Self-employment and tax

[cordoba]

Hello,

I am hoping to move to Spain in the next year or two. I am currently self-employed in the Uk making money from advertising on websites that I run.

I have two questions about tax. Moving to another country is intimidating enough without all the paperwork involved. I understand that if I wait until after October to move, I will continue to pay taxes in the Uk until the end of our financial year. I'm hoping that will enable me to defer having to face the complicated Spanish tax system until the following April. Or is it a case that as soon as I move to Spain, I will have to start filling in forms and paying tax and then claim it back from them after I have paid it to the Uk as well (under the double taxation treaty)?

The other question about tax is : I have read that you are only taxed in Spain over money earned when in Spain. So if I have a cheque arrive after I move to Spain that includes earnings from just before I arrived, who do I pay - the UK taxman, or the Spanish taxman?

[Stravinsky]

Originally Posted by cordoba

Hello,

I am hoping to move to Spain in the next year or two. I am currently self-employed in the Uk making money from advertising on websites that I run.

I have two questions about tax. Moving to another country is intimidating enough without all the paperwork involved. I understand that if I wait until after October to move, I will continue to pay taxes in the Uk until the end of our financial year. I'm hoping that will enable me to defer having to face the complicated Spanish tax system until the following April. Or is it a case that as soon as I move to Spain, I will have to start filling in forms and paying tax and then claim it back from them after I have paid it to the Uk as well (under the double taxation treaty)?

The other question about tax is : I have read that you are only taxed in Spain over money earned when in Spain. So if I have a cheque arrive after I move to Spain that includes earnings from just before I arrived, who do I pay - the UK taxman, or the Spanish taxman?

Hiya

If you moved to Spain in October 2008, your first tax return would not be due until the beginning of 2010. October is a good month to move.

When you are a tax resident in Spain you pay tax on your worldwide income, with the exception of Government pensions which are taxed at source.

Get yourself a good gestoria who knows about tax

[cordoba]

Originally Posted by Stravinsky

Hiya

If you moved to Spain in October 2008, your first tax return would not be due until the beginning of 2010. October is a good month to move.

When you are a tax resident in Spain you pay tax on your worldwide income, with the exception of Government pensions which are taxed at source.

Get yourself a good gestoria who knows about tax

thanks for the advice Stravinsky. October sounds like a good month to move, mayby the best time to escape the British weather/aclimatize to the Spanish weather too.

[Stravinsky]

Originally Posted by cordoba

thanks for the advice Stravinsky. October sounds like a good month to move, mayby the best time to escape the British weather/aclimatize to the Spanish weather too.

Thats what we thought ... we didn't actually realise the tax advantage at the time, that was just luck