence in another country. In the case of countries or territories classified as tax havens, the Spanish tax authorities may request proof of residence in the tax haven for 183 days per calendar year.

VP Advisers - Solicitors and Tax Specialists

VP Advisers has been helping people in Orihuela Costa since 2009. It was created by leading lawyers and economists in order to provide accounting advisory services, tax and labour advice to local home-owners and residents, the self-employed and businesses of all sizes. 

Spain closes first four-month period of 2015 with new record spending by inbound tourists at 15.92 billion euros, up 7.2%

According to the Tourist Expenditure Survey (EGATUR) drafted by the General Sub-directorate of Tourism Information and Studies of the Ministry of Industry, Energy and Tourism, spending by those inbound tourists who travelled to Spain in the first four months of the year hit a new record of 15.92 billion euros. This represents growth of 7.2% on the corresponding period in 2014.

Spanish economy grows by 2.7%, the highest rate since start of crisis, leading to creation of 458,000 jobs

In the first quarter of 2015, the Spanish economy posted a quarter-on-quarter rise of 0.9%, two tenths higher than in the last quarter of 2014, according to the figures published by the National Statistics Institute (Spanish acronym: INE).

If you perceive pensions from abroad you can tidy up your tax situation without penalties only until June 30

The law provides that resident in Spain must declare all their income in this country irrespective of their source, without prejudice to the various international treaties could establish. Many residents who receive income from their countries of origin, or others, think it is enough to be paying taxes at source and not take into account the fact that not to fill up the income tax in the country where they live or not including all the worldwide incomes may cause them penalties, surcharges and default interest.

Spain's external price competitiveness improves in the first quarter

In the first three months of 2015, the Spanish economy posted a gain in external competitiveness versus the EU, taking Consumer Price Indices as a reference, as a result of the depreciation of the Euro against the currencies of these countries and by the greater decline in Spanish prices against the average prices of other EU countries.

The major depreciation of the Euro in the first quarter of the year was the main driving force behind Spain's gain in competitiveness versus the OECD. However, competitiveness versus this area was also gained through prices, due to Spanish consumer prices contracting to a greater extent than prices in other OECD countries.