Legally Working In Spain

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26 Sep 2008 12:00 AM by inspectahomespain Star rating in Orihuela Costa, Spai.... 2417 forum posts Send private message

Vip Supporter

I know that this is something that I have posted on previously but an incident on another local development and a clamping down by the local Hacienda, tax and VAT authority, has prompted me to make another post
I regularly hear people complaining that in the UK it is easy to get benefits and this is why immigration is so high but I am amazed how many expats seem to believe that it is OK to work in Spain illegally and not contribute to the system by paying NI, Tax and VAT
The fact is that in order to carry out any business activity for payment you either have to be employed on a contract of self employed, Autonomo which is self employed and this is expensive typically, €240 per month NI, €80 per month accountancy fees, you have to charge 16% VAT on everything and of course income tax, so many people chose to work black
The consequences for both person that is working and the customer can however be very serious as can be seen from at recent example as on a local site there was a break in and a lot of damage and losses and the keyholder called the Police however as the keyholder was not operating legally the claim, in excess of €4000, was cancelled by the insurance company  
The response from the insurance company was that it was the customer’s responsibility to check that the keyholder was legal which is easy to do, just ask for their Autonomo paperwork of CIF number
Too many people are happy to get a service from somebody from a mobile telephone number and without any proof of professional qualifications or even address
Again you are protected using a legal trader if things go wrong as they have to register with the authorities, at an address via their NI paperwork so you have some way to complain and take action
The fact is that if you are not paying tax etc you have an unfair commercial price advantage and The Hacienda, with the downturn in the economy, have more time to investigate businesses and legal traders are being encouraged to notify them of any businesses that may not be operating legally as investigators will normally visit an urbanisation and collect sign boards stickers and advertisements from local papers.
Certainly if I was looking for a service I would check that they were legal to avoid any problems and if I was offering a service be promoting the fact that I am legal, carrying as I do my NI, professional qualifications, and tax paperwork with me, as I do in my business


_______________________
Roy Howitt Independent Property Consultant www.sonrisaproperties.com www.snaggingspain.com WE CAN FIND YOUR DREAM HOME 627 955 748


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26 Sep 2008 10:13 PM by MagnLoz Star rating. 67 forum posts Send private message

Hi Chaps

Whats the score if the person 'minding' your keys is a pal or family member and no payment changes hands?

Mags N Loz


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27 Sep 2008 1:47 PM by inspectahomespain Star rating in Orihuela Costa, Spai.... 2417 forum posts Send private message

Vip Supporter

There is no problem with this but make sure that they have a wrutten letter of authority, in English and Spanish, which explains this just in case 

Professional keyholders should register details of the properties that they manage with the local police station 

_______________________
Roy Howitt Independent Property Consultant www.sonrisaproperties.com www.snaggingspain.com WE CAN FIND YOUR DREAM HOME 627 955 748


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27 Sep 2008 2:35 PM by bobby50 Star rating in . www.harmony-proper.... 327 forum posts Send private message

bobby50´s avatar

Hi Inspecterhomes

Thank you for all the information on working legaly & being registered.

As you may be aware we have now registered and paying into the system, we thought we owed it to our customers 
so they have peace of mind if any unforseen problems occur, if at any time a customer needed to make a claim with there insurers then ourselves and the customer are covered and neither partys will be fined by the local authorities.

Thank you for your postings, it has been a help to us and the forum

Regards 
Sue



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Find on site accommodation at sierra-golf

    www.harmony-property-management.com  



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27 Sep 2008 2:43 PM by inspectahomespain Star rating in Orihuela Costa, Spai.... 2417 forum posts Send private message

Vip Supporter

Thank you for your comments and I am always happy to help and I think that it is better to avoid there problems, before they happen

People are happy to complain about the system, which I know is expensive to start, but some of the benefits of being legal include access to the health care system and, after 15 years of contributions, a spanish pension, unfortunatley I am only on year 5. You can also re-claim VAT, offset your business costs, telephone internet etc and lease cars

I know that some new people are coming up to competion and I am still happy to provide the free Q&A, MASA Completion guides and sample snagging reports for most of the different styles of properties




_______________________
Roy Howitt Independent Property Consultant www.sonrisaproperties.com www.snaggingspain.com WE CAN FIND YOUR DREAM HOME 627 955 748


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27 Sep 2008 2:44 PM by balsicas Star rating in Hertfordshire to Sie.... 233 forum posts Send private message

There is another problem, when some people come to Spain they get above there station.
They pay for and register a domain name from a web-site and suddenly there a property management company with no management skills what so ever not even been in that type of business which I think is unfair to the people they draw into there so called company and take money from. They also advertise and promise all types of building work with no building skills at all.

Always get two or three quotes have a look at there work if possible, and make sure they have done the work, don't get ripped off. Someone onsite is trying to take the credit for some work I have done.

Beware the Praying Mantis.

Tony


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27 Sep 2008 3:03 PM by The Forge Star rating. 19 forum posts Send private message

Hola Roy- Inspectahomespain,

Thankyou so much for your input. It's really nice to know that there are small businesses out
there trying to make a good honest living (all legal and above board) as we ourselves for 8 years now. Yes it is expensive to start, but after a couple of years things don't seem so bad.

It's just very annoying when others who are NOT legal undercut your prices just to get work, it doesnot matter whether its a good job or not. We take a pride in our work as do many others.

With the economy as it is at present, I think is a good time to sort the unlegals out.

