Category : Professional

News Professional

Model 347

By dneutiens@segurantis.com

Invoicing above 3,000.00 euro

Model 347 for professionals is an annual declaration that must be submitted in certain situations. Firstly, it is an informative declaration only for clients = professionals to whom you have invoiced more than €3,000 on an annual basis - in fact, it is yet another means of increasing control among professionals.

If you submit your invoices correctly and pay the taxes on them, you would think you are fine. But if the other party does not and there is an audit, there is a problem. You would therefore have to write to your customers to ask them whether they have correctly submitted the invoices you have issued. If your customers are foreigners, this is already practically difficult to check by the tax authorities and yourself.

If the clients are active in Spain, then in many cases you can only hope that they have done it correctly. If you ask them and they say it is ok, then you just have to assume that they are telling the truth, until there is an inspection of course.

What can Segurantis do for you?

Go to the overview of our services.

Taxation News Professional

Autonomo costs to rise in 2022

By dneutiens@segurantis.com

Self-employed entrepreneurs in Spain have to pay a fixed amount every month for the 'Seguridad Social' or Social Security, also known as the 'cotización de autónomos'. The amount is determined by the so-called 'base de cotización', the theoretical salary 'what you will earn'.

For that monthly amount, you get health care like all workers in Spain, benefits in case of illness, pregnancy or disability and you build up a Spanish pension. Since 2019, self-employed workers are also entitled to limited unemployment benefits.

From 2022 onwards the monthly contributions will increase

The monthly contribution for Social Security will increase between 5 and 21 Euros per month. In 2021, this annual increase was postponed because of the corona measures, but in 2022 it will happen again as of 1 January, as was the annual practice before.

Theoretical income

Self-employed people working in Spain and having a theoretical income of 960.60 euros per month will pay 293.94 euros per month from 1 January 2022, 4.96 euros more per month and 59.49 euros more per year. 

Self-employed people working in Spain and having a theoretical income of 4,139.40 euros per month will pay 1,266.66 euros per month from 1 January 2022, 21.21 euros more per month and 254.47 euros more per year. 

Newly self-employed

Starting self-employed entrepreneurs can make use of the so-called "tarifa plana". This government support applies for 24 months during which time the self-employed person must pay a fixed lower contribution per month. This has been increased to €60 since 1 January 2019 and will remain so after 1 January 2022.

That 60 euro counts for the first 12 months, followed by 6 months of 50% discount on an amount of 289 euro per month (has to do with the theoretical income) and then 6 months of 30% of that amount.

Please note that if you forget or fail to pay (for example, if your account balance is insufficient at the time), the support measure will be cancelled and you will have to pay the full amount.

What can Segurantis do for you?

Go to the overview of our services.

Taxation News Professional

Costs real estate agent

By dneutiens@segurantis.com

Usual expenses for professionals active in the real estate sector

The number of professionals active in the real estate sector has increased enormously over the last few years. These professionals are mainly active in guiding interested buyers who are looking for a second home in Spain. Especially the Costa Blanca is not only popular with potential buyers but also with potential estate agents.

Expenses linked to the activity

Common expenses for professionals active in the real estate sector are the consumptions involved in accompanying the clients around. This can include restaurant visits, consuming drinks during the visits, toll roads, sometimes the stay of the real estate agent himself and the cost of using the car.

More and more, Hacienda is going to check that these costs are justifiable. What is assumed as additional evidence is that the broker keeps a diary of the clients with whom he incurs all these costs. You should look at it as a kind of diary. This diary should then be supplemented with supporting documents such as a copy of the airline tickets, a copy of the clients' accommodation, a copy of the clients' details, etc. The more detailed the better and, of course, in the event of an inspection you must be able to present this in Spanish.

SUMMARISED

Due to the greatly increased interest in the real estate sector, Hacienda has also increased its intensity to monitor this category in particular. Make sure you can substantiate your costs so that you are well armed in case of an audit.

What can Segurantis do for you?

Go to the overview of our services.

Taxation News Professional

Rental fees for professionals

By dneutiens@segurantis.com

ELECTRICITY AND WATER COSTS OF A RENTED OFFICE, BAR....

In order to declare these expenses and deduct VAT, the invoice must be in your name:

IF THE INVOICE IS IN THE NAME OF THE OWNER:

1º You can deduct the costs of electricity and water, even if they are in the name of the owner, because there is a binding rental contract.

But the payment of the invoice must be domiciled on the account of the self-employed tenant, in order to have the proof of payment by bank account.

In case of inspection, you should have the rental contract + a copy of the invoices declared + the proof of the debit in your account.

2º Additional costs to the rent bill = If you have to pay the Suma, community contribution, this way of working also applies.

SUMMARISED

The owner will include in the rental invoice the total amount of the water or electricity bill (before IVA/VAT) and this will apply to the total amount + VAT 21% and - retencion/ withholding of 19%.

For example

The rent is 800 (without VAT 21% and without the application of the retention 19%)

The water bill is € 25 (before taxes)

The electricity is €100 (before tax)

The owner must draw up an invoice for the rent + costs = €925 and VAT and withholding are applied to this.

What can Segurantis do for you?

Go to the overview of our services.

Taxation Professional

Expansion of car use as an expense

By dneutiens@segurantis.com

Hacienda is looking everywhere to earn an extra penny, and for the self-employed this usually goes hand in hand with revisions of expenses. The car and the use of mobile phones is one of these points of attention that Hacienda is taking a closer look at. Below, we briefly discuss a few points of attention in order to be able to book a car as an expense:

  • The car must be on the name and the NIE number of the autonomo to be brought in as a cost
    • Each invoice must contain the name of the autonomo and the number plate of the car must be on the invoice:
      • fuel
      • maintenance
      • tyres
      • advertising
    • The taxes assume that you have 2 cars (even though in reality you do not). One car exclusively for work and one for private use. This is the only way to recover (almost) 100% of the costs for the car you use for work.
      • If you have only one car (work and private), an inspection may assume that the invoices submitted have not distinguished between private and work and will consider the cost of the car as erroneous and make a revision of your taxes with all the consequences including; refund of the costs incurred and a fine.
    • Provide your car used for work with advertising material of your business or activity. In this way, you increase the credibility of the fact that you use the car solely for work.
    • Each journey you make for, with or to customers should be documented so that you can account for the cost of fuel, tolls and any snacks/meals that you consume during these journeys.

What can Segurantis do for you?

Since 2021, we only provide support for Autonomo start-ups. You can find more information under the heading services.

Expatgestoria Taxation Professional

Increased use of cash for professionals

By dneutiens@segurantis.com

Scaling back use of cash when invoicing

The annual invoices (one invoice or several) that go to one and the same customer (resident or Spanish national) and that exceed EUR 1,000. 00 may no longer be paid in cash. The previous limit of 2.500,00 Euros is no longer valid. The sums will have to be received via a bank transfer or another recognised digital way.

Please note that invoices to non-residents are still possible up to EUR 10,000.00. However, an invoice must be drawn up and it must be clearly stated that the amount was received in cash.

If this rule is not observed and Hacienda makes an inspection, fines of up to 20% of the total amount invoiced may be issued.

If you have any questions on this subject, please contact your accountant or consult one of the Hacienda offices.

What can Segurantis do for you?

Since 2021, we only provide support for Autonomo start-ups. You can find more information under the heading services.