# UK Contractor Living In Spain



## Mike 3G (Aug 11, 2014)

Good afternoon all,

Myself and my family have been attracted to the idea of living in Spain for over 10 years. A 5 year spell in Australia and brief flirtation with the idea of living in France have stopped us making the move thus far. 

Anyway our kids are now aged 4, 9 & 11 with this in mind we would require international schooling for the older 2 but would have the option of Spanish schooling the young gun. We have always liked Nerja and also Ayamonte and have had the odd reccie trip thrown in with holidays over the years, albeit we are going back 6 years since we last looked into this seriously on the account of us living in Australia until April this year. 

I would work as a contractor in N Sea Oil & Gas industry and travel back and forth on a 2 on 3 off rota. Does anyone have an idea about tax implications for a Ltd Company contractor with a UK registered company residing in Spain?

From what I can see all earnings are taxable in Spain?

Does this only apply to PAYE UK earning or are business dividends accounted for in this. 

Any feedback more than welcome on areas, schools, tax and general pitfalls.


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## jojo (Sep 20, 2007)

Mike 3G said:


> Good afternoon all,
> 
> Myself and my family have been attracted to the idea of living in Spain for over 10 years. A 5 year spell in Australia and brief flirtation with the idea of living in France have stopped us making the move thus far.
> 
> ...


we have had a few "oil riggers" on here in the past - I'll see if I can dig out their old threads for you to read.... give me a mo.......

Jo xxx


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## jojo (Sep 20, 2007)

right, theres lots of threads, here's a few. I havent read them, so I cant vouch for their usefullness...

http://www.expatforum.com/expats/sp...oilfield-workers-spain.html?highlight=oil+rig

http://www.expatforum.com/expats/sp...-expat-oil-rig-workers.html?highlight=oil+rig

http://www.expatforum.com/expats/sp...ng-spain-where-pay-tax.html?highlight=oil+rig

http://www.expatforum.com/expats/spain-expat-forum-expats-living-spain/479010-where-start.html

Jo xxxx


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## Mike 3G (Aug 11, 2014)

Thanks Jo


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## thrax (Nov 13, 2008)

Basically you have two things to think about. If you live here for more than 183 days a year you pay your taxes here. If your family live here full time and you support them, then the Spanish system will consider your centre of economic interest to be here in Spain whether or not you live here for more than 183 days a year and you will be liable for tax. You will also need to consider health care as you will not be eligible for Spanish State healthcare and will require private healthcare. You will also need to prove an income of around €600 per person per month to qualify for residency which your family will need to address. If you can do all these things you will have a wonderful time here!!! Good luck...


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## Mike 3G (Aug 11, 2014)

thrax said:


> Basically you have two things to think about. If you live here for more than 183 days a year you pay your taxes here. If your family live here full time and you support them, then the Spanish system will consider your centre of economic interest to be here in Spain whether or not you live here for more than 183 days a year and you will be liable for tax. You will also need to consider health care as you will not be eligible for Spanish State healthcare and will require private healthcare. You will also need to prove an income of around €600 per person per month to qualify for residency which your family will need to address. If you can do all these things you will have a wonderful time here!!! Good luck...


Thanks for the reply.

I wasn't aware that I would not get health care for myself and family if I pay my taxes etc in Spain?

I'm happy to pay all my income tax etc. in Spain however being a Ltd Co contractor I pay quite a bit less in Tax in the UK at the moment than I would as a PAYE employee. It might be easier all round if I switch to a staff type position as it seems I will be liable for the full brunt of Spanish tax rates regardless of employment status.

Both options are open to me however like most people want to keep my tax liability to a minimum.


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## xabiaxica (Jun 23, 2009)

Mike 3G said:


> Thanks for the reply.
> 
> I wasn't aware that I would not get health care for myself and family if I pay my taxes etc in Spain?
> 
> ...


if you're paying NI in the UK, then your family might qualify for S1s - with these the UK picks up the tab for their healthcare in Spain. Check with the DWP in Newcastle, because there have been some very recent changes (last month) & it isn't clear if they still issue them in those circumstances


whatever income tax you pay in the UK will be deducted from any income tax liability you would have here in Spain


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## Mike 3G (Aug 11, 2014)

xabiachica said:


> if you're paying NI in the UK, then your family might qualify for S1s - with these the UK picks up the tab for their healthcare in Spain. Check with the DWP in Newcastle, because there have been some very recent changes (last month) & it isn't clear if they still issue them in those circumstances
> 
> 
> whatever income tax you pay in the UK will be deducted from any income tax liability you would have here in Spain


Great info, I'l check out the S1 situation.

There is a fair bit to think about

Thanks Mike


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## xabiaxica (Jun 23, 2009)

Mike 3G said:


> Great info, I'l check out the S1 situation.
> 
> There is a fair bit to think about
> 
> Thanks Mike


let us know how you get on 

I know people using them, but they were issued before the rule changes

I don't know anyone who has applied for new or renewed S1s since then, though


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