Quote:
Originally Posted by aliciaw
Can anyone help? My husband and i live with our daughter in Spain- we have been here for over 2 years. We have a business partnership in the UK and are both self employed with our only income being from the UK. We travel to and from UK regularly to work but also work alot from home.
We are currently paying income tax and NI in the UK because that was what we were advised but now have been told that we ought to be paying social security in Spain. We are happy to do this but it seems that we each would be paying 200 or more every month because the spanish system is expensive for self employed people. We have worked out that it is cheaper to pay for private healthcare insurance.
What we want to know is;
1. Would we both have to pay social security?
2. If we opted to go private, can we still pay into the UK pension scheme?
Any advice appreciated - many thanks
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You have lived here for 2 years. You are a Spanish tax resident. You are required to pay tax here in Spain which would include income tax and wealth tax. You should also have a Spanish resident certificate, as this is now a requirement under Spanish law. As a Spanish resident you are no longer legally entitled to UK National Health Care as you are no longer a UK resident. You can get an E106 form from DWP Newcastle that will entitle you up to 2 years free state health care in Spain. Presently, from what you say, if your daughter or you became ill you would have no legal health cover at all.
In the same way, all
my "income" is generated in the UK, but I pay tax on it here, not the UK. I dont pay twice as there is a reciprocal agreement.
To register as autonomo here you will have to pay about €235 a month for "NI" payments. Afaik, if one person in the family pays it then the others are covered, but you'd need to check. Private health is likely to be less than that with a providor such as Sanitas, but as with all private health systems you will probably find not everything is covered.
Hope this helps