Mar 9, 2018 07:59:08 AM by Sonia M
Hi, I am a spanish freelancer and would like to talk to other Spanish freelancers working in upwork. Although I have checked with 2 accountants and with Treasury department how I should declare the work I do here, everybody gives me different answers. I am not sure if the invoices upwork send to my clients are valid to declare or I should invoice upwork for the ammount of my earnings, according to what I found in some forums. Upwork support is not very helpful about it, I was told to contact a local advicer, but unfortunatelly I haven't found anyone that is sure about the procedure. So I would really appreciate some insight about it from other Spanish that have been declaring work from Upwork for a while. I would pay for the advice if necessary.
Thanks a lot
Jan 5, 2018 08:10:34 AM by Vasilii V
Hi.
I've started working with UpWork recently, and I'd like to know - what is the best method for payment for a person living in Spain? My bank charges 20 euros for incoming transfers outside of EU. So what should I choose, in your opinion - payoneer, paypal, some other method? Thanks in advance.
Jan 5, 2018 10:18:03 AM Edited Jan 5, 2018 10:19:00 AM by Mike W
PayPal is the best method for a lot of freelancers and I have used this method since day 1. It always arrives on time and never any hassles. Another benefit of this is may be eligible for the PayPal Access Card which acts just like a bank card.
Jan 5, 2018 10:20:14 AM by Vasilii V
Thanks!
And how long does it take to make PayPal card? And what are the fees?
Jan 5, 2018 10:54:32 AM by Aaron Luigi L
Hi Vasilii V,
Local banks may have steep charges for withdrawals especially if international. View the Select How You Get Paid article to see what other options you have for accessing your earnings.
Creating a PayPal is really quick and easy. There's even an option from the Settings > Get Paid > Add Method to set up a PayPal account. Read more about the fees involved and guidelines in using PayPal through this article.
Jan 5, 2018 02:39:14 PM Edited Jan 5, 2018 02:39:56 PM by Vasilii V
Aaron, thanks. But what's the difference between linking your PayPal with your bank card and transferring directly to bank? E.g. if my bank charges 20 euros for any incoming tranfer from outside of EU will this rate be applied to Paypal+my card? Sorry if stupid question, I'm new here.
Jan 5, 2018 09:29:37 PM by Avery O
Hi Vasilii,
This is still dependent on the fees Paypal charges to transfer money to your local bank, and the fees charged by your bank for direct transfers from Upwork.
The cost per withdrawal from Upwork direct to you local bank is $0.99. For Paypal transfers, Upwork charges a small per-transfer fee, and there may be additional costs on PayPal's side. You may read this help article to know the fees charged for each payment method.
May 18, 2018 10:03:13 AM by Juan B
20 € ???? Dude I'm Spanish and that's a robbery, you should checkout cards like revolut or n26, with those ones banks don't charge you ANYTHING with a limited number of withdrawals. I use it for travelling.
Good luck
Mar 8, 2018 12:47:58 PM by Mary W
At the top of the forum page, click on "More", then "groups", then "Regional Groups" and try posting there. Maybe someone will be able to help.
Mar 8, 2018 12:43:53 PM by Sonia M
Hi, I am a spanish freelancer and would like to talk to other Spanish freelancers working in upwork. Although I have checked with 2 accountants and with Treasury department how I should declare the work I do here, everybody gives me different answers. I am not sure if the invoices upwork send to my clients are valid to declare or I should invoice upwork for the ammount of my earnings, according to what I found in some forums. Upwork support is not very helpful about it, I was told to contact a local advicer, but unfortunatelly I haven't found anyone that is sure about the procedure. So I would really appreciate some insight about it from other Spanish that have been declaring work from Upwork for a while. I would pay for the advice if necessary.
Thanks a lot
Apr 5, 2018 04:58:38 AM by Mark B
Hi Sonia
Yeah, a lot of us are in the same boat.
What I've been told by my gestor is that legally, we need to produce a factura with the name and address of the end client (not the name and address of Upwork).
Hope that helps!
May 30, 2018 04:40:26 AM by Andrea S
Hi Mark!
Do you include IVA on your facturas ?
I have been a freelance for an international company outside of Upwork before. My invoices did not include IVA as the model I was applied wasn't required for international companies, but I had to include the ID/EIN company number and the company adress. Do you have to add this information on your facturas of your clients from UPWORK?
Thank you,
Andrea
May 30, 2018 05:38:22 AM by Mark B
The latest information I have is basically that Upwork is irrelevant here. Facturas have to be created in the same way as if you were dealing with the client directly, so IVA has to be charged where required (as does IPRF), the client needs to supply their NIF, etc. That means in the case of international clients, IVA is not required, but full details of the client need to be added to the factura, including the address.
This is problematic, of course, as some clients do not wish to give these details directly to the freelancer.
