Quote:
Originally Posted by mariuspa
Thanks everybody for your answers!
My yearly income will be in the low 20s.
Actually i am a Romanian citizen, and I am a contractor with the US based company.
Maybe this can help you in helping me further clarify my problem.
Also I was wondering if tax is payed at the whole amount or are there any deductions, like rent for example?
Thanks again guys, I am looking forward to your answer! And of course to moving to Spain 
Best regards,
Marius |
Well I've already been told off for "keeping it simple", but here goes
Firstly, let me get this clear. You will be self employed, or an employee of the US company? I only ask because as an emplyee to deduct tax etc here they would have to have a registered company in Spain.
To be self-employed in Spain requires registration with the following official bodies.
Registering for IVA (VAT).
Registration with local tax office.
Registration as self employed with the Social Security.
Registration of any workers you may have with the Social Security.
Preparation of Licencia de Apertura (only if you have premises).
In Spain you are required to be registered for IVA (VAT) from the beginning and you will also need to pay your monthly contribution to the Seguridad Social every month, even if you haven't earned anything in a particular month.
The amount of social security contribution for autonomo (self employed) for 2007 is 29.8% or, 26.5% of the amount you choose to declare depending on whether you select temporary incapacity protection or not.
The maximum and minimum contribution levels for workers 50 or under are set between 801.30€ and 2996.10€.
Therefore a worker under 50 years old declaring €801.30 would pay 29.8% or 238.78€ per month. This figure is variable depending on your personal circumstances and allowances
If you are an employee then this from the Seguridad Social - Reglamentos Comunitarios which is the system under which workers working for a foreign company in Spain fall under:
Workers contracted by foreign businesses to work in Spain.
"Workers contracted by a foreign business with the aim of carrying on their activity in Spain will be subject to Spanish legislation regarding the Social Security contributions before they are contracted to work. These workers are not considered displaced workers under the social security act, and are subject to the legislation of the country in which they carry out their activity.
The foreign business must apply to the corresponding Tesoreria General or Administration for a social security contribution account number to register the business with the Spanish social security and hence subsequently register the worker with the Spanish social security."
That complicated enough for you