Take care

Sylvie
THE FORGE
(El Palmero)



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27 Sep 2008 3:04 PM by The Forge Star rating. 19 forum posts Send private message

Hola Roy- Inspectahomespain,

Thankyou so much for your input. It's really nice to know that there are small businesses out
there trying to make a good honest living (all legal and above board) as we ourselves for 8 years now. Yes it is expensive to start, but after a couple of years things don't seem so bad.

It's just very annoying when others who are NOT legal undercut your prices just to get work, it doesnot matter whether its a good job or not. We take a pride in our work as do many others.

With the economy as it is at present, I think is a good time to sort the unlegals out.

Take care

Sylvie
THE FORGE
(El Palmero)



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27 Sep 2008 3:08 PM by inspectahomespain Star rating in Orihuela Costa, Spai.... 2417 forum posts Send private message

Vip Supporter

Yes Tony I agree totally with your comments and it has taken me 4 years to build up my business and when I started I was the only person providing this service and now there are a number of people providing a snagging serviceI 

I admit a couple are good, they are legal, they charge a realistic price for the service and they will be the first to admit that they habe benefitted from all of our work that has increased the visibility of the issues regarding construction and snagging

We are the only company that choose and  we still continue to provide free advice and guides on the basis that we prefer that people at least understand the process and therefore they are able to help themselves

We have invested in advertising, websites, our own forum The Snagging Forum and I spend a great deal of time working with the developers in an attempt to improve building quality and this activity costs money

Best advice is to not only check the legality of the person that you are dealing with, not just to get to get references, not just look at a flash website, but visit one of the jobs and see for yourself and look for 96 tuoe landline telephone numbers, not just a mobile number.

I would avoid the jacks of all trades, remember if they are not a grill manufacturer, or AC fitter, they will pass on the business and add a fee for commission

Tradesmen such as electricians, plumbers and gas fitters should be qualified in Spain for insurance purposes

Sorry but I know that this is an old comment but if you use a private vehicle for airport collcetions the pasengers will not be insured



_______________________
Roy Howitt Independent Property Consultant www.sonrisaproperties.com www.snaggingspain.com WE CAN FIND YOUR DREAM HOME 627 955 748


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27 Sep 2008 3:22 PM by balsicas Star rating in Hertfordshire to Sie.... 233 forum posts Send private message

That is exactly whats happening on site some people are avertising that they do all but do nothing but put there commission on the the final price of the job and rip there neighbours off.
Tony


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27 Sep 2008 3:49 PM by inspectahomespain Star rating in Orihuela Costa, Spai.... 2417 forum posts Send private message

Vip Supporter

The problem is that people rush too much when they come over rather than taking their time and shopping around for quality and prices

I have personally been trying to carry out an inspection when the grill company, sorry Sylvie, a gardener, a builder, an electrician etc have all been queuing up to see the owner and this doesn´t work, a rushed decision is a poor decision

Fact is that you can save thousands or euros by doing your homework before you come over by shopping around for things like pools, gardens etc and a normal commission paid to an agent is between 10% - 20% and somebody has to pay for this.

Let´s face it there´s no great rush, the property has furniture, some lights, hot water so perhaps priority one is security as let´s face it you need grills

Most electrical shops that supply will fit cookers lights and hobs as a low cost and gravel in Spain is very cheap, same with garden furniture if you know where to shop

Get quotes from the local spanish suppliers as well as there are plenty of directories on the web, local papers etc inclusing The Leader, Coastrider and Round Town News

Key is finding a good legal keyholder that can provide access to tradesmen





_______________________
Roy Howitt Independent Property Consultant www.sonrisaproperties.com www.snaggingspain.com WE CAN FIND YOUR DREAM HOME 627 955 748


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27 Sep 2008 5:45 PM by balsicas Star rating in Hertfordshire to Sie.... 233 forum posts Send private message

There is another problem, people who have signed what to get to there property and have a quite look at the new home and take it all in at there own pace because as you know it's a big step and alot to take in. But they are jumped on as soon as they get here or as soon as they come out of the office on-site by certain people trying to persude them to have there garden done or have there key holding service ect. It all seems unbelievably that they can treat people like this and hasle them just to get money off them.
Tony



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27 Sep 2008 5:50 PM by inspectahomespain Star rating in Orihuela Costa, Spai.... 2417 forum posts Send private message

Vip Supporter

I agree and I have witnessed this and perhaps if a few of the ilegal people were shutdown things would improve and this is easy to sort out with the authorities



_______________________
Roy Howitt Independent Property Consultant www.sonrisaproperties.com www.snaggingspain.com WE CAN FIND YOUR DREAM HOME 627 955 748


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28 Sep 2008 2:00 PM by mug Star rating. 108 forum posts Send private message

mug´s avatar
HI  WE HAVE HAD A LOT OF WORK DONE ON OUR VILLA GRILLS ECT . IT HAS TAKEN A LONG TIME BUT WE GOT WHAT WE WANTED NOT WHAT THY THOUGHT  WE WANTED . WHAT I CAN NOT UNDERSTAND IS IF YOU ARE NOT HAPPY TELL THEM DO NOT PUT UP WITH SECOND BEST . MY HUSBAND IS A BUILDER THE WORK WE HAVE HAD DONE IS VERY GOOD IT WAS THE TIME IT TOOK TO DO,THAT WE LET AMBER POOLS DO IT FOR WHAT WE HAVE HAD DONE IT WAS WELL WORTH THE MONEY AND WAIT   WE HAVE SEEN SOME VERY GOOD WORK ON THE SITE AND  SOME NOT SO GOOD SO JUST ASK AND LOOK AROUND BEFORE YOU PART WITH ANY MONEY


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