How much should you pay someone to do your taxes in Spain?
Tax, like most bureaucracy in Spain, is notoriously difficult to get your head around and even more tricky to submit yourself. Therefore, you'll likely need to hire a gestor, but how much should you be paying for their services?
If you ask someone what 'gestor' means, you’re likely to get several different answers: consultant, administrator, adviser or accountant.
They are in effect all of these, a first port of call in Spain for the endless bureaucratic processes that come with anything official here; intermediaries between you and the often-complicated government departments.
They are also the people who will file and submit your taxes for you. If you’re employed by a company you will need to do your taxes once a year during the annual declaración de la renta and if you’re self-employed or autónomo, you will do need to submit them five times a year – one each quarter and the annual one.
READ ALSO: What does a 'gestor' do in Spain and why you'll need one
Unlike other countries such as the UK where it’s very easy for freelancers to do their self-assessment tax return themselves, in Spain it’s notoriously difficult. As well as the complicated language used and added levels of bureaucracy, it’s very unforgiving if you make a mistake. You could be charged thousands of euros in extra fees if you submit late, you forget something or you’ve entered information in the wrong sections.
Therefore, most people here, even locals, will hire a gestor to do their taxes for them. Keep in mind, however, this is not a foolproof way to ensure there are no mistakes. Gestores can make them too, but you’ll end up footing the bill for any they have made.
Gestor fees for submitting these taxes vary greatly, so it can be very difficult to work out whether you’re being overcharged or you’re getting a great deal.
READ ALSO: What’s the difference between a gestor, a lawyer and a notary in Spain?
Employees
For the annual declaración de la renta most professionals and financial advice websites say that gestores should charge between €50 and €150 plus 21 percent VAT. The reality is that you’ll probably pay something in the middle around €80 plus VAT.
The amount obviously depends on your personal circumstances too. If you have a particularly difficult case, such as lots of different streams of income coming from different countries, then you may end up paying more.
For autónomos
If you’re an autónomo, it gets a little more complicated as you’ll have to hire a regular gestor to do your taxes every three months.
The amount you are charged largely depends on how much work you’re willing to do yourself in the process and if you’re a sole trader or you own a company with various employees.
So for example, if you complete all your spreadsheets yourself with all the invoice details and a separate one for your expenses, in theory, you shouldn’t have to pay as much as someone who simply forwards all their invoices and receipts.
Many gestores charge autónomos a monthly fee for their services which can range from around €50 to €100 for a sole trader. According to the website Business Defenders, if you have a simple business you should be paying anywhere between €40 and €80. If you own a business with several employees, this could be around €100 to €200 per month.
If you’re a freelancer and your business is just you, the reality is that you’re unlikely to need one on a monthly basis, so you could just pay per form that needs submitting or a set amount each quarter, depending on what your gestor offers you.
The amount for this could easily end up being €150 per trimester though, so in reality you would still be paying around €50 per month.
You could also end up paying more, the more invoices you have. For example, many gestores have set prices for those who have 10 invoices or less per month, and then higher prices for those who have more.
If you’re a foreigner, it’s likely that you may be working with clients abroad, this could mean extra expenses as you may have more forms to submit than if you just have Spanish clients.
Ways to pay less as a freelancer
Gestor fees can be a big expense if you're self-employed, particularly on top of the €300+ in social security fees you're paying out every month. And this doesn't even factor in the actual income tax you'll have to pay on top.
READ ALSO: Will you pay more under Spain's new social security rates for self-employed?
This means that you'll be looking for every possible way you can pay less and try and find a cheaper way of submitting your taxes.
There are several ways you can pay a lot less as an autónomo, but one of the most popular is using one of the many dedicated online platforms. These can start at around €25 per month for the basic package with a limit on the number of invoices you can have.
These are essentially auto platforms, however, that work everything out for you through algorithms and formulas. Some will give you access to real gestores if you have any questions, whereas, with others, time with real people is limited.
