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Working remotely from Spain for a UK company

Working remotely from Spain for a UK company

Old Feb 25th 2020, 2:53 pm
  #1  
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Default Working remotely from Spain for a UK company

Hi All,

I work remotely for a UK company but I currently live in Spain. This happened gradually as I used to live in London but I started to work from home a few days a week, then a few weeks a month and now I only go to the UK office once a quarter for a few days. I receive my salary in my UK bank account and I pay income tax in the UK. I was made aware this situation is not right. Reading through the internet it seems my employer needs to register a branch in Spain or a representation. However, they are not willing to do so as it seems like too much hassle for them and extra cost.

So the question is - is there any other simpler way of making my situation right? Is it OK to process my salary via a Spanish payroll company that will take care of social security and taxes or does my employer really need to set up a branch?

There was a similar topic I found from 2006 and 2013 but I assume the information there is outdated.

Thank you very much.

Best regards,
Alexandra
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Old Feb 25th 2020, 3:35 pm
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Default Re: Working remotely from Spain for a UK company

Lucky you. Any more jobs available at your company?
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Old Feb 25th 2020, 7:28 pm
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Default Re: Working remotely from Spain for a UK company

First and obvious question, do you have residencia?
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Old Feb 25th 2020, 7:42 pm
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Default Re: Working remotely from Spain for a UK company

Yes.
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Old Mar 1st 2020, 4:39 am
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Default Re: Working remotely from Spain for a UK company

How long have you been resident in Spain? This issue has been discussed before and tax rules have not changed. You need to declare you world wide income in Spain. DIY or get a Gestor.

Last edited by missile; Mar 1st 2020 at 4:54 am.
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Old Mar 1st 2020, 2:11 pm
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Default Re: Working remotely from Spain for a UK company

Originally Posted by AlexandraArmstrong View Post
Yes.
Hi Alexandra,

If you're living in Spain more than 183 days a year, you are considered a "fiscal resident" and must declare all your incomes.

Hope it helps.
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Old Mar 4th 2020, 4:27 pm
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Default Re: Working remotely from Spain for a UK company

I do pretty much the same thing - work for a uk company with no presence in Spain but do all my work from home in Spain.
My uk salary gets paid into a uk bank which I then transfer over to my Spanish account.
I am registered as "NT" (No Tax?) with the uk tax authorities, and non uk resident, so my employer doesn't pay any NI or deduct taxes from my salary.
I am registered as autonomo in Spain and pay just under 300 euros per month into the Spanish social security system. This is similar to uk national insurance and entitles myself and family to the Spanish NHS and contributes to a Spanish pension.
I have a gestor who files quarterly tax returns with no content (I don't provide invoices as I am an employee), and an annual tax declaration detailing my full income, for which I pay the appropriate level of income tax, less allowed deductions for wife and family.
I believe this situation is known as "false autonomo" and not strictly correct, but I have been doing the same for the last 15 years now.
I don't know of any other way to do this, but as long as I am paying my taxes to the Spanish authorities I sleep well enough at night.
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Old May 23rd 2020, 12:51 pm
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Default Re: Working remotely from Spain for a UK company

Hi guys, i am in the same situation, could you please advise a spanish "gestor-account" ?

thanks

BR
I.
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Old May 23rd 2020, 12:56 pm
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Default Re: Working remotely from Spain for a UK company

Originally Posted by iog View Post
Hi guys, i am in the same situation, could you please advise a spanish "gestor-account" ?

thanks

BR
I.
A gestor is someone who knows the system and their way around/through it.

They are extremely good at making things happen.

We don't have (or perhaps don't need) the equivalent in UK
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Old Jun 11th 2020, 9:33 am
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Default Re: Working remotely from Spain for a UK company

I am in the same situation.

The consensus on these forums seems to be to remove yourself from PAYE and setup autonamo and invoice the company as a contractor (although this raises the question of false autonamo).

I've had advise of two people here in Valencia who say they have a lot of experience in this and they both advise to simply submit a tax return at the end of the year and not to go autonamo. Even the woman who gave me my residency card yesterday told me this was legal (and to make sure I always have private medical insurance as I wouldn't be making social security contributions)

It's incredibly frustrating to have conflicting advise.

Last edited by taxpat; Jun 11th 2020 at 9:40 am.
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Old Jun 11th 2020, 10:19 am
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Default Re: Working remotely from Spain for a UK company

Originally Posted by taxpat View Post
I am in the same situation.

The consensus on these forums seems to be to remove yourself from PAYE and setup autonamo and invoice the company as a contractor (although this raises the question of false autonamo).

I've had advise of two people here in Valencia who say they have a lot of experience in this and they both advise to simply submit a tax return at the end of the year and not to go autonamo. Even the woman who gave me my residency card yesterday told me this was legal (and to make sure I always have private medical insurance as I wouldn't be making social security contributions)

It's incredibly frustrating to have conflicting advise
.

There always seems to be different experiences when visiting these offices with each area having its own interpretation of any given legislation. If that woman had called a couple of her colleagues over to discuss the issue they would have possibly given differing opinions on this as many members have found that even in one office they have different answers on a subject. As you rightly said it is frustrating.

Rosemary

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Old Jun 11th 2020, 1:37 pm
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Default Re: Working remotely from Spain for a UK company

Don´t believe a thing they tell you in a government office. They are astonishingly ill-informed as I know to my cost.

Go to a good gestor.

I was in a similar situation to you. I became autonomo about 4 years ago. I invoice the company (no VAT in my case), get paid. The gestor does the rest i.e. gets the paperwork from me and tells me what the taxman will take from my bank A/c each quarter. In the following year I usually get a tax refund of any overpayment in the previous year.

Note that there is what´s called a ´tarifa plan´for new autonomos. Essentially it´s a system whereby you pay quite a bit less for social security in the first 2 years of being autonomo. Google tarifa plan autonomo for info.

This is the correct way to do it. Although technically you´re working for just 1 employer which makes you a´false autonomo´ which is what I am but I think they´re quite happy to let you get on with it unless you´re earning vast amounts or employing other people.

Don´t do nothing....you´ll land in trouble!

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Old Jun 11th 2020, 1:48 pm
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Default Re: Working remotely from Spain for a UK company

Indeed, I was referring primarily to the advise I got from 2 gestors in Valencia who said to simply submit a tax return. The advice from the woman in the government office I took with a pinch of salt.
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Old Jun 11th 2020, 1:51 pm
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Default Re: Working remotely from Spain for a UK company

Basically, if you´re resident in Spain and work here you have to contribute to the social security system and pay tax like any good citizen in any country.

BTW......I´m not implying that anyone here is not a good citizen!
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Old Jun 11th 2020, 2:59 pm
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Default Re: Working remotely from Spain for a UK company

Have you considered setting up a Spanish company?
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