This scenario is one which has cropped up on a number of occasions and one which can be difficult to clarify without the correct information. The thread was started by someone who works for themselves in the UK under the ltd company laws but is looking to move to Spain on a permanent basis. Where does the company pay its corporation tax? Where does the individual pay their income tax?

There is a fair amount of comment on the exact situation of the person asking the questions, which again highlights the fact that it is impossible to give informed advice unless all of the facts are known. After some discussion its seems as though it is quite feasible for a company to be registered in the UK and employ someone in Spain, but it looks as though the individual will pay Spanish tax on their income and UK corporation tax on the company’s profits.

Other issues which arise include the double taxation agreement between Spain and the UK which means that nobody will be taxed twice on their income (the matter of company profits and employee income is different because in the eyes of the law a company is a separate legal entity), the 183/90 day rule and health cover regulations.

There does not seem to be any way of avoiding Spanish tax on your personal income if you are resident in the country and while you could take your income as a salary or dividends from your own limited company, professional advice should be sought to clarify the situation.

Continue reading ‘Self Employed In The UK But Living in Spain – Who Gets The Tax?’ »

How many times has the above phrase been repeated? How many times will it be repeated in the future?

As much as people try to knock Marbella as a mature property market it seems as popular now as it has been over the last few years – although down on the boom times when the market went into orbit!

The thread offers an interesting mix of social conversation and details on insurance and schools in the area as well as an informative overview of how the rental market works in Spain over the peak tourist periods, i.e. no discounts for long term deals.

There appears to be some confusion as to the cost of EHIC and NIE cards, who needs them and what they can really do for you. However, slowly but surely the picture becomes clearer and highlights the fact that you need to do your own research before spending your hard earned money on a card which may not give you any benefits.

The subject of overseas education seems to be something of a buzz word at the moment and it is surprising to see that Spanish schools fees appear to be significantly lower than those in the UK. It also seems as though more and more couples with young families are looking to escape the UK with some very favourable comments on the behaviour of school children in Marbella.

Towards the end of the thread a number of areas of Marbella are put under the spotlight with many highlighting the differing rental costs and local services on offer. However, there are no disparaging remarks about Marbella which makes a change from those trying to talk down some of the more mature markets of Spain.

Continue reading ‘Marbella Here We Come!’ »

One of the main attractions of this forum thread is the fact that you can actually trace it back to the start and see how prices, laws and trends can change in a very short space of time. This thread starts with a basic list of groceries in Spain and their cost, but the thread then takes on a life of its own!

A quick view of the thread will confirm that diesel has risen in price by over 30% between January 2008 and June 2008, with the price likely to have moved higher and then fallen between June and today. It is also interesting to monitor the rise in grocery prices as well as the cost of alcohol and cigarettes. Very soon the time line makes clear how the cost of living is changing in each and every area of the world with Spain no different.

A number of new elements are added in the second half of the thread with the cost of property in different areas of Spain high on the agenda. As many of the contributors to the thread seem to be based in Spain the information is both accurate and vital for anyone looking to invest in Spain or move permanently. Places such as Catalonia, the Costa Blanca North and the Cost Del Azahar receive a mention as it becomes clear that the cost of property and the cost of living does vary across the county.

The timeline affect of this thread is very interesting and as more time goes by we should see more useful information and price updates added to broaden the picture.

Continue reading ‘An updated guide to the cost of living in Spain’ »

Looking to live in Spain? Is your paperwork in place?

This thread started as a simple summary of the change in Spanish regulations about residency and being able to prove it, but it moves onto a whole new level as the post gets longer and longer. It seems as though under duress the Spanish authorities have been forced to make residency paperwork a backbone to many services in the country, meaning that if you do not have the certificate you risk not only legal action from the authorities but you may not be able to open a bank account and much more!

The thread starts off with a simple guide about obtaining your residency permit, when you actually need it and the cost (just over six Euros) but then it becomes clear that you need to start the process within 30 days of being ‘resident’ in Spain – although the total process can take upwards of 3 months to complete!

It seems as though simple services such as buying a car may be unavailable without a certificate (the thread also covers the overlap and problems of having a UK registered car in Spain) and local finance is often difficult to obtain without proof of residency. There is also some discussion about rumours that some expats are not obtaining the necessary paperwork and how the Spanish Police carry out their checks.

Interestingly the thread also touches on the increased co-operation between UK and mainland Europe tax authorities as the search for those living and working abroad goes on. In essence, if you are not sure you really do need to take advice!

Continue reading ‘Spanish Residency Paperwork And The Consequences’ »