Go Back  British Expats > Living & Moving Abroad > Europe > Spain
Reload this Page >

Moving a Business To Spain

Moving a Business To Spain

Old Mar 8th 2022, 8:49 pm
  #1  
Just Joined
Thread Starter
 
Joined: Mar 2022
Posts: 23
CrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really nice
Default Moving a Business To Spain

Our heads are in a spin about the best way to move to Spain this year.
We would like to know the most tax-efficient way to move our personal and professional lives to Spain.

Our situation is this:

Us
We are a married couple.
She is a Spanish citizen. He is a UK citizen.
We are tax-paying residents of Scotland, UK.
(Up until December 2017, we were tax paying residents of Spain - probably not relevant but we mention it in case it is.)

House:
We have accepted an offer on our house in Scotland.
It was bought in June 2018 for £140,000. The offer we accepted was £160,000.
There is still some outstanding mortgage on the property.
The house is in his name only.
We'll be buying a house in Spain.

Contracts haven't yet been exchanged so the completion date can be delayed if necessary.

Business
We run a UK Ltd company, of which we are the sole directors and employees. We get dividends as well as salaries from the company. The company sells digital products to the whole world and turns over around £110k per year with net profit of £70k ish.
We would like to close the UK company when we become resident in Spain, and open an equivalent company there.

Pensions
He was paying autonomos in Spain for 7 years before coming to Scotland and was also a resident.
We've been paying into private pensions in Scotland since 2018.
We would prefer to move all financial arrangements to Spain, but if that's too costly to do, we could consider leaving the pensions as they are in the UK.

We'd like to move to Spain asap, but we're concerned about possible capital gains hits if we are Spanish residents for more than 6 months this year.

Any advice you can give would be greatly appreciated as this is beginning to look very complex to us!

Happy to get a quote from any professional who believes they can guide us through the maze.

Many thanks
CrunchyFr0g is offline  
Old Mar 8th 2022, 10:07 pm
  #2  
BE Enthusiast
 
Joined: May 2019
Posts: 640
Ronnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond reputeRonnyone has a reputation beyond repute
Default Re: Moving a Business To Spain

If you arrive before the summer and register again as residents you might have to pay CGT however your profits are low and there are CGT allowances you can apply. The UK national, if was in Spain for 5 years previous to leaving may not need to re-register if the absence wasnt too long ( possibly allowed 5 years absence- but this was a Brexit condition). The Spanish national obviously has no residency issues. Closing the uk business and reopening it in Spain would be straightforward and if the Spanish national is Spanish speaking it is easy to find the necessary information etc. All in all I would say it is all quite easy to do.
Ronnyone is offline  
Old Mar 8th 2022, 10:23 pm
  #3  
BE Enthusiast
 
Joined: Jun 2020
Location: Valencia
Posts: 506
SanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond repute
Default Re: Moving a Business To Spain

I would recommend a Google search for relocation agencies in Spain, preferably in your chosen destination. Local agencies will have the right contacts to arrange appointments They can sort everything out for you and will give you the correct and legal advice. The amount of paperwork will be overwhelming if you're both working. Good luck.
SanNico is offline  
Old Mar 9th 2022, 2:55 am
  #4  
BE Enthusiast
 
Joined: Apr 2021
Posts: 940
growinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond repute
Default Re: Moving a Business To Spain

Def find a lawyer for the business plan as it might be cheaper to leave the ltd in place and open a satellite office in Spain and work from that.

An example but in france was as a ltd with a "business in france but without premises" we only paid 2% corporation tax to France and hardly anything in the UK. It worked(s) really well for the type of business needed without a physical presence ie. bricks and mortar shop, offices, etc..
growinspain is online now  
Old Mar 9th 2022, 3:20 am
  #5  
Banned
 
Joined: Mar 2021
Posts: 538
agree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond repute
Default Re: Moving a Business To Spain

Is the satellite office in Spain just a physical office, per se or does it require additional Ltd company paperwork?

