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Freelancer or Outsourcer
Thread poster: Isabel Martos
Ernesto Bernal Arencibia
Ernesto Bernal Arencibia  Identity Verified
Spain
Local time: 17:59
Member (2011)
English to Spanish
IVA, IRPF... Nov 10, 2011

Isabel M. wrote:

Hello Ernesto,

thank you very much for such an useful post!
Nevertheless, I have still a question: given that my potential client is from the UK and, according to all posts I have just read, I don't have to include either IVA or IRPF in the bill, what should I then declare to the Spanish Tax Agency?

Kind regards,

Isabel




No problem. We all know how it feels when you start as a freelance translator.

Concerning your question, there are two possibilities:

· The client provides a VAT no.: no extra charge
· The client does NOT provide a VAT no.: you should charge +18% IVA

Here's another useful post by Monika Jakacka that clarifies all the combinations:

http://www.proz.com/forum/translation_in_spain_la_traducción_en_españa/190903-en_las_facturas:_¿vat_number_=_nie.html#1674892

I hope it helps.

Regards,
Ernesto


 
nordiste
nordiste  Identity Verified
France
Local time: 18:59
English to French
+ ...
Establish yourself properly Nov 10, 2011

I don't know the Spanish system, but Isabel, before starting to work and discovering later that you are not allowed to issue an invoice, or to get fined for not having registered with some tax authority, you should seek legal advice on how to establish yourself as a freelancer in Spain or in any country you decide to live in.

Contact your translator's association, or the Tax authorities, or the Chamber of commerce, to know how to register, get your VAT number (or know if you can ap
... See more
I don't know the Spanish system, but Isabel, before starting to work and discovering later that you are not allowed to issue an invoice, or to get fined for not having registered with some tax authority, you should seek legal advice on how to establish yourself as a freelancer in Spain or in any country you decide to live in.

Contact your translator's association, or the Tax authorities, or the Chamber of commerce, to know how to register, get your VAT number (or know if you can apply for non VAT), pay your tax etc.

To you, the first contact with a potential client seems perhaps more important than a few paperwork... but it should not. And serious customers usually ask for some proof of legal business from you (tax number, VAT number... depending on the country).

Congratulations for the first job !
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Philippe Etienne
Philippe Etienne  Identity Verified
Spain
Local time: 18:59
Member
English to French
You choose what to pay above the minimum Nov 11, 2011

Claudio LR wrote:
More that 3300 EUR per year seems a very high amount of money as a “minimum” in case of a low income. I would be curious to know up to what income this minimum amount does not change? And how about people not working? Aren't they covered for healthcare? Here in Switzerland for instance healthcare is disconnected from income and you pay at least the equivalent of 2000 EUR per year anyway. Also there is a minimum to pay for pension whether you work or not...

Although I now live in Spain, I don't know anything about the Spanish social system. My accountant dealt with the paperwork and red tape.
I understand that I will receive minimum state pension (if any) if I contribute the minimum, and the amount I pay is not based on my earnings.
For my pension, I will rely on my savings and private pension schemes. Not sure how safer it is though...


 
Ana Cuesta
Ana Cuesta  Identity Verified
Spain
Local time: 18:59
Member
English to Spanish
Freelancer vs salaried employee in Spain Nov 11, 2011

The rules and amounts are exactly the same, the only difference being that, as a freelancer, you are supposed to be both the employer and the employee. People who think we have to pay a lot more than salaried employees is not taking into account the moneys the employer has to pay...

Also, we freelancers are free to estimate our "salary" and pay according to that, with a minimum that corresponds to the minimum legal salary in Spain.

What we pay covers both medical assist
... See more
The rules and amounts are exactly the same, the only difference being that, as a freelancer, you are supposed to be both the employer and the employee. People who think we have to pay a lot more than salaried employees is not taking into account the moneys the employer has to pay...

Also, we freelancers are free to estimate our "salary" and pay according to that, with a minimum that corresponds to the minimum legal salary in Spain.

What we pay covers both medical assistance (which is anyway provided for free if you are unemployed) and a future state pension, calculated according to whatever rules apply at the time you retire (they used to use just the last 15 years into the calculation (although you needed to have accumulated 35 years to get 100% of that), while as from this year they will take into account 25 years and chances are the whole working life will be taken into account in the future.

