# Working for UK company



## steven1975 (Aug 11, 2009)

hi all

I am new to the site so go easy please 

Myself and my family are looking to move to Spain. I own a UK company and plan to run the company from Spain.

At present I am paid a small salary and the rest in dividend.

Does the Spanish tax system re dividend work the same way as the UK and if so would it be more tax efficient to set up a spanish company and pay dividend from that company?

I will be getting advice from a specialist nearer the time but would be nice to have an idea.

Thanks 

Steven


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## jojo (Sep 20, 2007)

simplydigital said:


> hi all
> 
> I am new to the site so go easy please
> 
> ...


According to my husband if you live in Spain for more than 6 months a year, you will be eligible to pay tax on your world wide income, no matter how its paid and theres no legal way around it??? My husband commutes and makes sure he's in Spain for not a day over the six months (it would be nice if he was!!)!!

Jo xxx


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## steven1975 (Aug 11, 2009)

Thanks for reply

Rather than start a new thread -

Is it possible to get a 3/4 bed villa near marbella with pool for under 2000 euros a month? Or do I need to start looking further away?

Thanks

Steven


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## Stravinsky (Aug 12, 2007)

Just to elaborate, if you reside in Spain for more than 183 days then you will become a tax resident here and therefore be liable to pay tax on your worldwide income here.

You ought to be aware that Spanish tax rates can be higher than the UK, so you are right ... you need to take advice from a Spanish tax specialist (gestor). Dont necessarily take any notice of a UK tax specialist who thinks he knows what he's talking about. They wont know the subtle ins and outs of the tax system here


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## jojo (Sep 20, 2007)

simplydigital said:


> Thanks for reply
> 
> Rather than start a new thread -
> 
> ...



I dont think you'll have much of a problem in searching for a property in that price bracket and area?? Try googling your requirements and see what pops up???

Jo xxx


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## steven1975 (Aug 11, 2009)

Thanks for the replies.

Is it better to speak to a gestor now or will it be Ok waiting til I get to Spain. I want to make sure everything is ligit and don't want to end up having to reclaim tax from UK.

Steven


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## Stravinsky (Aug 12, 2007)

simplydigital said:


> Thanks for the replies.
> 
> Is it better to speak to a gestor now or will it be Ok waiting til I get to Spain. I want to make sure everything is ligit and don't want to end up having to reclaim tax from UK.
> 
> Steven


You will amost certainly end up reclaiming tax at some point in the changeover. The best time to move here for tax purposes is September / October. We moved here in October 2006 and didnt have to put a return in until early 2008. 

Theres a double taxation treaty between Spain and the UK which means that you will never pay twice. To deregister for tax in the UK you need form FD9 from the HMRC site. It need sot be taken to Hacienda here for authorisation and then returned to HMRC Nottingham. They take about 6 months to process it

Yes I would seek advice from a tax gestor before you do all this ... as I said, tax rates can be higher here and you dont want to find you lose lots of money by moving here


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## steven1975 (Aug 11, 2009)

Thanks

Do you know of a good gestor should I just google?

Steven


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## Stravinsky (Aug 12, 2007)

simplydigital said:


> Thanks
> 
> Do you know of a good gestor should I just google?
> 
> Steven


I know of one in Gandia, Northern CB
Do you know where you are moving to yet?


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## steven1975 (Aug 11, 2009)

Not quite sure, but will probably be around marbella, we will be coming out in 2-3 weeks time for a look around and checking out some estate agents.

Although we have visited spain quite a few times on holiday, i'm sure looking for a place to live will be completely different!

We don't want to be isolated but at the same time we don't want it to be too british if that makes sense, I have started to learn spanish but have a long way to go yet!

Steven


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## jojo (Sep 20, 2007)

steven_matthews said:


> Not quite sure, but will probably be around marbella, we will be coming out in 2-3 weeks time for a look around and checking out some estate agents.
> 
> Although we have visited spain quite a few times on holiday, i'm sure looking for a place to live will be completely different!
> 
> ...


Write a list of things you want, (both physically and mentally) from where you'll be living and list of things you dont want! And then go and find it! You'll find once you live here your priorities change completely tho! I was amazed at my reaction when I realised that there was an Iceland/Waitrose supermarket near me. I didnt think I missed seeing British foodstuff and labels so much!

Jo xxx


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## mrypg9 (Apr 26, 2008)

steven_matthews said:


> Thanks for reply
> 
> Rather than start a new thread -
> 
> ...


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## alansp (Sep 19, 2009)

I am in similar situation to you. Own a small UK based software company (ltd) and pay myself as dividend and small salary. So just pay corporation tax of 20% and no additional NI contributions. So about 17% of profit is paid in tax.

So as you say what do you want to live in Spain ? 

This web site had some info that seemed relevant :

strongabogados - cant post URL here.

I emailed them and they said that owning a limited compamy in spain does allow considerable advantages over being just employed by a company in terms of tax if the sales income is over 75K. But it depends on details.

Setting up a ltd company in the UK and registering for VAT costs only £50, but in spain it seems to be 1500 eu.

Let me know if you find out more and I'll do the same. I guess it takes time to work out how other countries work tax-wise and what is best.


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