If you have a complicated case, your Spanish is not fluent or you have clients abroad, it can be risky using these online services as you may not get the attention you need and you could end up making mistakes by not filling out the correct forms. They may save you money in the short term, but could end up costing you in the long run.
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If you ask someone what 'gestor' means, you’re likely to get several different answers: consultant, administrator, adviser or accountant.
They are in effect all of these, a first port of call in Spain for the endless bureaucratic processes that come with anything official here; intermediaries between you and the often-complicated government departments.
They are also the people who will file and submit your taxes for you. If you’re employed by a company you will need to do your taxes once a year during the annual declaración de la renta and if you’re self-employed or autónomo, you will do need to submit them five times a year – one each quarter and the annual one.
READ ALSO: What does a 'gestor' do in Spain and why you'll need one
Unlike other countries such as the UK where it’s very easy for freelancers to do their self-assessment tax return themselves, in Spain it’s notoriously difficult. As well as the complicated language used and added levels of bureaucracy, it’s very unforgiving if you make a mistake. You could be charged thousands of euros in extra fees if you submit late, you forget something or you’ve entered information in the wrong sections.
Therefore, most people here, even locals, will hire a gestor to do their taxes for them. Keep in mind, however, this is not a foolproof way to ensure there are no mistakes. Gestores can make them too, but you’ll end up footing the bill for any they have made.
Gestor fees for submitting these taxes vary greatly, so it can be very difficult to work out whether you’re being overcharged or you’re getting a great deal.
READ ALSO: What’s the difference between a gestor, a lawyer and a notary in Spain?
Employees
For the annual declaración de la renta most professionals and financial advice websites say that gestores should charge between €50 and €150 plus 21 percent VAT. The reality is that you’ll probably pay something in the middle around €80 plus VAT.
The amount obviously depends on your personal circumstances too. If you have a particularly difficult case, such as lots of different streams of income coming from different countries, then you may end up paying more.
For autónomos
If you’re an autónomo, it gets a little more complicated as you’ll have to hire a regular gestor to do your taxes every three months.
The amount you are charged largely depends on how much work you’re willing to do yourself in the process and if you’re a sole trader or you own a company with various employees.
So for example, if you complete all your spreadsheets yourself with all the invoice details and a separate one for your expenses, in theory, you shouldn’t have to pay as much as someone who simply forwards all their invoices and receipts.
Many gestores charge autónomos a monthly fee for their services which can range from around €50 to €100 for a sole trader. According to the website Business Defenders, if you have a simple business you should be paying anywhere between €40 and €80. If you own a business with several employees, this could be around €100 to €200 per month.
If you’re a freelancer and your business is just you, the reality is that you’re unlikely to need one on a monthly basis, so you could just pay per form that needs submitting or a set amount each quarter, depending on what your gestor offers you.
The amount for this could easily end up being €150 per trimester though, so in reality you would still be paying around €50 per month.
You could also end up paying more, the more invoices you have. For example, many gestores have set prices for those who have 10 invoices or less per month, and then higher prices for those who have more.
If you’re a foreigner, it’s likely that you may be working with clients abroad, this could mean extra expenses as you may have more forms to submit than if you just have Spanish clients.
Ways to pay less as a freelancer
Gestor fees can be a big expense if you're self-employed, particularly on top of the €300+ in social security fees you're paying out every month. And this doesn't even factor in the actual income tax you'll have to pay on top.
READ ALSO: Will you pay more under Spain's new social security rates for self-employed?
This means that you'll be looking for every possible way you can pay less and try and find a cheaper way of submitting your taxes.
There are several ways you can pay a lot less as an autónomo, but one of the most popular is using one of the many dedicated online platforms. These can start at around €25 per month for the basic package with a limit on the number of invoices you can have.
These are essentially auto platforms, however, that work everything out for you through algorithms and formulas. Some will give you access to real gestores if you have any questions, whereas, with others, time with real people is limited.
If you have a complicated case, your Spanish is not fluent or you have clients abroad, it can be risky using these online services as you may not get the attention you need and you could end up making mistakes by not filling out the correct forms. They may save you money in the short term, but could end up costing you in the long run.
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