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Moving from Italy to Spain and keep the italian freelancer status

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Guest6734

Hi everyone,


complicated thing here. I'm an italian citizen working as a freelancer in Italy and i am signed up as a professional to a chamber to sign and pay tax as architect. Lot of times i'm in spain for personal stuff, and i would like to move there keeping my actual italian freelancer status...why? Young freelancer with 5% of taxes + retirement taxes and no VAT for the next 4 years.


The italian tax department this summer spoke about a person living in UK (with residence permit), and working as a freelancer (on the web with almost just italian clients) in italy; the tax department said that that person can do it but, you know... if you pay tax in italy, of couse the italian tax department say it's ok!


So, i read that as European citizen, moving to spain without a job there means some economic requiremnt on the bank account and an health private security (around 400 euro a year). The problem is that i cannot find any info about keeping the freelancer status in italy, living with a spanish residence permit; as said, should be ok for italy, but what about spain tax department? I would not get charge for the difference between the italian taxes and the spanish one, because it wouldn't be affordable at all, at least for the next 4 years.




Any chance to find a solution or an explicit law?




Thank you so much!

gwynj

@Guest6734


The first issue is residence. As an EU citizen you can move to any EU country, for any reason. They ask only that you complete the "EU Citizen Registration" and get your little certificate. It requires proof of address, proof of funds, and proof of health insurance. So, if you want to hang out in Spain, you can.


I would guess the easiest is to keep your Italian status and keep paying self-employed taxes there. Especially if, during your stays in Spain, you continue to work remotely for your Italian clients.


If you want to start working for Spanish clients, in Spain, that's a different story.


You also need to be aware of becoming a tax resident in Spain. Spain has several tests that might catch you, but the main one is the "substantial presence" test, or more than 183 days per year. In which case, you're also a Spanish tax resident, and you should pay taxes there. There is a double-taxation agreement, but if your Italian taxes are low, and Spanish taxes are high, then you still owe Spain something. So, the easiest option is to keep your days in Spain under this limit.


If you want to work for clients in multiple countries, not just Italy and Spain, then maybe it's worth considering an EU limited company and invoice your clients. Usually Ireland and Bulgaria have the lowest corporate taxes.

lifeingalicia

Hi

Yup resident and tax resident are two different things.

Residency requiers means .. euros in an account, health insurance and an addres.


Tax residency kicks in when more then 183 o 192 days in a calender year in Spain ..


So using a VPN and not conducting business in Spain (virtual & real) on less then 180 days per calender year should be fine...


If you settle in a community with less then 5000 inhabitants you could still be autonomo for 24 month at 100€ month includes social sec. Get subvenciones and european grants do international and national business just not for the faint hearted and needs a very hot/ good gestor.

Martin

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