March 2010
Hot Property News Letter – March 2010
Welcome to this issue of the Hot Property news letter which we hope you find informative and helpful. If you have any suggestions, comments or questions, which we can address in future issues, you can contact us at info@hotpropertyspain.net
1: BEING SELF EMPLOYED IN SPAIN
In previous newsletters, we have covered finding full and part time employment. In this month's issue, we provide information on becoming self-employed, which may be an advantage in obtaining regular employment, as the employer will not need to provide a contract, nor have to pay social security. In addition the benefit of having , in effect , more than one part time job may outweigh having one single employer.
It is possible to be self employed in practically any profession and in Spain - this system is called "Autonomos" No one likes to pay taxes, and it is true to say that there are many expats who regularly work without paying taxes . However failure to do so is illegal, and renders the offender as a "non person" who has no rights or security in Spain. There are advantages of choosing to register, one being that medical social security cover is immediately available and two, when retirement age is reached (65 for both men & women) pension benefits, subject to eligibility, will also be applicable. To register as "Autonomos" , it will be necessary to have the following documents. 1. NIE/NIF number - All property purchasers in Spain should have this as a matter of course. 2. Residencia - Many expats living here full time already have this. 3. Complete a 036 tax form - This will confirm the method of the payment of tax, and is stamped by the tax office. There are two methods of payment . The first is quarterly VAT and Income Tax Declarations on the "direct estimations method" , which involves double entry book keeping, hiring an accountant or the payment of a quarterly fixed income tax & VAT . The second payment method, is the "modulos system", which is only available for certain types of employment, such as bars, café, or small construction works. There are advantages to both. The "direct estimations method" is for where income is likely to fluctuate, as income tax and VAT is only paid on actual profit/earnings. "Modulos" payments do not take into consideration any months where income is below the average, as the same amount is paid even if income is zero. There is no need, under this system, to keep accounts, etc . However , once the turnover increases there may be a benefit in having a tax system whose payments are set at a basic level. After registering, which we advised is carried out by a company that specialises in such, the person registered will then be liable for fixed monthly payments, and most people choose the minimum allowed. Depending on age, the over fifties have a different payment structure, and the over sixty fives can opt out of any social security payments. Any spouse, partner or child is also entitled to medical cover, and an additional beneficiary form must be completed, along with the marriage or birth certificate. Once registration has been completed, it will be necessary to present quarterly declarations for Income Tax & VAT collected during the three previous months. These declarations must be submitted by the 21st of January, April, July, and October. Failure to submit on time will incur a fine, even if the declaration is zero. In January of each year, an ANNUAL VAT DECLARATION for the previous year. In May/June of each year, an ANNUAL INCOME TAX DECLATRATION for the previous year. On ceasing self employment, it will be necessary to sign off the register, otherwise the monthly Social Security payment will continue. 2: CHANGING THE SAND IN THE SWIMMING POOL FILTER
It is possible to be self employed in practically any profession and in Spain - this system is called "Autonomos"
No one likes to pay taxes, and it is true to say that there are many expats who regularly work without paying taxes . However failure to do so is illegal, and renders the offender as a "non person" who has no rights or security in Spain.
There are advantages of choosing to register, one being that medical social security cover is immediately available and two, when retirement age is reached (65 for both men & women) pension benefits, subject to eligibility, will also be applicable.
To register as "Autonomos" , it will be necessary to have the following documents.
1. NIE/NIF number - All property purchasers in Spain should have this as a matter of course.
2. Residencia - Many expats living here full time already have this.
3. Complete a 036 tax form - This will confirm the method of the payment of tax, and is stamped by the tax office.
There are two methods of payment . The first is quarterly VAT and Income Tax Declarations on the "direct estimations method" , which involves double entry book keeping, hiring an accountant or the payment of a quarterly fixed income tax & VAT .
The second payment method, is the "modulos system", which is only available for certain types of employment, such as bars, café, or small construction works.
There are advantages to both. The "direct estimations method" is for where income is likely to fluctuate, as income tax and VAT is only paid on actual profit/earnings.
"Modulos" payments do not take into consideration any months where income is below the average, as the same amount is paid even if income is zero. There is no need, under this system, to keep accounts, etc . However , once the turnover increases there may be a benefit in having a tax system whose payments are set at a basic level.
After registering, which we advised is carried out by a company that specialises in such, the person registered will then be liable for fixed monthly payments, and most people choose the minimum allowed. Depending on age, the over fifties have a different payment structure, and the over sixty fives can opt out of any social security payments.
Any spouse, partner or child is also entitled to medical cover, and an additional beneficiary form must be completed, along with the marriage or birth certificate.
Once registration has been completed, it will be necessary to present quarterly declarations for Income Tax & VAT collected during the three previous months. These declarations must be submitted by the 21st of January, April, July, and October. Failure to submit on time will incur a fine, even if the declaration is zero.
In January of each year, an ANNUAL VAT DECLARATION for the previous year.
