# Working in Gibraltar, living in Spain



## Tanager

Hi,

I know that there're many expert expats here.
Do you know anything about this: if you work in Gibraltar but you live in Spain where do you pay tax?

How much tax will you pay in Spain and in Gibraltar?
I know that the cost of living is much more in Gibraltar.


Thanks!


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## jojo

Tanager said:


> Hi,
> 
> I know that there're many expert expats here.
> Do you know anything about this: if you work in Gibraltar but you live in Spain where do you pay tax?
> 
> How much tax will you pay in Spain and in Gibraltar?
> I know that the cost of living is much more in Gibraltar.
> 
> 
> Thanks!


I guess if you "live" in Spain then thats where you pay tax. 


Jo xxx


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## Suenneil

Tanager said:


> Hi,
> 
> I know that there're many expert expats here.
> Do you know anything about this: if you work in Gibraltar but you live in Spain where do you pay tax?
> 
> How much tax will you pay in Spain and in Gibraltar?
> I know that the cost of living is much more in Gibraltar.
> 
> 
> Thanks!


Hiya .... this may help as a starting point!

Sue :ranger:

As anyone who works in Gibraltar is already aware, employment income is taxed at source under the PAYE (Pay As You Earn) regulations, irrespective of where they live. Allowances (if claimed) and rates are based on personal circumstances and income during a Gibraltar tax year which commences on 1st July and ends on the following 30th June. Shortly after the tax year, tax returns are issued which should be submitted by 30th September. The tax office then processes the tax returns and issues assessments. If no return is submitted, then the tax office will issue assessments based on the information they have on their files.



> If you are tax resident in Spain, and believe that your tax obligation ends by paying tax at source in Gibraltar then you are mistaken.


 You are deemed to be Spanish tax resident if you spend 183 days or more in Spain in any Spanish tax year (the calendar year). When determining this, temporary absences are ignored, unless you can prove that you are resident in another country. 

If you do not spend 183 days in Spain, the tax authorities can still deem you Spanish tax resident if your centre personal or economic interests are in Spain. An example of your personal interests making you resident in Spain is if your spouse and/or (minor) children habitually live in Spain. An example of your economic interests making you resident in Spain is if the majority of your income was generated in Spain.

It is important to note that tax residency is based on the above rules, and not whether you have obtained “residencia” from your local police station which is primarily used for immigration purposes.

As a Spanish tax resident you are generally liable to Spanish tax on your worldwide income, capital gains (as they arise) and wealth, (wherever located), meaning that your Gibraltar employment income will automatically be liable to Spanish tax.

You are obliged to complete a Spanish tax return if you have employment income over €22,000, but it is very easy for this figure to be reduced to the limit of €10,000 (i.e. if you change employment etc). Therefore, if you are resident in Spain and earn over these limits in Gibraltar, you are legally obliged to complete a Spanish tax return.

Spanish resident tax returns need to be completed during May and June in the following tax year (the calendar year) in question. Therefore 2007 tax returns would need to be completed during May and June 2008.

When completing your Spanish resident tax return you will need to declare your Gibraltar income and Gibraltar PAYE tax, fortunately the Spanish tax authorities allow a credit for Gibraltar tax paid. 

It is worth comparing the Gibraltar and Spanish tax rates to help you get an idea of whether you could be liable to pay extra tax in Spain on your income.


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## Tanager

Wow, loads of information. Thank you very much for this reply, it's really useful.
Now I go and read it.

Thanks once again


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## Dalle

HI.... I want have chat with you..... Is possible... I am new to this site... and I dont know how this work properly..., so I here to ask when we can have chat... Please...
Thank you...
Fernando


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## jojo

Dalle said:


> HI.... I want have chat with you..... Is possible... I am new to this site... and I dont know how this work properly..., so I here to ask when we can have chat... Please...
> Thank you...
> Fernando


 You ask the questions on the forum here and people answer them, you dont need to have private chats - otherwise no one else can offer help. But if you look at the dates on these posts, they're over two years old, so the same people may have moved on. But others may come along and help you???

Jo xxx


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## Pesky Wesky

Dalle said:


> HI.... I want have chat with you..... Is possible... I am new to this site... and I dont know how this work properly..., so I here to ask when we can have chat... Please...
> Thank you...
> Fernando


The way it works is that you make a post, as you already have done, and then someone who knows the answer to your question will post a reply. 
Simples!


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## joey_dm

I know that this is a very old thread , but... I didn't find else the information that I need to find out.

I received a job offer in Gibraltar which I accepted and I am going to start to work there from February 2013.
I understood that living in Gibraltar is quite expensive, so I will chose to live in Spain, because I was told that I could work in Gibraltar and pay taxes in Spain.

Could you please help me to clarify some of the questions that I have in my mind about my move there?

If I work in Gibraltar and live with my wife and children in Spain and chose to pay my taxes in Spain:
- all my taxes will be paid in Spain? I won't be charged with additional taxes in Gibraltar?
- my wife will be insured by the Spanish public health system?
- my children will be insured by the Spanish public health system?

I mean, if I am paying taxes in Spain, will my family be covered with the standard health insurance like every Spanish citizen?

Any information will be much appreciated!

Thank you!


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## xabiaxica

joey_dm said:


> I know that this is a very old thread , but... I didn't find else the information that I need to find out.
> 
> I received a job offer in Gibraltar which I accepted and I am going to start to work there from February 2013.
> I understood that living in Gibraltar is quite expensive, so I will chose to live in Spain, because I was told that I could work in Gibraltar and pay taxes in Spain.
> 
> Could you please help me to clarify some of the questions that I have in my mind about my move there?
> 
> If I work in Gibraltar and live with my wife and children in Spain and chose to pay my taxes in Spain:
> - all my taxes will be paid in Spain? I won't be charged with additional taxes in Gibraltar?
> - my wife will be insured by the Spanish public health system?
> - my children will be insured by the Spanish public health system?
> 
> I mean, if I am paying taxes in Spain, will my family be covered with the standard health insurance like every Spanish citizen?
> 
> Any information will be much appreciated!
> 
> Thank you!


yes, it is a very old thread - the thread you started yourself a few days ago has the current up to date info - if you have any more questions, please add them there 

http://www.expatforum.com/expats/sp...g-spain/135154-work-gibraltar-live-spain.html


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