The DNV only really regulates the worker's situation with regards to rights to be in Spain. It doesn't set out any specific requirements for the employer, these are regulated by the other pre-existing legislation.

Things to look at would be:

Tax. Probably you would be entitled to a "0" tax code in the UK when you stop being a UK resident. Your HR should know how to do that. You would pay tax in SPain as a Spanish resident by submitting annual returns, nothing will have been retained at source obviously.
Social Security. As far as I am aware, you cannot have a "0" social security contribution in the UK so you will probably still have to pay into the UK ssystem even though as a non-resident you won't be entitled to use it. SImilarly, your company won't be able to pay your contributions in Spain, so you won't be a beneficiary of the Spanish system either.
Corporate tax. This is the difficult one because the rules are so complex, but assuming that your employer doesn't want to open a Spanish branch, they will have to be very careful that by having an employee as resident in Spain, they are not creating a Permanent Establishment of the UK entity in Spain. This could make them liable for corporate taxes.

 

This might help get you started (I snipped it online) but as you can see it's not as simple as "this is how it works". It depends on the size and structure of the company, do they already allow overseas working ? (This is often the sticking point for many companies not wanting to open the flood gates), to some degree it can also depend on your job/role, what type of data you handle, where that data rests etc etc, and often the biggest one is cost. There are so many considerations for your employer based on factors you haven't mentioned.........



1. Employment Law Considerations

• Spanish labour law may apply
  Even if your contract is under UK law, Spanish authorities can argue that local labour protections apply because you are physically carrying out work in Spain.
  That could mean:
  • Entitlement to Spanish minimum wage (SMI).
  • Limits on working hours, rest breaks, and annual leave according to Spanish rules.
  • Strong employee protections against dismissal (Spain has stricter redundancy/dismissal rules than the UK).
  • Automatic accrual of local employment rights if you are classed as “habitually” working in Spain.
• Risk of creating a “permanent establishment”
  If you’re working in Spain in a way that suggests your UK Ltd has a “fixed presence” there, Spanish tax authorities might argue the company needs to register a branch/subsidiary. This is usually only a real risk if you’re client-facing in Spain, but it’s something employers worry about.

2. Payroll and Tax Compliance

• Income tax
  Under the DNV, you pay Spanish income tax (with special reduced rates for up to 5 years, if you qualify). But Spanish authorities may still expect the employer to withhold/payroll tax locally.
  Options:
  • The company registers with Spanish social security/tax to run payroll locally.
  • Outsource to an Employer of Record (EOR) or payroll provider in Spain (common solution).
  • Or keep paying you via UK payroll but require you to self-declare/pay Spanish tax — legally messier.
• Social security contributions
  Normally, working in Spain means employer and employee contributions into Spanish social security.
  • If you’re sent on assignment for under 2 years, an A1 certificate lets you stay in UK NI.
  • But under a long-term DNV, that doesn’t apply — so the company may need to pay employer contributions in Spain.

3. Immigration (Your Side)

• The DNV lets you reside and work in Spain, but it doesn’t remove the employer’s obligations.
• You’ll need to show your employer contract, company proof, and meet income thresholds. That’s your responsibility, not theirs — but they’ll likely be asked to issue documentation confirming your employment.

4. Practical Risks for the Employer

• Administration burden: Registering in Spain or using an EOR is extra cost/complexity.
• Cost impact: Spanish employer contributions are higher than UK NI (often ~30% of salary).
• Precedent: If they agree for you, others may ask for the same flexibility.
• Legal risk: Non-compliance could trigger fines, back-payments, or disputes if you later claim Spanish employment rights.

5. Common Solutions Employers Use

1. Employer of Record (EOR) service in Spain
   • Companies like Remote, Deel, Papaya, etc. handle payroll, social security, and compliance.
   • Employer still manages your work but avoids creating a branch.
2. Secondment / “posted worker” setup
   • If temporary (under 2 years), stay on UK payroll with A1 certificate.
   • Not usually compatible with DNV (since that implies longer-term residence).
3. Contractor model
   • You set up as a Spanish autónomo (freelancer) and invoice the UK Ltd.
   • Much easier for the employer, but less secure for you, and doesn’t always meet DNV requirements.

6. What You Can Offer Your Employer

• You’ll take responsibility for the visa application and personal tax filings.
• You can suggest EOR as the least disruptive way for them.
• Be upfront about risks: Spanish contributions could raise their cost compared to employing you in the UK.

 

This might help get you started (I snipped it online) but as you can see it's not as simple as "this is how it works". It depends on the size and structure of the company, do they already allow overseas working ? (This is often the sticking point for many companies not wanting to open the flood gates), to some degree it can also depend on your job/role, what type of data you handle, where that data rests etc etc, and often the biggest one is cost. There are so many considerations for your employer based on factors you haven't mentioned.........



