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

Spain Tax on UK Ltd. Company

Spain Tax on UK Ltd. Company

Old Oct 27th 2022, 8:33 pm
  #16  
Lost in BE Cyberspace
 
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
EuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond reputeEuroTrash has a reputation beyond repute
Default Re: Spain Tax on UK Ltd. Company

Posts like this make me really sad.
You'd like to have 100% conviction when you say think losing freedom of movement was a terrible loss for Brits.
Then you read stuff like this from folks who only want to cherry pick and take without giving back, and you can't help thinking, Did we deserve it if that's how we abuse it.
EuroTrash is offline  
Old Oct 27th 2022, 11:41 pm
  #17  
BE Forum Addict
 
Joined: Aug 2009
Location: Costa Blanca
Posts: 3,198
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: Spain Tax on UK Ltd. Company

Says it all man
spainrico is offline  
Old Oct 28th 2022, 1:40 am
  #18  
Just Joined
Thread Starter
 
Joined: Oct 2022
Posts: 6
Paul Dupont is an unknown quantity at this point
Default Re: Spain Tax on UK Ltd. Company

Originally Posted by EuroTrash
Posts like this make me really sad.
You'd like to have 100% conviction when you say think losing freedom of movement was a terrible loss for Brits.
Then you read stuff like this from folks who only want to cherry pick and take without giving back, and you can't help thinking, Did we deserve it if that's how we abuse it.
Well I'm a remainer as it happens, and you're saying 'did we deserve it'... well it also benefitted people Spanish who wanted to live in the UK right? So it was a loss for both sides. But maybe direct your sadness at the xenophobic tory voters who are scared of immigration and foreign people, yet prob still come on holiday to eat english breakfast on the costa del sol. I'm actually here getting advice on how to pay tax in Spain! And I've paid tax and worked since a very young age and never claimed any benefits for unemployment etc. anywhere. And it's really funny you're painting me like some bad guy. If you open your eyes a bit you'd see how many Spanish businesses are avoiding tax by only excepting cash. And I've encountered Spanish people exploiting the benefits system here, actually planning their unemployment. Plus all the illegal people who aren't even registered. Yet you're making out I'm such a evil doer because I'm a bit shocked by social security payments of for example 200EUR on an income of 600EUR/month (33%) is completely ridiculous, how are low income people supposed on live on 400/month even before doing their yearly tax return?! And ironically the more you earn the less you pay - on 6000EUR/month you pay 590 (9.8%).

In the UK for PAYE and NICS you pay about £100/month on a salary of about £900 (11%). So do tell me if you don't think it's ridiculous people earning low pay 33%.... I expect most expats on here are retirees paying tax on pensions or people earning money from spanish businesses, so prob a different point of view to someone who freelances only for UK companies and doesnt have a steady income.
Paul Dupont is offline  
Old Oct 28th 2022, 1:43 am
  #19  
Just Joined
Thread Starter
 
Joined: Oct 2022
Posts: 6
Paul Dupont is an unknown quantity at this point
Default Re: Spain Tax on UK Ltd. Company

Originally Posted by spainrico
Says it all man
Are you paying autonomo fees? Do you work for UK companies only?
Paul Dupont is offline  
Old Oct 28th 2022, 1:52 am
  #20  
SUPER MODERATOR
 
christmasoompa's Avatar
 
Joined: Oct 2007
Location: In a darkened room somewhere.............
Posts: 34,185
christmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond reputechristmasoompa has a reputation beyond repute
Default Re: Spain Tax on UK Ltd. Company

Originally Posted by Paul Dupont
Are you paying autonomo fees? Do you work for UK companies only?
How is that relevant? I spent years working for a Canadian company only, yet I paid tax in the UK because that was where I was tax resident. Seemed fair enough to me, as that was where I was living, so why wouldn't I contribute to society there?

