The New Autonomo Law

The proposals in Proposición de Ley de Reformas Urgentes del Trabajo Autónomo, which are expected to become law from 1st January 2018 contain some changes which will be of interest to those of you that are thinking about starting up a self-employed business in Spain. Here is a brief summary of the most important points.

From 1st January 2018, Social Security contributions for new autonomos under the Tarifa Plana regime will be as follows:

1-12 months: 50 Euros

13-18 months (50% reduction): 137 Euros

18-24 months (30% reduction): 192 Euros

After 24 months contributions revert to standard, which is currently around 275 Euros per month.

Autonomos who are re-registering after having ceased their business for more than two years are eligible to apply.

For autonomos who work from home, 20% of personal household expenditure, such as telephone, water, gas, and electricity is tax deductible. For expenditure related to vehicles that are partially used for business, 50% of the cost is deductible for the purposes of income tax (depreciation) and VAT.

The self-employed food allowance is 26,67 Euros per day if the expenditure is incurred in Spain or 48,08 Euros if incurred abroad. Only bills of restaurants, hotels or similar establshments (not including supermarkets) can be claimed and only for card/ electronic payments.

Autonomos may change their base of contribution up to four times in one year, and are also are allowed to register and de-register from Social Security up to three times a year.

Amplification of our services and reduction of costs to our clients. Part 2: Registration for autonomo Social Security

This is our second post of today on a recent development in our services,

We have recently registered as an online service provider for small business clients (PAE = Punto de Atención al Emprendedor). This means that we are now able to offer certain services online, i.e. without the need to use a local gestoria to physically go into the relevant government office to complete the client´s procedures. This means that we can reduce the cost to our clients which is always going to be welcome !

The government system for this is called CIRCE (Centro de Información y Red de Creación de Empresas) and we will use it for the following:

Autonomo Social Security registration

Using the CIRCE system, we can register our clients for autonomo Social Security online, which using the regular Social Security system is only possible in the client has their own Tax Office digital certificate. Not having to physically go into the Administration Offices to register  clearly saves on time and stress for all involved.

If you would like any help with registering as an autonomo in Spain then we will be happy to assist ! You will find further details on our website www.spainaccountants.com .

Amplification of our services and reduction of costs to our clients. Part 1: Company formation in Spain

Spain Accountants has some good news to share with you ! We have recently registered as an online service provider for small business clients (PAE = Punto de Atención al Emprendedor). This means that we are now able to offer certain services online, i.e. without the need to use a local gestoria to physically go into the relevant government office to complete the client´s procedures. This means that we can reduce the cost to our clients which is always going to be welcome !

The government system for this is called CIRCE (Centro de Información y Red de Creación de Empresas) and we will use it for the following:

Company formation

Under the CIRCE system, formation of a new limited company (Sociedad Limitada) in Spain has been made simpler and less expensive.  Procedures such as physically having to go into the Tax Office to pay Stamp Duty and converting the provisional tax number (CIF) to a final tax number are not necessary under this online system. It is also no longer necessary to physically present the notarised company articles at the Mercantile Registry, as these are sent online via the CIRCE system.

In addition, the newly formed company is automatically assigned an employer´s Social Security number as part of the process.

This cuts down both the timescale and cost to the client.

There are two important “manual” parts to the company formation procedure which remain unchanged:

  1. The client is still required to go into their Spanish bank to open the company bank account.
  2. The client is still required to attend a Notary signing in Spain to sign the constitution of the company.

If you would like any help with forming your new Spanish company then we will be happy to assist ! You will find further details and FAQ´s on our company formation service on our website www.spainaccountants.com .