1. Employment Law Considerations

• Spanish labour law may apply
  Even if your contract is under UK law, Spanish authorities can argue that local labour protections apply because you are physically carrying out work in Spain.
  That could mean:
  • Entitlement to Spanish minimum wage (SMI).
  • Limits on working hours, rest breaks, and annual leave according to Spanish rules.
  • Strong employee protections against dismissal (Spain has stricter redundancy/dismissal rules than the UK).
  • Automatic accrual of local employment rights if you are classed as “habitually” working in Spain.
• Risk of creating a “permanent establishment”
  If you’re working in Spain in a way that suggests your UK Ltd has a “fixed presence” there, Spanish tax authorities might argue the company needs to register a branch/subsidiary. This is usually only a real risk if you’re client-facing in Spain, but it’s something employers worry about.

2. Payroll and Tax Compliance

• Income tax
  Under the DNV, you pay Spanish income tax (with special reduced rates for up to 5 years, if you qualify). But Spanish authorities may still expect the employer to withhold/payroll tax locally.
  Options:
  • The company registers with Spanish social security/tax to run payroll locally.
  • Outsource to an Employer of Record (EOR) or payroll provider in Spain (common solution).
  • Or keep paying you via UK payroll but require you to self-declare/pay Spanish tax — legally messier.
• Social security contributions
  Normally, working in Spain means employer and employee contributions into Spanish social security.
  • If you’re sent on assignment for under 2 years, an A1 certificate lets you stay in UK NI.
  • But under a long-term DNV, that doesn’t apply — so the company may need to pay employer contributions in Spain.

3. Immigration (Your Side)

• The DNV lets you reside and work in Spain, but it doesn’t remove the employer’s obligations.
• You’ll need to show your employer contract, company proof, and meet income thresholds. That’s your responsibility, not theirs — but they’ll likely be asked to issue documentation confirming your employment.

4. Practical Risks for the Employer

• Administration burden: Registering in Spain or using an EOR is extra cost/complexity.
• Cost impact: Spanish employer contributions are higher than UK NI (often ~30% of salary).
• Precedent: If they agree for you, others may ask for the same flexibility.
• Legal risk: Non-compliance could trigger fines, back-payments, or disputes if you later claim Spanish employment rights.

5. Common Solutions Employers Use

1. Employer of Record (EOR) service in Spain
   • Companies like Remote, Deel, Papaya, etc. handle payroll, social security, and compliance.
   • Employer still manages your work but avoids creating a branch.
2. Secondment / “posted worker” setup
   • If temporary (under 2 years), stay on UK payroll with A1 certificate.
   • Not usually compatible with DNV (since that implies longer-term residence).
3. Contractor model
   • You set up as a Spanish autónomo (freelancer) and invoice the UK Ltd.
   • Much easier for the employer, but less secure for you, and doesn’t always meet DNV requirements.

6. What You Can Offer Your Employer

• You’ll take responsibility for the visa application and personal tax filings.
• You can suggest EOR as the least disruptive way for them.
• Be upfront about risks: Spanish contributions could raise their cost compared to employing you in the UK.

Incredible reply, thank you so much!!

 

Are you sure that your employer will not cast you adrift if they find that they can no longer afford to have someone working remotely in Spain. Remember that no one is indispensable,so formulate a Plan B

 

This is happening more and more. As a remote worker in another country you are likely to be top of the list when a company sheds staff or makes a demand for you to return to the office.
My nephew has been working remotely for a few years and his employer is now asking them to come back to a more 'office' based role.
Seeing as he does helpdesk work for a computer company, he and his work mates all felt that remote was the way to go. And while it suited the employer, so did they.
While there is no issue with their perfomances, the company has realised that none of the remote workers are proactive in chasing new leads.
In the office they can be better managed and the team can respond. My nephew now has to look at moving back to the Uk after having spent the last couple of years in Greece. He cannot afford to stay there as he would be taking a massive pay cut if he found a local job.

I know of a few people who asked about 'remote' working and almost all of them were refused. The Op is I think the first in their company to request this and I would doubt they would be sucessful, otherwise why did the company not do this during covid and after as this was the best time??

One other example is my sister has just been 'retired' as her employer has outsourced her and her departments work to India. She and her team were originally asked to go back to the office three days a week. Two of the team were EU citizens and went back to their own countries to work remote. They said they wouldnt come back and have been, like the rest of the 20 plus department 'retired'.

As the saying goes. The grass is not always greener on the other side.

 

I do know of a person who transfered from UK to Spain on their existing UK salary, but after a few months when the comapny found out how much lower salaries are in Spain they "asked" the employee to take quite a significant pay cut.

I also took a pay cut to move to Spain (the second time) from my previous position abroad, but it was not done in such a sneaky way!

 

Just to offset the previous posts, I managed to get a job with a higher salary in Spain, if compared with what I would have been paid in the UK.
I moved to Spain for the job.
Also, I was on the 'david beckham' scheme, which boosted my salary even more, for the first several years!

 

Yes but you didn't work 'remotely', you moved for a physical job. A totally different kettle of fish.

Ive done telephone support as an engineer, and it's not fun moving your hours to cover the country where you will be supporting.
I was responsible for the west coast of the US and the eight hour difference caused havoc with my family life.
And then six months later I covered the Philippines which are seven hours in front of the UK.
Going back on the road and doing 12 hour days six days a week was way better than sitting at home at all hours on the phone.