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-   -   Spanish or UK Tax (https://britishexpats.com/forum/spain-75/spanish-uk-tax-921549/)

chslh66 Jan 29th 2019 2:52 pm

Spanish or UK Tax
 
Hello
We are moving to Spain this year. I will work from our Spanish home for a UK company on UK projects.
How will my tax arrangements be made - do I pay my tax to the UK or to Spain? We will be permanent Spanish residents.
Thank you for your thoughts and comments in advance.

Fred James Jan 29th 2019 3:22 pm

Re: Spanish or UK Tax
 
You will pay tax in both countries, but you can deduct UK tax paid from the Spanish tax due.

snikpoh Jan 29th 2019 4:29 pm

Re: Spanish or UK Tax
 

Originally Posted by chslh66 (Post 12629200)
Hello
We are moving to Spain this year. I will work from our Spanish home for a UK company on UK projects.
How will my tax arrangements be made - do I pay my tax to the UK or to Spain? We will be permanent Spanish residents.
Thank you for your thoughts and comments in advance.

You also won't actually be 'permanent' for 5 years. Before that your residency is just temporary.

chslh66 Jan 29th 2019 4:29 pm

Re: Spanish or UK Tax
 

Originally Posted by Fred James (Post 12629218)
You will pay tax in both countries, but you can deduct UK tax paid from the Spanish tax due.

Thank you Fred. We assume we will need to register in some manner with the Spanish tax authorities?
On a similar subject, what will we need to do in order to access the Spanish healthcare system?

Loafing Along Jan 29th 2019 5:18 pm

Re: Spanish or UK Tax
 

Originally Posted by chslh66 (Post 12629278)
Thank you Fred. We assume we will need to register in some manner with the Spanish tax authorities?
On a similar subject, what will we need to do in order to access the Spanish healthcare system?



This UK Gov summary has just been published -

https://www.nhs.uk/using-the-nhs/hea...care-in-spain/

Situation after 29th March in the event of "No Deal" remains very confused . You will probably need private healthcare

Fred James Jan 29th 2019 5:27 pm

Re: Spanish or UK Tax
 

Originally Posted by chslh66 (Post 12629278)
Thank you Fred. We assume we will need to register in some manner with the Spanish tax authorities?
On a similar subject, what will we need to do in order to access the Spanish healthcare system?

The best way of registering is to submit your first tax return in May/June in the year after the year that you are declaring. Ie for the tax year 2019 you declare your 2019 income in May/June 2020. By then you will know how much tax you paid in the UK so you can deduct it in your Spanish tax return.

You can fill in a form to declare that you are tax resident but it doesn’t really achieve anything.

chslh66 Jan 29th 2019 5:38 pm

Re: Spanish or UK Tax
 
Thank you loafing along and Fred - very helpful, thank you.

​​​​​​In your experience Fred is there normally a shortfall of tax to pay in Spain - indicating that Spanish tax is higher than UK tax?
Difficult to judge I know - just asking your experience or perception?


Fred James Jan 29th 2019 8:16 pm

Re: Spanish or UK Tax
 
You will probably pay more tax in Spain as the personal alllowances are less than in the UK. The tax bands are more complicated and the middle income bands can be higher than in the UK where there are fewer bands. So it is unlikely that the UK will cancel out the Spanish tax entirely.

chslh66 Jan 30th 2019 2:57 pm

Re: Spanish or UK Tax
 
Thanks again Fred, appreciated

chslh66 Feb 7th 2019 7:32 pm

Re: Spanish or UK Tax
 
Fred
I have checked with a gestor.
They say I must become a sole trader in Spain and invoice the UK company instead of recieving a salary. This means I will eventually pay 300 euro per month for social security as well as tax - which is ok.
Problem is I want to remain employed directly by the UK company (for complicated insurance reasons).
Gestor suggested / advised if I did any salaried work for UK company I need to do it in the UK.
What's your thoughts and/or experience here?
Thanks

Fred James Feb 7th 2019 7:52 pm

Re: Spanish or UK Tax
 
Sorry, I have no experience in this area apart from knowing it is very complicated. A good gestor is your best advisor.

chrisjolly Feb 8th 2019 2:57 pm

Re: Spanish or UK Tax
 

Originally Posted by chslh66 (Post 12629344)
Thank you loafing along and Fred - very helpful, thank you.

​​​​​​In your experience Fred is there normally a shortfall of tax to pay in Spain - indicating that Spanish tax is higher than UK tax?
Difficult to judge I know - just asking your experience or perception?

In my experience I pay more tax here in Spain on the same income as I did in the UK. You need to go to a tax adviser.

chslh66 Feb 8th 2019 3:07 pm

Re: Spanish or UK Tax
 
Chris jolly - thank you.
Can I ask - are you in a similar position to me? Tax resident in Spain but work remotely for a UK company with a UK salary - I don't want to become a sole-trader invoicing the UK company (as some advice has suggested)

wirt0 Feb 8th 2019 3:17 pm

Re: Spanish or UK Tax
 

Originally Posted by chrisjolly (Post 12634235)
In my experience I pay more tax here in Spain on the same income as I did in the UK. You need to go to a tax adviser.

Hi Chris,

Any recomendation for a tax adviser?

My case would be a 5 days in the UK , the rest of the month in Spain.

I am hoping I can keep my UK contract, doing remote work from Spain the rest of the month, but make it look like all my work is being done in the UK.

My understanding is that if your work is done in Spain, you should be registered as an autonomo, but if you were working only in the UK, but living in Spain, you can declare how much you have been paying in the UK and pay the difference in Spain. I am just wondering how risky this is, or what other solutions are available.

Thanks for the time.

1sexsmith Feb 8th 2019 3:41 pm

Re: Spanish or UK Tax
 
I think that it is irrelevant where you work if your tesidential base is deemed to be Spain. If you work in UK for 25 % of the year but live in Spain the rest then you declare in Spain not UK. You can't select where you pay. On the whole the tax is higher in Spain as you don't have the same personal tax free bands as uk


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