Spanish or UK Tax
Jan 29th 2019, 2:52 pm
#1
Just Joined
Thread Starter
Joined: Jan 2019
Posts: 23
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.
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.
Jan 29th 2019, 3:22 pm
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Spanish or UK Tax
You will pay tax in both countries, but you can deduct UK tax paid from the Spanish tax due.
Jan 29th 2019, 4:29 pm
#3
Retired and loving it!
Joined: Sep 2007
Location: Ontinyent - Valencia region (campo)
Posts: 5,159
Re: 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.
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.
Last edited by snikpoh; Jan 29th 2019 at 5:31 pm.
Jan 29th 2019, 4:29 pm
#4
Just Joined
Thread Starter
Joined: Jan 2019
Posts: 23
Re: Spanish or UK Tax
On a similar subject, what will we need to do in order to access the Spanish healthcare system?
Jan 29th 2019, 5:18 pm
#5
BE Forum Addict
Joined: Jan 2016
Posts: 2,320
Re: Spanish or UK Tax
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
Jan 29th 2019, 5:27 pm
#6
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Spanish or UK Tax
You can fill in a form to declare that you are tax resident but it doesn’t really achieve anything.
Jan 29th 2019, 5:38 pm
#7
Just Joined
Thread Starter
Joined: Jan 2019
Posts: 23
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?
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?
Jan 29th 2019, 8:16 pm
#8
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
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.
Jan 30th 2019, 2:57 pm
#9
Just Joined
Thread Starter
Joined: Jan 2019
Posts: 23
Re: Spanish or UK Tax
Thanks again Fred, appreciated
Feb 7th 2019, 7:32 pm
#10
Just Joined
Thread Starter
Joined: Jan 2019
Posts: 23
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
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
Feb 7th 2019, 7:52 pm
#11
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
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.
Feb 8th 2019, 2:57 pm
#12
BE Enthusiast
Joined: Feb 2010
Posts: 843
Re: Spanish or UK Tax
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.
Feb 8th 2019, 3:07 pm
#13
Just Joined
Thread Starter
Joined: Jan 2019
Posts: 23
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)
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)
Feb 8th 2019, 3:17 pm
#14
Just Joined
Joined: Feb 2019
Posts: 20
Re: Spanish or UK Tax
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.
Feb 8th 2019, 3:41 pm
#15
Forum Regular
Joined: Aug 2018
Posts: 289
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