# Working for an overseas company



## Megsmum (Sep 9, 2012)

I have been offered a job from a company based in the UK 
I have spoken to my Gestor and my autonomo payments will remain as they are, I will invoice the UK company for any works done. I declare the income here as I do already and continue to pay taxes here as this is where I’m fiscally resident. Seems straightforward.... am I missing anything important that needs thinking about.


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## thrax (Nov 13, 2008)

Seems about right to me. I know many people in your situation and they do just what you suggest with no issues. Enjoy the job!!!


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## Megsmum (Sep 9, 2012)

thrax said:


> Seems about right to me. I know many people in your situation and they do just what you suggest with no issues. Enjoy the job!!!


Thanks Thrax

That’s what I thought and hoped. Life’s strange came to retire and seem to be collecting jobs!


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## KG5 (Mar 21, 2016)

Megsmum said:


> I have been offered a job from a company based in the UK
> I have spoken to my Gestor and my autonomo payments will remain as they are, I will invoice the UK company for any works done. I declare the income here as I do already and continue to pay taxes here as this is where I’m fiscally resident. Seems straightforward.... am I missing anything important that needs thinking about.


Hi Megsmum

My only concern is about witholding tax - does the company who has offered yu work not have to pay that direct to the Spanish authorities.

I have a situation where we moved here a few months back, I get paid in the UK by a UK company, and I now need to register, and get paid, over here. 

So I'm very interested in this topic!

Thanks

KG


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## Bevdeforges (Nov 16, 2007)

In general, you're considered to be working in whatever country you are physically located in whilst doing the work. So, no matter where the "employer" is located, you're working in Spain and subject to Spanish laws.



> My only concern is about witholding tax - does the company who has offered yu work not have to pay that direct to the Spanish authorities.


According to what Megsmum said, she will continue to be working as an independent (i.e. autonomo). She won't actually be an "employee" of the UK company. The UK company will be a client/customer of hers, so she will be responsible for all taxes, social insurances and her own expenses.

In a situation like this, you do want to negotiate your payments to make sure that you're not being paid as an "employee" but rather than the payment includes a bit to cover your additional social insurance costs, taxes and any expenses of doing the work as an independent agent.
Cheers,
Bev


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## xgarb (May 6, 2011)

Megsmum said:


> I have been offered a job from a company based in the UK
> I have spoken to my Gestor and my autonomo payments will remain as they are, I will invoice the UK company for any works done. I declare the income here as I do already and continue to pay taxes here as this is where I’m fiscally resident. Seems straightforward.... am I missing anything important that needs thinking about.


Hopefully your Gestor knows this but the VAT can be a little complicated. If they have a VAT number you don't add VAT to the invoices. If they don't you have to add VAT based on where the work 'takes place'. In my case when I work here I charge those customers 21% and if the work 'takes place' in the UK the VAT is 20%.


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## KG5 (Mar 21, 2016)

Is VAT chargeable on consultancy?

This might be what I read re witholding.

I am very confused about the whole thing - I just want to get paid without the business having to register in Spain.


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## Bevdeforges (Nov 16, 2007)

KG5 said:


> Is VAT chargeable on consultancy?
> 
> This might be what I read re witholding.
> 
> I am very confused about the whole thing - I just want to get paid without the business having to register in Spain.


As far as I know, VAT is chargeable on "services" (which is what consultancy is) - and generally it's chargeable based on where the work/services are performed, so if you are working from/in Spain, then it should be the Spanish VAT rate. (Do not know the Spanish VAT rules, but depending on how much you'll be paid, you may fall below the VAT threshold for a year's receipts. Definitely look into that before you get started!)

As far as registering in Spain, see what provisions there are for small businesses, or "micro" businesses or something similar. But chances are, you'll have to register if you're running a small business like that.
Cheers,
Bev


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## KG5 (Mar 21, 2016)

Thanks Bev

Just to clarify, I'd be happy to set up as an autonomo but it's the business I'm contracting for that I don't want to have to set up any sort of operation in Spain - no services delivered in Spain and no other employees here.

I guess the other option is just to keep getting paid in the Uk then fill in a tax return here each year and settle any difference in tax.

It just seems awfully hard and if there is nothing in place to facilitate this surely Spain misses out on many workers who would otherwise want to live here but consult/contract for companies outside Spain - and those that do probably have to fly below the radar which I don't want to do.


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## Megsmum (Sep 9, 2012)

KG5 said:


> Hi Megsmum
> 
> My only concern is about witholding tax - does the company who has offered yu work not have to pay that direct to the Spanish authorities.
> 
> ...





