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Employment in Spain

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%.

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.

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.

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.
 

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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Copyright © 2003 Interlink Business Consultancy S.L.
Last modified: March 30, 2005