I wasn't aware you could do this.

Would the Spanish taxman not just say you are permanently based in Spain and working here full time and they qant their cut of your taxes.
agree_to_disagree is offline  
Old Mar 9th 2022, 3:26 am
  #6  
BE Forum Addict
 
Joined: Jul 2012
Posts: 1,018
Barriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond reputeBarriej has a reputation beyond repute
Default Re: Moving a Business To Spain

Originally Posted by CrunchyFr0g

She is a Spanish citizen.
He was paying autonomos in Spain for 7 years before coming to Scotland and was also a resident.

Many thanks
This bit of your initial post removes almost all of the major issues you would have faced if you were both Uk citizens.

Firstly get proper advice, don't take anything anyone oon a forum says is gospel (even me and what I say). We aint experts

So she is Spanish, no problem, move over and restart her life..
He is Uk so has to become resident from being married to an EU citizen, again easy as the financial requirements are tiny.
So he was autonomo for 7 years (did he have permanent residence)???

Forget the business for now, just sort residency and then transfer over. As one of you is a Spanish citizen its simplified.

Take legal advice...

Don't listen to any of us.

But case in point,
I have British friends who moved over recently via the self employed visa.
Before they applied they came over and rented a small warehouse (they sell physical stuff).
Got the company registered and employed two staff here to run this side while they sorted the Uk end (this is now just an office which their son runs as a separate business).
Went for their visa's and they were able to show that they would be of benefit to the local economy and they got the visa.
They have been here a couple of months now and have found the two Spanish staff to be the best investment they made.

Don't listen to any of us. Good luck with the plan. I think you will be fine..
Barriej is offline  
Old Mar 9th 2022, 4:08 am
  #7  
BE Enthusiast
 
Joined: Apr 2021
Posts: 940
growinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond repute
Default Re: Moving a Business To Spain

Originally Posted by agree_to_disagree
Is the satellite office in Spain just a physical office, per se or does it require additional Ltd company paperwork?

I wasn't aware you could do this.

Would the Spanish taxman not just say you are permanently based in Spain and working here full time and they qant their cut of your taxes.
Many big corporations do this... McDonalds, burger king, Iceland etc... Unless they are franchises..

here is a good explanation
https://www.strongabogados.com/branch.php
growinspain is online now  
Old Mar 9th 2022, 7:39 am
  #8  
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,500
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Moving a Business To Spain

Originally Posted by agree_to_disagree
Is the satellite office in Spain just a physical office, per se or does it require additional Ltd company paperwork?

I wasn't aware you could do this.

Would the Spanish taxman not just say you are permanently based in Spain and working here full time and they want their cut of your taxes.
I have no direct experience of Spain, but generally if a company incorporated in one country wants to operate in another country (that's called "a branch" of the company) it still needs to register as a "visitor". So I would expected that a British "Ltd" limited company would have to register with the Spanish registrar of companies, so that the Spanish authorities are aware that the British company is operating in Spain.

Taxes, how they are calculated, and where they are paid is a whole other matter!
Pulaski is offline  
Old Mar 9th 2022, 7:43 am
  #9  
BE Enthusiast
 
Joined: Apr 2021
Posts: 940
growinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond reputegrowinspain has a reputation beyond repute
Default Re: Moving a Business To Spain

Originally Posted by Pulaski
I have no direct experience of Spain, but generally if a company incorporated in one country wants to operate in another country (that's called "a branch" of the company) it still needs to register as a "visitor". So I would expected that a British "Ltd" limited company would have to register with the Spanish registrar of companies, so that the Spanish authorities are aware that the British company is operating in Spain.

Taxes, how they are calculated, and where they are paid is a whole other matter!
That is exactly what the link provided above details.
growinspain is online now  
Old Mar 9th 2022, 7:57 am
  #10  
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,500
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Moving a Business To Spain

Originally Posted by growinspain
That is exactly what the link provided above details.
So it does. Thank you.

