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Employment
in Spain
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| If
you are to work for a company in Spain then you must obtain a contract of
employment of not less than 6 months duration. You will then need an NIE
No. (Identification). This will take approx. 10 days. Once you have this
you can commence working. You must then apply for your residencia. 4
passport sized photographs, Passport, copy of your rental agreement or
House deed and a copy of your work contract. (Please
see Residencias).
Your
employer will register your contract at the local INEM office (employment
office) and will enrol you in the Spanish Social Security system. You will
receive a Social Security card from your employer.
Each
month you will receive a Nomina (official copy of your salary payment and
deductions) again from your employer.
Always
ensure that you receive this, as you are entitled to by law. The company
is obligated to deduct tax at a minimum rate of 2%.
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However,
you must ask your employer to deduct more if you want to ensure that you
do not receive a tax bill at the end of the year! It obviously depends on
your earnings but please take advice. You will also be deducted social
security contribution of 6.4% of your gross earnings.
Remember
that you are obligated to make a tax return each year unless you earn less
than € 21.000 per annum.
If
you decide to become self employed, you will need the same documents
previously referred to and a residencia too. You will then need to go on
the alta in the social security system and will have to pay € 205.54 in
respect of social security contributions. An activity license in the sum
of € 60 upwards according to your activity is also required. This is
payable each year in November. You must make a tax declaration each year
whether you have a profit or a loss. This is from 1st May up to the last
day which is the 30th June.
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| All
work invoiced for must carry your official Tax No., and bear your trading
name or official title.
Any
bills that you pay for in the course of your work, i.e., materials,
purchases, petrol, and other claimable expenses must also have the
suppliers IVA (VAT) or NIE No. Each 3 months between 1st and 20th of each
quarter you must submit your IVA (VAT) returns also. This is usually
carried out by an assessor and will cost between € 65 to € 300 per
month, depending on turnover. € 65 will usually cover a turnover of up
to € 18.000 per annum. All fees are subject to IVA (VAT) which is
reclaimable.
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| If
you are self employed and purchase a van or car for your business, then
you are able to recover all of the VAT paid. This is offset or repaid
against your liabilities in your business. |
| Remember
whoever you pay money to, even to your lawyer or accountant, always get a
receipt with the correct IVA (VAT) No.
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If you require further information
regarding Employment in Spain, please contact us via Email at info@interlinkspain.com or
complete the Enquiry Form on the Contact Us page or telephone us
on (+34) 952 441 632 |
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