Yet another remote work tax question ...

RichT wrote on Tue Jun 29, 2021 3:42pm:

As a Spanish resident, you have to declare and pay tax on all worldwide income. However, Spain has dual taxation agreements with the UK (and, I expect, other countries) meaning you can't be taxed twice.

However, my understanding is that you would pay tax in the country in which you work and receive payment (for example, UK), then you need to declare in Spain all the income received & tax paid. ...

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Whilst the tax rates are similar in Spain, the personal allowances are only about 50% of those in the UK, so, in a basic example, if you earned £20K, with a £10k personal allowance in the UK, you would pay £2k tax (20% x £10K). £20k - £10k = £10K. £10k X 20% = £2k.

However, the personal allowance in Spain is £5k, then you would need to pay a further £1k in tax in Spain £20k - £5k = £15K. £15K x 20% = £3K. £2k already paid, means a further £1k due.

This is purely my understanding so you should really contact a Spanish tax professional to confirm. I'd be interested to know if I'm right!

Suzanna wrote on Tue Jun 29, 2021 3:52pm:

Thanks for your answer. Income would be coming from NL, Be and the US. However, I would obviously be "on the ground" in Spain as I perform this remote work. These companies require tax on the income to be paid in the respective countries.  So that is the thorny question that does not seem to...

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... have an answer. What is a tax professional called that handles this in Spain? I am fluent in Spanish.

RichT wrote on Wed Jun 30, 2021 5:00pm:

I would just google 'tax advisor Spain' - there are loads but I haven't used one (yet), so can't recommend one...

Suzanna wrote on Wed Jun 30, 2021 10:05pm:

I'll have a look - thanks!