This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Working in Spain - Tax advice would be really appreciated

rik001
Posts:1
Joined:Mon Dec 30, 2019 10:03 am
Working in Spain - Tax advice would be really appreciated

Postby rik001 » Mon Dec 30, 2019 10:12 am

Hello,

I have been issued an offer for a permanent job in Spain. The contract would be a Spanish one.
I am likely to be based in Spain around 2 days per week. At other times, I would be in the UK (working remotely), where my wife and children will continue to reside. I am a UK citizen.

I am currently reviewing my tax options prior to making a decision on the offer in the areas of:
1. Despite spending less than 183 days in Spain each year, would I still have to be a Spanish resident?
2. What would be my tax options? Standard Spanish Income tax (I would earn over 100k Euro), Beckham's Law? Other? Can I be classified as a Non-resident?
3. I understand that there is a wealth tax for worldwide assets. I own a house in the UK.
4. What would this mean with HMRC in the UK? I won't have any other income. Would I need to pay further tax in the UK?
5. If taxed at source in Spain, can I make pension contributions to my UK pension at source?
6. Other than being taxed by my employer, would I need to submit any tax returns in Spain?

I would appreciate any guidance please. Subsequently, happy to appoint a specialist to take things forward.

Thanks,

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: Working in Spain - Tax advice would be really appreciated

Postby AmanSood » Thu Jan 16, 2020 3:39 pm

Hello,

I have been issued an offer for a permanent job in Spain. The contract would be a Spanish one.
I am likely to be based in Spain around 2 days per week. At other times, I would be in the UK (working remotely), where my wife and children will continue to reside. I am a UK citizen.

I am currently reviewing my tax options prior to making a decision on the offer in the areas of:
1. Despite spending less than 183 days in Spain each year, would I still have to be a Spanish resident?
2. What would be my tax options? Standard Spanish Income tax (I would earn over 100k Euro), Beckham's Law? Other? Can I be classified as a Non-resident?
3. I understand that there is a wealth tax for worldwide assets. I own a house in the UK.
4. What would this mean with HMRC in the UK? I won't have any other income. Would I need to pay further tax in the UK?
5. If taxed at source in Spain, can I make pension contributions to my UK pension at source?
6. Other than being taxed by my employer, would I need to submit any tax returns in Spain?

I would appreciate any guidance please. Subsequently, happy to appoint a specialist to take things forward.

Thanks,
Hi

Broadly the position would be that you would be taxed in both countries. Spain on your spanish sourced income and UK on your worldwide income. So you would have to file tax returns in both the UK and Spain.

Aman
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

jvenegas16
Posts:114
Joined:Wed Aug 06, 2008 3:49 pm

Re: Working in Spain - Tax advice would be really appreciated

Postby jvenegas16 » Sat Sep 26, 2020 1:47 pm

The answer to your question is a little bit more complex for this forum.

The length of your contract is also relevant here.
What changes may be introduced from January 2021 after Brexit.
You will continue to be tax resident in the UK without any doubt.
Your income in Spain would be taxed at source. Obtaining tax resident certificate in UK may be appropriate to present it to the Spanish Tax Authorities.

It is true that you may be taxed in both countries and benefit from the tax credit in relation to the tax already paid in the other country, however the tax years are different, as in Spain it is the calendar year.

You will need a proper private tax advice on the matter as I am sure there will be further questions.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Working in Spain - Tax advice would be really appreciated

Postby darthblingbling » Sat Sep 26, 2020 5:18 pm

Also social security to consider as no one knows what the agreements will be after Brexit.

alexa36
Posts:2
Joined:Thu Jan 12, 2023 7:58 am

Re: Working in Spain - Tax advice would be really appreciated

Postby alexa36 » Thu Jan 12, 2023 8:54 am

Despite spending less than 183 days in Spain each year, you may still be considered a Spanish resident for tax purposes if you maintain a permanent home in Spain or if your center of economic interests is in Spain. This will be determined on a case-by-case basis.
As a Spanish resident, you would be subject to Spanish income tax on your worldwide income. However, under Beckham's Law, you may be able to apply for a reduced tax rate of 24% for the first €600,000 of income earned for the first five years of Spanish tax residency. Alternatively, you may be able to claim non-resident status if you spend less than 183 days per year in Spain, but this will depend on your specific circumstances and should be discussed with a tax advisor.
Spain has a wealth tax on worldwide assets above €2 million, but it is possible to exclude assets such as your primary residence. Again, it is best to discuss this with a <a href=https://hrss.cpa/tax-planning-compliance/>tax advisor</a>.
As a UK citizen, you will still be subject to UK tax on your UK income and assets. However, if your only income is from Spain and you are not considered a UK resident for tax purposes, you may not have to pay further tax in the UK.
Spanish income tax is typically withheld at source by your employer, but you can make pension contributions to your UK pension from your net salary. However, you should consult a tax advisor to understand the tax implications of doing so.
In addition to taxes withheld at source, you may also be required to file a tax return in Spain to declare your worldwide income. Again, it's best to consult with a tax advisor to understand your specific tax obligations.


Return to “International Tax”