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AAAAAHHHHHH TAX...HELP

AAAAAHHHHHH TAX...HELP

Old Apr 14th 2010, 7:43 pm
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Default AAAAAHHHHHH TAX...HELP

Hi,
Its the first time i have posted on the spanish section of expats..Hello.

I have a question..The company i work for in the uk has sent me out to Madrid for the next 2 years..
Am i right in thinking that my uk salary will subject to spanish tax ( i am going to be N.T code for uk).

I am also to receive daily expenses while i am in spain,and again i have been informed that these shall also be taxed under the spanish system

Any information would be of help..

Thanks in advance

Squiddley
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Old Apr 14th 2010, 8:40 pm
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Default Re: AAAAAHHHHHH TAX...HELP

Don't panic..your income will be subject to spanish tax if you live in Spain. But it's quite simple really. As you can just go to a Gestoria and have a gestor do it all for you.

He or she will save you from alot of time and hassle over taxes and other gov admin matters. The charges are relatively cheap and they will help you with your tax matters - usually saving you money as they know the ins and outs.

They are similar to an accountant/solicitor - but do get one recommend to you from your company in Madrid.

Good luck in Madrid.

Last edited by manamama; Apr 14th 2010 at 9:42 pm.
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Old Apr 14th 2010, 8:42 pm
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Default Re: AAAAAHHHHHH TAX...HELP

Originally Posted by squiddley
Hi,
Its the first time i have posted on the spanish section of expats..Hello.

I have a question..The company i work for in the uk has sent me out to Madrid for the next 2 years..
Am i right in thinking that my uk salary will subject to spanish tax ( i am going to be N.T code for uk).

I am also to receive daily expenses while i am in spain,and again i have been informed that these shall also be taxed under the spanish system

Any information would be of help..

Thanks in advance

Squiddley
Yes and yes. It is complicated especially as you are employed by a UK company. Basically your company should sort this out for you as they need to know where to send social security payments. Either you or them will need an accountant

FYI its harder to claim back expenses in Spain than in the UK, you need an invoice with either the company CIF number or your NIE number on every one. The expenses they are sending will be taxable as extra income tax in Spain

Just seen manamamas post, I'd think they would need an accountant rather than a gestor as this is more complicated. But if you've been through a similar situation then you know better than me
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Old Apr 14th 2010, 9:28 pm
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Default Re: AAAAAHHHHHH TAX...HELP

Originally Posted by cricketman
Yes and yes. It is complicated especially as you are employed by a UK company. Basically your company should sort this out for you as they need to know where to send social security payments. Either you or them will need an accountant

FYI its harder to claim back expenses in Spain than in the UK, you need an invoice with either the company CIF number or your NIE number on every one. The expenses they are sending will be taxable as extra income tax in Spain

Just seen manamamas post, I'd think they would need an accountant rather than a gestor as this is more complicated. But if you've been through a similar situation then you know better than me
but you´d need to pay SS in spain? then put in the facturas and what you´ve been paid (payslips) showing the uk tax, which will be deducted from the tax due in spain, because of the double taxation thingy?

you´d still have to pay 330€ a month to be legal here.. i think?
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Old Apr 14th 2010, 9:28 pm
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Default Re: AAAAAHHHHHH TAX...HELP

Hi again.

Didn't think of the SS which really are a seperate issue to tax. What does your Employers say on this?

As you're not paying into the Spanish Social security system you will not be covered. Check with HM Customs because there may be some way to be covered (it may be more beneficial to pay tax and ni in the UK) ??

Or perhaps you're getting private healthcare?

We have private healthcare paid by the company so really not sure about this side of things.

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Old Apr 14th 2010, 9:34 pm
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Default Re: AAAAAHHHHHH TAX...HELP

Originally Posted by manamama
Hi again.

Didn't think of the SS which really are a seperate issue to tax. What does your Employers say on this?

As you're not paying into the Spanish Social security system you will not be covered. Check with HM Customs because there may be some way to be covered (it may be more beneficial to pay tax and ni in the UK) ??

Or perhaps you're getting private healthcare?

We have private healthcare paid by the company so really not sure about this side of things.

as far as im aware, wether you pay tax in the uk or spain you still have to pay the monthly doodah in spain which makes you legal here.

tax is a seperate issue, and is payable every 3 months, where you would submit your payslips and they would add up the tax already paid, then deduct it from the tax due in spain, and thats what you have to pay here ?

minus of course the IVA of anything business related, after you are registered here.
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Old Apr 15th 2010, 6:54 am
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Default Re: AAAAAHHHHHH TAX...HELP

It may be possible for your employer to continue paying UK NI payements in which case you may not have to pay them in Spain but still be eligible for health care.

It's a bit complicated but these two links may help.


http://www.nhs.uk/NHSEngland/Healthc...ingabroad.aspx

http://www.dwp.gov.uk/international/...eea-countries/
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Old Apr 16th 2010, 4:15 pm
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Default Re: AAAAAHHHHHH TAX...HELP

Thanks to everyone who replied to my thread...

Maybe things will get sorted....On the bright side...the weather can only get better....
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