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Study abroad in spain + self employment visa

by FreddyLicious
14 replies
Hi everyone,

I am applying to do a study abroad in Spain, I know the typical study abroad participant gets a student visa to study there. As a result, of having a student visa they aren't allowed to work there. Totally, understandable I get that.

I'm trying to figure out a way to legally work on my internet business while I'm there.

I did some research online and heard some things about the self employment visa. However, it seems like this is designed for companies that either want to open up an office in Spain/send their employees to work in Spain.

I don't want to open up an office there I just want to work on my already existing internet business while I'm physically in Spain on a study abroad.

I read something about a VAT business registration service on a Spanish law firm's based out of Spain. I think this might be what I'm looking for, but I'm not 100%.

I know ultimately I am going to have to pay an attorney to talk about it, but right now I'm just trying to find the right attorney to talk about it to. I'm not sure a US tax attorney could give me much help in regards to Spanish tax laws.

Does anyone have personal experience with this? Any and all comments are welcome.

Thanks and have a great day!
#abroad #employment #spain #study #visa
  • Profile picture of the author Stuart Walker
    It's not the right forum to ask in. Find a Spain expat forum or (online) business forum and see if anyone there knows.
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    • Profile picture of the author FreddyLicious
      Originally Posted by RockingLastsForever View Post

      It's not the right forum to ask in. Find a Spain expat forum or (online) business forum and see if anyone there knows.
      Isn't this an online business forum?
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      • Profile picture of the author salegurus
        Originally Posted by FreddyLicious View Post

        Isn't this an online business forum?
        Well, yes.
        But asking questions regarding legal advice, accounting advice etc. is pointless, if you want a reliable answer contact the appropriate people...

        OK, disregard ^^^
        Someone beat me to it...
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        • Profile picture of the author FreddyLicious
          OK, disregard ^^^
          Someone beat me to it...
          lol, it's all good. Thank you for your comment.
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  • Profile picture of the author PaulSch
    Why bother? All you'll do is further complicate an already complicated situation.

    If you are not setting up an office, not employing anybody or "appearing on the radar" just do your internet trading and sort out your taxes etc when you get home.

    Believe me, you really don't want to get involved with the Spanish tax authorities unless you absolutely have to. If you just study here in Spain and run your internet business in the US then life will be a lot easier for you.

    If you register for VAT (IVA) you will pay 21% on every transaction - there is no VAT threshold for people in your circumstances (i.e. - a foreigner from outside the EU)
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    • Profile picture of the author FreddyLicious
      Originally Posted by PaulSch View Post

      Why bother? All you'll do is further complicate an already complicated situation.
      I don't like breaking laws, especially when I am in a foreign country and don't know what the penalties are.

      If you are not setting up an office, not employing anybody or "appearing on the radar" just do your internet trading and sort out your taxes etc when you get home.
      Ideally this is what I want to do, if it's not against the laws in Spain.

      If you register for VAT (IVA) you will pay 21% on every transaction - there is no VAT threshold for people in your circumstances (i.e. - a foreigner from outside the EU)
      Do you have a link to this rule/law/regulation?

      Thank you for taking the time to post. I truly do appreciate it.
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      • Profile picture of the author amunt
        I would think that if your business is registed in your home country and you pay your taxes there, there can't be a problem. I regularly spend months in Spain, but I just pay my taxes where the business is registered in the UK.
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        • Profile picture of the author FreddyLicious
          Originally Posted by amunt View Post

          I would think that if your business is registed in your home country and you pay your taxes there, there can't be a problem. I regularly spend months in Spain, but I just pay my taxes where the business is registered in the UK.
          Yeah I'm hoping there isn't a problem. Some laws tend to be surprising especially when they come to taxes. They vary from person to person, locality to locality.

          I'm wondering if there is a difference with the UK being in the EU?
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  • Profile picture of the author cup243
    I am from Spain, maybe I could help, what type of business are you planning? Is it Internet Marketing related?
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    • Profile picture of the author FreddyLicious
      Originally Posted by cup243 View Post

      I am from Spain, maybe I could help, what type of business are you planning? Is it Internet Marketing related?
      Yeah, it's totally internet marketing. Intangible goods, no physical products. I wouldn't be selling to people in Spain either.