Bevdeforges said:


> In general, you're considered to be working in whatever country you are physically located in whilst doing the work. So, no matter where the "employer" is located, you're working in Spain and subject to Spanish laws.
> 
> 
> According to what Megsmum said, she will continue to be working as an independent (i.e. autonomo). She won't actually be an "employee" of the UK company. The UK company will be a client/customer of hers, so she will be responsible for all taxes, social insurances and her own expenses.
> ...





xgarb said:


> Hopefully your Gestor knows this but the VAT can be a little complicated. If they have a VAT number you don't add VAT to the invoices. If they don't you have to add VAT based on where the work 'takes place'. In my case when I work here I charge those customers 21% and if the work 'takes place' in the UK the VAT is 20%.




I am already registered here re taxes and social security, even though I am working for an English based company I would be acting in a service role therefore I continue to pay and declare income earns from such a venture.

The VAT XGarb.... hadn’t thought about that, I’ll ask my Gestor, at the moment because I am in education I do not have anything to do with VAT here in Spain as I’m exempt. VAT may well put prices up and in turn Gestor rates. I need to pursue this line further 


Thanks
Guys


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## Chopera (Apr 22, 2013)

KG5 said:


> Thanks Bev
> 
> Just to clarify, I'd be happy to set up as an autonomo but it's the business I'm contracting for that I don't want to have to set up any sort of operation in Spain - no services delivered in Spain and no other employees here.
> 
> ...


From what you have written, it doesn't sound like there is an option of just declaring tax. Social security payments also need to be paid in the country you are resident in. If that country is Spain then you need to register as an autonomo to do this, since it sounds like your employer isn't willing to register themselves in Spain.


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## KG5 (Mar 21, 2016)

Chopera said:


> From what you have written, it doesn't sound like there is an option of just declaring tax. Social security payments also need to be paid in the country you are resident in. If that country is Spain then you need to register as an autonomo to do this, since it sounds like your employer isn't willing to register themselves in Spain.


Thanks Chopera

Yes, that makes sense.

So do you think it is as simple as registering as an autonomo and then following the process for tax and social security that way?


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## xgarb (May 6, 2011)

KG5 said:


> Thanks Chopera
> 
> Yes, that makes sense.
> 
> So do you think it is as simple as registering as an autonomo and then following the process for tax and social security that way?


I would see a good Gestor who has other foreign clients. You might have a problem if you only work for one client and want to be an autonomo, I'm not sure.

Hacienda poke their nose into everything these days. I had two un-announced visits when I started. The first because they didn't believe I was running a business and the second because they thought I was using my business to save VAT somehow!

I suspect that the inspectors fancied a day out the office as I lived in a nice part of the old town.


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## Chopera (Apr 22, 2013)

KG5 said:


> Thanks Chopera
> 
> Yes, that makes sense.
> 
> So do you think it is as simple as registering as an autonomo and then following the process for tax and social security that way?


What xgarb says. I'm not an autonomo so I have no first hand experience, I'm basically going by what I've heard and read. I use a gestora for my annual tax return these days and I recommend that route. If you are autonomo I think you also need to send invoices to Hacienda every 3 months so there's an extra incentive to get someone else to do it.


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## KG5 (Mar 21, 2016)

Deleted duplication!


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## Megsmum (Sep 9, 2012)

xgarb said:


> Hopefully your Gestor knows this but the VAT can be a little complicated. If they have a VAT number you don't add VAT to the invoices. If they don't you have to add VAT based on where the work 'takes place'. In my case when I work here I charge those customers 21% and if the work 'takes place' in the UK the VAT is 20%.





KG5 said:


> Is VAT chargeable on consultancy?
> 
> This might be what I read re witholding.
> 
> I am very confused about the whole thing - I just want to get paid without the business having to register in Spain.


Just an update.

Consultancy is classed as a service and VATable. 

I’ve spoken to my Gestor. As I am already autonomo the additional work for him involves VAT returns quarterly. As I will be paid on a commission basis only, possibly once or twice a year , he will charge me €22 a quarter on top of the €30 a quarter he charges me now. 

I could earn a couple of thousand a year or nothing, so I’m going to give it a go for a year and see how it goes...... now remind me.... I came here to retire, did I not


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## CapnBilly (Jun 7, 2011)

Megsmum said:


> Just an update.
> 
> Consultancy is classed as a service and VATable.
> 
> ...


I hope he told you that if you are providing services to a business in the the UK, then under the intracommunity VAT rules, VAT is declared and paid by them in the UK as the point of supply. Your invoice needs to contain your IVA number and their VAT number, but no IVA amount. You have to submit a quarterly return (Declaración recapitulativa de operaciones intracomunitarias) of the invoices you issue.

Note: some educational services are exempt in the UK


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