Tax Question About Working In Spain
#1
Just Joined
Thread Starter
Joined: Mar 2016
Posts: 10
Tax Question About Working In Spain
Hi all,
I hope its ok to ask tax questions. I realise this isnt actual tax advice and just your opinions but i need a place to start.
I am 32, single and run a business ( i am a self employed financial trader) which allows me to work remotely and would like to make the most of that advantage and live in some sunnier places. My family had a house in Spain growing up so I always feel an affinity to Spain and would like to make a move.
looking at the headline tax rates however Spain seems very expensive tax wise which is a turn off as I already find UK pretty high tax for where it is spent (at least i wouldnt be looking to move somewhere that makes my tax bill any higher).
So what is it like paying tax in Spain?
Can i keep a company registered in the UK yet be a Spanish resident? Where would I pay tax?
I assume i would still pay UK corporation tax if my company is registered there but if I send my salary and dividends to my Spanish bank account would I be taxed by Spain for that money?
To be honest it doesnt matter too much where my residency/business is located legally, just wanted to know which is the most financially savvy way to do it?
I have asked my accountants but they say they cant advise me on foreign countries and how to set it up, so am a bit stuck for information.
Many thanks
Tom
I hope its ok to ask tax questions. I realise this isnt actual tax advice and just your opinions but i need a place to start.
I am 32, single and run a business ( i am a self employed financial trader) which allows me to work remotely and would like to make the most of that advantage and live in some sunnier places. My family had a house in Spain growing up so I always feel an affinity to Spain and would like to make a move.
looking at the headline tax rates however Spain seems very expensive tax wise which is a turn off as I already find UK pretty high tax for where it is spent (at least i wouldnt be looking to move somewhere that makes my tax bill any higher).
So what is it like paying tax in Spain?
Can i keep a company registered in the UK yet be a Spanish resident? Where would I pay tax?
I assume i would still pay UK corporation tax if my company is registered there but if I send my salary and dividends to my Spanish bank account would I be taxed by Spain for that money?
To be honest it doesnt matter too much where my residency/business is located legally, just wanted to know which is the most financially savvy way to do it?
I have asked my accountants but they say they cant advise me on foreign countries and how to set it up, so am a bit stuck for information.
Many thanks
Tom
#2
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: Tax Question About Working In Spain
If you are resident in Spain then you need to pay income tax in Spain on your personal income, including any dividend from your business
You will also need to pay social security contributions in Spain which is where this gets complicated because your company will need to be registered in Spain in order to employ somebody in Spain, although this does not necessarily mean that it would need to file accounts in Spain
The alternative would be for you to register as self-employed in Spain and invoice your UK company, but now things are getting complicated...
So in summary, you need to talk to a Spanish lawyer who specializes in employment law in the first instance, and then talk to a tax lawyer in the second instance
You will also need to pay social security contributions in Spain which is where this gets complicated because your company will need to be registered in Spain in order to employ somebody in Spain, although this does not necessarily mean that it would need to file accounts in Spain
The alternative would be for you to register as self-employed in Spain and invoice your UK company, but now things are getting complicated...
So in summary, you need to talk to a Spanish lawyer who specializes in employment law in the first instance, and then talk to a tax lawyer in the second instance
#3
Just Joined
Thread Starter
Joined: Mar 2016
Posts: 10
Re: Tax Question About Working In Spain
Sounds like good advice Cricketman.
Complicated isn't always bad. Often means there are opportunities for those prepared to look hard.
I wasnt sure who I should speak to whether it was people in this country or other country.
Thanks
Complicated isn't always bad. Often means there are opportunities for those prepared to look hard.
I wasnt sure who I should speak to whether it was people in this country or other country.
Thanks