Working from home and taxes
Posted: 03 September 2007 03:45 PM  
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Hello,

I need some advise if anyone can help.

I have been living in Spain for about 3 years now and not working. The holiday is now over and I must work having nearly run out of money.

I am starting to work as a freelance graphic designer/digital publications creator from home. I will be working for clients in the USA and Europe including Spain.

I have an NIE, I applied for this when I arrived but have not needed it until now.

I don’t have the funds to start my own business at the moment which is why I class myself as a freelancer. I want to do this legally if at all possible rather than having to worry about taxes etc but also want to earn some money.

1. When and how will I need to pay taxes on the income I recieve?  I do not expect to be earning much in the first year until client word of mouth and examples of my work spread.

2. Will I need to charge IVA to clients here in Spain, Europe and the US and will Spanish clients expect me to charge IVA even though technically I am not a company.

3. Social Security payments, are these necessary if I have private medical insurance? I have heard that the start rate is something like 200 euros - seems high if I am not earning much.

Any advise you can provide would be very helpful

Thanks in advance

A confused expat.

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Posted: 03 September 2007 09:08 PM   [ # 1 ]  
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Check out going autonomo and starting a business in Spain. Both should help considerably. If not, come back and tell me what’s missing!

BTW, you’re EU right?

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Posted: 03 September 2007 10:56 PM   [ # 2 ]  
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Thanks for the reply. I will take a look at the information you advised.

I am English.

Thanks again

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Posted: 03 September 2007 10:59 PM   [ # 3 ]  
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Hello again,


So as a freelancer I can’t just fill out a yearly tax return on my worldwide income? I have to become an officially self-employed person?

Also, with regards to the social security payments, is this a legal requirement? Over 200 euros a month seems alot if I am not earning much during the
first year.

Thanks again

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Posted: 03 September 2007 11:49 PM   [ # 4 ]  
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I think you can get away without paying the SS payments for a while. If you’re working freelance and then just pay taxes normally then you can probably get around this for a while. At some point a client might require you to have a business for them to write off their payments though. I had this issue, so I incorporated back home and charged them from there.

As a Brit you don’t need to worry about the visa of course; you’re allowed to live/work in Spain as long as you want. Look into getting your residencia though.

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