Oct 1, 2018 10:39:49 AM by Sonia M
Hi Mark,
Thanks for the reply and sorry for my delay replying. There is a while I do not work through upwork because of this problem. A pity really, because I have not found a way to make the work through upwork legal at all. Months have passed and I see lots of people with the same concern. The invoices issued by upwork are crap, you cannot do anything with them.
Can you please confirm you are working from Spain and paying taxes here for the work done through upwork ? I would really appreciate advice from anyone that has found a working solution and not got into trouble with Spanish TAX authorities for crappy invoices. I would really like to come back to work through here, got interesting clients here, but I am not finding the way. Would appreciate, even would pay for the right solution.
Cheers,
Oct 2, 2018 03:45:32 AM by Mark B
For what it's worth, yes, I am working on Upwork and declaring everything. I've not got in trouble, but of course that doesn't necessarily mean I am doing it right.
Basically, I issue invoices as I would to any other client, all in accordance with the Spanish system. I ask the client for their NIF, business address, etc. and put it on my invoice. I know there are some clients that would not want to provide these details, but that's what we have to do. Upwork is not a system for hiring or working anonymously. We all still need to follow the rules in our country.
Please note that I do not work with clients inside Spain via Upwork, so there's no issues with IVA/IRPF. Either they are located outside Europe or VAT registered.
Hope that's of some use!
Jun 4, 2019 02:09:58 PM by Miguel C
Hey guys!
just trying to revive this topic as I am going through exactly the same thing. I'm a registered freelancer in Spain (autónomo) and I'm still unsure how to declare my income from Upwork. So far, I'm creating my own invoices fro the same amounts as my Upwork jobs. I've been asking my clients for their info but some of them just don't want to give it to me (despite me being very open and clear, giving them links from the Spanish tax office, etc). So in those cases I really don't know what to do. Can I issue an invoice to Upwork? That would be much easier...
Also, I'm deducting Upwork's fees as expenses... is that the way to go?
How do you guys do it?
Or perhaps Upwork's team can weigh in on this?
Hope I'm not the only one still dealing with this....
Miguel
Jul 9, 2019 10:58:59 AM by Luis Javier B
Same here. As i see, Upwork does not provide your client's ID Number. So the "invoice" they provide from the client isn't a valid one. Has the same value as a line in your notebook. Then i think you have to make a valid invoice. The question is who to "invoice" the client or Upwork. I think you have to invoice Upwork because its' the one managing the money. They make invoice for you and invoice for the client. In the other hand, Upwork fee invoices are REAL invoices with all the right details ain ID numbers, that are expenses for you.
Im sure that the important thing is that you declare the amounts. But I would be happy if i get a more clear explanation.
Jul 10, 2019 12:54:41 AM by Mark B
Hey Luis Javier,
I've had it explained to me from various sources, and I'm sure Upwork will back this up, that Upwork is not the client, it's merely facilitating the freelancer's relationship with the end client (which is why you pay them a fee).
While it would be easier for freelancers if Upwork was the client, I'm afraid that it's necessary to get the client's details (address, ID, tax status) just like you would if you had found the client in another way, and were being paid directly.
All the best
Aug 21, 2019 09:14:12 AM by Rodrigo Horacio T
Hi Guys!
I've been working for some months with Upwork and now I got a Gestor to become an autonomo and do everything legally. But she asked me if Upwork had been doing any invoices because that could be a problem with hacienda. Do you guys have any idea about this? Or I just start doing invoices to my clients from now on, and the past is forgotten?
Gracias!
Aug 23, 2019 01:39:54 AM by Mark B
Hey there
You'll certainly need to create proper invoices if you want to delare the work you have done. The invoices produced by Upwork don't contain all the info required by the Spanish tax authorities. You'll need to get the clients' addresses and tax ID numbers, for example. If any of your clients are Europe-based, you may need to pay VAT and, if a business based in Spain, IRPF.
In other words, you need to treat Upwork clients just like any other client!
Nov 11, 2019 04:03:54 AM by Inigo M
Nov 11, 2019 06:09:29 AM by Mark B
Jan 4, 2020 03:17:05 PM by Diego A
Jan 7, 2020 01:58:46 AM by Mark B
Diego, as per my previous comments here, in which explain how I'm doing it based on my gestor's advice, Upwork clients are in no way special, they have to be treated in the same way as any other client. Your facturas need to contain all the same info as if you were working with the client directly (address, fiscal identification number, etc.) If required, you need to include IVA/IRPF (I avoid Spanish and non-VAT registered European clients for this reason).
Don't let any of this put you off, though. I've never had a problem with clients giving me the required details. I think they understand that even in a global marketplace, everyone has to follow their local regulations.
Jan 14, 2020 03:06:25 AM by Joanna M
Jan 22, 2020 03:04:09 AM by Diego A
Thanks, Mark, for your answers.
Joanna, I think you should put the amount that the client has paid, and then you can declare Upwork commission as expenses. In "reports" / "Transactions history" you can download invoices for Upworks fees.
