Working freelance is another option in Spain and the paperwork is manageable when you get used to it! Again though it pays to do some research first as the market for your particular area of expertise may be very different in Spain. At the very least you will probably have to settle for a lower hourly rate than you would get for the same work in the UK. If you have a trade then you will probably find there is demand for your work, but you may have to register with the appropriate Spanish professional body before you are allowed to work. Admittedly, many British trades-people do not do this, but then many of them are fraudsters. IT professionals do not have to register with anybody but again will find they have to compete with all manner of cowboys offering very cheap rates (and shoddy service).

If you work freelance you will have to pay all of your own social security contributions (min E225 per month) plus 20% of all quarterly profits as an advance tax payment (but you can usually claim most of this back at the end of the year). It is also worth noting that all self employed people have to charge IVA (Spanish VAT) where appropriate, and that outstanding amounts have to be paid quarterly.

For more information, visit the Spanish Tax Office Website (site in Spanish)