Go Back  British Expats > Living & Moving Abroad > Europe > Spain
Reload this Page >

Who Should I Pay My Tax To? UK or Spain?

Who Should I Pay My Tax To? UK or Spain?

Thread Tools
 
Old Aug 24th 2018, 7:00 pm
  #1  
Just Joined
Thread Starter
 
Joined: Aug 2018
Posts: 7
DragonToe is an unknown quantity at this point
Default Who Should I Pay My Tax To? UK or Spain?

Hi all,

Apologies if this is in the wrong thread. If it is, and someone lets me know, I'll take it down and re-post in the appropriate section.

I was a UK citizen who has recently moved to Gran Canaria (part of Spain, officially) in May 2018, and am working for a UK client as a remote video editor freelancer whilst living here, editing British weddings. I am trying to sort everything out. I do not know whether to put the work through my British company, (registered as a sole trader), or to setup as a freelance registered in Spain. Whether to pay British or Spanish taxes. Whether To ask my British client to pay into my British bank account, or to pay into my Spanish one.

I have tried talking to British HMRC, but they are utterly uninterested in engaging with my question - it's almost as if they don't want to take my money, can't be bothered.

Any advice would be very appreciated.

Thanks for your time.


Dan
DragonToe is offline  
Old Aug 25th 2018, 1:30 pm
  #2  
MODERATOR
 
old.sparkles's Avatar
 
Joined: Sep 2009
Location: Adelaide
Posts: 29,876
old.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond reputeold.sparkles has a reputation beyond repute
Default Re: Who Should I Pay My Tax To? UK or Spain?

Hi Dan

You managed to create a new thread - but not really in the right section of the forum.

As you are living and working in Spain, I've moved your thread to that section, and hopefully someone will be able to offer some advice.
old.sparkles is offline  
Old Aug 25th 2018, 2:24 pm
  #3  
 
Fred James's Avatar
 
Joined: Jun 2006
Location: Granada Costa
Posts: 10,903
Fred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond repute
Default Re: Who Should I Pay My Tax To? UK or Spain?

If you live in Spain permanently you pay tax in Spain - no choice. If you also get taxed in UK on the same income, you can offset it from the Spanish tax.

There are a few exceptions but I doubt that they apply to you.
Fred James is offline  
Old Aug 25th 2018, 2:40 pm
  #4  
BE Forum Addict
 
Joined: Aug 2009
Location: Costa Blanca
Posts: 3,143
spainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond reputespainrico has a reputation beyond repute
Default Re: Who Should I Pay My Tax To? UK or Spain?

Worth a look here

https://www.gov.uk/guidance/living-in-spain#tax
spainrico is offline  
Old Aug 27th 2018, 12:03 pm
  #5  
Just Joined
Thread Starter
 
Joined: Aug 2018
Posts: 7
DragonToe is an unknown quantity at this point
Default Re: Who Should I Pay My Tax To? UK or Spain?

Originally Posted by old.sparkles
Hi Dan

You managed to create a new thread - but not really in the right section of the forum.

As you are living and working in Spain, I've moved your thread to that section, and hopefully someone will be able to offer some advice.
Cheers.
DragonToe is offline  
Old Aug 27th 2018, 12:04 pm
  #6  
Just Joined
Thread Starter
 
Joined: Aug 2018
Posts: 7
DragonToe is an unknown quantity at this point
Default Re: Who Should I Pay My Tax To? UK or Spain?

Thanks.
DragonToe is offline  
Old Aug 27th 2018, 12:04 pm
  #7  
Just Joined
Thread Starter
 
Joined: Aug 2018
Posts: 7
DragonToe is an unknown quantity at this point
Default Re: Who Should I Pay My Tax To? UK or Spain?

Thanks for the advice.
DragonToe is offline  
Old Aug 27th 2018, 12:06 pm
  #8  
Just Joined
Thread Starter
 
Joined: Aug 2018
Posts: 7
DragonToe is an unknown quantity at this point
Default Re: Who Should I Pay My Tax To? UK or Spain?

Originally Posted by Fred James
If you live in Spain permanently you pay tax in Spain - no choice. If you also get taxed in UK on the same income, you can offset it from the Spanish tax.

There are a few exceptions but I doubt that they apply to you.
Thanks, but how do I go about it? I have tried contacting consulate and sorting it out to no avail. Do I just go ahead and fill out a self employed form from the Spanish gov site? Do I ask my employers to pay into my Spanish bank account?
DragonToe is offline  
Old Aug 27th 2018, 12:50 pm
  #9  
Herreño
 
Boseley's Avatar
 
Joined: Aug 2015
Location: La Isla Meridiano
Posts: 274
Boseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond reputeBoseley has a reputation beyond repute
Default Re: Who Should I Pay My Tax To? UK or Spain?

