Live in Spain, work in UK - Tax and NIC
Mar 1st 2019, 6:23 pm
#1
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Joined: Jun 2017
Posts: 11
Live in Spain, work in UK - Tax and NIC
I hope you can help, I have read similar threads, but none seem to answer my specific situation.
I am stuck between 2 Gestors that are giving me conflicting information.
I live in Spain and became a tax resident in 2018. Last year I earned a salary as Director of a UK company. 35 days were spent in the UK and all work was carried out at the company's permanent office in the UK. No work was done in Spain. I was paid by PAYE with income tax and NIC being paid.
One gestor says I have to declare this in Spain as World Wide income.
The other says that as my salary was 60,100 Euros for a UK LTD company and no work took place on Spanish soil then it is exempt under Article 7p of the IRPF.
I just want to do the right thing. I am not so worried about the tax as it will just be a 'top up', my worry is Social Security payments. If it is declared would this trigger Spanish SS for both me and the company?
Any help??
Thanks
I am stuck between 2 Gestors that are giving me conflicting information.
I live in Spain and became a tax resident in 2018. Last year I earned a salary as Director of a UK company. 35 days were spent in the UK and all work was carried out at the company's permanent office in the UK. No work was done in Spain. I was paid by PAYE with income tax and NIC being paid.
One gestor says I have to declare this in Spain as World Wide income.
The other says that as my salary was 60,100 Euros for a UK LTD company and no work took place on Spanish soil then it is exempt under Article 7p of the IRPF.
I just want to do the right thing. I am not so worried about the tax as it will just be a 'top up', my worry is Social Security payments. If it is declared would this trigger Spanish SS for both me and the company?
Any help??
Thanks
Mar 4th 2019, 10:56 am
#2
Just Joined
Joined: Feb 2019
Posts: 8
Re: Live in Spain, work in UK - Tax and NIC
Not yet a resident in Spain (but close to pushing the button I think!).. so I don't have any experience to back this up apart from a good chunk of research in prep for my own situation.
From what I understand, since you're tax resident in Spain then even if you paid tax in UK you would still declare the overseas income and also any taxation that was paid in the UK.
Under double-taxation treaties, that would reduce any tax due in Spain by the amount already paid in the UK. Once that's done, you'd pay any extra tax that was due to Spain.
Willing to be fully corrected on this, but that's my first initial guess. As for SS payments, I've been looking into the Autonomo route so not really sure about your situation.
From what I understand, since you're tax resident in Spain then even if you paid tax in UK you would still declare the overseas income and also any taxation that was paid in the UK.
Under double-taxation treaties, that would reduce any tax due in Spain by the amount already paid in the UK. Once that's done, you'd pay any extra tax that was due to Spain.
Willing to be fully corrected on this, but that's my first initial guess. As for SS payments, I've been looking into the Autonomo route so not really sure about your situation.
Mar 4th 2019, 11:06 am
#3
Just Joined
Thread Starter
Joined: Jun 2017
Posts: 11
Re: Live in Spain, work in UK - Tax and NIC
Thanks for your reply. I think most people are agreeing that the income needs to be declared and my UK tax paid be credited.
It is the Social Security that seems to be foxing people. My UK accountant is adamant that as I have never worked in Spain they can't possibly claim SS payments....but hey this is Spain haha
ps....I would avoid becoming autonomo if you can...its a nightmare!
It is the Social Security that seems to be foxing people. My UK accountant is adamant that as I have never worked in Spain they can't possibly claim SS payments....but hey this is Spain haha
ps....I would avoid becoming autonomo if you can...its a nightmare!
Last edited by Dazbear; Mar 4th 2019 at 11:08 am.
