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Self-employed in Spain: Expenses if Working From Home

Either through choice or by necessity a large percentage of the self-employed or ‘autonomos’ in Spain choose to work from home. That being the case, it is of course important to be aware of those expenses that can be claimed and used to reduce profits and therefore income tax.

It is also important to be aware of those that may not be claimed as expenses despite perhaps having been assured by friends that they have claimed such expenses for years without problem. It is never a problem – until hacienda begin to query them.

The basic rule to follow when claiming expenses associated with the home for the purposes of the business that you carry out there is the idea of proportion i.e. it is permissible to claim those expenses relating to the home in the proportion in which you use the home to carry out the business.

For example, if your home measures 120 square metres and the room in which you carry out the business is 30 square metres then you may claim 30/120 or 25% of the bills relating to the property. So which bills may be included?

The following list gives example of those bills that may be included:

  • Taxes associated with the property e.g. IBI
  • Rent
  • Community Charges
  • Home Insurance
  • Mortgage Interest

The above rule regarding proportionality applies regardless of whether the property is in your own name or jointly with a spouse.

Whether other utilities can be included will depend ultimately on whether or not they are used for the purposes of your business but may include the electricity, telephone and internet connection.

The expenses incurred by using a vehicle can be more complicated and depends on factors such as whether it is apt for industrial use alone or also for personal use and the specific type of activity being carried out. Up to 100% of the expenses may be claimed depending on those factors though often no more than 50% is possible.

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Client testimonials

"I found Juan very approachable and professional, nothing was to much trouble.

Translation was all good from Spanish to English. Always got back to me the same day with any communication I needed to know 7 days a week . I rate him 5* and nothing less . He now has my power of attorney which I trust him with 100%."

Robin Hayward (Oct 10, 2020)

Business Licence Application

This service is available across Spain

Location

1Who is this Service for?

Opening and operating a business can often require the owner to obtain a license to carry-out the specific activity.

Sometimes, this is passed-on to the new owner, if purchasing an existing business, or if not, it may be necessary to make an application.

Where the business shall deal with the public, licence applications tend to be quite arcane and complex. Especially if the activity or service to be provided is dangerous in any way, such as certain sporting activities.

2What does this service consist of?

  • Initial discussion with a lawyer to understand the project you have in mind
  • Preparation of a report on the steps to be taken to initiate the activity and the likely costs involved, including an evaluation of the likelihood of success
  • Upon agreement, initiation of the application and the steps to obtain the licence
  • Follow-up services to include full tax and accounting service
Support services

3Free Support Services Included

When combined with the free and innovative Advocate Abroad support services you can be sure that you are obtaining completely transparent legal services from registered and regulated English-speaking lawyers abroad.These support services include:

  • Verification of the regulatory status of your professional.
  • Fees as recommended by the Local Professional Body
  • Fees specified in advance and legally guaranteed.
  • Service levels agreed in advance and guaranteed.
  • All professionals must hold professional indemnity insurance.
  • Professionals' proficiency in English monitored.
  • Continuous quality controls and reviews.
Client testimonials

"Miguel understood our problem from the onset, so with his professional manner, kindness and patience has completely put our minds at ease as our tax problems are now being resolved.

So in answer to the question how was Miguel and the service provided - in one word OUTSTANDING!"

Susan Soleman (Jun 26, 2019)

Self-employed Set-Up Service

This service is available across Spain

Location

1Who is this Service for?

This is the most inexpensive way to set up a business.

You will be self-employed and work within a simple structure implying little bureaucracy in which, basically, you are paid with the profits of your business.

You will not be considered as an employee, and will have less social benefits than you would as a regular employee. You will be liable for any and all losses incurred by the business.

2What does this Service Consist of?

Our English-speaking consultants will answer your questions about how Spanish law affects your business and then make sure you comply with Spanish legal requirements relating to legally constituting a business. This will normally require at least some of the following services:

  • Registration with the AEAT (Spanish Tax Authority) and the Social Security System
  • Help you to choose the right business name.
  • Business address (whether it will be only for correspondence or you will really make your business there).
  • Recommendation on the most appropriate fiscal arrangement to ensure taxation levels are optimised
  • Resolution of tax enquiries related to your professional activity
  • Completion and presentation of all required tax returns
  • Maintenance of all legally required records (income, expenses, invoicing,assets)
  • Updates on any legislative changes affecting your professional activity

3Fees

This service costs from €60 per calendar month.

4Additional Services

The Self-Employed Set-Up and Tax Service is ideal for an individual sole trader who is planning to work alone. But, should you later add employees to your expanding business then you will want to add the Fully Managed HR & Payroll Service. This service includes the following components:

  • Initial Set-up according to client's requirements
  • Production of Employee Pay slips (printed at client site)
  • Management & Payment of Employer & Employee Social Security Contributions
  • Registration and Removal of Employees from Social Security system

This service costs €25 per month for the first employee and €20 per additional employee.

All prices are ex-IVA (@ 21%).

Support services

5Free Support Services Included

When combined with the free and innovative Advocate Abroad support services you can be sure that you are obtaining completely transparent legal services from registered and regulated English-speaking lawyers abroad.These support services include:

  • Verification of the regulatory status of your professional.
  • Fees as recommended by the Local Professional Body
  • Fees specified in advance and legally guaranteed.
  • Service levels agreed in advance and guaranteed.
  • All professionals must hold professional indemnity insurance.
  • Professionals' proficiency in English monitored.
  • Continuous quality controls and reviews.
Client testimonials

"I thought Rosa was first class. Always helpful, always knowledgeable, and got the job done. I would highly recommend her.

Also very nice to work with, easy to talk to with a great attitude."

Matt Hardy (Nov 09, 2020)

VAT

This service is available across Spain

Location

1Who is this service for?

Understanding local VAT rules and what actions need to be taken to ensure compliance are critical for businesses involved in providing services and products to other businesses and consumers resident in foreign countries.

National tax enforcement authorities tend to be zealous in relation to VAT compliance and infractions can prove extremely costly and disruptive.

2What does this service consist of?

  • Initial discussion to determine your particular situation
  • If you have received notification of an infringement, the tax lawyer will consider your legal options and best outcomes. Upon agreement, the lawyer will then represent you before national tribunals
  • If you need to understand how the local VAT rules and regulations would impact you and a proposed business plan, a report will be compiled. A follow-up meeting is generally arranged to deal with questions that arise as a result of the content of the report
Support services

3Free Support Services Included

When combined with the free and innovative Advocate Abroad support services you can be sure that you are obtaining completely transparent legal services from registered and regulated English-speaking lawyers abroad.These support services include:

  • Verification of the regulatory status of your professional.
  • Fees as recommended by the Local Professional Body
  • Fees specified in advance and legally guaranteed.
  • Service levels agreed in advance and guaranteed.
  • All professionals must hold professional indemnity insurance.
  • Professionals' proficiency in English monitored.
  • Continuous quality controls and reviews.

Why choose Advocate Abroad?

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