# Living in Spain & working in UK



## Purpleheather (Apr 5, 2015)

Hi, I'm very new to this and hopefully am posting in the right place.

My partner myself and our 2 children are moving to Spain from th UK, although myself & kids will be living in Spain full time my partner will be continuing to work in the UK.
He has his own limited company and does contract work all over the UK.
My questions are mainly about where we would be paying tax. Obviously we would need healthcare in Spain but he would I suppose also need healthcare in UK. He pays me a wage from his company so I guess I would pay tax in Spain.
Would it be more beneficial for him to register his company in Spain? 
Also we both bank with NatWest in the UK so do we need to open Spanish accounts?

Any Info would be greatly appreciated.

Many thanks
Heather


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## snikpoh (Nov 19, 2007)

Purpleheather said:


> Hi, I'm very new to this and hopefully am posting in the right place.
> 
> My partner myself and our 2 children are moving to Spain from th UK, although myself & kids will be living in Spain full time my partner will be continuing to work in the UK.
> He has his own limited company and does contract work all over the UK.
> ...


Hi, 

You would both have to pay tax in Spain. 

If you are being paid by him, then I guess you are working for him in Spain. As such, you must have a contract of employment (which is messy as it's a UK company) or you will have to be self-employed. In either case, you pay tax here.

He will have to pay tax here because, even though he may not spend more than 183 days per year i Spain, his centre of economic interest (family) is here.

Your biggest problem will be health care. IF you are employed in Spain, then you will be paying SS which will give you and your children health cover - I'm really not sure if it would cover your husband in Spain, he may well need private cover.

For you all to get the certificate of registration (aka residencia), you will need to prove sufficient income (into a Spanish bank) and that you each have health cover.

You would certainly need Spanish bank accounts for a number of reasons; firstly, for proof of income in Spain to get 'residencia' and secondly to pay bills like electricity, gas, water etc. These utility companies rarely (if at all) allow direct debits from foreign banks.


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## xabiaxica (Jun 23, 2009)

snikpoh said:


> Hi,
> 
> You would both have to pay tax in Spain.
> 
> ...


he might not have to actually _pay _any tax, though he will have to declare,_ unless_ he can prove to the satisfaction of Hacienda that he is fully resident & tax resident outside Spain


as the husband of one of members has managed to do

and when I can remember who, I'll post her name!!


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## snikpoh (Nov 19, 2007)

xabiachica said:


> he might not have to actually _pay _any tax, though he will have to declare,_ unless_ he can prove to the satisfaction of Hacienda that he is fully resident & tax resident outside Spain
> 
> 
> as the husband of one of members has managed to do
> ...


Surely not. What about the 'centre of economic interest' rule - if his wife and family live full-time in Spain then he must pay tax here (surely?)


... or have they changed the law again?


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## 90199 (Mar 21, 2010)

snikpoh said:


> Surely not. What about the 'centre of economic interest' rule - if his wife and family live full-time in Spain then he must pay tax here (surely?)
> 
> 
> ... or have they changed the law again?


Generally laws do not change, it is the interpretation of the laws that vary, this forum being the unqualified prime example.


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## xabiaxica (Jun 23, 2009)

snikpoh said:


> Surely not. What about the 'centre of economic interest' rule - if his wife and family live full-time in Spain then he must pay tax here (surely?)
> 
> 
> ... or have they changed the law again?


absolutely someone here on the forum has done this - the member's husband has satisfied Hacienda that he is tax resident & actually resident elsewhere, even though his wife & family are tax resident here

no change of law though 

I'll have a search & see if I can come up with the member


got it - angil

this is one post where she explains that they have managed to satisfy Hacienda - there are others http://www.expatforum.com/expats/sp...ng-moving-denia-any-advice-5.html#post6254426


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## snikpoh (Nov 19, 2007)

xabiachica said:


> absolutely someone here on the forum has done this - the member's husband has satisfied Hacienda that he is tax resident & actually resident elsewhere, even though his wife & family are tax resident here
> 
> no change of law though
> 
> ...



Thanks, @Xabiachica, but I'm none the wiser.

