Spanish tax
Nov 6th 2019, 9:08 am
#1
Lost in BE Cyberspace
Thread Starter
Joined: Feb 2007
Location: Land of no recession
Posts: 10,717
Spanish tax
The link below is to a subject that has been in the news in Gibraltar recently.
I have no idea if it may have any effects on others working remotely from their Spanish homes for companies in other countries.
But feel that you should be aware of this and make your own enquiries.
https://www.chronicle.gi/govt-reject...to-tax-treaty/
I have no idea if it may have any effects on others working remotely from their Spanish homes for companies in other countries.
But feel that you should be aware of this and make your own enquiries.
https://www.chronicle.gi/govt-reject...to-tax-treaty/
Nov 6th 2019, 9:28 am
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
Re: Spanish tax
It is a general rule of taxation that any money earned in a country is taxed in that country irrespective of the tax residency of the earner.
That is why rental income from UK property, owned by a non resident, is taxed in the UK. There are exceptions, depending on the relevant tax treaty, such as the UK - Spain treaty, that income from pensions (except UK government) pensions are paid free of UK tax.
Another topical example is Lewis Hamilton, who is frequently criticised for being tax resident in Monaco and paying no tax in the UK. Apparently, he is actually among the 5000 highest tax payers in the UK as he spends a significant amount of time in the UK as the Mercedes F1 team is based there.
I don't know the details of the Gib - Spain tax treaty, but you can see how a Gib employee working from home in Spain could create some problems.
That is why rental income from UK property, owned by a non resident, is taxed in the UK. There are exceptions, depending on the relevant tax treaty, such as the UK - Spain treaty, that income from pensions (except UK government) pensions are paid free of UK tax.
Another topical example is Lewis Hamilton, who is frequently criticised for being tax resident in Monaco and paying no tax in the UK. Apparently, he is actually among the 5000 highest tax payers in the UK as he spends a significant amount of time in the UK as the Mercedes F1 team is based there.
I don't know the details of the Gib - Spain tax treaty, but you can see how a Gib employee working from home in Spain could create some problems.
Nov 7th 2019, 7:11 am
#3
Lost in BE Cyberspace
Thread Starter
Joined: Feb 2007
Location: Land of no recession
Posts: 10,717
Re: Spanish tax
The question here is not the employees tax liability but that of the company he works for as the work is being done in Spain.
