Andalucia Steve

 

Making money in Spain

The hardest thing about moving here is the income problem.

 

I wanna job in Spain and basically need to know if there is work out there for me, I’d do anything I just wanna move for the sun.  Please help!!

 
The above quote was a genuine question asked a few weeks ago on an online forum for 'expats' in Spain. I kid you not that I see these sort of requests all the time. 
 
Sifting through the three hundred or so replies reveals an interesting snapshot of people's experiences of having moved here in search of work.
 
"Most men get off the plane and become builders, while women become cleaners and dog sitters" says one.
 
"Learn Spanish". says another, "you'll improve your chances of finding a job no end".
 
There was quite a long thread about teaching English in which one camp said it was dead easy to get a TEFL certificate (Teach English as a Foreign Language) in order to get a job teaching the queens, where as another camp were saying the language schools were in decline and rejecting applicants with the cheaper certificates earned on line, preferring instead the residentially earned certificates of schools perceived to be of higher value.
 
Curiously nobody mentioned becoming an estate agent, which many do. This can be a ludicrously easy way to make money in a bull market, but as I found during the last recession it's not much fun when you go over a year without selling anything. 
 
Generally most commenters agreed that it is hard to find work in Spain. As one chap said, "it helps if you have a lot of money to support yourself while you're looking for work as it can take some time".
 
In my humble experience, I've found the the main problems are the language barrier, the extremely high unemployment rate of the country as a whole and the fiscal system here which seems deliberately to act against people starting up their own businesses.
 
Not speaking Spanish, or speaking it very badly as I do, severely limits one's ability to find a job with a Spanish company. That means people coming from the UK will struggle to find employment in inland areas where English is not so widely spoken. This less of a problem on the Costa Blanca or Costa del Sol where English is more common. A nephew of mine worked as a waiter in Fuengirola for six months without speaking a word of Spanish.
 
I knew a young Spanish girl years ago who confided in me the dark secret of her employment status as an office worker. I think her hours were nine until two then five until eight. She had a contract with her employer who officially declared that he was paying her 800 euros per month, and so he paid her employer's contribution towards the equivalent of her tax and national insurance contribution based on the sum. In reality he only paid her 400 per month in cash though. I was astonished she worked all those hours for so little take home pay, but she explained to me it was hard enough to get a job at all. Getting one that paid her stamp and had her plugged into the system was a big plus compared with many folk here who work cash in hand and cannot afford to go self employed.
 
From what I've seen, one has to be rich in the first place to go self employed in Spain. If you want to set up the equivalent of a limited company you need to prove you have 5000 euros in the bank. The contribution to the health and welfare system here known as 'autonomo' is a big chunk. It was a shade under 300 euros per month last time I looked, though there is a scheme now to pay much less in the first year of trading. VAT starts from the first euro earned if your business is dealing in rateable goods or services. Income tax is even more full of pitfalls for the unwary. One chap I know told me his accountant advised him to use a system where he paid a quarterly sum on his predicted earnings. Half way through the year he lost his contract and still had to make the two remaining tax payments for the remaining quarters.
 
Worse still, the tax office or 'hacienda' is so grossly avaricious. It has the power to monitor your bank account and grab money out of it as it sees fit. One chap I knew stopped trading but didn't inform the hacienda. Some years later he found they had taken 6000 euros from his account for unpaid taxes. It took a devil of a job to get it back. The hacienda clearly has an army of spies. For an interesting insight into how they operate, read the recent article in El Pais (In English) called How the Spanish Tax Agency followed the trail of Shakira. They left no stone unturned, even to the fine detail of  tracking down details of her hair-dresser and Zumba teacher!
 
Elsewhere the hacienda has its beady eye on your private sales. If you flog stuff on websites like Ebay, Etsy, Facebook Market place etc, they want a chunk of your profit. How this works exactly varies from region to region but typically in Madrid, sales of over 500 euros are subject to a 4% IPT (transaction tax). I've read where they have had tax officers trawling through listings trying to identify sellers. More recently talks have been taking place to make the websites to supply transaction details to the hacienda digitally. Being a cynic, I suspect when they do, the minimum sales on which these taxes apply will be decreased!
 
Perhaps the most successful group of people I've come across in Spain are the ones whose work is not, i.e. people who work remotely. If you have the right skill-set and the right contacts it is possible to have the best of both worlds, e.g. an American sized pay packet with a Spanish style cost of living. Finding such work is not without its problems as there is a very broad base of people in all corners of the world competing for remote jobs. Websites such as Freelancer and Fiver allow one to pursue work in a wide range of countries but the downside is there is a mountain of competition from all over the world, so bidding for work is more often than not a race to the bottom. It is almost always preferable to seek work by personal contact, word of mouth, networking etc. 
 
Disclaimer. I'm not an expert on Tax or Employment law or any of the topics mentioned in this blog post. These are just the rantings of someone who has lived here for fifteen years and seen the work situation up close and personal!  Nor am I selling anything so I have no skin in the game (which is probably why my postings are a little less 'ra ra' than you might read elsewhere!!)
 
 
 
 
 
 
 
 
 

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