In May/June of each year, an ANNUAL INCOME TAX DECLATRATION for the previous year.
On ceasing self employment, it will be necessary to sign off the register, otherwise the monthly Social Security payment will continue.
2: CHANGING THE SAND IN THE SWIMMING POOL FILTER
It is not well known, or realised, but to ensure crystal clear swimming pool water, it is advisable to periodically change the sand in the pool filter. Depending on the amount of use the pool gets, and other factors, the minimum period is about every four to five years, and while we know that filters can go on quite happily for twenty years or more, they are not as efficient as they should be.
Filter sand has been specifically ground to a size of .45 to .55 mm in diameter and is very rough when new. This roughness is what makes the sand efficient at filtering out the particles of dirt in the water. As this roughness is smoothed out - like pebble s on a beach wear smooth over time - the filter's efficiency goes down. This means that your system has to run more frequently to accomplish the same task.
This can result in an increase the amount of chlorine needed, thereby increasing running costs. In addition , after five years, the sand has worn enough to allow dirt to penetrate so deep that normal backwashing doesn't clean it completely. The result is shorter filter cycles , which require more frequent backwashing.
Contracting a pool specialist to replace the sand is an option, but it is job that can be carried out by the pool owner, and sand can normally be purchased, and advice obtained, from a local pool supply shop.
We include here , in some detail , the process of replacing the sand in a swimming pool filter.
Firstly turn of f all power to the pump controls and close all valves. To remove the old sand from the swimming pool filter, open the filter: Filters with the multiport valve mounted on top will generally require disconnecting the plumbing running to the valve. Filters with the multiport valve mounted to the side will have either a small top , which can be removed , or a tank which is bolted/clamped in the middle that can be taken apart.
If the filter is a two-piece tank which is bolted/clamped in the middle: Pull the drain plug first to allow the water to drain before pulling the tank apart. Once pulled it apart, it is an easy matter to dig out the sand.
If the filter is not the two-piece type but has the small opening at the top from either the multiport valve or cover, there are two ways to remove the sand. The first and easiest way involves filters that have a plug at the bottom that allows the sand to flow out. This is usually a larger plug and your winterizing drain plug is threaded into it.
By removing this plug, you can use a garden hose to wash out the sand from the tank onto the ground.
If it is a single piece tank that does not have the type of drain plug that allows the sand to drain out, then dig out the sand through the top with an appropriate sized cup.
First, pull the drain plug to allow the water to drain out. If there is a top mounted multiport valve, there will be a stand pipe directly in the center of the opening. Do not try to push or pull this out of the way. It is very easy to break off the laterals which are connected to this. Dig out the sand with a small cup. Once enough sand has been removed to expose the laterals, move the stand pipe out of the way.
If the valve is side-mounted, there will be an over-drain which fills the opening at the top. This over-drain is removable and, most of the time, simply unscrews. Rotate the pipe it is connected to by moving it to the side and out of the way.
There are some cases where the over-drain is glued to its pipe. In this case, rotate the pipe with over-drain out of the way.
Digging out the sand is best accomplished with a plastic cup - not a shovel! Be careful when digging not to break the laterals of the under-drain. These are fragile and can be easily broken , which is why not to use a shovel.
Once all the sand has been removed, clean and examine the laterals thoroughly.
Most laterals will unscrew, allowing easy removal from the tank for cleaning and examining. There are some laterals which snap in but these are only on two-piece tanks, and in this case, remove the entire under-drain assembly in one piece. If these are glued in, they will not be able to be pulled o ff, so don't try! They break easily.
Check the laterals for any signs of breakage and replace them if necessary. Soak them in a mixture of muriatic acid and water if there is a lot of dirt impacted in them. Be sure to rinse thoroughly afterwards. Now rinse out the tank and re-install the clean laterals
To replace the sand, first replace the under-drain assembly, then add water until the tank is half-full. This will cushion the laterals when putting the new sand in.
After adding each bag of sand, reach in and level out the sand bed. Add as much sand as the manufacturer indicates on the label on the tank. If the label is gone, consult your swimming pool professional. Some labels call for pea gravel . However, you can usually substitute sand in place of gravel if you wish (if the weight of the sand is measured in cubic feet - a cubic foot is equivalent to approximately 150 pounds). After having added the proper amount of sand, reassemble the filter tank and/or multiport valve.
It is very important to restart the system in backwash mode. This will flush out the dust from the sand and also allow the sand to settle completely around the laterals after backwashing.
If in any doubt, consult an expert. Recently, we learnt of a new product - "Zeolite" - which is used in place of sand and traps particles down to 3 microns compared to sand, which traps to 30microns. "Zeolite granules have a surface area of 40sq. meters per gram so , if unfolded , a teaspoon of granules has a combined surface area equivalent to a football field.
Finally , go for a swim and enjoy the clean pool.
This newsletter is intended as a guide and to be informative and helpful in the process of searching for and purchasing a property in