There's really no point arguing against it, you need to just accept it, and get your tax affairs sorted out asap.
christmasoompa is offline  
Old Oct 28th 2022, 2:24 am
  #21  
Lost in BE Cyberspace
 
Joined: Feb 2008
Posts: 5,718
bobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond reputebobd22 has a reputation beyond repute
Default Re: Spain Tax on UK Ltd. Company

Originally Posted by Paul Dupont
My question is - how would the tax authorities know I am here 183 days a year? Also why wpuld they check if I havent heard anything already? My earnings are pretty small (less than 40K a year) and all from UK companies going to my UK account.

Is it worth me registering for tax in Spain?

Thanks for any help!

I won't go into the rights and wrongs of living legally or under the radar in Spain which is basically what your question relates to. To answer your question how would they know you are here over the 183 days? Well you have told the Spanish authorities that by obtain residency to live in Spain over 183 days. I would guess that if you fail to submit a tax return somewhere down the line the Spanish authorities are going to ask why you are resident here yet haven't submitted a tax return even if that maybe a negative return if you had no income. My wife has no income to declare in Spain at the moment but we submitted a joint declaration which because she has no income to declare works in our favour. Thing is it is more difficult to avoid attention and live under the radar these days.

Paul
I won't go into the rights and wrongs of living legally or under the radar in Spain which is basically what your question relates to. To answer your question how would they know you are here over the 183 days? Well you have told the Spanish authorities that by obtain residency to live in Spain over 183 days. I would guess that if you fail to submit a tax return somewhere down the line the Spanish authorities are going to ask why you are resident here yet haven't submitted a tax return even if that maybe a negative return if you had no income. My wife has no income to declare in Spain at the moment but we submitted a joint declaration which because she has no income to declare works in our favour. Thing is it is more difficult to avoid attention and live under the radar these days.
bobd22 is offline  
Old Oct 28th 2022, 3:21 am
  #22  
BE Enthusiast
 
Joined: Jun 2020
Location: Valencia
Posts: 507
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: Spain Tax on UK Ltd. Company

You need to speak to a Spanish and an English accountant. For the first year you pay 60 per month and then it climbs in years 2 and 3. You can't really be a genuine autonomo if you're working for just one company regardless of who the end client is. That's the falso autonomo. If your UK company turnover is 40k and you're going to pull 700 per month here then you're doing it the wrong way round. Pay yourself more here and you can offset your expenses including the SS. The daily lunch allowance is very generous, plus even more when traveling overseas which you already mentioned. You will literally pay zero tax and be legal, but the SS and IVA are unavoidable.
SanNico is offline  
Old Oct 28th 2022, 3:22 am
  #23  
BE Forum Addict
 
Joined: Aug 2006
Location: Velez-Malaga
Posts: 4,992
Lynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond repute
Default Re: Spain Tax on UK Ltd. Company

Originally Posted by Paul Dupont
In the UK for PAYE and NICS you pay about £100/month on a salary of about £900 (11%). So do tell me if you don't think it's ridiculous people earning low pay 33%.... I expect most expats on here are retirees paying tax on pensions or people earning money from spanish businesses, so prob a different point of view to someone who freelances only for UK companies and doesnt have a steady income.
Your figures are way off. Someone on a salary of 900 pounds a month in the UK would pay no income tax and just 122 pounds a YEAR in NI.

Tax Calculator for £10,800 | Take Home Pay Calculator - reed.co.uk

A Spanish worker on the euro equivalent of the same salary would not pay any tax either (because of the low income allowance, next year the threshold is to be increased to €15,000, below which they will pay no tax). They would pay €800 per year in SS contributions, though.

Whenever the subject of pensions is discussed online, many British commentators moan that the UK state pension is the lowest in Europe. I am sick of saying that the reason for this is that workers in other countries pay much higher contributions than they do, and these figures just prove that. You may say you won't be claiming a Spanish pension so these contributions shouldn't apply to you, but the system is not designed to allow people to pay whatever amount they consider to be reasonable - I don't know any country in the world where that is the case. Contribution levels are set by Governments in order that the services their population wants and pensions their citizens are paid can be funded.

