Autonomo / UK LLP partner and the dreaded seguridad social
I'm a designated member of an LLP in the UK, and an autonomo here in Spain. I don't draw any profits from the LLP but rather invoice (as autonomo) the LLP for work done. So currently I'm paying my IRPF and seguridad social here.
The social security payments are horrendous though and take a significant chunk out of my income, so like many people I'd really like to find a way to not have to pay them if it's possible.
Are there any possibilities around something like drawing profits from the LLP instead of invoicing it as an autonomo? Currently I invoice on a piecemeal basis for work done, somewhat like a freelancer, and drawing a regular salary from the company wouldn't be feasible due to the nature of the work. If I were paying tax on UK profits instead of being autonomo, would I still have to pay social security here?
Any help greatfully received
First of all we need to be clear on the fact that you can only be a fiscal resident in one country and not in both. Letís have a look the 2 options you are suggesting.
1.- Working as an autonomo
Any autonomo in Spain is obliged to pay social security with the exception of those with an income below the minimum salary currently at just over 600 euros per month.
2. - Drawing profit from the LLP
Please note that we are not familiar with the LLP figure. I assume it is similar to our SL companies, however it will be best to speak to you UK accountant regarding this matter.
If you received an income from an UK LLP the only form I can think of would be as dividends. Dividends are taxed in the UK, however as a Spanish fiscal resident you would still need to inform the tax office of the income (there is a double taxation agreement between the 2 countries and you will pay taxes only once). In this case you will not need to pay social security.
Thanks for the reply. LLPs are limited liability partnerships, they're fairly similar to normal partnerships but they have to submit accounts and provide limited liability to the partners. At least that's my understanding of the differences.
This is great! Thank you for this information.