IT LAD

Hi everyone…

Great site….

I wonder if you could help concerning living in Spain, but working for an UK company… (Money, savings tax laws etc)…

I try and keep this brief…

I own a small IT company with my business partner (I mostly work from home).

My girlfriend and I will be heading for Moraira (Costa Blanca North) October 2009 and will rent for a year before we buy…I will be working on my clients systems remotely as I do in the UK…

Our house in the UK is just about to go on the market, and once sold, we will rent in the UK until October 2009…

Fortunately for us, we will have some nice savings (nice to us anyway) in a high interest account in the UK… My girlfriend and I both have HSBC bank accounts and the business account is HSBC also…

Also I have a flat in the UK with my business partner that we rent out…

I wonder if you could answer (or give me a guide please) to the questions below for renting for the 1st year and also buying (living permanently)

1. Do I open up a Spanish bank account, or still use HSBC?
2. Should my wages and savings be paid into a Spainsh bank or HSBC?
3. Tax, does my company carry on as normal paying my Tax in the UK? (I would think so).
4. Spanish Tax, what would I need to pay
5. Residency?


I am gradually getting more and more info together (there seems so much) and will of course seek legal/tax advice in Spain and also with our accountants in the UK, well before we move…but any info would help and would be gratefully received…Also, it would be nice to be a little prepared before any meetings…

Thanks again…

poshnbucks

I am sure Rota maybe along soon. He knows quiet a few ex-Pats who love to hear from people like you. He appears to be well informed of the Spanish Tax system and how to avoid it However Fred will be here to advise and who is well versed in such matters.His advice should be taken on board with that you have already researched. Good luck and welcome to the forum

Mitzyboy

In General IT Lad, you will be a Spanish resident as you live here and therefore your taxes should be paid in Spain. It makes little difference if you have them paid into HSBC or your Spanish bank I guess, although you'll probably have more control over the r/ex if you have it paid to HSBC.

But best to contact a tax consultant as there are often so many versions of what should and shouldn't happen it gets very confusing.

Yes, I would open a Spanish bank account for ease of use. I recommend SOL Bank as they have a system for a £ account and a € account

You should be applying for a residency cert more or less as soon as you arrive here to reside

Mitzyboy

Oh, and had you thought about health cover?

IT LAD

Wow, thanks for the quick replies and the warm welcome... From rainy UK?

IT LAD

Hi Mitzyboy, Thanks for the reply...

Yes we will have medical insurance, just in case...

I will check out the SOL bank, thanks for the heads up...

I have a feeling the Tax thing is not going to be straight forward

cheers

Mitzyboy

Well its straight forward if you are here and you are earning here. The advice I had was that if you resided here then you paid your tax here, but the situation gets confused by those that say you can choose. As far as I am aware you can't.

The story seems to be that if you are paid by a UK company then you can elect to be taxed in the UK ........ but I am "paid" in the UK also, but I have to pay taxes here in Spain.