# Tax/NI benefits of moving to Mainland Spain from UK



## DarrylCox (Feb 9, 2010)

Hi alll ex-pats,

I am looking for some information in relation to income tax and national insurance when working in mainland spain,

I believe there is a Tax agreement in place betweek the UK and Spain, that allows me to continue to be paid by my UK company, however I will not be taxed against my salary on a monthly basis, but would submit my earnings to the Spanish government on an annual basis and taxed at the standard spanish income tax rate, which again I believe is favourable. Anyone offer any advice, confirmation or correction to this?

With regards to NI, I am lead to believe that NI would again not be taken out against my salary on a monthly basis, but I would pay similiar to how a self employed person would work in the UK. Anyone offer any advice, confirmation or correction to this?

Any advise, further information would be very much appreciated

Thanks in advance
Darryl


----------



## 90199 (Mar 21, 2010)

Hello Darryl,

If you are paid by a U.K. company and paid in the U.K., then you will be taxed at source, same for National Insurance. However once officially resident in Spain, you can ask the U.K. income tax office in Nottingham to exempt you from U.K. tax and then you will pay Spanish Tax.

The first thing you have to do is contact your tax office in the U.K., tell them that you are going to leave the U.K. and they will advise you and send you a load of information.

I have been down this road, however I found that I would end up paying more in Spanish tax, so I have not applied for exemption in the U.K.

Hepa


----------



## Stravinsky (Aug 12, 2007)

Hepa said:


> I have been down this road, however I found that I would end up paying more in Spanish tax, so I have not applied for exemption in the U.K.
> 
> Hepa


But if the Spanish tax rate is higher than the UK one, then you are still liable here for the balance I believe (info supplied by Gestoria & abogado), as after 6 months here you become a fiscal resident


----------



## 90199 (Mar 21, 2010)

Stravinsky said:


> But if the Spanish tax rate is higher than the UK one, then you are still liable here for the balance I believe (info supplied by Gestoria & abogado), as after 6 months here you become a fiscal resident



I sought advice from a gestoria, showed him our earnings and deductions for the previous year, form P60. He asked if we had any earnings here an as the answer was no, we were advised that the Spanish tax Authorities were not interested in us.

The best thing to do is seek advice both in the U.K. and wherever he settles in Spain


----------



## Stravinsky (Aug 12, 2007)

Hepa said:


> I sought advice from a gestoria, showed him our earnings and deductions for the previous year, form P60. He asked if we had any earnings here an as the answer was no, we were advised that the Spanish tax Authorities were not interested in us.
> 
> The best thing to do is seek advice both in the U.K. and wherever he settles in Spain


I did. I was also advised by the tax office in the UK that deals with this in Nottingham and the relevant tax office in Valencia.

If you have taxable income in the UK, and you are a tax resident in Spain (which you will be after 6 months) then the tax office in Spain have every right to take the difference between the tax you paid in the UK and the tax due under the rate in Spain. 

Sorry


----------



## 90199 (Mar 21, 2010)

Stravinsky said:


> I did. I was also advised by the tax office in the UK that deals with this in Nottingham and the relevant tax office in Valencia.
> 
> If you have taxable income in the UK, and you are a tax resident in Spain (which you will be after 6 months) then the tax office in Spain have every right to take the difference between the tax you paid in the UK and the tax due under the rate in Spain.
> 
> Sorry


And that is just why I suggested, advice where one settles, because the advice received in one area in Spain is often quite, different to that of another. This not only applies to taxation.

Often when I read the posts on this forum, I wonder if I am living in a different country, for out here in the far west of the Canary Islands things are totally different to what you experience, on the peninsular,

There was no need to apologise, however it is accepted


----------



## gus-lopez (Jan 4, 2010)

If you did have to pay soc. sec. as a self-employed person the minimum is 250+ €'s a month ! 
100 x the weekly rate in the UK :


----------

