Hello everyone.

I have been away for a while due to my time being spent on the new house we have bought here.

Now I am getting back to focusing on work issues and I have a question that I would love to hear your thoughts on.

FACTS:

*I work online for a living
*I have a limited company based in the UK
*I am not yet a spanish resident
*I am from the UK

Now that we have the house I am going to become an official Spanish resident. So this means my situation is going to change.

It all seems very complex regarding where i pay my personal and business taxes etc... so I am thinking of making life potentially easier and closing down the company and signing up to become a freelancer here in Spain.

However, my partner is a freelancer here in Madrid and quite frankly the fees are crazy! she pays something like 250 euros per month regardless of what she earns and then pays the taxes etc as well.

So with both of us becoming freelance it would cost us a combined 500 euros per month MORE than it would in the UK.

What are my options here guys?

With my busines being online and me being from the EU I surely have more flexibility than perhaps a Spanish born cafe owner. But what are my options and what would you recommend?

Any help would be greatly appreciated by both of us.

Thanks.

I think you should talk to a lawyer... I don't know how everything works within the EU when it comes to social security and pension reciprocity, but I would think that these are issues you might want to discuss with someone in the know. Also, issues of liability, if you were to take work in Spain or what legal protection you have if you aren't physically located in the UK.

Congratulations on buying a house. Did you have to be a resident in order to buy or does buying automatically make you a resident?

that's why I don't plan to registar, I pay 15% and buy private health care. bottom line is it costs me about the same and I get access to English speaking doctors.

btw I think it would make more sense to see an accountant.

Thanks for the replies.

I should add that we already have an accountant in the UK (My company is based there), but obviously he is not the man to speak to regarding Spanish freelance options.

Basically the 200+ euros per month social security is a piss take. So we are looking to find a way to reduce or avoid this amount.

One option off the top of my head would be for Elena to become Joint owner of my Uk company and for my company to start doing translations. That way she would not be a freelancer as such.

With the amount of teachers on here I am sure that someone knows of a solution and I would be greatful for any further advice.

Many thanks.

Dean

most teachers I've talked to don't or can't be bothered registering. A few do but I'm not sure why'd they bother.

I'm registered legally and I will tell you why.

1. I have my own office with public access (not working out of my home), so need to be registered in case of workplace inspections.

2. I also do translations and cannot bill a company unless I am legally registered.

3. A number of my clients have their English classes paid for by their employers and need an official invoice. Again, need to be legally registered to do so.

4. My clients can pay by credit card. The only way that is possible is being legally registered since there is a definite paper trail and the need to file taxes.

As has been discussed on other threads of this forum, registering legally apart from being the responsible thing to do (I am not getting on a soapbox or going to be preachy ) is a personal decision.

I agree that it is a costly thing to do, especially in the beginning when you are establishing yourself (and believe me, after 3 years, I am still stablizing the business... need at least 5 to do so). Like the saying goes, you have to spend money to make money. However, it was probably the smartest business decision I have ever made. Now based on my income growth over the past few years, my bank has extended me a 9,000€ line of credit to use at my discretion.

Also based on our joint income, my husband and I were approved for a REASONABLE mortgage. And anyone who has been following the real estate trend here in Spain (especially Madrid) can attest to the challenge that THAT is.

Tim Horton's Man, I think that the majority of the English teachers (native speaking) who are here, aren't planning on being here for more than a couple of years so don't feel the need to register themselves (and pray that they don't get caught...). However, there are those of us here who plan on being here for a good while and would like to earn a pension (through social security payments, etc) and establish themselves more in the society.

Just another perspective for you to think about!

That was my thinking as well, alot of people come here stay for a short while and those that go to the work to registar want to stay long term so it makes sense to. For me I'm going to wait and see what happens. We maybe only for a year or two and then move on. My wife had to registar as she's employed.