As someone else said before, there may be exceptions for people not earning that minimum salary threshold, so I would encourage you to find out (you can phone "Hacienda"'s information system anonymously, I believe). You certainly need real information so as to decide how best to proceed, assumptions won't get you anywhere but in trouble...

You probably also need to find out about the different forms (tax and others) you'll need to present, where and when... it's not that difficult but, again, you'll need to do some research (see Hacienda's webpage to start with).

Good luck!


Isabel M. wrote:

Anyway, I know that if you are an employee, you pay to public healthcare system through an amount of money that it is automatically discounted from your loan; from that loan it is also discounted the money belonging to what will be your pension.

However, if you are a freelancer, you have to pay for public healthcare system but I think you don't have a "state deposit" for your pension, that is, you have to save money for your pension. I don't really know where that amount of 282 €/month goes...

I hope somebody can broathen information.

Kind regards,

Isabel

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Isabel Martos
Isabel Martos
Germany
English to Spanish
+ ...
TOPIC STARTER
The right answer Nov 15, 2011

Katalin Horvath McClure wrote:
The title of the thread is "Freelancer or Outsourcer", so I just assume the "outsource" in the body of the posting is a typo.
In this case they want to know whether you yourself would be doing the translations (freelancer), or you would be outsourcing it to someone else (outsourcer).


Finally, as Katalin wrote once, a "freelancer" is considered to be the translator herself/himself and the "outsourcer" is the person who receive the document and send it to the "real translator".

Thank you very much to all of you who have contributed to this post. Regarding "my professional stablishment", I will start right now with the fist step: gathering information.


 
Alex Lago
Alex Lago  Identity Verified
Spain
Local time: 18:59
English to Spanish
+ ...
Pension in Spain Nov 16, 2011

Claudio LR wrote:

More that 3300 EUR per year seems a very high amount of money as a “minimum” in case of a low income. I would be curious to know up to what income this minimum amount does not change? And how about people not working? Aren't they covered for healthcare? Here in Switzerland for instance healthcare is disconnected from income and you pay at least the equivalent of 2000 EUR per year anyway. Also there is a minimum to pay for pension whether you work or not...


In Spain right now if you are self employed the minimum you can pay is 225€ per month and the maximum is 1074€, this entitles you to medical coverage for you, your spouse and your children and when you retire the minimum pension per month is 531€ and the maximum is 2497€. You decide how much you pay, it is not tied to your income, your income gets taxed separately, these payments are just to entitle you to medical coverage and set the baseline for your future pension, this is not the case with "employed" workers they have a different system. If you are self employed and "lose" your job you don't get any dole payments but you don't have to pay into the system either, however if you don't pay you might not reach the 35 years of paying you need in order to be entitled to 100% of your pension.

I'd be interested to know how this compares to Switzerland.

Ana Cuesta wrote:
(which is anyway provided for free if you are unemployed)


This in fact is not completely true you are only entitled to free medical coverage while you have a job or when receiving state dole payments, however once your dole runs out (after a maximum of 2 years and only if you were and employee, not if you were self-employed) you will no longer be paying into the system (part of your dole payment gets deducted to cover the social security) so you won't be entitled to medical coverage (it runs out 3 months after your last dole payment), this was usually not a problem, but with the crisis hitting Spain so hard and many people being out of work for more than 2 years there are a lot of people facing this problem.


 
Kim Causier
Kim Causier  Identity Verified
Spain
Local time: 18:59
Spanish to English
+ ...
Minimum monthly payment Dec 15, 2011

Isabel M. wrote:

So that's more in favour of me.
It is a completely shame that a government favours to acting against of the law, instead of doing it the other way round. It is obvious that anybody can afford at the beginning such an amount of money, and the only thing they are doing is forcing people to act against the law (at least until they get a job stability). That is not only a disadvantage for government, but also for people who would like to obtain a pension when retired.
Thanks a lot for your info, Philippe.


Hello all! I am currently undergoing the same process in Spain. I am a British English translator who was recently (and luckily) made redundant from my previous job. I have decided to go freelance in Spain and trying to get my head around everything.

A couple of months ago, I went to the Cámara de Comercio and was told that there is a discount for females under 35 for the first 30 months, instead of paying €254 Seguridad social a month, it would be reduced to €178 per month. However, this information was given to me a couple of months ago, and I need to check that it hasn't changed since the new government has come in power!


 
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