crayfishuk

Hi All,

Im after a little advice. I'm a British citizen working full time for a UK subsidiary of a US company (Im a salaried PAYE employee of a UK Ltd company). My job is mostly travel and so long as I live near an airport it makes no logistical difference if Im in the UK or not, so I've been thinking about moving out to Spain for a couple of years.

What are the implications for doing this and working for a UK company? Can I just continue to earn and pay tax in the UK and use a UK bank account while living the whole year in Spain or do I have to deal with tax issues in Spain too?

I know there may be tax advantages paying ES tax instead of UK tax, but for now I'm just after the easiest way - eg: can i just move and not worry about it?

I'm a bit unclear on this, any help would be appreciated.

TIA
Craig

snikpoh

Hi, unfortunately it's really simple. Once you live in Spain for more than 90 days, you have to get a 'residencia' (be listed on the foreigners list). This will require that you have regular payments into a Spanish bank and you will have to show that you have health care provision. As you will be paying UK NI contributions, I think you can apply for an S1 form from DWP.

If you intend being in Spain for more than 182 days per year (some say it's 185 days), then you are deemed tax resident and must make tax declarations on ALL worldwide income. Against any Spanish tax, you can make an allowance for any tax paid in UK (double taxation agreement).

So there you are, you may not want to pay tax in Spain, but you will have to.

crayfishuk

Thanks for the advice - it's not that I dont want to pay tax in Spain, and Im certainly not asking how I can avoid paying it, I just want to find the easiest way to transition from the UK to Spain while keeping my existing job. How will this process affect my employers for example? They are an american company and struggle enough as it is with a UK payroll I don't want to further complicate things

Is there any guidance online for working for a UK company while living in Spain?

Thanks
Craig

Fred James

It shouldn't affect the UK company as you will continue to be taxed there via PAYE. Income arising in the UK is taxed in the UK even if you are tax resident elsewhere.

You just complete an annual tax declaration in Spain and put in the details of any UK tax paid.

Rosemary

As Concierge for the Spanish section of BE I would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

londonbee

Set yourself up as an offshore company, invoice your employer. Draw a living wage to Spain (which is what you'll be taxed on in the Spanish system) and retain your earnings in the company.

crayfishuk

Unfortunately they won't go for that - they'll want to stick to a standard payroll, and thats ok. The nature of my job involves a lot of travel and so long as I live near an airport logistically they won't really care if its UK or Spain - but they won't bend over backwards to accommodate that kind of set up financially.

cricketman

I'm not sure that it is that simple

If you are working full time for a company from Spain then that company needs to pay your Spanish social security contributions.

My clients are mainly in the UK so this is easy for me, as I simply pay my own social security and invoice the clients for the work done.

However, this is illegal if you only have 1 client i.e. the one that is employing you full time.

billgates

Doesn't it also depend on where you actually do your work?

I'm in a similar position in that I carry out my actual job in Spain but for a UK company.
My UK tax code is NT so I don't get any deductions for UK tax or NI even though I am a PAYE employee.
I pay my tax in Spain in my annual declaration in June.

crayfishuk

Technically my work would be split 50/50 (though not always 50/50) between working from home and international travel.....

londonbee

Craig,

Is it just you? I didn't see any mention of family here.

That being the case, and I'm sure some will frown at the suggestion, but you could remain a UK resident and live in Spain on an itinerant basis.

If it is for "a couple of years" and assuming you don't buy a house, car, use the schools or health service (you will have an EHIC card anyway) you could live there with minimal imprint on the system.

The alternative for you is rather tricky as you will be neither self-emp/autonomo or employed in Spain.

cricketman

How do you pay your Spanish social security payments? If neither you or your employer is paying them then you are working illegally

billgates

I do a bit of work on the side and claim automomo.

crayfishuk

Thanks for all the responses - the more Im reading up on this the more Im realising that being tax resident in Spain and retaining a PAYE salaried job for a UK company is a minefield of confusing information. HMRC website doesn't seem to have any information on double taxation for PAYE salary (only royalties, interest...etc).

I need professional advice on this I think, if anyone can recommend a really good ex-pat tax advisor in Spain (Malaga area) that would be really appreciated.

C

crayfishuk

Can you let me know how you went around getting your NT code in the UK and what you had to provide to HMRC to do this?

Also - I will be living in Spain and my work will be about half telework (remote on Internet) and half international travel (though I may well be in spain for more than 180 days of the year)