Jan 22, 2020 04:02:36 AM Edited Jan 22, 2020 04:05:39 AM by Mark B
Diego A wrote:
I think you should put the amount that the client has paid, and then you can declare Upwork commission as expenses. In "reports" / "Transactions history" you can download invoices for Upworks fees.
Totally agree, that's what I do. So, Joanna in your example, you'd declare income of $25 and $5 expenses. Just keep in mind that it's the client who is paying you, and Upwork is just an intermediary who changes you a fee for the service they provide.
Jan 24, 2020 12:45:14 AM by Joanna M
Thanks so much guys!
I have declared correctly then the full amount but only forgot about this 5$ expenses.
I will know for the future!
It is quite interesting also because I end up withdrawing different amounts as some of it I spend on submitting proposals and connects, but that doesn't change much in the eyes of Tax Office, right? It's sort of 'my spending' of this money? 🙂
Feb 6, 2020 07:55:07 AM by Christian G
So If I am understanding it correctly, working through Upwork means the same problem as trying to work in Spain. You have to be paying the 290 montly euros tax of Autonomous, which makes it incredebly difficult (If you don't have plenty of savings) for starters who are going to make very little money in Upwork at the beginning.
Feb 6, 2020 09:50:30 AM by Mark B
Correct, Upwork doesn't allow you to avoid any local fiscal responsibilities, such as autonomo payments, IVA, IRPF, etc.
Jun 10, 2020 08:07:02 AM by Sebastián M
Hi everyone!
I'm a designer freelancer working on Upwork having the same issues here..
I'm Argentinian, living in Italy, and soon I will be relocating to Spain. And I would love to have everything legal there ones and for all...
Also another doubt I always had is, how does clients declare these jobs on Upwork, cause no client ever asks me for any factura.
Does anyone have a good "gestor" for this stuff? How much can that cost per month?
Thanks everybody for your time!!
Dec 21, 2023 12:40:42 AM Edited Dec 21, 2023 02:24:26 AM by Pradeep H
Spain is **Edited for Community Guidelines**, it has a dictatorial tax regime, get Honduran nationality and avoid all that, I don't have to pay taxes to my country or the US or the EU.
Feb 19, 2020 01:55:21 PM by Iain C
Hey everyone,
I work during the day for a company on contract I am not autonomo.
I have just recieved a job I am working that uses upwork and I am a little confused with the situation.
Do I have to declare myself autonomo if I wish to continue working for this company?
As If I do there would be no point in me continuing as I will ny make if lucky a few hundred a month.
Any info appreciated
Thanks
Feb 20, 2020 12:51:56 AM by Mark B
Hi Ian
As you say, there's no point in doing that, as you'd be paying more than you'd be earning. It's a major drawback of the Spanish system. It's pretty much all or nothing, which discourages a lot of people from doing it (or at least doing it legally). But if you want to do it correctly, that's what you have to do, AFAIK.
Mar 26, 2021 04:07:47 AM by Dario W
Hi everyone,
I'm not 100% sure yet about this situation. Despite that Upwork's "terms of use" say something different, we accept a service contract with Upwork to provide a "service" to a third-party:
"Services or Deliverables for Upwork Subscriber. UTG has contracted with the Freelancer to
provide certain services or deliverables to the Upwork Subscriber (the “Engagement”). Freelancer acknowledges
and agrees that the Upwork Subscriber is an express third-party beneficiary of this Agreement, having the right to
enforce this Agreement in accordance with its terms."
I will ask my tax advisor again but I think that they don't have in mind that there is a service contract between you and Upwork. For example:
https://e-autonomos.es/blog/2019/09/como-facturar-si-trabajas-con-upwork
"llegamos a la conclusión de que Upwork no realiza un contrato de servicios con el freelancer para que desarrolle el proyecto de la empresa"
It's not true. There is a service contract.
Oct 18, 2023 03:24:31 PM by Andrew M
Hi Mark,
I would like to receive transfers or money into my Spanish account from a Spanish IBAN.
1. Can anyone confirm if one of the Upwork settlement methods is from a Spanish bank account
My Gestor tells me that receiving a transfer from outside Spain complicates autonomo, but I assumed that if the client is VAT registered I would create an invoice and get paid and the declaration for earnings and IVA would be the same as for national work.
Can anyone confirm if the payments from Upwork have created problems when they come from outside spain, or are they from a Spanish IBAN?
Dec 21, 2023 12:45:04 AM by Rene Antonio C
I am honduran national and don't need to pay taxes to my country, the US or the EU, I think one thing you can do is get this Honduras nationality and work as Honduras citizen.
Dec 21, 2023 12:32:55 AM by Rene Antonio C
I think that the best way to avoid this hassles is to get a nationality in a country like mine, Honduras, and then open an account as a Honduras national that way you don't have to declare taxes to either America or European Union your money will come clean to your PayPal, or Payoneer account. Of course this is not legal advice but that's the way I've been thinking about you can get tax-free money from your work.
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