Living and working in Spain with UK Ltd company

[laurayadam]

I have a small internet based UK registered Ltd company and I am considering moving to Spain to live in the flat I own there and wish to sell myself. I wonder if anyone could advise me on some tax issues?
I do not want to have to pay for an accountant in Spain as well as my accountant in the UK and I do not want to set up a Spanish version of my company because I have heard it is a much more costly and complicated venture than setting up a UK company?
1.Can I earn money from my company and pay it into my UK business account whilst living in Spain? If I draw from this whilst living in Spain I presume that I will have to pay UK tax and Spanish tax on it? And require a Spanish accountant to do my books?
2.Or could I leave my company in the UK and stop trading with it and go to live and work in Spain for a different Spanish company. This would be while I sell my Spanish flat before moving back to the UK to resume trading with my company after aproximately 6 months.
Any advice would be greatly appreciated.

[Wanna-B-Expat]

I would be interested in finding out about this as well.

Also what if I decide to rent my house out in the UK. I assume I would pay tax on the rent recieved under UK law and not Spanish taxes on top of that.

[Destination Spain]

Hi all,

You will have to pay taxes in your country of residence. You can choose where you pay. Best ask a good Gestor/Accountant or look on the ukinspain website for more info.

[Jillio]

Good luck with this. We are US citizens moving to Andalucia as my huband has a job in Gib for 3 years. We have been working with professionals and still cannot come up with a clear answer. Seems like you are required to pay Spanish tax ratcheting in levels up to 40% then employ the reciprocal agreement when filing tax in your country of origin to ensure there is no duplicate tax. Problem is as we see it is not the duplicate tax but rather the higher tax rate in Spain without chance of deductions we enjoy in the state through property ownership and such. Seems like alot of people choose to "fly under the radar" in Spain which is a risk in itself.

[Stravinsky]

Originally Posted by Destination Spain

Hi all,
You will have to pay taxes in your country of residence. You can choose where you pay. Best ask a good Gestor/Accountant or look on the ukinspain website for more info.

You can't actually choose where you pay. If you live in Spain for more than 180 days then you are considered a Spanish resident and therefore you may your taxes in Spain. You must de register for taxes in the UK to avoid double taxation, although you can claim back any double tax paid.

Its true to say that taxes in Spain can be higher than the UK..... the price of the sun I guess

[Goldberg]

Stravinsky is right, if you live in Spain more than 180 days a year you are considered resident for tax purposes, even for example if you had a company in the caymans, you would still have to pay tax on your worldwide income to spain.

Non residents still have to pay 25% tax on all income generated in spain. eg. on your property rentals.

Spain is part of europe, and there are double taxation treaties.

Americans get a bum deal around the world as they always have to pay uncle Sam. ie. the government where ever they live, I guess that is why they can afford to keep bombing and terrorising Iraq.

[Goldberg]

This is a good thread and needs to be further contributed too, as many people are thinking the same thing. setting up businesses abroad. Please further contributions.

[hayleymorgan]

Hi,

I work for a HomeWorking Network in the UK. We take order entry calls and customer service calls for large global, blue chips companies for the comfort of our own homes, no commuting, great flexibility, and good money.

I used to work abroad for one of the major tour operators, and always said that I would like to return to live in Spain.

I have recently speaking to my MD, about taking our company to spain to open up opportunities there. Do you think that British people would be interested in working for a UK company, working from thier own apartments or villas????

I think it would be a great solution to the sometimes difficult job situation in Spain. All that is needed is a dedicated landline and broadband connection.

Please let me know your thoughts, it really is something that I feel would work well, but you are there and I'm here, so your comments would be appreciated.

Hayley

[hayleymorgan]

THIS WAS POSTED SOMEWHERE ELSE BUT MAYBE OF INTEREST.

I am new to this forum and found it very interesting, specially this thread.
We are planning to move to Spain in 2007. I have been having discussions with my employer to allow me to work remotely from Spain as I am home based in the UK and all I need is a broadband connection. I just came back from Spain and researched the issue thoroughly with my Spanish solicitor. If you work for a UK company, you will, be paying UK taxes. You will not be a Spanish resident even if you leave there more than 6 months in a year. You will not need to fill any tax returns because the taxation agreement between the Inland Revenue and the Hacienda. There is no need to pay Seguridad Social (NI) in Spain because you are paying in the UK. Providing you have the new European Health Card, you will be covered if you fall ill.
I am not sure how all this will apply if your employer does not know that you are base in Spain. I would be careful if I was you as leaving the country and working from abroad may constitute a bridge of your employment contract and you might end up in Spain without a job!

[Goldberg]

Hayley morgan, if you live or stay in spain more than 183 days a year, and you are working you have to pay Spanish taxes.

Speak to Dr Crespo & Partners - International Lawyers, SRL he will tell you the truth, no bull. He can help. thanks dc.