Spending time in Spain

[tim5597]

Hi there

I'm currently self-employed in the UK, filing a self assessment each year.

An opportunity has opened up to spend some time in Spain, and I can't quite get my head around the tax implications. I am able to work remotely and plan to keep my current UK client base. However, I believe I'd have to file a tax return in Spain after spending 183 days there - but is this during any 12-month period, or during a calendar year? For example, if I spent the last 100 days of 2017, and the first 100 days of 2018 in Spain, am I above or below the threshold?

If it's below the threshold, would I have any tax or social security obligations in Spain? Or would I continue to only file my UK tax paperwork as at present?

Thanks in advance!

[AmanSood]

As you will be working in Spain on a self employed basis, then some of your income will be sourced to/earned in spain and therefore will be taxable in spain even if you are non-resident in Spain

[etf]

You will be able to access PWC's Spanish tax guide in the "useful links" section of the website below. Whilst not a substitute for good advice, it may give you some useful pointers.

KR

etf

www.theexpatriatetaxfactory.com

[maths]

Other things being equal it is advisable to avoid if at all possible finding yourself exposed to Spanish tax on your profits. Certainly avoid becoming resident under their domestic law.

The avoidance of a Spanish tax charge on profits requires that you do not have in Spain a so-called "permanent establishment" (ie a fixed place of business which in fact encompasses a broad range of locations eg office based at client's premises).

Bottom line is to limit visits to Spain to do any work at an absolute minimum and do as much as possible remotely from within the UK.