Contracting in Spain

[yassen]

Has anyone done any contracting or freelancing in the past? There is a possible short term contract (perhaps few months) in Spain and would like to know how to go about setting a up a limited company. I think in the UK you can either set up your own limited company and pay an accountant to deal with all the paper work and tax payments or use an umbrella company with an additional cost and not worry about the rest. In both cases I think all this can be done in days in the UK. How about in Spain? Are there any reliable decent companies who could help with this?

Thanks

[Anonymous]

Hi yaasen,

Here’s my ‘penny-worth’ but it comes with a health warning as I don’t actually operate in Spain yet …. so hopefully someone who is actually living and breathing a working life out there can come and enlighten both you and me.

For the sake of a few months, I wouldn’t recommend setting up an SL (Spanish equivalent of a UK Ltd Co) …. main reason being is the cost and paperwork. If you want to get an overview of company structures in spain ….. a couple of links below.

2011 Tax Guide -> http://www.pkf.com/media/387218/pkf%20spain%20tax%20guide%202011%20v2.pdf

2010 Doing Business in Spain -> http://www.uhy.com/media/PDFs/doing_business_guides/Doing%20Business%20in%20Spain.pdf

2010 KPMG Country fact file -> http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/GITax_country_factfiles/SPAIN_2010_CFF.pdf

Although not operating in Spain, I have done a little research as to the possibilities, and am myself a UK based contractor. If you are a member of the PCG then they may well be a source of info for you.

Coming back to your question, and if only for a few months, my gut feel is that if you have your own UK Ltd Co then, is it possible for the client to be invoiced from your UK Co? Obviously the VAT rules around ‘place of supply’ will have to be followed; certainly if you’re VAT registered.

I would not use an Umbrella Company as I consider them poor value for money, certainly if you’re trading for a whole year.

The other option is to go ‘autonimo’ in Spain, which is similar to a UK based ‘Sole Trader’ ….. note, I think in Spain that all autonimo are automtically ‘VAT registered’. This will mean that you will have to register with the local tax office, and file returns there. If you use an accountant for this, aim on it costing approx 60 – 80 Euros a month. In addition you will have to pay your monthy equivalent of the National Insurance, which is a minimum of 250 Euro a month … someone may have a more up to date figure.

Plenty of sites out there about being ‘autonimo’ but a link for further info below.

Spainwide Business Services -> http://www.spainwide.com/autonomo-spain

[yassen]

Many thanks for all the information mortimm. It will prove very useful.

I think I will opt for autónomo and look for some decent accountant to take care of all the bureaucracy and the paper work.

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