Tax planning
Jun 23rd 2021, 5:42 pm
#1
Lost in BE Cyberspace
Thread Starter
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Tax planning
Hello
I am what the woke call a digital nomad, and I am considering spending some time in Spain. I currently earn (and am taxed) in the US and have assets split between US and UK. I pay tax in both places as needed.
Does anyone know of a decent tax advisor who would be able to help me in Spain. I'm not looking for someone to tell me the tax rules and how to file taxes in Spain, I am looking for someone who can help me avoid double taxation and generally getting eaten alive.
Thanks, Millcasa
I am what the woke call a digital nomad, and I am considering spending some time in Spain. I currently earn (and am taxed) in the US and have assets split between US and UK. I pay tax in both places as needed.
Does anyone know of a decent tax advisor who would be able to help me in Spain. I'm not looking for someone to tell me the tax rules and how to file taxes in Spain, I am looking for someone who can help me avoid double taxation and generally getting eaten alive.
Thanks, Millcasa
Jun 24th 2021, 2:11 am
#3
BE Enthusiast
Joined: Jun 2017
Location: Alicante
Posts: 925
Re: Tax planning
2nd go as I'd overlooked the fact that you will be working.
Basically if you want to come to Spain and work, even remotely, then you must apply for a visa.
You can come as a tourist for up to 90 days in a rolling 180 but still you will be prohibited from working although clearly for 90 days you could easily get away with it, not that I'm promoting breaking the law!
If you want to spend longer than that then you will have to apply for an appropriate visa permitting work which would initially last for 12 months but under that you will be expected to apply for residence within the first month and after 183 days (not necessarily consecutive) you automatically become tax resident and liable to tax on your worldwide income.
Non recoverable tax you may have paid in other countries may be offsetable against tax in Spain nevertheless ALL worldwide income must still be declared gross.
183 days, or 6 months, is also the breakpoint for using a foreign driving licence, after that you would be required to exchange it for a Spanish one, assuming an agreement for that exists, or if not sit a Spanish driving test. For either of those you will need to have Spanish residency.
In short then if you wanted to stay for longer than 90 days, or work, you would have to go the visa route but leave after a maximum of 182 days. Residency can be rescinded but if you don't return to renew it it will automatically lapse anyway.
Basically if you want to come to Spain and work, even remotely, then you must apply for a visa.
You can come as a tourist for up to 90 days in a rolling 180 but still you will be prohibited from working although clearly for 90 days you could easily get away with it, not that I'm promoting breaking the law!
If you want to spend longer than that then you will have to apply for an appropriate visa permitting work which would initially last for 12 months but under that you will be expected to apply for residence within the first month and after 183 days (not necessarily consecutive) you automatically become tax resident and liable to tax on your worldwide income.
Non recoverable tax you may have paid in other countries may be offsetable against tax in Spain nevertheless ALL worldwide income must still be declared gross.
183 days, or 6 months, is also the breakpoint for using a foreign driving licence, after that you would be required to exchange it for a Spanish one, assuming an agreement for that exists, or if not sit a Spanish driving test. For either of those you will need to have Spanish residency.
In short then if you wanted to stay for longer than 90 days, or work, you would have to go the visa route but leave after a maximum of 182 days. Residency can be rescinded but if you don't return to renew it it will automatically lapse anyway.
Jun 24th 2021, 3:48 am
#4
Lost in BE Cyberspace
Thread Starter
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: Tax planning
2nd go as I'd overlooked the fact that you will be working.
Basically if you want to come to Spain and work, even remotely, then you must apply for a visa.
You can come as a tourist for up to 90 days in a rolling 180 but still you will be prohibited from working although clearly for 90 days you could easily get away with it, not that I'm promoting breaking the law!
If you want to spend longer than that then you will have to apply for an appropriate visa permitting work which would initially last for 12 months but under that you will be expected to apply for residence within the first month and after 183 days (not necessarily consecutive) you automatically become tax resident and liable to tax on your worldwide income.
Non recoverable tax you may have paid in other countries may be offsetable against tax in Spain nevertheless ALL worldwide income must still be declared gross.
183 days, or 6 months, is also the breakpoint for using a foreign driving licence, after that you would be required to exchange it for a Spanish one, assuming an agreement for that exists, or if not sit a Spanish driving test. For either of those you will need to have Spanish residency.
In short then if you wanted to stay for longer than 90 days, or work, you would have to go the visa route but leave after a maximum of 182 days. Residency can be rescinded but if you don't return to renew it it will automatically lapse anyway.
Basically if you want to come to Spain and work, even remotely, then you must apply for a visa.
You can come as a tourist for up to 90 days in a rolling 180 but still you will be prohibited from working although clearly for 90 days you could easily get away with it, not that I'm promoting breaking the law!
If you want to spend longer than that then you will have to apply for an appropriate visa permitting work which would initially last for 12 months but under that you will be expected to apply for residence within the first month and after 183 days (not necessarily consecutive) you automatically become tax resident and liable to tax on your worldwide income.
Non recoverable tax you may have paid in other countries may be offsetable against tax in Spain nevertheless ALL worldwide income must still be declared gross.
183 days, or 6 months, is also the breakpoint for using a foreign driving licence, after that you would be required to exchange it for a Spanish one, assuming an agreement for that exists, or if not sit a Spanish driving test. For either of those you will need to have Spanish residency.
In short then if you wanted to stay for longer than 90 days, or work, you would have to go the visa route but leave after a maximum of 182 days. Residency can be rescinded but if you don't return to renew it it will automatically lapse anyway.
Jun 24th 2021, 7:02 am
#5
BE Forum Addict
Joined: Aug 2009
Location: Costa Blanca
Posts: 3,142
Re: Tax planning
Contact Pellicer & Heredia - I know they have American and UK clients and so have the required tax and visa/immigration experience to help you.
https://www.pellicerheredia.com/en/
https://www.pellicerheredia.com/en/
