# Not quite the norm :)



## mrmatt (Mar 10, 2019)

Hi
I am a UK citizen still in UK at present andw ork from home.

I am planning to relocate to ES and continue the same job. My move will be off the employers radar.

I am in the process buying a house but will not complete until after March 29.

Does anyone see any issues or pitfalls?

Interested to hear what folks have to say.

Cheers


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## samthemainman (Aug 15, 2012)

Even without knowing your personal situation, in terms of it being 'off the employers radar' my advice is don't even go there. If Spain is your main residence, tax and social security payments will be due in Spain, from you and your employer. This means usually the UK part of your company setting up a shadow payroll in Spain (basically a payroll for the UK entity so they can withhold income tax/PAYE and Social Security) and they may also need to pay corporate tax - especially if you are creating what is called a 'Permanent Establishment' - read up on it. I had to transfer to a Spanish employment contract and be on a Spanish payroll. If you're not having tax/SS withheld both you and your company would face hefty fines for non-payment. It's a big deal. There's no other way around it usually, although I have heard of people setting themselves up as autonomo/self-employed and setting up a T.R.A.D.E. contract with a sole employer, but its messy and expensive.

Remember you don't get a choice where you pay your taxes, and if we do exit the EU without a deal at the end of March, you will only be able to come as a 3rd country citizen (on a similar basis to the US, Australia or any other non-EEA country) and you will need to earn a minimum salary (I think it is quite low at 27K Euros) and would have to show regular income, social security cover (or private health care with no co-pay). A UK contract or money in a UK bank wouldn't cut it - they need to see money in the Spanish account. That's just for residency - and for tax/social security you'd have to be fully above board.


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## mrmatt (Mar 10, 2019)

Thanks for replying and the info provided.
My employer has a presence in ES so hopefully they will just issue me a Spanish contract and place me on to Spanish payroll.
Cheers


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## Williams2 (Sep 15, 2013)

samthemainman said:


> Even without knowing your personal situation, in terms of it being 'off the employers radar' my advice is don't even go there. If Spain is your main residence, tax and social security payments will be due in Spain, from you and your employer. This means usually the UK part of your company setting up a shadow payroll in Spain (basically a payroll for the UK entity so they can withhold income tax/PAYE and Social Security) and they may also need to pay corporate tax - especially if you are creating what is called a 'Permanent Establishment' - read up on it. I had to transfer to a Spanish employment contract and be on a Spanish payroll. If you're not having tax/SS withheld both you and your company would face hefty fines for non-payment. It's a big deal. There's no other way around it usually, although I have heard of people setting themselves up as autonomo/self-employed and setting up a T.R.A.D.E. contract with a sole employer, but its messy and expensive.
> 
> Remember you don't get a choice where you pay your taxes, and if we do exit the EU without a deal at the end of March, you will only be able to come as a 3rd country citizen (on a similar basis to the US, Australia or any other non-EEA country) and you will need to earn a minimum salary (I think it is quite low at 27K Euros) and would have to show regular income, social security cover (or private health care with no co-pay). A UK contract or money in a UK bank wouldn't cut it - they need to see money in the Spanish account. That's just for residency - and for tax/social security you'd have to be fully above board.


Yes totally agree with the above and it's spot on as the way best for the OP to stay legal, if hes
happy working remotely with his present employer.

The only people who seem to be circumventing these restrictions are the Digital Nomads, although
for that you would really need to be single ( with no ties ) and love living a _no fixed abode_ lifestyle.
How Brexit would affect British Digital Nomads, I cannot say but DM's from the other EU27
countries can no doubt continue going about their business as usual.

Who are the Digital Nomads ?


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## MrSam (Jul 31, 2012)

Well I already did what you are planning for a period of six months although not in Spain. I worked remotely in a country which, arguably, has even tighter employment restrictions than Spain and my employer never knew I was not in my home country. My work phone was redirected to a Skype number in my home country so callers had no idea that I was not in my usual location. I never told anybody what I was doing so unless the authorities were actively monitoring my internet activity there is no real possibility of being discovered. I certainly wasn't the only person I encountered who was doing this, it is more common than you think. If the people in charge had any sense, they would set up a special visa just for this purpose. What have they got to lose?


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## vix2000 (Jan 20, 2019)

Did you mean pitfalls for completing after 29th March?


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## mrmatt (Mar 10, 2019)

vix2000 said:


> Did you mean pitfalls for completing after 29th March?


Hi.
Yes I meant completing after Mar 29. Looks like if there is no deal we will have to apply for visas then as soon as on the ground apply for TIE as will be 3rd country :-(

If the UK govt accept the deal we will be subject to the transition period during which can apply for residency same as EU national would today.

I know the commons voted against no deal but if the EU27 dont agree to extension then UK is out on 29 and I will have some hoops to junp through :-(

Is my interpretation of the situation corect?

Any thiought from anyone?

Cheers


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## vix2000 (Jan 20, 2019)

I asked because I am also in the very early process of buying a house. My main concern is if we leave no deal and the exchange rate plummets. I am holding on now to see what happens as it is so close.


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## snikpoh (Nov 19, 2007)

vix2000 said:


> I asked because I am also in the very early process of buying a house. My main concern is if we leave no deal and the exchange rate plummets. I am holding on now to see what happens as it is so close.


Surely, if you're that worried, why not move the money now.


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## Barriej (Jul 23, 2012)

snikpoh said:


> Surely, if you're that worried, why not move the money now.


I would second that. I moved ours at the beginning of the month and got 1.165 € to the £ 
I think its only going to go down towards the end of the month no matter what the outcome of brexit.


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## Juan C (Sep 4, 2017)

Mr Matt. Spot on in your assessment


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## silaeu (Jul 2, 2016)

I don´t see any problems except for this: If you open a bank account in Spain and receive your payments in Spain, you'll have to specify to Spain Treasure where you will pay the taxes.


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