She says;


> My husband is habitually resident elsewhere (the country in which he is work and paying tax). This country also has a double taxation agreement with Spain.
> 
> His income working offshore (so could not claim habitual residency there) has been declared in Spain, the country in which he was habitually resident at that time.
> 
> You've got to pay tax somewhere.


How can one declare income here yet pay tax in UK - unless, what she means is, he still fills in a tax form here as though tax resident and then offsets tax already paid elsewhere.

Surely this is the same as being tax-resident here? I pay tax in UK yet declare it here yet I am tax resident in Spain - I see no difference.


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## Horlics (Sep 27, 2011)

Hey Op,

If you got a LTD company you've got an accountant, so ask them. If they have to refer the question to somebody with international knowledge it'll still won't cost much, and peanuts in comparison to the impact of any misinterpretation.

Also, you will be able to discuss a strategy for managing the first year or so of the move, e.g. disposal of any assets on which you could be hit with a big tax bill here.

The good news is that having your own limited company gives you an awful lot of flexibility in how you take pay. A factor in how you use this flexibility is how sure you are that this is a one way trip. If there's any chance at all that you might think this isn't for you in the next 2 - 3 years, a tax advisor might recommend certain actions with company profits.

You need professional advice.

But, the good news is, you pay tax only once in the vast majority of cases. If you end up paying tax in Spain it might be a bit more than in the UK. I call it the sunshine tax, and in my view it's worth it.


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## brocher (Mar 21, 2011)

Purpleheather said:


> Hi, I'm very new to this and hopefully am posting in the right place.
> 
> My partner myself and our 2 children are moving to Spain from th UK, although myself & kids will be living in Spain full time my partner will be continuing to work in the UK.
> He has his own limited company and does contract work all over the UK.
> ...




Heather you say partner rather than husband? That could have an affect on whether or not he was eligible for state healthcare should you become self employed.

Bear in mind that you will have to prove you have sufficient income and healthcare provision to register as resident, which you should do within 90 days of arrival. You'll need approx 600€ per person per month, incl children, in a Spanish bank account, or a work contract ( employee or self employed). In addition some areas ask for approx 6000€ savings per person as well as or instead of the monthly income.


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## xabiaxica (Jun 23, 2009)

snikpoh said:


> Thanks, @Xabiachica, but I'm none the wiser.
> 
> She says;
> 
> ...


when they first came here, he _was _tax resident here - iirc he was here to take up employment which didn't materialise & he took up some offshore work

so he had / has to submit a tax return for that period when he was still tax resident


that will be his last though, because he is no longer habitually resident, nor tax resident, & Hacienda has accepted that


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## xabiaxica (Jun 23, 2009)

brocher said:


> Heather you say partner rather than husband? That could have an affect on whether or not he was eligible for state healthcare should you become self employed.
> 
> Bear in mind that you will have to prove you have sufficient income and healthcare provision to register as resident, which you should do within 90 days of arrival. You'll need approx 600€ per person per month, incl children, in a Spanish bank account, or a work contract ( employee or self employed). In addition some areas ask for approx 6000€ savings per person as well as or instead of the monthly income.


and if they aren't married, it could be easier for him to provae that he isn't tax resident - if anyone was to ask, which they probably won't 

Heather would simply be moving here with her children


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## Purpleheather (Apr 5, 2015)

Just to add that we want to be legit and pay tax, basically do the right thing, just a bit confused as to where he would be paying tax.


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## snikpoh (Nov 19, 2007)

Purpleheather said:


> Just to add that we want to be legit and pay tax, basically do the right thing, just a bit confused as to where he would be paying tax.


Assume it's Spain and you won't be far wrong (IMHO) - it really shouldn't affect your decision though.

Take professional advice.


PS - you still haven't told us if you are married - this does make a massive difference.


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## Purpleheather (Apr 5, 2015)

No not married, would it be better to be?


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## snikpoh (Nov 19, 2007)

Purpleheather said:


> No not married, would it be better to be?


Personally, I am always concerned (and confused) when people consider getting married for reasons other than love - but then I'm 'old school' I guess.


If you are not married, then you will be considered individuals. You will both have to show sufficient income and both have to show health cover.

If you were married, then if, say, your husband was self-employed in Spain, his SS payments would cover the entire family for health care.


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