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Living in Spain on a UK contract

Living in Spain on a UK contract

Old Feb 12th 2018, 10:44 am
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Default Living in Spain on a UK contract

Hello,

I work from home in the UK for a US company. We moved here from Spain some 10 years ago (my wife is Spanish). Now, for personal reasons, we would like to move back to Spain with our children. My company has said that in principle they have no problem with me working remotely from Spain. They said that one option is that they transfer me to a Spanish contract and link me financially to our Spain subsidiary. However, they also said that if this were to happen I would need to take a hefty pay cut to make my pay align more with the Spanish employees.

I am now wondering if there is a way to live and work in Spain but staying on my UK contract? I recall reading a post somewhere from someone who said they were doing just this. They said that they contacted HMRC UK to say that they would be paying all tax in Spain and then in Spain they just submitted tax declarations each year detailing the amount earned on the UK contract. So, they were officially tax resident in Spain.

ARE ANY OF YOU DOING THIS?

If so, I would really like to hear how you set it up and about your experience.

I realize that this mechanism does not cover Social Security. For me, this may not be a problem because I already have private medical cover in Spain with Sanitas (because of our frequent trips back to see the inlaws) and I would just draw my pension from the UK system.

If anyone has any comments, advice etc I would love to hear it.

Thanks

Andrew Morris
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Old Feb 12th 2018, 11:58 am
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Default Re: Living in Spain on a UK contract

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst myself and BEVS moderate Europe. Please read the Site Rules Site Rules | British Expatriate Community adhere to them so that the site runs smoothly. Moderators are there to ensure that the rules of BE are maintained. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

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Old Feb 12th 2018, 1:58 pm
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Default Re: Living in Spain on a UK contract

If you are going to be living in Spain, then you have only two options really;
  • Work for the Spanish subsidiary as they suggest
  • Go autonomo (self-employed) and bill the UK company

The problem with (1) is, as they say, you may have to take a pay cut and the problem with (2) is that you would have to pay your own tax and social security etc.
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Old Feb 12th 2018, 2:30 pm
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Default Re: Living in Spain on a UK contract

I know several who live in Spain and work in the UK and elsewhere. It is quite straight forward. There are many aspect to consider, speak to a GOOD accountant on how best to arrange your affairs.
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Old Feb 12th 2018, 5:52 pm
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Default Re: Living in Spain on a UK contract

My nephew works in Spain for a UK company. Paid from UK. They sorted out the tax situation. You could speak to a Spanish Gestor but shouldn't be a problem. If you take a job with lower wages, it will affect your wages and your works pension. Also your personal allowance. Not a good idea
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Old Feb 14th 2018, 12:15 pm
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Default Re: Living in Spain on a UK contract

Thanks for the replies.

Cermignano, do you know if your nephew is technically on secondment to the Spanish branch of the company he works for?

Yes at some stage I will speak to an accountant but I would like to get as much info as possible first of all.
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Old Feb 15th 2018, 7:16 am
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Default Re: Living in Spain on a UK contract

Originally Posted by cermignano View Post
If you take a job with lower wages, it will affect your wages
Will it really? That's astonishing
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