# DNI or not to DNI



## al15tair (Nov 16, 2009)

Hello,

I am a freelance designer and all my clients income comes from the UK, but I am currently living in Bilbao with my girlfriend who is an English teacher here. She is all correctly paper worked up (tax, DNI, etc) as she is working with the British Council.

Should I register here, get my DNI etc even though I have all my clients in the UK, and what difference would it make to me one way or the other - I intend to be here for a year or so at least?

We are about to rent a plat and my girlfriend is worried that me not having a DNI may affect the process etc.

Any help would be greatly appreciated.

Cheers,

Ali.


----------



## xabiaxica (Jun 23, 2009)

al15tair said:


> Hello,
> 
> I am a freelance designer and all my clients income comes from the UK, but I am currently living in Bilbao with my girlfriend who is an English teacher here. She is all correctly paper worked up (tax, DNI, etc) as she is working with the British Council.
> 
> ...


you can't get a DNI - only Spanish nationals can do that

you mean a NIE - and if here for more than 90 days have to register as resident & they'll issue a NIE then

I _think_ there's a (legal) way of continuing to pay tax etc. in the UK as long as you aren't planning to be here more than 2 years - maybe check with the DWP in Newcastle?

IMO though, you would be better off paying here - then you'd get access to state healthcare etc.


----------



## happy_man (Nov 20, 2011)

Its definitely useful to register and get a NIE (i think you need one to open a bank account here?) but about your income, the UK and Spain have the 1975 Double Taxation Treaty or something like that which means you'll not be made to pay tax here if you've paid it in the UK already.


----------



## Stravinsky (Aug 12, 2007)

happy_man said:


> Its definitely useful to register and get a NIE (i think you need one to open a bank account here?) but about your income, the UK and Spain have the 1975 Double Taxation Treaty or something like that which means you'll not be made to pay tax here if you've paid it in the UK already.


This is a common misconception of the tax treaty.
It *does* mean that you wont pay full tax in both countries, for if it happens you "deduct" the tax paid in the "wrong" country on your tax resident country tax return.

You are normally required to make a tax return in Spain if you permanently reside here. Tax residency generally is not a choice. It is denoted by which country you permanently reside in and therefore become tax resident in according to their rules

However, if you are paying tax in the UK and live in Spain then theoretically you should be paying the difference between the UK rate and Spanish rate (if the Spanish rate is higher) here in Spain.

I know this to be true because I know of it happening.

If your business in the UK is a Ltd Company then this might change things

If you permanently live in Spain then you should be gaining a foreigners certificate (otherwise known as residency) and these days the certificate also includes your NIE so you can kill two birds with one stone


----------



## snikpoh (Nov 19, 2007)

happy_man said:


> Its definitely useful to register and get a NIE (i think you need one to open a bank account here?) but about your income, the UK and Spain have the 1975 Double Taxation Treaty or something like that which means you'll not be made to pay tax here if you've paid it in the UK already.




This is completely untrue.

You pay tax in the country where you are tax resident - this is a mandatory situation and is not of your choosing. (I think it's a83 days of being here?)

If you have paid tax elsewhere, then this is declared on your Spanish tax return to offset any tax due in Spain.


----------



## Stravinsky (Aug 12, 2007)

snikpoh said:


> This is completely untrue.
> 
> You pay tax in the country where you are tax resident - this is a mandatory situation and is not of your choosing. (I think it's a83 days of being here?)
> 
> If you have paid tax elsewhere, then this is declared on your Spanish tax return to offset any tax due in Spain.


There are a few exceptions, but based on what has been said so far this isnt one of them.


----------



## 90199 (Mar 21, 2010)

Stravinsky said:


> There are a few exceptions, but based on what has been said so far this isnt one of them.


And I am one of them, I pay tax at source in the U.K., on my pension, I have no other choice.


----------



## Stravinsky (Aug 12, 2007)

Hepa said:


> And I am one of them, I pay tax at source in the U.K., on my pension, I have no other choice.


A government pension then ........ my wife does the same, and actually it works in her favour


----------



## 90199 (Mar 21, 2010)

Stravinsky said:


> A government pension then ........ my wife does the same, and actually it works in her favour


Something similar. I keep intending to get my O.A.P. transferred here for tax purposes, but never get round to doing it.........


----------



## Stravinsky (Aug 12, 2007)

Hepa said:


> Something similar. I keep intending to get my O.A.P. transferred here for tax purposes, but never get round to doing it.........


If you have a state pension transferred here and keep your b"govt" pension in the UK then you get two tax allowances


----------



## 90199 (Mar 21, 2010)

Stravinsky said:


> If you have a state pension transferred here and keep your b"govt" pension in the UK then you get two tax allowances


Yes I know, we are off to the Tax office soon, if we manage to file a return it will be the first time they have allowed it. It is also the first time we have had income in Spain so they should allow a return to be filed.


----------

