# Tax in spain



## badbilz (May 8, 2012)

Ones anyone know the level of tax to pay in Spain if I work overseas month in month or the north sea on 2 and 2 rotation? I will have no ties in the uk at all? And will be resident in Spain 

Thanks Billy


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## djfwells (Sep 28, 2009)

Which country will you pay your National Insurance / social security contributions to ?


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## badbilz (May 8, 2012)

Whichever one is best for me


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## jojo (Sep 20, 2007)

badbilz said:


> Whichever one is best for me


 altho I think it maybe a little more, Spain is where you should pay. That way you'll be entitiled to healthcare there. You should pay your taxes to your country of residence

Jo xxx


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## Stravinsky (Aug 12, 2007)

Thats where I get a little confused on this subject with off shore oil workers. He lives in Spain then he has no choice but to pay tax here afaik, but I do have a memory in the back of my mind about off shore oil workers being slightly different


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## jojo (Sep 20, 2007)

Stravinsky said:


> Thats where I get a little confused on this subject with off shore oil workers. He lives in Spain then he has no choice but to pay tax here afaik, but I do have a memory in the back of my mind about off shore oil workers being slightly different


 Maybe, but surely if they dont pay into the Spanish system and are residents, then they have to follow the "under review" S1 reciprocal healthcare route which isnt an easy one

Jo xxxx


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## badbilz (May 8, 2012)

i am going to take out private healthcare if this helps as i have been advised too??


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## 90199 (Mar 21, 2010)

If you are now paying U.K. Tax, download this form, follow the instructions, and the U.K. tax, will make a decision where you will pay your dues.

Form Spain/Individual - Application for relief at source from UK Income Tax/Claim to repayment of UK Income Tax


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## snikpoh (Nov 19, 2007)

Hepa said:


> If you are now paying U.K. Tax, download this form, follow the instructions, and the U.K. tax, will make a decision where you will pay your dues.
> 
> Form Spain/Individual - Application for relief at source from UK Income Tax/Claim to repayment of UK Income Tax



Yes, but this form is to claim any tax paid in UK having already paid it in Spain (under the double taxation agreement).

So, you have to pay it in Spain first. Then, if you pay it again in UK for whatever reason, this is the form to claim it back.



The basic rules are simple - if you are resident in Spain, then you must pay tax here.


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## 90199 (Mar 21, 2010)

snikpoh said:


> Yes, but this form is to claim any tax paid in UK having already paid it in Spain (under the double taxation agreement).
> 
> So, you have to pay it in Spain first. Then, if you pay it again in UK for whatever reason, this is the form to claim it back.
> 
> ...


Not so. I have a pension which is not transferable for tax purposes in Spain, and although resident here for many years, I pay my tax in the U.K., the Tax authorities here are aware of this situation. 

The form I quote is to ask the U.K. tax authorities to consider allowing earnings at present taxed in the U.K. to be transferred to the Spanish tax authorities. In certain individual circumstances it can be financially advantageous to apply for this course of action.


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## snikpoh (Nov 19, 2007)

Hepa said:


> Not so. I have a pension which is not transferable for tax purposes in Spain, and although resident here for many years, I pay my tax in the U.K., the Tax authorities here are aware of this situation.
> 
> The form I quote is to ask the U.K. tax authorities to consider allowing earnings at present taxed in the U.K. to be transferred to the Spanish tax authorities. In certain individual circumstances it can be financially advantageous to apply for this course of action.



Yes, you are correct that the exception to the rule is a Government pension. But I wasn't considering this as it was not what the OP wanted to know.


I disagree about the form - it states quite clearly (I think) that it is all to do with double taxation and getting it back from UK. I quote;


_Form Spain-Individual enables you as a resident of Spain to apply under the United Kingdom/Spain Double Taxation Convention for relief at source from UK income tax on UK-source pensions, purchased annuities, royalties and 
interest. The form also provides for a claim to repayment of UK tax in cases where payments of the income have already been made with UK tax deducted. _


Can any one else perhaps clarify for us? ( I must say that I am confused by the number of forms purporting to be for the same purpose - see R43 for example)


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## 90199 (Mar 21, 2010)

I have just filled the said form in, it is now with the Spanish Tax people, I have to return to collect it in a few days, hopefully signed and stamped. Then I shall post it to Cardiff Inland Revenue, I hope that they will transfer my O.A.Pension for taxation purposes to Spain.

When I left England for good I contacted the Inland Revenue office, they in turn sent me this form with the instructions in English and Spanish, however I have only just got round to filling it in.


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## almendros (Aug 14, 2008)

snikpoh said:


> Yes, you are correct that the exception to the rule is a Government pension. But I wasn't considering this as it was not what the OP wanted to know.
> 
> 
> I disagree about the form - it states quite clearly (I think) that it is all to do with double taxation and getting it back from UK. I quote;
> ...



The form is primarily to allow you to get UK income (mainly pensions) paid gross in the UK. The form details the income that you wish to be tax exempt and it has to go back to HMRC via the Spanish taxman (so that you cannot avoid paying tax in Spain as he now knows about this income)

As you may have already paid UK tax on this income prior to submitting the form, the form is also a vehicle to trigger a corresponding one-off tax rebate from the UK.


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## almendros (Aug 14, 2008)

Stravinsky said:


> Thats where I get a little confused on this subject with off shore oil workers. He lives in Spain then he has no choice but to pay tax here afaik, but I do have a memory in the back of my mind about off shore oil workers being slightly different


It can get very complicated. Some oil rigs are classified as being located in the UK for tax purposes and some are not.

If you work on one of the "UK" ones then your income is deemed to have arisen from work in the UK. Irrespective of your tax residency, any money earned in the UK is taxed in the UK. If you are deemed tax resident in Spain then you would have to pay Spanish tax on it and deduct any UK tax paid.

The same thing would apply if you spend 2 months working in the UK while being tax resident in Spain - the tax would be deducted in the UK even though you were not UK tax resident.


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## Stravinsky (Aug 12, 2007)

snikpoh said:


> Can any one else perhaps clarify for us? ( I must say that I am confused by the number of forms purporting to be for the same purpose - see R43 for example)


The form Hepa has directed you to *is correct* for zero taxation request in the UK. It used to be an FD9 iirc, but it is now un numbered. I have copies of the forms WE completed, and they are the same. In Spanish and English. They used to go to HMRC Nottingham, but now I see they go to Ty Glas Road

As I said, here we had to take it to Valencia tax office where they checked everything.


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