# TAX: Working in Gibraltar, living in Spain



## [email protected] (Feb 1, 2021)

Hi guys, a rather bland topic I'm afraid but I'd like to ask about the Gibraltar/Spain tax agreement. I'm currently a cross border worker, living in Spain and working for a Gibraltar company. I'd like to move further up, away from Gibraltar, towards Malaga city or even Barcelona. Currently I pay tax in Gibraltar and the remainder that is owed to Spain. If I lived near Malaga city or Barcelona, for example, does this still apply whereby I'd pay tax in Gibraltar and the remainder in Spain or am I forced to become self employed and only pay to Spain?

Thanks!


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## Jbolster (Feb 2, 2021)

[email protected] said:


> Hi guys, a rather bland topic I'm afraid but I'd like to ask about the Gibraltar/Spain tax agreement. I'm currently a cross border worker, living in Spain and working for a Gibraltar company. I'd like to move further up, away from Gibraltar, towards Malaga city or even Barcelona. Currently I pay tax in Gibraltar and the remainder that is owed to Spain. If I lived near Malaga city or Barcelona, for example, does this still apply whereby I'd pay tax in Gibraltar and the remainder in Spain or am I forced to become self employed and only pay to Spain?
> 
> Thanks!


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## Jbolster (Feb 2, 2021)

Hi Lun

It appears that you are tax resident in Spain because you spend more than 183 days per year in Spain. This means that you are liable to taxation in Spain on your worldwide income but will get double tax relief for tax suffered elsewhere (Gibraltar). Gibraltar taxation is due on any employment activities undertaken in Gibraltar.

Moving further north in Spain is unlikely to change your liability to Spanish tax but, if you don't physically undertake work in Gibraltar you might be able to be paid gross without suffering Gibraltar tax. You would probably end up paying the same amount of tax as present but to Spain rather than to both Spain and Gibraltar. You should contact a Spanish taxation expert to get advice on how the Spanish taxation system would work in practice.


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## SLM1966 (Feb 2, 2021)

Basically there is no tax treaty between Spain and Gibraltar. If you pay tax in Gibraltar and are resident in Spain then you are eligible to pay pay the difference on the equivalent tax payable in Spain less what has been paid in Gibraltar. This is dependent on the GBP/EUR exchange rate at the given time so the differential amount payable to the Hacienda will vary


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## Jbolster (Feb 2, 2021)

HI

Lun was referring to the tax treaty between Spain and the United Kingdom in respect of Gibraltar - I think it was approved by the Spanish Senate on 16 September 2020 and is effective from 1 January 2021


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## [email protected] (Feb 1, 2021)

thanks for your replies guys. The big question for me is if I can remain employed by a Gibraltar-based company, and move further north in Spain (out of Campo de Gibraltar) or if this means I'd need to register as autonomo. I've asked a local asesoria who said it is possible and most logical to remain as an employee of the company and keep the same set up as now (pay most tax in Gib and the rest in Spain). Even though that'd be ideal, it doesnt sound correct?


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