Differences in Self-employment in the UK, Spain and Gibraltar

Differences with Self-employment in the UK, Spain and Gibraltar

To be self-employed is a challenge. You need to find enough work, deal with your clients efficiently and make sure you are paid. Dealing with accounts and taxes on top of this can be daunting and time-consuming. But what are the main forms and differences between Spain, UK and Gibraltar?

United Kingdom

The UK is the most straightforward to be self-employed from an administration point of view. You can register easily online and work for a maximum of 22 months before paying any tax or social security. There are no licences to be obtained and you can earn up to £85,000 in 12 months without having to charge VAT to your clients. If you are exporting goods however it is beneficial to become VAT registered.

Spain

In Spain, if you are already resident, you can also become self-employed quite easily and start to work without a licence unless you are opening premises (which you should really do as a Limited Company). You will pay Social Security from the end of the month of registration and you need to charge IVA (VAT) from the first sale you make. Quarterly returns are required for both IVA and Personal tax payments in advance. There is no long period available, if you register during a tax year you will need to declare income in the period between April and June of the following year.

However, if you are a UK national and are not a resident of Spain prior to 31^st December 2020, things are more complex. In order to become self-employed in Spain, a Business Visa is required which needs to be applied for from the UK prior to arriving in Spain. Amongst the documentation required is a detailed business plan which needs to be written in Spanish.

Gibraltar

In Gibraltar, in order to become self-employed, a Business Licence is required. This is a procedure which can take about 1 month to obtain. You will need access to premises for your business or you can apply for a premises waiver if you do not need premises. Social Insurance payments need to be made once income is earned at a maximum amount of £159.68 per month. If you register before 30^th June then a self-assessment tax return will need to be made by 30^th November.

If you need help in becoming self employed in any of these 3 countries we are uniquely placed to help with offices in all 3.