Thanks for that Steve, I will for sure. I will hopefully have a road trip over next week and take advice from a couple of different Gestors over what is best for my situation.

I have heard from people when we have visited who have theIR own business that the contribution has crippled them financially and they wish they never did it but I guess they had too. I just don't want to make mistakes that could cause issues if things go tits up.

What I said contradicts what cricketman and "some other people on the internet" say? Well, weirdly what they say contradicts what I, and other people on the internet say.

So my best advice to you, because everyone's situation is different, is that you either get a Spanish accountant that is expert in UK and Spanish tax (because more often than not they are experts on Spanish system only), or get a Spanish accountant AND an English one ... then in your own mind you will be clear that what they come up with is right for you. Don't forget, I'm a director and directors can take ... well .. different views on things

All I can tell you that in the 6 or 7 years I have been on Expat forums I have come across numerous people who do the same thing (and this isn't tax evasion)

I suppose logic tells you that you have to declare your worldwide income in the country you reside in, i.e. Spain in this case. So you declare your income in the UK to the Spanish taxman, and deduct the tax already paid in the UK from that return (dual tax agreement)

If I am gaining £10k a year income (I wish) from investments in the UK which are taxed at source, then I am doing the same thing.

Am I right, or am I wrong wrong ... well, there are two trains of thought obviously.

In the UK HMRC frown upon people who purport to be self employed but only have one "account". Its called the master / slave relationship, something to do with whether that account has the power to tell you what to do ... I have no idea if the same sort of thing exists in Spain with autonomo

Yes I agree, it may be of use to others, but why would Mitzy seek and pay for legal advice as Cman recommended from his person in the know, when he is not even living Spain and is back in the UK,

That was my point.

I cant complain at all tbh, thanks
Who knows what I might be doing next year

Mitzyboy, fine. So, if I was to take your vision then I just pay tax in UK and declare in Spain and pay any outstanding taxes if any.

Probably, you could help me with these thoughts?

- Then my medical insurance will not work (if I don't get additional Spanish workplace), as SS is paid in UK and I will have to by a private one in addition to paying UK SS. Am I right?

- How should I prove to Spain that tax has already been paid in UK?

- Won't my employer have troubles when he pays salary and taxes for the person, who is not country (UK) resident anymore?

I think the answer is to make sure the business generates enough revenue that you're not concerned with the 270/month autonomo. Easier said than done, but millions of Spanish manage to do it.
In fact it's one of the two reasons why I'm taking over the Madrid business. By contributing to the autonomo system (and transferring over my UK contributions) I can qualify for a far larger pension - although I will need to make higher contributions to do that.
The other reason is that I can see how to make the business work in Madrid - there are people who manage to make it work in London, but I genuinely can't see how they do it. The product is often dirt cheap, sometimes even free in the UK, yet can fetch a decent amount in Madrid. Add in the fact that a business purchase can be just a fraction of what it would cost back home, and it was a no-brainer.
I won't pretend not to be a little nervous about things though. When the purchase takes place in September I'll be monitoring the gestor's assessment beforehand in great detail of any outstanding debts that are "forgotten".

Steve, You have been a great help to me so far and I hope for you too it works out, its interesting your point about generating the revenue to pay the contribution, it is my thoughts that because it is so high I think thats maybe why I feel competition for my idea is not so large.

I am very apprehensive but I know if my plan does not work I still have my UK Market to fall back on.

Also the pension is something I have never bothered with in the UK but I have researched lightly with regards to Autonomo and it is of much interest to me if we was to stay in Spain Long term.

Going back to the OP, Mitzy is right have both UK and Spanish accountant, I would not have one that claims to know both because they wont know everything.

As I said before, you need to emply the necessary tax advisers rather than listen to us lot on an expat forum where you have already heard two different opinions

It is just a pity to lose SS paid in UK as I am going to live in spain and buy a private one

Searching through the forum I found this thread dated 2007 and topic starter has exactly the same problem. Guess what, nothing changed in these 6 years (why am I not surprised?)

http://britishexpats.com/forum/showthread.php?t=461807

Allow me to quote user KnockCollins:


And now how user billgates describes his autonomo solution:

Interesting, whether many people use this scheme and how it is accepted by Hacienda and UK Tax Office..

Basically, I can probably still pay UK taxes for UK employer (as Mitzyboy advised), declare it as "foreign income", pay outstanding tax (if any), while filling tax return. But in this case my SS payments are wasted in UK and if I don't get that spanish workplace, I will have to buy private healthcare.

btw, Mitzyboy, you wrote in that topic that

Are they though ? Can spell out what you want exactly and what you need as I have a interest like you too, but simply I see it if your young why don't you just pay for a doctor PAYG like I have done when on vacation and then go back to UK for treatment as your paying into the system should you need it ?

Do you envisage serious illness ?

I think the last time I saw my GP was 2007 so 6 years, you can just fly home if you have a issue no ?

Some clinics in Spain will take €300 and you can see a GP any time for free and you get a full MOT too, and proper tests like liver and mamogramms and xrays on your chest, I ill probably take that option when I arrive.

No serious illness, but don't want to fly home only because I need to check something It is better to go to the nearby clinic, I think..

I guess maybe then pay the €300 for a fixed price to see a GP anytime in Spain or the €50 private fee if and when you need it, or try and negotiate a better deal.

I would just get there first and then look into what you need to do, that's my plan, ill deal with it once I am there otherwise its just more thing to worry about.

Private health insurance for two people in their mid fifties in Spain when we took it out in 2006 was €1150 per year. That's €95 a month, or if it was as easy as splitting it, €47 a month for a single person. Obviously for someone much younger, it will be much less. Clearly inflation will be an issue, but its still a cheaper option than people think

Paying for healthcare as and when it is needed may sound like a good idea but it definitely is not because you have no idea what could happen to you. Age does not protect you from a sudden illness and then you could end up with extremely high hospital bills.

Please think very carefully before you take this route.

Rosemary