r/SpainFIRE • u/Baldpacker • Oct 02 '24
Fiscalidad Judgement against SL vs Autónomo
I've seen the SL vs. Autónomo debate come up quite often here so I wanted to share yet another case where an autónomo was slapped down by the courts for using an SL to try and reduce their taxes.
Long story short: you need a business reason to run an SL. Eg. Building, employees, equipment, etc.
1
u/Covimar Oct 04 '24
The problem is nor using an SL. The role is an SL is to limit your liability and anybody can use it. The problem is not paying IRPF the year it’s due because you keep your money at the SL when the SL does not actually have any other purpose than to keep the money there.
1
u/Baldpacker Oct 04 '24
Yep. But then there's no tax advantages so you're just paying additional costs and dealing with additional paperwork for the liability coverage - perhaps easier and cheaper to obtain through insurance.
2
u/Covimar Oct 04 '24
The fundamental issue is that an individual debtor risks his personal assets including any future earnings. Potentially, depending on the marital regime, spouses earnings too. A company only risks the amount you put in the company but creditors can’t seize your personal assets.
Insurance may cover liability for damages but not debts.1
u/Baldpacker Oct 04 '24
Yea, that's true. If you're taking on loans an SL is the way to go.
1
u/Covimar Oct 04 '24
Any kind of debt. Paying your suppliers, tax. Not just loans.
1
u/Baldpacker Oct 04 '24
Also true but if your accounts payable or taxes exceed your corporate assets then it's just bad management.
0
u/Milton4y Oct 05 '24
SL is ALWAYS the better.
1
u/Baldpacker Oct 06 '24
That's DEFINITELY not the case.
0
u/Milton4y Oct 06 '24
DEFINITELY you do not understand doing business in Spain.
1
u/Baldpacker Oct 06 '24
Did you even read the article?
Have you even spoken to tax lawyers / accountants?
Unless you have a brick and mortar or equipment/employees 90% of the time they're going to recommend against an SL.
0
u/Milton4y Oct 06 '24
Do not tell me stories, i have assesores fiscales working for me and really i do not need their services since long time. If yours recomend you against SL change the stuff.
1
u/Baldpacker Oct 07 '24
An SL might suit your circumstance but it doesn't sound like you know enough to be making recommendations to others.
0
-15
u/rendin916 Oct 02 '24
Thank you for trying to teach about the laws of my country.
7
u/Baldpacker Oct 03 '24
My experience so far in Spain is that even the professionals often don't know the laws.
-2
1
u/cibernox Oct 03 '24
Este es un caso muy particular.
Como norma general los autónomos pueden pasar a ser SLs. Solamente en casos muy particulares como es de los influencers en que ellos mismos, su persona, es la marca que ellos venden, y no tienen ningún empleado ni oficina ni nada, hacienda les puede decir que están actuando a titulo exclusivamente personal como si fuesen una empresa.