# Anyone commuting to the UK from Spain?



## Kitty3 (Apr 30, 2009)

Hi all, I have been working for a UK firm for a year now and being paid in GBP and have been told I need to either become domiciled for tax in Spain, my firm has a Spanish branch, move back to the UK or become a dual resident for tax purposes. 

With things being as they are I am not hopeful the Spanish office will take me on and my family is well settled here so I don't want to be forced to return so what about spending some more time in the UK? I have been reading the HMRC website and though it has lots of example scenarios I am still not sure if the minimum is 91 or 183 days from April to April and if the minimum is 91 would I then effectively share my taxable income between Spain and the UK?

We live in the north and are lucky enough to have a daily easyjet service to London but has anyone else been in this situation and got to keep the life they want in Spain but continue to work for a UK company? 

I don't want to be a tax evader, my company director tells me they will be fined for not making my position clear to the HMRC but I am PAYE so I hadn't really thought about it, until now! Equally I can't see how I can be taxed in both countries without the taxable income being split somehow..any advice appreciated!


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## mrypg9 (Apr 26, 2008)

I used to do a weekly, occasionally more frequent commute from Prague to London but not on EasyJet....I didn't pay so I enjoyed the comforts of Business Class Travel and use of BA Lounges.
The flight lasted under ninety minutes and we lived a short taxi ride from Prague airport...in fact my partner could actually see my plane descending to the airport and knew I'd be home in thirty minutes or so.
I kept this up for two years after moving to Spain but gave up just over a year ago. The flights are longer, the journey to either Malaga or Gib Airports more complicated and the delights of free champagne and four or five starhotels just didn't compensate for the fact that I came home worn out by it all.
But I'm guessing you are young. I'm not.
Why not have a six month trial period if that's at all possible to set up and see how you feel?


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## Stravinsky (Aug 12, 2007)

Kitty3 said:


> Hi all, I have been working for a UK firm for a year now and being paid in GBP and have been told I need to either become domiciled for tax in Spain, my firm has a Spanish branch, move back to the UK or become a dual resident for tax purposes.
> 
> With things being as they are I am not hopeful the Spanish office will take me on and my family is well settled here so I don't want to be forced to return so what about spending some more time in the UK? I have been reading the HMRC website and though it has lots of example scenarios I am still not sure if the minimum is 91 or 183 days from April to April and if the minimum is 91 would I then effectively share my taxable income between Spain and the UK?
> 
> ...


You dont get taxed in both countries as there is a tax treaty between Spain and the UK. So if you were tax domiciled in Spain and you paid tax in the UK, then in theory you would have to make an additional return in Spain for the difference between the UK tax and the Spanish tax. The proper way to do it though would I guess to be paid by their Spanish branch and pay tax in Spain. However then I guess you would lose the Health Cover (because if you are paying NI & Tax in the UK then I believe you should get free health care here)

Tax domicile is not a matter of choice normally. You pay tax in your country of tax residence. If you live in Spain full time, then your worldwide tax burden is in Spain. Ive never heard of anyone successfully achieving dual tax residency before. I suspect it might be a bit of a nightmare.

Have you worked out which country it would be cheaper to be taxed in?


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## tonyinspain (Jul 18, 2011)

Just pay your taxes as normal in the uk 
And any work your wife doe here pay into that system
Immegramts pay tax to the country they are working in 
Just like pensioners they dont pay tax here ( nothing against pensioners)
My advice is dont mention it just tell your boss to do paye as normal


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## Stravinsky (Aug 12, 2007)

tonyinspain said:


> Just pay your taxes as normal in the uk
> And any work your wife doe here pay into that system
> Immegramts pay tax to the country they are working in
> Just like pensioners they dont pay tax here ( nothing against pensioners)
> My advice is dont mention it just tell your boss to do paye as normal


No, I'm sorry that is incorrect.
The advice you are giving could be putting them at risk

"Immigrants", as you describe them pay tax in their country of residence / tax residence. Someone living in Spain full time but earning money in the UK, or indeed wherever, is subject to taxation in Spain. There are the odd exceptions, but in the majority of cases this is the way it works.

And yes, many Pensioners unfortunately pay tax here, thats the way of the world


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## mrnkar (Feb 25, 2011)

Not sure if you are in the same situation but when we lived in Spain, my hubby worked on a rig in the U.K. 2 weeks on & 2 off, so would spend about 12 days every month in Spain. As this was under 183 days a year he just paid U.K. tax. I lived there full time and became a resident, but I didn't work, just lived off his wages. Ha Ha. 

