dandan1989

Hi.

i'm new to this forum... so hello!

i am relocating/moving to Ibiza in july 2013 and i have a few questions.

I am currently self employed here in the UK. My question is....

1. can i and should i stay self employed and registered in the uk even though i am living long term in spain and still pay uk tax?

or

2. should i register and be self employed in spain and pay spanish tax?

if you could let me know the pros and cons so i can decide the correct root for me.

i've got more question but lets start with this one ;-)

speak soon

Dan

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

mikelincs

You will need to show you have healthcare provisions in place when you register as a resident in Spain, this will either be via private health insurance or you can register as an 'autonomo' (self employed' in Spain and gegt access to the Spanish healthcare system. Registering as an autonomo will cost something in the region of €260 a month. What sort of work do you envisage doing? remember that the unemployment even among Spanish nationals is over 50% in some areas. If you move to Spain and stay more than 183 days in any year, then you will have to become 'tax resident' and declare ALL your world wide earnings in Spain, so you will be paying tax in Spain in any case, however due to the dual taxation rules you will be able to deduct tax paid in the UK against tax owed in Spain, but you could be declare you are living in Spain and pay no UK tax.

Mitzyboy

What he said

Basically tax residency isnt a choice. As said, if you reside in Spain for more than 183 days in the year then you pay your taxes here

dandan1989

I run various music industry services and can run them from anywhere as its all online.

So if I have private health care does that mean I don't have to register as autonomo as €260 per month is a lot! Is there no other way around this?

Dan.

lynnxa

there's no way around it if you're self-employed

even if you were employed by a UK company & working & living in Spain you'd still be tax resident here & have to do a tax declaration


as you're self-employed you would have to register as such here & swallow the costs - that figure is the NI equivalent - there's income tax on top

njf

It's not quite as simple as that, particularly if you decide you are better off paying taxes on your worldwide income in the UK. If you are also resident in the UK for more than 90 days and still have a permanent home in the UK, then it is likely that, under the double tax treaty, you would be treated as tax resident in the UK.

You may be aware that a new tax treaty between the UK and Spain was signed last week although it is not in force yet.

njf

Here's a link to the new convention.

Mitzyboy

Yes, but in certain circumstances thats been the case in the past.

What makes it confusing is what that document deems decides where you are resident, i.e. part c where you could live in Spain full time but be a tax resident in the UK. I can see that Spanish authorities going with that

a) he shall be deemed to be a resident only of the State in which he has a
permanent home available to him; if he has a permanent home available
to him in both States, he shall be deemed to be a resident only of the
State with which his personal and economic relations are closer (centre
of vital interests);
b) if the State in which he has his centre of vital interests cannot be
determined, or if he does not have a permanent home available to him in
either State, he shall be deemed to be a resident only of the State in
which he has an habitual abode;
c) if he has an habitual abode in both States or in neither of them, he shall
be deemed to be a resident only of the State of which he is a national;
d) if he is a national of both States or of neither of them, the competent
authorities of the Contracting States shall settle the question by mutual
agreement.

dandan1989

So is there not another way of running my businesses and by passing the autonomo charge as that seems very expensive per month!

Mitzyboy

We dont know what kind of business it is
Is it totally UK based? Is it an internet business that caters for UK only