Hi,
I've been looking on the internet trying to find some tax information....But no joy And to be honest im not sure that the company i am working for fully understands the situation..
My question is..
I am out in spain for about 2 years,i have been given an NT coding for my uk salary.I am on expenses,i have been informed that expenses and salary will be subject to Spanish tax.... I have also been informed that i shall becoming a spanish resident while i am here,i think it is an N.I.E number ?

Do i have a choice? and also with my expenses could they be free of tax for the first 183 days???
Thanks in advance for any information.....

Depends on the day you move out. The Spanish tax year is the same as the calendar year. If you spend more than the 183 days in Spain for that year then you will be tax resident in Spain. You will have to declare your tax and expenses in Spain for that year. You will not be tax free for the first 183 days.

Thanks for the reply.....not the news i would have liked.. thanks

you do have to pay spanish tax on initial funds earned. you can use investment schemes so you can pay tax in initial investment but have a tax free pay out after a fixed term.

(SNIP)

There is very little that is tax free in Spain unfortunately as you must normally declare your worldwide income!
Even your tax free cash sum from your pension is most likely taxable in Spain if you are a tax resident here

Many thanks to everyone for your replies.........

i have been into work today and done some research for you. the tax system in spain is completely different to that of the uk.

you dont have to pay spanish tax if you are not here more than 183 days. in order to pay tax you have to become a spanish resident. i know this has already been mentioned above. the thing with spanish tax is that you pay tax on everything you earn. there is no threshold like in the uk. if you earn under 17k a year you have to pay 23% tax, if you earn over then you pay 26%. but you can opt for a flat tax rate of 24.6% so you are taxed constant which works well if your bonuses are varying!

as always there are ways around paying tax, usually based on routs of domicile and changing savings accounts (as this is counted in spain) ie off shore banking or saving ISA's.

it is a requirement to pay tax, or prison will be calling for you. if you do come to spain give me a bell i might be able to help more.

There is a threshold - everyone gets at least €5151 as a personal allowance and another general allowance of between €2652 - €4080 depending on your income. There are also allowances for children and other dependants.

Mortgage tax relief is allowable in Spain.

The basic tax rate is 24% not 23% as you stated and the next band is 28%.

UK ISAs are taxable in Spain.