# PAYE and NI in Spain when continuing to work for UK company



## stengun (Feb 25, 2014)

Hi,

My first post here, and hoping someone with recent experience can help answer my questions. Apologies for the length of post, but there's rather a lot to ask.

I'm moving to live in Spain a few weeks time. I intend to continue to work for my UK company (I'm co-owner). I'm therefore a director of a UK company who takes a small salary as PAYE, pays NI, with some additional income in the form of dividends.

As I understand it, I will be deemed liable to pay into the Spanish system once I've been in the country for 183 days regardless of what I do back in the UK tax-wise. I therefore have the following questions:

1) I've read up on the double tax treaty between the UK and Spain. The info is a bit hard to understand. But as I see it, I would continue to get taxed in the UK as normal. Then fill out a tax return in Spain at the end of the year, and offset any tax due with tax already paid in the UK. Is that correct? Does anyone have first hand experience of doing this. Are there any issues to watch out for?

2) I believe I will have to fill out a P85 when I leave the UK. I can apply to put myself onto a NT tax code. Which is zero rated. Is that advisable? Or am I better off continuing to pay UK tax as normal, and offset as mentioned above?

3) Are there issues with the UK tax year running from April to April, that make the timing of any Spanish tax dealings a problem?

4) I currently pay NI in the UK. Can I continue to do so, and then access the Spanish healthcare system via some kind of EU entitlement? I've been told I may be able to by filling out a S1 form (formally E106/E109). Is that correct?

5) If 4) is not the case, will I need to pay into the Spanish Social security system of ~250 Euros per month, to get healthcare and qualify for my residencia ? Or can I go private and still get residencia, as that looks to actually be a tad cheaper.


Thanks in advance.


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## stengun (Feb 25, 2014)

bump.. any thoughts anyone? Any help much appreciated.


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