Autonomo… a matter of choice?
Posted: 04 February 2008 07:53 PM  
Expatriator
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Total Posts:  306
Joined  2007-09-24

Hi there,

I am in the position of working, as an employed director, for a UK limited company - and wanting to relocate to Spain and continue working.

I have been trying to get definitive tax advice on my situation, and one adviser has suggested that I simply ‘go self-employed’ on arrival and invoice my company, being paid gross, and pay local autonomo social security and retention tax in Spain.  On the face of it sounds far simpler than setting up a local branch in Spain, simply to pay me a salary!

However in the UK if obviously doesnt work like this, ie I could not say to my dear lovely friends at the Inland Revenue that I fancied switching status to self employed, conducting the same role and earning the same amount etc - because the allowances and expenses are more generous there are very strict tests of legitimate self employment, and the onus appears to be on the worker and client to prove that they are NOT implicitly in an employment relationship (rather than the other way around)

So I was wondering, have I been misadvised, or is this one of the many ways that Spain is ‘different’?  I gather that due to the large number of family businesses etc self employment is a more common route to contribute in Spain than it is in the UK - I havent done the sums re what would be most cost effective to me personally, but get the idea there isnt a vast amount in it.  My main concern from the corporate POV is not to get whacked for a mass of back tax if we start paying me gross, just because I have moved house!

If this question doesnt make sense/more detail is needed, and you might be able to advise me professionally, please PM and lets talk.  Or if anyone can shed light more informally based on the above I would be v v gracias,

thanks everyone!

Cazz xx

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