Real case lab of the week: The huge importance of deregistering as “autónomo” or self-employed in Spain.

Recently, we helped a new client who used to run a profitable business in Spain a few years ago. However, the economic crisis forced him to go back to England, leaving the business “dormant or inactive”.
A few months ago, he found out that a freezing injunction (“orden embargo in Spanish) of almost 20.000 Euros, had been imposed by the Social Security office on his Spanish property. Unfortunately, it was already too late to appeal the decision before the “Administrative Courts”, as the limitation period had already expired, so our client had no other choice rather than to pay the fine, in order to remove the charge.

One of the main advantages about setting up a business as “autonomo” rather than as limited company, is that it is indeed relatively simple to de-register. Nevertheless, do not forget that there will be some basic steps that you ought to follow, briefly explained below.
In the first place, bear in mind that even if the business might not generate any income, failing to leave RETA properly by filling in the forms with the tax revenue office and the Social Security office ( “Dirección General de la Tesorería de la Seguridad Social” in Spanish), will expose you to continuing accumulating social security debts and liabilities, because just revoking the standing order will not be sufficient.
Likewise, remember that you will still have to submit an annual income tax declaration in the year following your last year as a self-employed person.

Therefore, should you ever need a reliable, 100% independent, honest, cost effective and efficient English speaking Spanish solicitor, to help you with your taxation matters, (or with any other legal issues), make sure you bookmark this page, visit our websites: www.ricorabogados.com and www.englishsolicitorinspain.com
or alternatively, please do not hesitate to contact us by e-mail at ricorsolicitors@yahoo.co.uk
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Thank you very much for your kind attention and we look forward to helping you!
Mr Oscar Ricor
“NON-PRACTISING ENGLISH SOLICITOR IN ENGLAND AND WALES”, under the “Solicitors Regulation Authority” (SRA) SRA number 519196 and practicing Spanish Solicitor Nº1247

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