# Paid in pounds by UK company, but living in Spain. advice needed



## edhewitt (Jan 22, 2019)

Hi all. I'm Ed - looking to move to Malaga in the coming months with my Spanish wife. 

I have a question regarding whether I can continue to be paid in pounds, paying British tax, but live for the majority of the year in Spain? 

My company have said that I can work remotely, so long as they can still pay me pounds and I'm on UK PAYE system. I want to make things as easy as possible for them. 

I can still claim UK tax residency as I have a house there and my parents still live there. I will also be making frequent trips back to the UK. I should also be able to claim Spanish residency as I plan to spend over 183 days per year there and my wife is Spanish. 

But is it possible that my company just keep their existing payment structure, and then I work out all the tax stuff without having to bother them?

Any advice appreciated.

Thanks


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## Overandout (Nov 10, 2012)

Sadly, you do not "claim" tax residency. The tax authorities decide for you.

In your case, assuming more than 50% of your time physically living in Spain, you will be deemed a tax resident of Spain and subject to Spanish income tax. Having a house and parents in the UK will not change that.

The easiest way that I can think of to achieve what you and your employer want is to spend less than 182 days in Spain in any tax year, but caution, if they find that your wife is in Spain all year round and you are legal (not tax) resident of Spain, own a house, own a car, send kids to school etc. in Spain, they may decide that even spending less than half a year here, you have made Spain your "economic centre of activity" and deem you to be a tax resident.


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## edhewitt (Jan 22, 2019)

*thanks*

thanks. I have every intention of paying Spanish tax - the question is really whether my employer can continue to pay me in pounds, using UK PAYE. If they have to set up something in Spain it could jeopardise the whole thing. I would then declare my UK income and tax to the Spanish tax authorities and work out independently what I need to pay them without ever having to inconvenience my company? All the work I do benefits the UK and Africa (not Spain). Assuming that the double taxation treaty is in place post Brexit, surely that should be possible? 

More thoughts and advice appreciated...


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## stevesainty (Jan 7, 2011)

edhewitt said:


> thanks. I have every intention of paying Spanish tax - the question is really whether my employer can continue to pay me in pounds, using UK PAYE. If they have to set up something in Spain it could jeopardise the whole thing. I would then declare my UK income and tax to the Spanish tax authorities and work out independently what I need to pay them without ever having to inconvenience my company? All the work I do benefits the UK and Africa (not Spain). Assuming that the double taxation treaty is in place post Brexit, surely that should be possible?
> 
> More thoughts and advice appreciated...


I believe that once you let HMRC know that you are tax resident in Spain, they will issue you with a NT tax code, no tax to pay, and your employers will just pay your salary gross.
You would not have a tax free allowance in the UK though and you would pay the tax due in Spain once a year, unless you come to an arrangement with Agencia Truibutaria for more frequent payments.


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## uk03878 (Jul 4, 2018)

Because you are now out of the UK (in addition to the above) - you probably won't be able to pay into the UK Company Pension Fund. And don't forget no automatic NI either - so if you want to keep up with your UK State Pension you may be able to pay the £15 a week Class 3 contributions.
This is all dependent if you ever want to go back to the UK though. (and if you have any ISAs - these aren't tax free to take out of and you cant contribute to them)
Just a heads up..


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