Re: Working In Spain for a UK based employer
 

David

Thanks for this. I suppose the problem is that when working for a large UK firm, with one employee out of the 1500 conducting their activity in Spain, they're understandably not particularly willing to register their business here just for little old me...Do you know if it's a difficult / expensive process?

If we look at the other options assuming they're not willing to do this.....I was initially self employed and invoicing the same company, with whom i'm now employed, for my services. There were two problems on this score, the UK company were potentially facing problems in the fact that they were my sole client (and i'd been an employee of theirs previously) so employment law stated that i should be treated as an employee, with all the benefits that go with it.

So i'm now an employee, with the benefits that go with it, but more importantly the security of a full time contract. I don't want to go back to being self employed but i want to live in Spain (my husband works here...) and i want to be able to pay into the social security system, and i want to pay tax so i have a financial history!

It's so crazy that there are plenty of people like us here who want to support and pay into the system but they're essentially forcing us out of the system...no wonder so many people don't bother paying tax...

So, what about this. I am still paying ss autonomo...because my accountant hasn't found the solution yet and i was autonomo for two years here so we're burying our heads in the sand until we find a solution...and was making a declaration to the hacienda every quarter. I've applied for nil tax status in the uk so once this becomes active, could i then 'issue' invoices (which go nowhere in truth) for the gross income i receive from my uk firm? I know this sounds as if it's the wrong thing to do but surely ti's the only way? Allowing me to remain in secure employment, declare my legitimate income here in spain, pay tax on this therefore retaiing a tax / financial status (which is obviously crucial for credit / mortgages and the like) and also pay ss?

I'm sorry, maybe this is advice that you should be charging for. If it would be better to talk about this in person, please send me a private message with your number and i will call. I would be grateful for your personal advice.

Re: Working In Spain for a UK based employer
 

Hello Knockcollins,

I see from your profile that we are almost neighbours.

Anyway in response to your question. There are really 2 issues:

1. As an employed person you want to be covered by the social security system of the country in which you are carrying out your activity.

2. To be covered comprehensively in the country in which you carry out your activity you need to contribute to that countries social security system.

In order to be able to contribute there has to be a mechanism for you to be able to contribute and for your employer to be able to pay their share of employers contribution into the social security system of the country in which you are working. This is the same for any EU country.

The way that employees social security contributions are collected in the UK are through the employer. Employees in the UK do not personally pay their social security contributions instead they are deducted at source by the employer who in turns pays into the UK social security system.

It's no different in Spain, regardless of whether you work for a Spanish or foreign employer in Spain, social security contributions are deducted at source and then paid by the employer to the Spanish social security system. In the UK employers have an employers reference number to which employees currently working for that employer are registered to. The same in Spain each employer has a number to which employees are registered to and deductions are made and contributed under that number.

The social security make no charge for a foreign business to register as an employer or to register their employees with the social security. We have registered several foreign employers with the Spanish social security and tax system, and process their tax and social security obligations without any problems whatsoever.

So there is no need to worry about working illegally or not being able to contribute in the country in which you are working, your employer just needs to register as an employer and subsequently register you as an employee.

David

Re: Working In Spain for a UK based employer
 

David
Thanks for being so generous with your information, from what you say it looks as if my husbands employer registering him is not that onerous so that could be a possibility. The last letter we received from Madrid was asking that his employer do all sorts of things.
We will be in touch to discuss these things and see what you can do for us.
Yvonne

Re: Working In Spain for a UK based employer
 

I'm in exactly the same situatuion.

My employer is a uk blue-chip company. I'm the only employee that lives abroad but still works as though I'm in the uk office.

I have an NT tax code so I'm out of the UK system.

I'm registered in Spain as autonomo and file tax returns with little to no income. Once a year I file a return detailing my "other income" which states my gross uk salary.

I pay full Spanish tax on all my income (including my "other income") and pay 210€ each month into the spanish ss.

My Gestor files all my tax returns.

I have tried my utmost to comply with the Spanish system. Most expats don't bother to declare any income nor pay any tax. I'm trying to be as legal as possible by declaring everything I earn.

If anyone were to look into my tax affairs then I would expect them to come to the same conclusion.

I feel I have done everything I can possibly do without actually giving up my job (and according to EU I should be able to work anywhere).