Ryanair irish vs Spain taxation

[737 CL]

Thank you very much for your answer 172 Piot. I understand the difference, So comparing Nas with FR You are able to tax in Ireland and you Could be based wherever Fr Wants with less taxes but If you tax in Ireland Are you able yo use the SS of Spain for example?.

[SpGo]

As you will be based in Spain, both you and the company which employs you (your own Irish setup) will have to pay social security in Spain. On top of that you will have to pay income tax in Ireland, according to the Irish-Spanish double taxation agreement.

[172_driver]

Yes, income tax will be paid in Ireland regardless. There are bilateral tax agreements in place with most European countries. They could all be different, but my feeling is that they're all similar. They're available on internet, but difficult to understand. The common advice is to seek assistance from a fiscal advisor. The majority I know of stay under the radar where they're based and only pay in Ireland. It's all very muddy.

Other local taxes, property taxes, council taxes you may have to pay if you own a property somewhere.

The social security is a different game. There are EU legislations available on internet, but again hard to read/understand. What they say is you should pay SS in the country where you are based, even if you don't live there or have any other connection to that state. The rates vary, they can be quite high like Belgium 48 %, Spain 37 %, Sweden 32 % (of your gross salary, not the invoiced amount… slight difference, but still high).

It's the high SS rates together with income tax in Ireland which brings down the retention rate, sometimes to well under 50 %.

I wouldn't expect to receive any benefits from a country where you are not socially insured. Perhaps if you're Spanish, always worked in Spain, registered in Spain, you'd be able to claim benefits for a while.. I remained in the system for 2 years after leaving my home country.

[737 CL]

I Understand The High retention rate is because you pay in 2 places. According What I read here Comparing with Nas You earn less money in FR But From What I´ve seen gross salary is almost the same. This due to the taxation or Do you have ítems free of Taxes in Nas?

[SpGo]

I Understand The High retention rate is because you pay in 2 places

You do not pay in two places and I think you still didn't understand it.
There is no choice, it is covered by European laws and taxation agreements.

Your are based in Spain: you will have to pay employees social security in Spain. The company which pays you a salary will have to pay employers social security in Spain even if it is an Irish company. You are covered by the Spanish social security system.
You, a resident of Spain, receive a salary from an Irish company and will have to look at the double taxation agreement between Spain and Ireland to find out where you have to pay income tax. In your case its Ireland.

[jeehaa]

Don't forget that in the case of a Storm McGinley contract (BRK contracts not given anymore), the company will NOT pay the employers part of the social security and the contracter has to pay both employers and employee fee (in Spain in this case which sums up to 37,25% of gross income for 2014). The contracter pays income tax in Ireland initially (21%-41%), but can opt each year to declare tax afterwards ofcourse) to pay income tax in Spain en get a tax refund from Ireland (after proof of tax declaration in Spain has been confirmed by Ireland)

[737 CL]

Thank you very much for patience I got everything !!!!!

[RAT 5]

It seems quite an financial incentive for people to test the case IF they are self-employed contractors or actually employees of one of the entities. Imagine being based for a couple of years in one EU country, then shifted to another; then after command to another, and later on even another, none of which might be your true country of residence. Then, at retirement, trying to receive all these little tiny pots of state pensions from different states. What a nightmare and waste of paid money.

[speed_alive_rotate]

Hey Jeehaa, has Brookfield contracts been stopped?? Thought they were still business as usual?? Thanks

[jeehaa]

Still in business, but not for new-comers, ie cadets (all Storm McGinley) or DEC (same). Existing contract are renewed in most cases, upgrades RYR contract for the time being only (therefor paycut for most former BRK FO's if doing the upgrade, hence loads of the upgrade-candidates are looking for other opportunities)

[speed_alive_rotate]

Do you know if they have any other contracts, or obviously when their current contracts run out they will be finished. I wonder are they affiliated with any other airline contracts. I have checked their website, but you know yourself they will put any airline they have ever dealt with even once up just to boost their profile. Do you think it is the start of Ryanair starting their own employment process??Thanks for your reply.