SELF-EMPLOYMENT IN SPAIN

If you are one of the many who came to Spain looking for casual work and been disappointed with the options available then you may have turned your attention to starting your own business.

Many expats have been very successful at doing this and have simply transferred a business that may have been flourishing in their home country. Many tradesmen find the relocation quite easy and find that word of mouth in the local urbanisations and bars is the best form of free publicity to get them started.

While you will find that many business will be registered and take advantage of healthcare and pension benefits you will also find just as many that find casual work in the black economy. They provide work to the local expat community in exchange for cash. Will pay no national insurance, have no pension and will provide no guarantee for their work. The Spanish government just like any other does not take kindly to the black economy and is currently taking steps to try and ensure that more business become registered and pay their taxes accordingly.

If you are starting a small business in Spain it is better to be self-employed as opposed to starting up a Company. If you are earning large profits then this would quite different because you would probably pay more taxes on your income self-employed than you would as a Company.

You must keep records of your business to cover expenses, income and capital and these can be found at the local tax office. Accountants will provide a monthly service for your business to ensure you stay within the law and they charge around 50-Euros per month for this. It is worth having an English speaking Spanish accountant who is there to provide advice to you business at all times.

The Spanish seem to focus more on the National Insurance monthly payments than the tax and you may find this when you come to pay tax on your business.