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Hi
We are hopefully moving to Spain in the next couple of months and I am likely to be working remotely for perhaps 6 -9 months for my UK based company.
Does anyone know if there are any tax and NI issues with me doing this?
Kind regards
Penny
Posted: Mon Aug 31, 2020 11:33am
Helpful member
If you get your TIE this year, you will be liable for income tax in Spain for Jan-Dec 2021, and you will "reconcile" in 2022.
You may find that the Spanish tax-take is higher than in the UK (depending on your circumstances).
"Reconcile" - you will make a Modelo 720 declaration of worldwide assets in Feb 2022. You will submit your tax return to the Spanish authorities in June 2022. You will pay tax for Jan-Dec 2021 in June and November 2022 (roughly a 60/40 split between the two payments). But here is the kicker .... you will continue to pay UK tax as well for UK-derived income. So you will pay UK tax (PAYE) and then the Spanish tax as well. So there is a significant cash flow issue to plan for. You will then claim back your UK tax from the UK. This reclaim process will start in September 2022.
Posted: Mon Aug 31, 2020 2:30pm
Super helpful member
Worth checking out "Beckhams Law" which can be used to be exempt from Spanish tax for three years. You will need a proper expert to advise you - not anyone on a chat forum or "the man in the bar".
Will60 wrote on Mon Aug 31, 2020 11:33am:
If you get your TIE this year, you will be liable for income tax in Spain for Jan-Dec 2021, and you will "reconcile" in 2022.
You may find that the Spanish tax-take is higher than in the UK (depending on your circumstances).
Read more...
"Reconcile" - you will make a Modelo 720 declaration of worldwide assets in Feb 2022. You will submit your tax return to the Spanish authorities in June 2022. You will pay tax for Jan-Dec 2021 in June and November 2022 (roughly a 60/40 split between the two payments). But here is the kicker .... you will continue to pay UK tax as well for UK-derived income. So you will pay UK tax (PAYE) and then the Spanish tax as well. So there is a significant cash flow issue to plan for. You will then claim back your UK tax from the UK. This reclaim process will start in September 2022.
Many thanks Will.
Kind regards
Penny
PeterC wrote on Mon Aug 31, 2020 2:30pm:
Worth checking out "Beckhams Law" which can be used to be exempt from Spanish tax for three years. You will need a proper expert to advise you - not anyone on a chat forum or "the man in the bar".
LOL, many thanks Peter, I'll have a look at that.
Kind regards
Penny
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