Sure, you could get away with is for 6 months by arguing that you are not resident

What are you suggesting. 6 months each year in Spain and 6 months in Portugal?

It sounds like a lot of hassle to get out of spending 3,000 euros on social security contributions each year. Also remember that you will have no medical coverage if you do not pay this

Thanks again, its not really my social security that would be the issue, rather that I'd lose the job if the company I work for had to pay a contribution. I'm here for the language experience, I already speak Italian, so learning Portuguese as well wouldnt be all that bad! Cheers

Might be quite hard to learn Portuguese whilst in Spain

The company you work for wouldnt have to pay your social security contribution. You would have to pay it!

So employers don't contribute like they do in the UK?

You would then fall foul of the Portuguese tax rules where again social security payments are mandatory if self employed.

Yes they do, but only if they have a Spanish company set up. If they dont have a Spanish company set up then they are not able to employ a Spanish resident directly

The way around this is to become self-employed and invoice your company each month, meaning that responsibility for paying social security and taxes then falls on your head

Hey,

I stumbled across this forum while seeking out information regarding my situation. I have read a fair bit but it makes my head spin Conflicting information here and there, docs on abagado websites and official docs on HRMC and Spanish government websites. I am hoping someone here could help me on the path of the straight and narrow.

I have just moved to Madrid.. I am a permanent UK employee of a large multinational corporation. They agreed to allow me to continue my job i have in London remotely from my Flat in Madrid. I do technical consultancy. My company has a sales office in Madrid. I have no requirement to use this office for my job. I want to avoid becoming an employee of the Spanish office( less pay, new contract, complications because i am not Spanish)

1.) Am i liable to pay any contributions as a non resident for the initial 6 months in Madrid before i become a permanent resident?
- I understand as i have a PE (permanent establishment) "the Madrid office" there are liabilities.
http://www.strongabogados.com/docs/s...-tax-guide.pdf

2.) After 6 months when i become a permanent resident i will need to pay income tax to Spain. I can apply for exception using the dual tax agreement between UK and Spain. Is this still possible if i have a PE in Madrid?

3.) If i cannot continue to work under my UK contract from Spain, or if i cannot secure a satisfactory contract through the Madrid office, what are my options?
- Open a Limited Company in the UK, work as a contractor and bill the UK office?
- Open a Limited Company in Spain, work as a contractor and bill the UK office?

Hi I'm just wandering how you got on with the working remote for the uk and living in Spain as that's what I'm looking to do
But after reading some of these crazy rules maybe I will just stay here in the uk

I can't see why you should pay tax in Spain if your income is earned In the uk

I'm guessing you have spent a lot of time researching this

I'm going to call hmrc uk in the new year to try and get to the bottom of this

... because you live here and make use of all the services in Spain.

The tax rules are similar in most countries. If you are tax resident in country A, you pay tax in country A on your world wide income. If that income arises in country B you also pay tax on that income in country B even if you are not tax resident in country B.

Clearly it would be unfair to pay tax twice on the same income, so if you are in this situation, you will pay tax in country A on the income from country B, but you will be able to deduct the tax paid in country B from the tax paid in country A.

That's a bit simplistic, I know, and there may well be exceptions built into any tax treaties between country A and country B, but that is the essence of it.

That was my understanding of it
So basically I could pay tax to the uk on my uk Bussines and Spain would allow me to deduct that from my Spanish return

I think I'm getting it slowly


QUOTE=Fred James;11822060]The tax rules are similar in most countries. If you are tax resident in country A, you pay tax in country A on your world wide income. If that income arises in country B you also pay tax on that income in country B even if you are not tax resident in country B.

Clearly it would be unfair to pay tax twice on the same income, so if you are in this situation, you will pay tax in country A on the income from country B, but you will be able to deduct the tax paid in country B from the tax paid in country A.

That's a bit simplistic, I know, and there may well be exceptions built into any tax treaties between country A and country B, but that is the essence of it.[/QUOTE]

I do not feel you have given everyone here the whole story as you have given in this thread . Hence the simplistic answer from Fred. The situation you have posted is a bit more complicated in reality.
You will be living here full time.
Because of that fact you will still have to pay any taxes due in the Spanish system. Now if your Spanish tax return makes that a zero amount all the better. But as you have to register here as living full time you will have to pay into some sort of health system. This a point you have not asked about here. When you do you will have to abide by the Spanish laws. If the system here classes you as self employed then you will have to pay the amount as quoted (or more) in your first thread.
Whilst you make enquires at the UK tax office it is here in Spain you wish to live so it is the Spanish tax offices ruling you will have to find out about.
The amount of money per month also covers your who;le family for health care, you for sick leave and something towards your pension fund. It actually covers far more that what you get in the UK.
You finished off the last posting by stating a small contradiction.
So what you pay/allowance (tax wise) will like in any country depend on what you are classified in Spain.
But questions arise on your wife's status here, purchasing a house here, renting out your UK home whilst here etc

Thanks again for further help
Merry Christmas by the way .
Ok the full story is
I'm a ltd company director which is based in the uk I run it anywhere in the world
I'm employed by the company so I'm on paye as far is tax is concerned
I'm sure you can chose to pay tax in ither
Country ( as far as Spain is concerned I'm a employee of a ltd company

I'm well aware about health care I would happily pay for private care that's why I've not mentioned that much

I'm looking to move and take my wife and daughter with me to Spain
My wife may well get a job with Santander as she already works for them in the uk




QUOTE=Casa Santo Estevo;11822134]I do not feel you have given everyone here the whole story as you have given in this thread . Hence the simplistic answer from Fred. The situation you have posted is a bit more complicated in reality.
You will be living here full time.
Because of that fact you will still have to pay any taxes due in the Spanish system. Now if your Spanish tax return makes that a zero amount all the better. But as you have to register here as living full time you will have to pay into some sort of health system. This a point you have not asked about here. When you do you will have to abide by the Spanish laws. If the system here classes you as self employed then you will have to pay the amount as quoted (or more) in your first thread.
Whilst you make enquires at the UK tax office it is here in Spain you wish to live so it is the Spanish tax offices ruling you will have to find out about.
The amount of money per month also covers your who;le family for health care, you for sick leave and something towards your pension fund. It actually covers far more that what you get in the UK.
You finished off the last posting by stating a small contradiction.

So what you pay/allowance (tax wise) will like in any country depend on what you are classified in Spain.
But questions arise on your wife's status here, purchasing a house here, renting out your UK home whilst here etc[/QUOTE]

No, that will be decided by the tax laws in both countries and there is rarely any choice involved.