A new or an established business has to maintain an accounting report (journals) in accordance with the Spanish accountancy laws. Another obligation is the declaration of taxes either monthly or quarterly depending on the size of the business.
PSI Consultants offers a wide range of English speaking accountants and fiscal representatives that will guide the business in order to comply with all the fiscal obligations, from the tax registration and accountancy services to the preparation and filing of all the tax forms.
We also help business owners with the other aspects by offering all the services regarding labour matters and work contracts. We can also calculate the wages every month; prepare the payslips, and all other necessary work to comply with the labour regulations.
The PSI staff gives a personalized service in order to attend the businesses' different needs in your own language. Once the business is growing and there is a profit, there are taxes to be paid. PSI Consultants will advice you about the different ways to reduce your tax bill as accurately as possible so that our clients do not pay more than the necessary. PSI Consultants would want you to concentrate in running your business and not spend too much time on all the complicated bureaucracy and fiscal obligations that are part of every business because we will do that part for you.
The following persons are subject to personal income tax and would have to declare yearly:
- Individuals who are habitual residents in Spanish territory. A taxpayer is deemed to be a habitually resident in Spanish territory if any one of the following conditions is met:
- The taxpayer is physically present in Spanish territory for more than 183 days in the calendar year. Sporadic absences are included in determining the length of time a taxpayer is present in Spanish territory, unless tax residence in another country is proved.
- The main centre or base of the taxpayer's business or professional activities or economic interests is in Spain, either directly or indirectly.
1. I am self employed paying monthly contributions to the Social Security in Spain, should I be paying another contribution to the Social Security if I want to establish another business similar to existing one?
No. The quota contribution is the same to one or several similar activities. The only thing that could be affected is the taxes to be declared at the Spanish Tax Office (Hacienda). There is a need to declare all the income from all of the businesses
2. I want to establish a company in Spain, should I form a Limited Company?
Not necessarily. There are other forms of companies that could be established however this would depend on the volume of the bills that are expected to be obtained and the amount of money that you would want to invest.
3. I want to suspend my status of being self-employed, should I present any paper or document to the Social Security or could I just simply cancel my payments to the Social Security in the bank?
To cancel the status of being self employed, you would need to notify in writing the Tax Office and the Social Security using official and specific forms.
4. I am leasing a unit or space to carry out my business, should I be paying any tax for the rent or lease?
The tax for the rent or lease is the liability of the owner of the unit or space; however, this is done by the lessee deducting the tax from his rent. The corresponding tax would be the agreed rent plus VAT minus a percentage that must be paid every three months to the Spanish tax office under the owner’s name.
5. I am a British citizen and I have a Spanish residency card, does this convert my residency status in Spain in all aspects?
NO. The residency card is only an identification card and would only serve as such. There is a difference with a fiscal resident and a non-fiscal resident for tax purposes