I had mistakenly thought you were going down the "big corporations don't pay local taxes" rabbit hole, so had skipped over your link.

There are good reasons to operate as a branch, and other good reasons to incorporate a new entity locally. ... And you could also do the opposite - register a Spanish corporation, and then register the Spanish entity as a branch with the Registrar of Companies, in England, (unless you want to register it in Scotland or NI) so it could do business in the UK.

Last edited by Pulaski; Mar 9th 2022 at 8:42 am.
Pulaski is offline  
Old Mar 9th 2022, 9:49 pm
  #11  
BE Enthusiast
 
Joined: Jun 2020
Location: Valencia
Posts: 506
SanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond reputeSanNico has a reputation beyond repute
Smile Re: Moving a Business To Spain

Originally Posted by Barriej
This bit of your initial post removes almost all of the major issues you would have faced if you were both Uk citizens.

Firstly get proper advice, don't take anything anyone oon a forum says is gospel (even me and what I say). We aint experts

So she is Spanish, no problem, move over and restart her life..
He is Uk so has to become resident from being married to an EU citizen, again easy as the financial requirements are tiny.
So he was autonomo for 7 years (did he have permanent residence)???

Forget the business for now, just sort residency and then transfer over. As one of you is a Spanish citizen its simplified.

Take legal advice...

Don't listen to any of us.

But case in point,
I have British friends who moved over recently via the self employed visa.
Before they applied they came over and rented a small warehouse (they sell physical stuff).
Got the company registered and employed two staff here to run this side while they sorted the Uk end (this is now just an office which their son runs as a separate business).
Went for their visa's and they were able to show that they would be of benefit to the local economy and they got the visa.
They have been here a couple of months now and have found the two Spanish staff to be the best investment they made.

Don't listen to any of us. Good luck with the plan. I think you will be fine..
Best post on this thread.
SanNico is offline  
Old Mar 9th 2022, 10:24 pm
  #12  
Lost in BE Cyberspace
 
Joined: Feb 2013
Posts: 6,148
Moses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond reputeMoses2013 has a reputation beyond repute
Default Re: Moving a Business To Spain

Originally Posted by SanNico
Best post on this thread.
Yes, let's also just hope that the two Spanish staff Barriej mentioned will get good benefits and a nice pay rise.
Moses2013 is offline  
Old Mar 11th 2022, 8:03 pm
  #13  
Just Joined
Thread Starter
 
Joined: Mar 2022
Posts: 23
CrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really niceCrunchyFr0g is just really nice
Default Re: Moving a Business To Spain

Thanks everyone for the replies and advice. They were very helpful.

I've set up a meeting with a Spanish re-location specialist financial advisor which will help us set out a plan for t he re-location.
CrunchyFr0g is offline  
Old Mar 11th 2022, 10:54 pm
  #14  
BE Forum Addict
 
Joined: Aug 2009
Location: Costa Blanca
Posts: 3,160
spainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond repute
Default Re: Moving a Business To Spain

Lots of useful free info here

https://www.pellicerheredia.com/en/open-library/
spainrico is offline  
Old Mar 12th 2022, 1:41 am
  #15  
Banned
 
Joined: Mar 2021
Posts: 538
agree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond reputeagree_to_disagree has a reputation beyond repute
Default Re: Moving a Business To Spain

Originally Posted by CrunchyFr0g
Thanks everyone for the replies and advice. They were very helpful.

I've set up a meeting with a Spanish re-location specialist financial advisor which will help us set out a plan for t he re-location.
Just a few notes of caution about 'financial advisers'....

1) First consultation is free or you pay a fixed fee for the service?
2) Any contract you are asked to sign, do not sign it under any circumstances on the spot! Take it home, read it and understand it!
3) Be cleat and the scope of support you require.
agree_to_disagree is offline  

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.