Spain
Whilst all EU nationals have the right to find employment in Spain without a work permit, finding employment may not prove to be easy if you are outside of the major towns and cities, or away from the tourist hotspots and do not speak Spanish.
The best opportunities for English speakers are in Tourism and real estate however many jobs require Spanish as well. Many people, especially with a trade in much demand (such as builders, plumbers, electricians) opt for self-employment, and others start or buy an existing business. Whatever you are planning to do you will need to obtain your NIE number (see Residency & Tax: Fiscal Identity Numbers).
In order to obtain a work contract with a Spanish employer, you will need a NIE number first. To get the same rights as a Spanish employee you will need a work contract that is at least 6 months in duration.
You must then register with the Spanish Security office (Seguridad Social) and for this you will need to take your work contract and NIE. Any spouse, partner or child is also entitled to medical cover. An additional “beneficiary” form must be completed, and the Marriage Certificate, Certificado de Convivencia and Birth Certificate(s), as appropriate, should be produced with the other paperwork.
Working mothers with a child under 3 years of age can apply for child benefit, by completing and presenting Form 140 "Deduccion por Maternidad" to the Hacienda (tax office).
You will receive a temporary card that shows your social security number. This card should be taken to your local social security clinic and you should register with a doctor. This will instigate your permanent health card(s).
Working for a UK Employer in Spain
If you go from the UK to work in Spain for a UK employer, having been previously ordinarily resident in Great Britain, and expect to spend no more than 12 months there, you would normally continue to pay employee’s Class 1 National Insurance contributions in the UK. In all other circumstances Spanish Social Security contributions as an employee would be payable. To access the Spanish state healthcare you should obtain Form E106 from the Department for Work or the Inland Revenue in the UK.
By registering on the self employed (or autonomous) system, medical social security cover is immediately available, and pensions benefits are secured when one reaches retirement age for those eligible to claim (see Pensions). In Spain this is currently 65 years for both men and women.
It is no longer necessary for anyone working in Spain on a Contract or as a self employed person to apply for a Residencia (residency permit), but you may wish to do so for simplicity (see the Residency & Tax section).
Registering on the System
If you wish to register yourself on Autonomous, there are certain steps to be taken, as follows:
- The first thing you should do is obtain your NIE number (see Residency & Tax: Fiscal Identity Numbers).
- You will need to apply for a Tax Licence for the work activity to be followed. This can be obtained from the SUMA Office in the town where your work activity will be centred, or Town Hall (Ayuntamiento) as appropriate.
- You will need to complete and present an 037 form, which is stamped by the Tax Office and confirms the method of payment of your taxes. There are two methods of paying tax:
a)You make quarterly VAT and Income Tax Declarations on the “direct estimations method”, which means you have to start double entry system book-keeping, or hire the services of an accountant,
or
b)You pay a quarterly fixed income tax & VAT amount under the "modulos" system.
Both systems have their advantages; a) is a good method if you think your custom is going to fluctuate to a significant degree, as income tax & VAT is only paid on your actual profit/earnings.
Modulos payments do not take into consideration whether you have had a good or bad month, as you pay the same fixed amount, even if you have zero income. Also, under the modulos system, there is no need to keep accounts or prepare numbered VAT invoices, etc. On the other hand, once your business is established and turnover increases you may well benefit from having a tax system whose payments were set at a basic level.