I pay tax in both U.K. and Canary Isles, I have an accountant whom I visit once a year in Tenerife, and he completes my Spanish tax return, saves me a lot of hassle and also saves me money. Perhaps you should obtain the services of an accountant.

Note I previously tried using Gestors, both gave me wrong advice, and both charged extortionate fees.
Boseley is offline  
Old Aug 27th 2018, 12:56 pm
  #10  
Just Joined
 
Joined: Jun 2018
Location: Zurich
Posts: 16
accutalk is an unknown quantity at this point
Default Re: Who Should I Pay My Tax To? UK or Spain?

Originally Posted by DragonToe
Hi all,

Apologies if this is in the wrong thread. If it is, and someone lets me know, I'll take it down and re-post in the appropriate section.

I was a UK citizen who has recently moved to Gran Canaria (part of Spain, officially) in May 2018, and am working for a UK client as a remote video editor freelancer whilst living here, editing British weddings. I am trying to sort everything out. I do not know whether to put the work through my British company, (registered as a sole trader), or to setup as a freelance registered in Spain. Whether to pay British or Spanish taxes. Whether To ask my British client to pay into my British bank account, or to pay into my Spanish one.

I have tried talking to British HMRC, but they are utterly uninterested in engaging with my question - it's almost as if they don't want to take my money, can't be bothered.

Any advice would be very appreciated.

Thanks for your time.


Dan
If you are a resident of Spain, you are liable to pay taxes to Spain. Spain will tax your worldwide income regardless of where it is emerging. Simple.
In case you are taxed twice, you are entitled for relief by way of partial or full relief before you are taxed or
a refund after you are being taxed
accutalk is offline  
Old Aug 27th 2018, 12:59 pm
  #11  
 
Fred James's Avatar
 
Joined: Jun 2006
Location: Granada Costa
Posts: 10,903
Fred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond repute
Default Re: Who Should I Pay My Tax To? UK or Spain?

The simplest method is to go to your local tax office in May or June of the year after you first become tax resident and take your income details and also a note of how much UK tax you have paid. They will sort it out for you.

You become tax resident when you have exceeded 183 days in Spain in one calendar year. You will be deemed tax resident for the whole of that year.
Fred James is offline  
Old Aug 27th 2018, 5:32 pm
  #12  
Just Joined
Thread Starter
 
Joined: Aug 2018
Posts: 7
DragonToe is an unknown quantity at this point
Default Re: Who Should I Pay My Tax To? UK or Spain?

Originally Posted by accutalk
If you are a resident of Spain, you are liable to pay taxes to Spain. Spain will tax your worldwide income regardless of where it is emerging. Simple.
In case you are taxed twice, you are entitled for relief by way of partial or full relief before you are taxed or
a refund after you are being taxed
I am not a Spanish citizen. I am a resident though. This still applies?
DragonToe is offline  
Old Aug 27th 2018, 5:33 pm
  #13  
Just Joined
Thread Starter
 
Joined: Aug 2018
Posts: 7
DragonToe is an unknown quantity at this point
Default Re: Who Should I Pay My Tax To? UK or Spain?

Originally Posted by Fred James
The simplest method is to go to your local tax office in May or June of the year after you first become tax resident and take your income details and also a note of how much UK tax you have paid. They will sort it out for you.

You become tax resident when you have exceeded 183 days in Spain in one calendar year. You will be deemed tax resident for the whole of that year.
Thanks for that. That's great. I will defo do that. So i should just carry on paying British tax up until this point?
DragonToe is offline  
Old Aug 27th 2018, 9:27 pm
  #14  
 
Fred James's Avatar
 
Joined: Jun 2006
Location: Granada Costa
Posts: 10,903
Fred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond repute
Default Re: Who Should I Pay My Tax To? UK or Spain?

Originally Posted by DragonToe
I am not a Spanish citizen. I am a resident though. This still applies?
Yes.
Fred James is offline  
Old Aug 28th 2018, 9:24 am
  #15  
Just Joined
 
Joined: Jun 2018
Location: Zurich
Posts: 16
accutalk is an unknown quantity at this point
Default Re: Who Should I Pay My Tax To? UK or Spain?

Originally Posted by DragonToe
I am not a Spanish citizen. I am a resident though. This still applies?
Ohk. Is it? Applies if you have been a resident for a period exceeding 183 days
accutalk is offline  


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.