rosstoward

Hey what is the threshold over here before you pay tax and social security, been told my income even though paid in the uk it is to be taxed in spain as that is where i perform the work, it only equates to a max of 225e a month so do I need to go all in, I heard that I would have to pay 60e each for me and wife to claim medical right (we are only in our 40s), hardly worth it and the hassle for a spare 125e a month.

No residencia at the minute and go back to the uk every 6 months so health is through UHIC, but we are pretty helpful.

Looking forward to feed back on this.

Thanks

cricketman

If you are resident in Spain and perform the work in Spain then all your income from work should be delcared in Spain

The minimum payment per month is 260 euros social security. Then you pay roughly 20% tax on the rest each quarter. Then at the end of the year you have to pay more or get some back depending on your final income band

It doesnt matter if you go back to the UK every 6 months if you spend more than 6 months per year in Spain.

snikpoh

Also, just to say, the lower level of income before you are eligible for tax in Spain is ..... ZERO.

That is you are eligible for tax straight away.

However, there are personal allowances which you will be able to use to reduce your tax bill.


Also, there are still reductions on SS payments for new 'start-ups'. That is, for people who are going autonomo for the first time. Worth googling.

rosstoward

So I earn 225 Euros a month and would have to pay 260 Euros a month Social Security - Well thats kind of a no brainer then - its not worth it. I will just put the income through the UK self assessment with my rental income on the UK property.

cricketman

You can do that if you like, but it would be illegal

You also must declare your rental income in Spain - and declare that you own your property to the tax office

mikelincs

So the difference between what you earn, and the autonomo is €35 a month, how much do you pay for private health care, if it's more than €35 a month then becoming legal in Spain would save you money, so that's a no-brainer. Remember that there is no going back to the UK for free NHS care any more.

tasgb

I thought that if the work was done in the UK you are not considered to be autonomo in Spain and don't have to pay social security. I will be taking small pension drawdown from the UK this year and I receive a small amount of bank interst from the UK taxed at source at 20%. I will not get UK state pension until I'm 65 in 3 years time. I'm seeing the local tax office on Monday to see how I will be taxed. I'll post their advice on here.

mikelincs

If you are living in Spain, then you are tax resident in Spain, and should tell HMRC that you have moved, also tell your bank that you want your interest gross. your pension might be a different matter as some pensions have to be taxed in the UK. You will need to complete a tax declaration each year in Spain, if you have paid tax in the UK then that can be offset against any Spanish income tax you might owe as there is a treaty in place so that you are not double taxed. You will need privaate health cover in Spain if you do not become autonomo this will be needed till you reach UK state pension age when you can get a form from the DWP that will entitle you to be regsitered as a pensioner and get free, or almost free, healthcare in Spain.