The aim of all contractors is basically the same: to keep their independence, retain as high a % of gross earnings as possible, remove the burden of administration and to avoid the wrath of the taxman. Our partners have just the solution for you! APPLY NOW!
The good news is that Spain with its increasing contractor rates, climate, culture and lifestyle is a great place to work and to live. The bad news starts and finishes with taxation for an expat contractor. The Spanish tax system is complex, general taxation and social costs are can be quite high depending on your circumstances and the authorities are growing ever more aggressive in targeting Contractor Management Companies and Contractors. It’s highly recommended to get expert advice on your financial situation if you are contracting or intend to contract in Spain.
Your expected net return in Spain can vary from between 55% and 80% depending on a number of factors:
- whether you have lived in Spain over the past 5 years,
- length of your contract,
- intended length of stay in Spain,
- the industry you work in,
- number of dependents,
- your nationality,
- whether the contract is direct to client or through a recruitment agency.
There are a number of options available to you and the one that is bested suited to your circumstances will depend on the answers to the above questions. For instance if you haven’t worked in Spain over the preceding 5 years you could be eligible for the flat rate 24% taxation, or if you’re an EU citizen your ‘employer’ could detach you from another EU country with lower social security payments.
Provide us with information on your specific situation and with our vetted Contractor Management partners we will ensure that you net the highest % possible of your gross income whilst ensuring that you are compliant with all Spanish regulations.