Tax contributions in Spain
Whether you are a resident in Spain or not, if you have an income here, you may be liable for tax payments, as in any other country. As a foreigner it can be a complicated and costly situation so you will without doubt need specialist advice. Your Gestoria will be able to help you.
Social Security payments in Spain
All businesses are registered with the Social Security Office and as such will be liable for social security payments which vary according to the status of the business. Making these payments will entitle you to the benefits of the local health service such as doctors and hospitals. The payments will also contribute towards an old age pension, although contributions have to be paid for a minimum of 15 years to qualify.
A company employing people will also have to pay social security on their behalf. This stresses the fact that if you employ people you must have a proper written contract with them for mutual protection.
Finally, if you are buying an existing business in Spain it is vital that you examine every aspect of the business before signing anything or parting with your money. It is crucial that you ensure the company has no debts or tax liabilities that would be transferred with the business.
If you do take the plunge and start a business in Spain, you will find that you are accepted by the Spanish as a foreigner and you will have the respect that you earn. You will however find many business practices here very different to those in your home country. You will also find it impossible and unreasonable to try to change them. There is however, plenty of money to be made.
What is a gestor?
This is one of the most common questions put to Idealspain. A gestor is a Spanish tax advisor or accountant. A gestor has access to the Spanish tax system and can file your accounts online for you. A gestor will also help with vehicle transfers, contacting trafico and other important tasks. Most gestors will quote a set fee for a particular job although others will charge an hourly rate. Check first as the fees can become rather high, especially for complicated jobs. Most gestors speak several languages or have staff that do. A gestor is NOT a lawyer.