# US citizen working for Spanish company in the US



## capi (Sep 14, 2011)

Hi all, I'm new to the forum but I would be much obliged if you could shed any light on this matter. I'm a US citizen and I was recently hired by a Spanish company. I will not be moving to Spain, rather I will telecommute. My question: Do I have to pay Spanish taxes on my income even though I do not live there? The reason I ask is because during the process of agreeing on a payment system I found out that there is a 18% IVA tax on my income before I even get it. Now, I should say that I am considered a contractor, not an employee, of this company - however, it is long term. What should I do? Is there any recourse I can take seeing that I will have to pay US taxes and perhaps Spanish taxes as well? 

Thank you so much in advance.


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## xabiaxica (Jun 23, 2009)

capi said:


> Hi all, I'm new to the forum but I would be much obliged if you could shed any light on this matter. I'm a US citizen and I was recently hired by a Spanish company. I will not be moving to Spain, rather I will telecommute. My question: Do I have to pay Spanish taxes on my income even though I do not live there? The reason I ask is because during the process of agreeing on a payment system I found out that there is a 18% IVA tax on my income before I even get it. Now, I should say that I am considered a contractor, not an employee, of this company - however, it is long term. What should I do? Is there any recourse I can take seeing that I will have to pay US taxes and perhaps Spanish taxes as well?
> 
> Thank you so much in advance.


Hi & welcome

you really need a tax expert but IVA isn't an income tax, it's a sales tax 

I imagine you'll simply be invoicing the Spanish company for your work as a contractor?

so what I think is happening here is the Spanish company will be retaining the IVA they would normally have to pay 

but as I said - IVA is nothing to do with income tax & you need a tax expert


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## Pesky Wesky (May 10, 2009)

The 18% is probably IRPF, not VAT, and that *is *income tax. But as Xabiachica says you need an expert.


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## xabiaxica (Jun 23, 2009)

Pesky Wesky said:


> The 18% is probably IRPF, not VAT, and that *is *income tax. But as Xabiachica says you need an expert.


see that makes sense to me, although I don't see why he should be paying an income tax - and he said IVA, and since there is no US equivalent I figured he had been told IVA


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