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Tax for self-employed teachers in Spain

From the comments I’ve received on this blog, it looks like English teaching is a popular profession! Tax declaration for freelance teachers of any kind in Spain is relatively simple compared to other businesses. Here’s how to do it.

Private language classes in Spain – taxes you need to pay

  • Private classes or in-company teaching?

This is an important distinction in Spanish tax law.

  1. If you are teaching classes in companies (who require an invoice), they will collect income tax from you and pay it in on your behalf.
  2. Will you be giving private English classes (or any other language)? If so, you need to pay income tax directly to the government.

Not sure? Ask the people you’re working for if they will “practicar retenciones” (collect tax) from you.

  • If more than 70% of your classes are in-company…
  1. You need to sign up as self-employed. The IAE epigraph code for language classes is 933.9 – you will need to include this in the forms you fill in.
  2. Language classes in Spain are exempt from VAT.
  3. The companies you work for should deduct 15% (7% in your first years) from your invoices. They will pay this in for you.
  4. Social security payments (ranging from €50/month in the first months to just under 300€/month after a year or two) will be taken out of your account automatically.
  5. Once a year, you should complete the Declaración de la Renta to settle up with the government.
    • The government looks at how much you’re earning and what your costs are and decide how much you should pay (or receive). The online form automaticall deducts tax companies pay in for you during the year.
    • You can do this electronically – see the article above for details.
  • If you give private language classes…
  1. As above, sign up as self-employed, using epigraph code 933.9.
  2. Again, you do not need to pay VAT for private language classes in Spain.
  3. Every quarter, you need to complete Modelo 130 and advance 20% of your earnings to the government.
  4. The government will remove social security payments from your bank account.
  5. As before, you need to fill in the Declaración de la Renta once a year.

 

Posted in Tax

Published by Penelope

5 Replies to “Tax for self-employed teachers in Spain”

    1. Great question. IRPF and Seguridad Social is fairly standard for everyone. According to Finance Blog Cinco Días, anything that generates copyright is also exempt from IVA (3rd example). So it looks like it’s the same as for teachers. If you receive more than €3,005 per year from any one client (more likely for an artist than a teacher), you will also need to fill in Modelo 349 (this is just to give information, you won’t be charged anything). If you have any doubts, I’d do a bit of extra research to make sure. If this was helpful, feel free to share this blog with others. And do write back to let us know how it goes 🙂

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