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-   -   Remotely working for a UK company (https://britishexpats.com/forum/spain-75/remotely-working-uk-company-856779/)

mcjiggerlog Apr 20th 2015 1:41 pm

Remotely working for a UK company
 
Hello,

I'm really hoping somebody can help me with this - I've spent a lot of time researching but can't find a definitive answer anywhere!

My situation - currently working for a UK company and I have asked to work remotely (at home) in Spain. I am currently paid via PAYE into a UK bank account. My company has no Spanish presence.

Now, first question - do I HAVE to pay social security in Spain? I've read that to get my certificate of residence, as long as I can prove I have adequate medical insurance then it is fine. If this is the case, then is it as simple as switching to an NT tax code in the UK and filing a spanish tax return at the end of their tax year declaring my UK income?

If the above is not true - can someone confirm that this is the alternative - I register as autonomo and pay social security contributions myself? Would I then need to invoice my UK employer or can I just get paid gross with the NT tax code and declare my income in the tax return?

Thanks in advance for any help given.

Rosemary Apr 20th 2015 1:53 pm

Re: Remotely working for a UK company
 
Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. 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.

Rosemary

cricketman Apr 20th 2015 3:21 pm

Re: Remotely working for a UK company
 

Originally Posted by mcjiggerlog (Post 11623593)
Hello,

I'm really hoping somebody can help me with this - I've spent a lot of time researching but can't find a definitive answer anywhere!

My situation - currently working for a UK company and I have asked to work remotely (at home) in Spain. I am currently paid via PAYE into a UK bank account. My company has no Spanish presence.

Now, first question - do I HAVE to pay social security in Spain? I've read that to get my certificate of residence, as long as I can prove I have adequate medical insurance then it is fine. If this is the case, then is it as simple as switching to an NT tax code in the UK and filing a spanish tax return at the end of their tax year declaring my UK income?

If the above is not true - can someone confirm that this is the alternative - I register as autonomo and pay social security contributions myself? Would I then need to invoice my UK employer or can I just get paid gross with the NT tax code and declare my income in the tax return?

Thanks in advance for any help given.

If you are resident in Spain then you need to be paying tax and social security on your earnings in Spain

There are two ways of doing this

1. Your employer can pay for an administrator to pay your salary and social security via the Spanish system
2. Or you can go autonomo via a TRADE contract, invoice your employer each month and submit/pay for your own social security contributions

Whatever your choice, congratulations on finding the best way of funding a great quality of life in Spain :) I do the same

mcjiggerlog Apr 20th 2015 5:23 pm

Re: Remotely working for a UK company
 
Yeah okay, autónomo seems to be the way to go. I've read that you need to file quarterly tax returns or something like that if I'm autónomo, or is it just one end of year return? How exactly do I find out how to arrange the invoices, paying of my social security etc? Do you get a gestor to do this or is it possible to do it myself?

snikpoh Apr 20th 2015 5:39 pm

Re: Remotely working for a UK company
 

Originally Posted by mcjiggerlog (Post 11623827)
Yeah okay, autónomo seems to be the way to go. I've read that you need to file quarterly tax returns or something like that if I'm autónomo, or is it just one end of year return? How exactly do I find out how to arrange the invoices, paying of my social security etc? Do you get a gestor to do this or is it possible to do it myself?

You do them quarterly and then at the end of the year, adjustments are made as required.


Going autonomo is easy as is organising to make SS payments but if you don't speak Spanish or are at all unsure, then use a Gestor.

cricketman Apr 21st 2015 7:55 am

Re: Remotely working for a UK company
 

Originally Posted by snikpoh (Post 11623841)
You do them quarterly and then at the end of the year, adjustments are made as required.


Going autonomo is easy as is organising to make SS payments but if you don't speak Spanish or are at all unsure, then use a Gestor.

Yes. If you dont speak good Spanish then use a gestor. They should only charge around 50 euros per month

Remember that you must "Dar la alta" as autonomo before you start work i.e. you need to go to seguridad social and tell them that you want to start working as an autonomo. You will also need an employment lawyer to draft a TRADE contract. Mine charged me 600 euros

mcjiggerlog Apr 21st 2015 8:02 am

Re: Remotely working for a UK company
 

Originally Posted by cricketman (Post 11624354)
Remember that you must "Dar la alta" as autonomo before you start work i.e. you need to go to seguridad social and tell them that you want to start working as an autonomo. You will also need an employment lawyer to draft a TRADE contract. Mine charged me 600 euros

What do you mean exactly? The thing is, I'm technically trialling this with my employer at first, so the first month or two I'll stay on normal payroll until I get the all clear that it's fine for me to stay there indefinitely. I'll be working as soon as I get there, is that an issue?

Also, is the TRADE contract optional? Is there some way I can avoid that? I don't want to create further hassle for my employer.

cricketman Apr 21st 2015 8:21 am

Re: Remotely working for a UK company
 

Originally Posted by mcjiggerlog (Post 11624360)
What do you mean exactly? The thing is, I'm technically trialling this with my employer at first, so the first month or two I'll stay on normal payroll until I get the all clear that it's fine for me to stay there indefinitely. I'll be working as soon as I get there, is that an issue?

Also, is the TRADE contract optional? Is there some way I can avoid that? I don't want to create further hassle for my employer.

You can do that if you want but you will (kind of) be working illegally

A TRADE contract isnt optional if you only have one client (employer) and the law says that you must sign on as autnomo before you start the economic activity

Moving to a new country is a big step because your employer now has to ensure that they abide by the laws in the country of your residence. A TRADE contract will be minimalising the hassle because it basically puts the emphasis on you to abide by the laws rather than the employer. The only thing the employer has to do is abide by whatever you put in the contract. You will need an employment lawyer to help you with that

Whether you like the law or not, that is the situation. It is actually a very simple solution but daunting if you are not fluent in Spanish and know the laws


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