If you plan on living long-term in Spain, you will need to file an annual tax declaration as a resident and pay Spanish income tax on your worldwide income. Spain applies the 6-month or 183-day rule. If you are working remotely for a foreign company, you might not see any need. Like most things, it helps to anticipate – so seek advice and work out what makes sense for you.
If you are self-employed or have decided to set up a business, then you will have other obligations. You will need to register with social security, pay monthly contributions and file quarterly returns for Sales Tax (IVA) and Income (IRPF). Make the most of local advice and keep your books straight. There are some online accounting platforms that allow you to make those declarations automatically, so that is also a sensible option if you know how to manage your books.
Gestorias is the name for Business and Tax advisors. They will charge a monthly fee to provide ongoing support. If you are planning on setting up a business, it makes sense to speak with one of the accounting firms, as they usually have a more international perspective. Many gestorias will take care of other paperwork, which can save you lots of time and confusion.
Other advisors
You will come across different situations when you don’t know what to do or who to speak with. If you don’t speak Spanish or Catalan that is an added difficulty.
Here are just a few examples: insurance (personal, travel, car, etc); phone/broadband company – to get fast internet at your apartment; city council – to get a certificate showing that you are living at a local address ( a requirement for some other processes); a banker – although it is increasingly common just to manage everything online; real-estate agent – if you are looking for a permanent rental.
These examples are a reminder that learning to speak Spanish is really important. There are lots of long-term foreign residents that mix mostly with other foreigners and seldom speak in Spanish, but is great to learn another language.
Legal advice
With Golden Visas, Digital Nomad Visas, and new legislation designed to attract start-ups, there will be plenty of demand to get good legal advice.
Go to one of the larger local firms. Mistakes at the outset can prove costly later. When you are fully set-up you will have time to assess other options.
- Buying property
- Renting an apartment
- Managing residence paperwork
- Setting up a business
- Permissions required for certain businesses
- Find.a lawyer or Gestoria to get support at the outset.
