Question Optimize Tax Burden (Spain) Partially Self-Employed

[savewhatyouhave]

Hey folks,
I currently live in Spain and work remotely for a US company with my compensation around $100k/yr.
With this income I'd have to pay approximately 40-45% as taxes which is too much but I'd still would like to have an "official" source of income.
So I'm thinking about becoming a self-employed and receiving let's say $30k/yr into my self-eployed bank account to pay 25%-30% taxes only from this amount. The rest $70k/yr I'd be receiving into EMIs. My company is fine splitting my paycheck into as many separate payments as needed. Any thoughts? Thank you!

 

[A1988]

I'm not saying it can't be done, i'm saying that the costs are higher and so the skills required to run a business with at least 3 full time people.

3 full time people will cost you at the very least 70K year.

100K - 70K salaries = 30K (and i'm not counting other expenses)

Is it better to pay 4% tax on 30K in the Canary Islands or 10% in Andorra on 100K?

You do the math.

Of course those 3 people hired will produce more income but it's impossibile to predict beforehand how much that growth will be and if it makes sense to have them onboard.

he and his wife can be employees, minimum wage is approx 1200 euros in spain, he technically has to hire 2 more people to satisfy the requirement, this is a much better solution than not disclosing 70% of his income and then charged with a criminal case and 400% penalty by the tax authorities in spain due to their centre of life theory.

 

[bamboozlethemall]

he and his wife can be employees, minimum wage is approx 1200 euros in spain, he technically has to hire 2 more people to satisfy the requirement, this is a much better solution than not disclosing 70% of his income and then charged with a criminal case and 400% penalty by the tax authorities in spain due to their centre of life theory.

How exactly does anyone know how much is getting transferred to his cold wallet-Please explain in detail?

 

[Marzio]

he and his wife can be employees

As far as i know the director can't be counted as employee.

I repat myself, i'm not saying it's a bad idea. It could be a good or bad idea depending on the volume.