There are people in every country, and Spain is no exception, who seek to evade paying the taxes and charges the majority of their fellow citizens do pay, and find excuses to justify their actions to themselves. Freeloaders, and they cannot expect the rest of us to condone it.


Last edited by Lynn R; Oct 28th 2022 at 3:57 am.
Lynn R is offline  
Old Oct 28th 2022, 8:10 pm
  #24  
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: Spain Tax on UK Ltd. Company

As many folk have pointed out it is pointless to moan about fairness when it comes to tax issues many of which occur because people have come from one tax system to a different one. The OP has a UK company and derives a modest income from it and has paid tax in uk. Presumably the OP is okay with that system. But they moved to Spain. We don't know why but presumably there was some attraction. Since being here the have become a resident . They have done this voluntarily. If the OP doesn't like the way it works then they are free to move back to UK. There are plenty of things I don't like about Spain but then again there are things I do like. Yes , I pay alot more in Tax than I would in UK but as Lynn says some things are cheaper here so it kind of offsets the tax. The automino is high in spain and I am no doubt sure that people have ways to avoid it. The bottom line is though- no one will ever be happy . There is always going to be something that feels unfair. Best to suck it and keep the anger for something really serious. One day you will realize that you don't have all your life in front of you and then issues like tax will seem so superficial. Two things are for sure in life- you will die, you will pay tax. No one escapes that.
Ronnyone is offline  
Old Oct 28th 2022, 9:46 pm
  #25  
DLC
BE Forum Addict
 
Joined: Jun 2011
Posts: 1,220
DLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond reputeDLC has a reputation beyond repute
Default Re: Spain Tax on UK Ltd. Company

If you're planning on returning to the UK, what's stopping you combining UK and Spanish pensions later on? The Spanish part of the pension would probably be higher.
DLC is offline  
Old Oct 30th 2022, 7:13 pm
  #26  
BE Forum Addict
 
Joined: Aug 2009
Location: Costa Blanca
Posts: 3,198
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: Spain Tax on UK Ltd. Company

Free webinar -
Immigration and Tax Issues when living in Spain
Descripción
Golden Visa / Non Lucrative / Nomad Visa.
Possible Tax scenarios.
Live Questions and Answers.

INTERNATIONAL LAWYERS:
Ignacio Pellicer. International Lawyer at Pellicer & Heredia
Michael Davies from Davies Abogados /Solicitors & Barristers
Pedro Heredia. International Lawyer at Pellicer & Heredia
Hora3 nov 2022 04:30 p. m. en Madrid
https://us02web.zoom.us/webinar/regi...R_uyKUZ88Zvu5Q
spainrico is offline  
Old Oct 30th 2022, 10:39 pm
  #27  
BE Enthusiast
 
Joined: Jun 2020
Location: Valencia
Posts: 507
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: Spain Tax on UK Ltd. Company

I just put your numbers through my rough calculations. If you pay yourself 700 per month you will bring home 5k. If you pay yourself 35k you will pay about 7500 in tax, plus 720 in SS (year 1). This is based on a personal allowance of 5500 (this sounds low and is probably out of date), plus the 720 SS payment meaning you pay 19% on the first 12450 (minus the 7220), 1860 between 12450 and 20200 and 4500 on the remainder up to 35200. If you're traveling a lot for work you can offset it all, plus the lunch allowances, internet, phones, portion of your utility bills and the accountancy fees. You will pay next to nothing in income tax if you employ a good accountant which will only cost 40/50 month.

You mentioned doing this for less than 5 years. You should as an accountant what happens if you pay less than 5 years SS. I know in Germany you can reclaim it all once you leave the EU.

On the other side, your UK business would be making next to zero profit so you would be paying next to zero tax. Above all, you would be legal.
SanNico is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


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

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