As far as I am aware every time you leave Spain the 183 day rule only begins again once you return.

Hope we were not breaking any laws as we hope to move back fairly soon. Karen


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## gus-lopez (Jan 4, 2010)

mrnkar said:


> Not sure if you are in the same situation but when we lived in Spain, my hubby worked on a rig in the U.K. 2 weeks on & 2 off, so would spend about 12 days every month in Spain. As this was under 183 days a year he just paid U.K. tax. I lived there full time and became a resident, but I didn't work, just lived off his wages. Ha Ha.
> 
> As far as I am aware every time you leave Spain the 183 day rule only begins again once you return.
> 
> Hope we were not breaking any laws as we hope to move back fairly soon. Karen


No , the 183 day rule is cumulative , not consecutive,

The OP sounds as if they commute daily , therefore the days travelling would not count in either counry & it would come down to where is their home/family life. Sounds like its Spain to me & that is where the tax should be paid.


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## lynn (Sep 25, 2008)

I think the OP would be best advised to seek advice from a qualified accountant with experience of UK and Spanish tax law. 
I'm sure that they wouldn't be taxed twice of salary, but world wide income would have to be declared in Spain as this is where they live. The 183 day rule is not relevant. The OP has family living in Spain and therefore they will be counted as resident here... HMRC and any bank accounts need notifying that you are living in Spain. 
You'll still be able to access healthcare in Spain because of on going NI contributions paid using the S1 form, so it's worth sorting out.


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## Kitty3 (Apr 30, 2009)

Hi all, thank you for the comments and advice, I don't and wouldn't commute daily but I could go to the london office for 91 days per annum if I needed to but yes my firm is looking into getting me onto the Spanish headcount but if they aren't keen to do this then coming to the UK more often might be the other option. Its going to be a nightmare for sure but then I should have been more aware of the the implications and my firm too should have done the necessary at the time when they offered me a job, I never made any secret of being here, they posted me the contract to Spain! 
I will get some tax advice, beginning to wish I had never taken the contract on and stuck to teaching English as I had done when we first arrived but hindsight is a beautiful thing. To the lady whose husband was a rig worker I think there are special exceptions for those kind of jobs.


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## snikpoh (Nov 19, 2007)

Stravinsky said:


> You dont get taxed in both countries as there is a tax treaty between Spain and the UK. So if you were tax domiciled in Spain and you paid tax in the UK, then in theory you would have to make an additional return in Spain for the difference between the UK tax and the Spanish tax. The proper way to do it though would I guess to be paid by their Spanish branch and pay tax in Spain. However then I guess you would lose the Health Cover (because if you are paying NI & Tax in the UK then I believe you should get free health care here)
> 
> Tax domicile is not a matter of choice normally. You pay tax in your country of tax residence. If you live in Spain full time, then your worldwide tax burden is in Spain. Ive never heard of anyone successfully achieving dual tax residency before. I suspect it might be a bit of a nightmare.
> 
> Have you worked out which country it would be cheaper to be taxed in?


I don't really see the problem.

You live in Spain and work in UK.

So, you MUST pay tax in Spain. Get your company to stop deducting tax and NI and start paying it in Spain. OR, get the Spanish branch to employ you - this would be a much easier option.

The real issue that I see is that because you live in Spain, you must pay NI here and so will get health care here and not in UK. So, if you became ill whilst at work, you would have to use your TSE card (EHIC equivalent) to get emergency treatment in UK before returning to Spain for any more treatment.


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## Stravinsky (Aug 12, 2007)

Kitty3 said:


> if they aren't keen to do this then coming to the UK more often might be the other option.


Kitty, I dont think you read the posts above correctly maybe.
I think as stated you need to take advice from a tax expert both in Spain and the UK. I had a good accountant in the UK, but over time it did become obvious that they werent fully aware of implications re Spanish tax laws.

Theres a lot more to it as well, as mentioned ... health, and also Inheritance tax etc


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## Kitty3 (Apr 30, 2009)

Thanks, yes understood, I have been speaking to an international tax specialist working for my company in London today and he knows similar in Spain so I shall sort it out retrospectively and hopefully get on the spanish headcount, hopefully!


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