Short Contract in Spain

[Madam]

I have an 80 day IT contract in Spain working through an agency in Luxembourg.
I have a euro bank account in Luxembourg.

I originally thought that going autonomo would be best.

However, having investigated it further, it looks like it takes **at least** a couple of weeks to receive the NIE number upon arrival in Spain and I cannot start opening bank accounts, registering for social security and setting up as an autonomo until I have this precious number. So I would be two weeks or more into my contract before I could ask for 2-3 days off of work to get all the red tape sorted out.

In this scenario, can I initiate the request for the NIE, ask the agency in Luxembourg to pay into my Luxembourg bank account and use this for the duration of my contract? I could then sort out the autonomo red-tape as it suits myself/my client?

I believe my other option is to use a UK umbrella. If I do this, as I will not be able to open a Spanish bank account without the NIE number, could I use my Luxembourg bank account instead?

Apologies if these questions are stupid but I have never done this before and I am still trying to find my way round it all.

Many thanks

[yasockie]

For 80 days just invoice through whatever vehicle you're using already.
Do you have a company anywhere in Europe already, if so use that.

NIE number is pain and autnonomo is another and you'd be shooting yourself in the foot by setting up autonomo for such a short period of time.

[BlasterBates]

It might be a pain but best to register yourself in Spain, if you don't, who knows some months or years later you might get some nasty letter from the Spanish tax authorities. Quite a lot of contractors have had this happen to them after working just a few months in another country because they couldn't be bothered with the hassle, and dealing with a tax evasion enquiry is a lot more hassle and stress than registering. These days everything is computerised so you're far more likely to get caught.

Getting paid into a foreign bank account in the iterim isn't a problem, as long as you're registered eventually. The main thing is the you pay the Spanish tax due.

Normally when you work for a short time in a foreign country, you pay less tax and no social insurance, so it works out in your favour.

[Madam]

Thanks BlasterBates, do you know if I should use a gestoria/asesoria in this case to be sure I am set up correctly as an autonomo? I don't mind sorting it out myself if the Spanish system will sort everything out so that I pay the correct amount and not more. I am conversational in Spanish but I'm definitely not in the same league as someone who is bilingual.

As for the limited company option, I do not already have one set up and would have no idea of how to handle my tax and NI during this process apart from that I would also need to hire an accountant. For this reason, I feel a little hesitant about this option.

I am however open to suggestions

[BlasterBates]

Having never worked in Spain I'm not sure probably worth a visit to a Spanish accountant when you get there, let him sort everything out for you. Whatever a good accountant charges it is usually worth it.

[yasockie]

It might be a pain but best to register yourself in Spain, if you don't, who knows some months or years later you might get some nasty letter from the Spanish tax authorities. Quite a lot of contractors have had this happen to them after working just a few months in another country because they couldn't be bothered with the hassle, and dealing with a tax evasion enquiry is a lot more hassle and stress than registering. These days everything is computerised so you're far more likely to get caught.

Getting paid into a foreign bank account in the iterim isn't a problem, as long as you're registered eventually. The main thing is the you pay the Spanish tax due.

Normally when you work for a short time in a foreign country, you pay less tax and no social insurance, so it works out in your favour.

Based on which countries law are you forming your opinion?
If you represent your UK company on Spanish soil and work at the client's premises there, 80 days does not constitute a shift of a main source of activities for your as a person or you company.
Madam, if you want cover your arse like Mr Bates, you could also invite a UK recruitment agency to act as an intermediary (in exchange for a fee) - in such an arrangement you are a UK resident, working for your UK company providing services to another UK company.

[BlasterBates]

Based on which countries law are you forming your opinion?
If you represent your UK company on Spanish soil and work at the client's premises there, 80 days does not constitute a shift of a main source of activities for your as a person or you company.
Madam, if you want cover your arse like Mr Bates, you could also invite a UK recruitment agency to act as an intermediary (in exchange for a fee) - in such an arrangement you are a UK resident, working for your UK company providing services to another UK company.

No that's not true, you can't "cover you're ar*se"...you'll be liable

As for the 80 days not shifting your centre of activies, if this is true a Spanish accountant will tell you. I doubt this is the case. In most countries if you work more than a few days the tax authorities will be down on you like a ton of bricks.

In any case it works it generally works in your favour, so there's no advantage in evading tax.

[Fishface]

Avoid Spanish bureacracy at all costs.

They will get you involved in a 'tramite' which means a 'process' which they will draw out, slow down, inspect, send you to multiple windows, loose papers, request apostilles, legalisations, stamps, queues, days in waiting rooms that resemble the DSS in the 80's - and try squeeze every drop of a euro cent they can and even more because you are a estranjero.

nightmares.

Use your Lux accounting and send them as much paper as you can in the post, one by one - push the 'tramite' back on them and they will give up eventually if they start getting funny.

[BlasterBates]

Avoid Spanish bureacracy at all costs.

They will get you involved in a 'tramite' which means a 'process' which they will draw out, slow down, inspect, send you to multiple windows, loose papers, request apostilles, legalisations, stamps, queues, days in waiting rooms that resemble the DSS in the 80's - and try squeeze every drop of a euro cent they can and even more because you are a estranjero.

nightmares.

Use your Lux accounting and send them as much paper as you can in the post, one by one - push the 'tramite' back on them and they will give up eventually if they start getting funny.

Can a Spanish acountant do that?

[Fishface]

Can a Spanish acountant do that?

nooooo, you can't do things 'the right way' in Spain or any other Latin country - you don't buy or sell property 'the right way', a car or anything - everything is partially done, paid and/or completed - and then you make a reclamo because you didn't recieve this letter and that letter and eventually you or they get bored and pay up or give up - its the game. Otherwise it's open season for gringos.


The best thing to do is have a friend who knows what to pay and what not to get involved with - an accountant will get you paying him fees, his gestor mate and anybody else in his trough.

Wait to see what the others are doing.