Ryanair irish vs Spain taxation
 

Hi guys,
I've Been offered a job as DEC in Ryanair. I'd like to know if somebody can help me. Flying 80 hours a month. How much is the income you receive at home taxing in Spain vs Ireland? If I tax in Ireland , Could I use the Social security in Spain?

Regards

Based where?

Lots of info already on the other FR threads in this forum.

Hi Hobo,
Based in Spain , I read a lot about but nobody answer the question. Some people says 55% retention other 80% .

It might depend on exactly which contract they are on. Drive to the base in Spain you will be based at and ask a FR CAPT (preferably DEC) what his rate is.

Presumably you know what your houly rate will be having been offered a job, so income rates for Spain and Ireland are freely available online.

24.75% tax if you qualify for the "Beckham" tax deal, but only if your contract is with a Spanish entity...unlikely in your case :=

No deals
 

Spoke to a Spanish island Captain

99 hours = €4300 Net in his pocket. Not sure about any pension contribution.
Pretty grim if having to keep two houses going. FO's earning more than captains at the mo.

Depends if offered a Ryanair contract or Brookfield contractor one...

Depends on the contract, latest Ryanair contracts give around 4000-5000€ in the pocket in Spain, although that varies also on the base. Some FO's on Brookfield contracts do indeed earn more than the captains :{

Being offered a contract with Storm, at the base of my first choice. They told me that I would have to set up my self in a company in Ireland, for taxation etc. For a month of 10000 Euros gross earning, you end up about 4800 net. Add on to that your business expenses and you can increase that, depending on how much you can claim, but its not a lot and are not repetitive (headsets, uniform, subscriptions, internet, etc). If out of base flying then you can claim basically everything but at the end of the day is your money that you get back and not something extra. So basically one can expect about 5000 Euros net per month for 900 hours of flying. So if in winter you don't fly as much and your yearly average is 800 hours then your salary will be reduced accordingly.
Obviously is not a lot, and probably they are better jobs out there. It all depends on one's choices, circumstances, etc.

Flew with a Spanish f/o the other day who told me the 'Beckham tax' has now been scrapped.
Could be wrong so dont shoot the messenger

Don't think "scrapped", but I heard the criteria to benefit from it had been tightened considerably.

The structure was very well known but the loopholes are closing to benefit from it.
As a result I wonder if it will become time for such structures to be replaced by other or more financially rewarding ones, in line with industry changes.

Really It's impossible to believe how a FO could Earn more than a Captain. Could somebody explain the differences between the contracts? Who is providing the best contract?

Sorry if its a stupid question guys, what is "Beckham Tax"? Also usually which contract is better: storm or Brookfield ??Or is it more base dependant.

The so called "Beckham Tax" was introduced into Spanish tax law in order to attract the footballer David Beckham to play for Real Madrid years ago. But it couldn't be introduced for just him, so many others have benefited. In order to qualify you had to (amongst other things) have not worked in Spain before, be employed by a Spanish company, apply within 6 months of starting work in Spain etc. The tax rate used to be 24% flat rate with no other tax allowances (for kids, mortgage relief etc.). The tax rate is now 24.75% as far as I know. It lasts for 5 years, after which it's normal taxation from then on, unless you've left employment with a Spanish company before then of course.

Thanks so much for explaining that Nightstop, I hadn't heard of that before. I would love to work in Spain so great Info.

I understand that the gross salary as a captain is higher but I read in a lot of posts as a Fo you earn more finally in your pocket. I think that is for taxation ... I would like to know what is the best contract as captain? . BK, storm or FR?

When you are an FO you are probably still writing off your training expenses, thus taking more untaxed into the pocket.
As a captain that expense has been removed/paid off and as such cannot be used each month as a tax deductible item.

Both cases are only applicable when you are on a Brookfield contract/construction with Irish company to be set up, not as a Ryanair contract as you are then an employee with basic salary and so on, taxes paid by company and no expense posts.

Can Brookfield/storm not just deposit the salary you earned on a bank account of your choice?

The way it works is your Irish Ltd. company, run by a Ryanair approved accountant, will invoice Brookfield or Storm, as applicable. Your Irish Ltd. company pay out your salary which will be deposited into your personal bank account.

The difference to other companies using contractors, e.g. Norwegian, (and please correct me if I am wrong) is that you are hired directly by the Agency providing pilot services. Hence you've got a proper contract, taxes and social security matters sorted (even though tax rates can differ depending on where you are based).

I believe I am speaking for the majority of Ryanair contractors that the biggest issue is the complexity of tax/social insurance affairs and staying within the law. The social contributions are a significant cost to any company that Ryanair has (cleverly) managed to dump on the pilots.

737 CL, you asked which contract is best. I think it's highly subjective. FR contract gives high security, basic salary, taxes paid by company, (slight) pension pot, other allowances. BRK pays best hourly rate, but no guaranteed hours. Tax and social contributions can be quite high depending on your circumstances and you may see more or less take home pay than FR contract. Storm has same structure as BRK. Pays slightly less but has min. 30 hours guaranteed per month.

To mud the waters further, no FR contract is the other alike. They're tailored after living expenses in the country you are based. Also keep an eye on your sector pay if it's referred to as net or gross.