tax Spain trading

[qwertyjjj]

In the UK, I trade for a living, which is tax free. I would like to keep this status but also spend as little time in the UK as possible. I believe the rule is 90 days in the UK to retain tax resident status though I have also heard 183 days mentioned.
If I move to Ibiza, as long as I remain there for less than 183 days, I am told I do not become tax resident in Spain. However, would trading be classed as a contracted employment? It is self employment after all.

[tom 7000]

What you are saying is they dont tax gypsies...ie if you stay out of any country for more than 90 days a year...well thats the rule for you in the uk over a long period.

[bakeja]

Qwerty - I didn't know it was tax free in the UK if you "trade for a living". In this case why would you want to lose your tax resident status there? It sounds like a tax haven if you can trade tax free but I can't believe that is true. From my side (Spain) you will not generally have to declare tax residency here unless you spend more than 183 days of the calendar year here. But there are some exceptions to the rule including consideration of where your business, residence and family are. Also if you trade in Spain - regardless of tax residency - you still have to register the business, pay VAT and tax etc on that business. Avoiding becoming tax resident only saves you from being taxed on your worldwide income.

[tom 7000]

As I said in the uk, if you are here for more than 90 days over a period of years, then they say you are tax resident here and you pay tax. This tax is on world wide income if uk domiciled. You get double tax relief though.

if you are a non dom then no tax on world wide income, just uk income, in first 7 years here, after that tax on it all or alternatively you can opt not to declare w/w income and you pay the £30k fee instead.


You pay vat if you exceed £68k income in a rolling 12 month period and buy and sell goods here or have a permanent establishment regardless of days here..

You can only trade tax free in the uk if your profits are <£6k...if you are making more than this and think for some reason you are ''outside tax'' you have this wrong and just havent been caught yet.

Hey bakeja, wanna do a tax swap. we will help you on uk tax if you need it, and you help us on spanish tax... check us out www.ttca.co.uk. I just had a client ask for some help. Ill send you the spanish ones you semd me the uk ones??

[bakeja]

Hola Tom 7000 - ridiculously late responding to your kind offer of mutual client/advice swapping. I didn't see your post until it came up on a Google search I was doing - sorry. I took at look at the TreeTops website and you look exactly like our sort of firm. I get a lot of crossover UK - Spain issues so will look you up when next in need. Cheers

[tom 7000]

I think this means if I come visit you in Spain its tax dedddddductable....woo hoo ;o)