      Basically, I just want to keep working on my websites while in Spain. Writing website content, making videos, managing PPC campaigns.
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      • Profile picture of the author PaulSch
        Originally Posted by FreddyLicious View Post

        Yeah, it's totally internet marketing. Intangible goods, no physical products. I wouldn't be selling to people in Spain either.

        Basically, I just want to keep working on my websites while in Spain. Writing website content, making videos, managing PPC campaigns.
        I am not a lawyer, but I am married to one and she says that if you are not trading in Spain there is absolutely no point in bringing your business to the attention of the Spanish tax authorities.

        You are not "in effect" trading or conducting your business in Spain, you will simply be in Spain as a student with a "hobby" that happens to involve the internet.
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  • Profile picture of the author Istvan Horvath
    Forums are well-known for providing completely unreliable legal advice. Once the owner of this forum even warned everybody to not ask legal/tax questions...

    On the other hand, I'd listen to Paul - do not overcomplicate it. If you have an online business in US or Canada that can run "almost" on autopilot... and you (the owner) are temporarily abroad, the business still should pay taxes where it is registered - that's a basic principle of the civilized world

    Now, I know for Canada, that if not registered, just doing business as a self-employed individual, then it does count where you live on Dec 31st of the tax year ending. Again, this could be, and for sure is jurisdiction-specific... that's why they say do not ask legal advice in a forum. There are too many unknown factors...

    I still think a company or LLC or whatever is common where you live that does the business where it is registered AND pays you either salary or dividends (at home!) could be a solution to look into it, taking in account your specific location, situation etc.
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    • Profile picture of the author FreddyLicious
      Originally Posted by Istvan Horvath View Post

      Forums are well-known for providing completely unreliable legal advice. Once the owner of this forum even warned everybody to not ask legal/tax questions...
      As you can see from my post count I haven't been too active on this forum, so I hadn't heard that this is a topic that should be avoided.

      I totally agree with you though. I'm a big fan of the saying "Some of the most expensive advice, is free advice." At the same time I also agree with the saying "Don't reinvent the wheel."

      Ultimately, I will contact a lawyer and speak to them about this issue. I think forums are a great way for me to learn about the issue and see if any other people have insight into the issue. That way I'm able to better utilize my time with the lawyer by knowing what questions to ask, what to be concerned about. Then when I talk to the lawyer he/she can confirm or dispel any myths.



      On the other hand, I'd listen to Paul - do not overcomplicate it. If you have an online business in US or Canada that can run "almost" on autopilot... and you (the owner) are temporarily abroad, the business still should pay taxes where it is registered - that's a basic principle of the civilized world
      Unfortunately, I'm not at the level where it can "almost" run on autopilot. I still do a lot of the work in the business. The only reason I refer to it as a business is because of the formal legal entity I set up for it. I'm hoping this is the case that I just pay taxes where I'm registered. Although, I know in the US if you do business in another state you usually have to register the business in that state. I can only imagine it's similar outside the US.


      Now, I know for Canada, that if not registered, just doing business as a self-employed individual, then it does count where you live on Dec 31st of the tax year ending. Again, this could be, and for sure is jurisdiction-specific... that's why they say do not ask legal advice in a forum. There are too many unknown factors...
      Yes, I definitely agree with you on this point on there being too many unknowns to gain accurate advice to an individuals situation in a forum.


      I still think a company or LLC or whatever is common where you live that does the business where it is registered AND pays you either salary or dividends (at home!) could be a solution to look into it, taking in account your specific location, situation etc.
      I will definitely look into this. Thank you for taking the time to share your insights/thoughts/opinions.
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  • Profile picture of the author Stuart Walker
    Isn't this an online business forum?
    Yes but what does anyone here know about the legality of you running your online business in Spain?
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