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nomadagio
Posted
Hi there everyone,

Just gone autonomo and am a bit confused about the difference between billing particulares and billing empresas.

I know that with bills for empresas you need to deduct IRPF, but I think the lovely lady who dadome de alta at hacienda the other day said, amongst a million other very high speed facts, that when billing particulares you don´t need to deduct it, which would kinda make sense as a private individual isn´t going to then pay your social security contribution for you like a company would.

So do you just bill them without deducting anything then?

And can they then pay you in cash, and you just pay it into your bank, or do they need to do a bank transfer to your account to leave the necessary electronic money trails?

Any help would be much appreciated.

Gareth
 
Posts: 6 | Location: Madrid, Spain | Registered: 14 May 2004Reply With QuoteEdit or Delete MessageReport This Post
nomadagio
Posted Hide Post
Schitzophrenically answering my own topic here, but hey. Just in case anyone is interested I got an answer from hacienda.

When billing companies you have to deduct IRPF from your bill because the company then pays it for you to hacienda.

But when you bill particulares, your normal joe bloggs ciudadano off the street, you don´t have to deduct IRPF. Then they can pay you in cash, by transfer, or however they like, and to make this income legal you must issue them with a bill and then declare this income in the declaracion de la renta each year.

This might be of interest to autonomos who are thinking about getting a mortgage, as one bank told me that they do give mortgages to autonomos by averaging all of your legal income for the year. So any extra income you have will help you get a better mortgage.
 
Posts: 6 | Location: Madrid, Spain | Registered: 14 May 2004Reply With QuoteEdit or Delete MessageReport This Post
Chica
Posted Hide Post
For what it's worth, I am autonoma and was given a mortgage (granted, we used both my husband's and my income). Apart from that, my bank has given me a line of credit no questions asked based on my income alone.

It's not impossible. smiler

Although the "typcially Spanish" thing to do is keep as much as reasonably possible in black, you might also want to consider what your pension/social security will be like when you retire. I know many of you haven't even considered retiring in Spain, but for those who have...do think twice about your social security payments and how making them is to your benefit. wink


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Posts: 1378 | Location: Madrid | Registered: 24 March 2002Reply With QuoteEdit or Delete MessageReport This Post
Spain Gestor
Posted Hide Post
The rules relating to Retenciones depend on what your activity is.

If you are classed as Profesional then you would have to issue invoices with retentions included in the invoice if you are invoicing another business.

By the same token you as Autonomo may receive invoices from Profesionals that have the Retencion included. In this case it is the money of the Retencion that you have to pay hacienda.

The 2 other common cases where you practise Retenciones are when renting commercial property or have employees.

Regards

David


www.spaingestor.com
 
Posts: 2 | Location: Sapin | Registered: 10 November 2007Reply With QuoteEdit or Delete MessageReport This Post
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