I'm sitting for the FCE on december, i think i could help you.
"I read on The Time newspaper the advertisement of your international book shop"
You never say when you've read it, so you can't put past simple.
"because I need to earn some money for my studies and improve my english as well."
I would write "I think the job would help me to improve my English" or something like that. When I read your sentence it sounds me like a bit informal.
"I live in Madrid sinde I started going to the European University of Madrid in 2007."
I don't know if the order is ok. I would write "I live in Madrid since 2007, when I started going to the European University of Madrid"
"I have got an advance level of English"
It's advanceD because you're talking about the level.
Well, tell me if I have helped you!