Really confused about a job offer

[kint]

I’m a 2001 Spanish national which is about o complete his Bachelors degree (this summer), and start a Masters+PhD in October (all my studies are in the U.K.). So I don’t know much about taxes, international salaries, etc.

I have been working for this Spanish company for the last 4 years. My job consists of designing communication systems (microwave systems) and electric systems, hence, it is usually online, and at times I need to travel to assist in the hardware installations. This job is related to my field of study, Electrical and Electronic Engineer. I’ve got a good salary, and my bosses are quite happy with me (I started with 650€ monthly and right now they pay me 1600€).

The thing is that I got contacted through LinkedIn by this recruiter from this Belgian military tech company. They interviewed me and asked me to carry out certain tasks (testing me), which I completed before the deadline, and they where quite happy with it. They have offered 4200€ (mind blowing), and told me I would continue working online as I am doing right now. Question is: in this new job offer all 3 interviewers told me that they can transfer my salary to a bank in Andorra, or preferably Tangier Frank Zone.

I asked a couple of “gestores” (sort of legal chartered accountants in Spain) and they all told me to ask them to make an ordinary transfer to my Spanish account. But the company insists on either Andorra or Tangier Frank Zone. The accountants in Spain told me to leave the offer, but I obviously can’t easily reject the offer.

The company is legit, and well known within the military tech market. It’s not fake, and I’ve been invited to sign the contract and meet the facilities in Brussels.

Has anyone got any experience or advice regarding getting salaries paid in these sort of places?

 

[emm3635]

@kint I am not surprised about the salary amount. In the Netherlands, starting out after university you will probably be paid at least 2500 euros/month before taxes for a normal fulltime job. (This would probably result in earning 1900 euros/month posttax if you also lived in the Netherlands). You already have experience, so you can earn more.

So I think the higher salary is more the difference between south and north Europe than anything weird with this company.

But I am surprised on them insisting that they pay you in Andorra. That sounds quite fishy. Like they want to avoid paying certain taxes. And that could land you in trouble down the road. Have the "gestores" explained to you why they advise you not to take this job offer?

 

[kint]

@emm3635 Yeahh, I believe Spain salaries are quite different from those in Benelux.

I also find it very strange that they insist on paying me in those places specifically. As I have read from another comment ( /@tfosria ), they might have some untaxed money in these places and want to pay me directly from there.

They told me I would "save" approximately 15k in taxes per annum, but that definitely has bad consequences (part 1).

Part 2 is that I wouldn't be able to use that money. As in I cannot use the money to buy a car parking spot (as an example), or use it as a source of income to pay a mortgage (e.g. if I were to buy a house).

I am quite lost, since it would significantly increase my life quality, and also help me save a lot of money (which I have been doing in the past years). As in even if I/they'd pay the taxes I'd be having a very good salary.

Thanks for your response I will try and keep you updated

 

[emm3635]

@kint One thing I'd like to say is: don't stare yourself blind unto this specific job offer. It looks nice, but it definitely has big problems attached to it. So it's not really that nice of an offer.

What this situation could do for you is shake you awake, and make you think more about your work situation.

I think there might be other jobs out there for you, with your qualities, that are online and that pay more than your current job. Maybe not 4200 euros, but more than what you earn now. And then with a company willing to just pay you a salary so that you can pay your taxes and build up pension et cetera.

So: I would explore that option: is there a better job for you out there than the one you currently have, and also than the one offered to you with all these downsides attached?

 

[soblessednc]

@kint I don't know shit about finance or taxes. If various professionals (gestores) told me to stay away from it, i would.

Same as if various doctors told me to undergo a medical treatment, I wouldn't be trusting Reddit's opinions.

 

[kint]

@soblessednc True hahaha

 

[ibloggospel]

@kint It looks like you'll have to set yourself up as a contractor (Autonomo) and deal with all of that yourself.

To be honest, no I DO NOT condone tax evasion, so it would be up to you, but I have met a decent share of people that simply do choose to pay the taxes themselves in their home country (but given you are in Spain that would halve your earnings.. which are still good for Spain)

 

[kint]

@ibloggospel I know, I do understand the tax evasion aspect, but honestly, I am happy with the after-tax income. What I don't understand is why they insist on that payment methos. But thanks for the answer!

 

[tfosria]

@kint I'd stay away, given you'd be working remotely, you could set yourself up as contractor where you pay taxes and social yourself. That they want to somehow pay you in tax havens sounds dodgy. Could be they're paying you under the table from some untaxed money so they don't want to repatriate this money to proper jurisdiction. Something weird, I'd be careful.

 

[kint]

@tfosria That's one of the reasons I heard. I think they get paid by their customers in those accounts (tens of millions of euros), and then they use those accounts to pay suppliers and many of their workers. But I am not clear about it honestly.

I still have to discuss this on Monday with the accountant, cause it's relatively complex.

 

[james2333]

@kint They want to pay less taxes. Morally I don't like it but up to you.

If I were you I would tell them that if that's the issue you could just take a lower Net salary.

It's legal but it's shitty

 

[kint]

@james2333 Thanks!

 

[andi777777]

@kint Maybe they do not have business entity in Spain, so they can’t send you money there? Probably they are willing to save some money on taxes too.

I think if you are located in UK then legally you can’t get paid in Spain. This might be a reason too.

Maybe this new company can pay you in UK, what seems to be the correct way?

I personally prefer to pay less taxes and get more on my bank account, so I would go with this new company for sure, but there are risks associated with this choice.

Ask this new company, maybe they are willing to pay to your LTD and then you can pay taxes by yourself? In this case your paycheck should be bigger, but then you will have some headache. Keep in mind there are dozens companies in UK who can help you set up your own LTD and sort out everything else for quite modest fee.

 

[kint]

@andi777777 Thanks! I will definitely look at it from the UK perspective.