# Running a uk limited company in Spain



## Pawaller (Sep 1, 2015)

Some advice please....planning to move to Spain end of 2016 with family however I am a director of a Uk registered limited company. The other 2 directors will be uk based. The company will be expanding into the Spanish marketplace for web design and digital marketing

Will I have to apply for self employment in Spain or can it be classified as a employed working abroad contract...

Need some clarification on this with regard to how this will will affect applying for residency....

Many thanks


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## snikpoh (Nov 19, 2007)

Hi, residency is not the issue as you don't actually 'apply'. You have to sign on the list of foreigners within 90 days and then after a total of 183 days in Spain (within a calendar year) you are automatically tax resident.

As a tax resident, you will need to submit a tax form in Spain offsetting any tax paid elsewhere.

So, the real issue is one of paying tax. You need to research this carefully as there are a couple of options for you. If you search this forum, I believe this question has come up before.


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## chontanilla (Dec 30, 2015)

I am in fact really interested in this topic, as I am a Spanish self employee planning on setting up a LTD in UK, so I guess I'll have to pay tax both sides. 
By the way, my business is also a digital marketing and communication agency. 
Best regards,
Cristina Hontanilla


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## snikpoh (Nov 19, 2007)

... just be careful where you pay SS (or NI). Certainly don't pay it twice. I think you MUST pay it in Spain as you reside here.


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## chontanilla (Dec 30, 2015)

Yes, you as a citizen have to pay in Spain, but your company as LTD in UK should pay there right?


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## snikpoh (Nov 19, 2007)

chontanilla said:


> Yes, you as a citizen have to pay in Spain, but your company as LTD in UK should pay there right?


By 'your company' I am assuming you mean employee NI contributions?

Any way, I'm not so sure - from the gov.uk web site;


> International National Insurance issues
> If your employee has a certificate of coverage from their home country confirming that home country social security cover continues, leave the National Insurance letters and values fields blank for that employee.


... best to ask gov.uk and hacienda or INSS here.


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## Pawaller (Sep 1, 2015)

With regard to showing you can financially support yourself in Spain would i be ok in showing uk business bank statements or could it be a contract of work as a employee as this will be a expansion/relocation project?


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## snikpoh (Nov 19, 2007)

Pawaller said:


> With regard to showing you can financially support yourself in Spain would i be ok in showing uk business bank statements or could it be a contract of work as a employee as this will be a expansion/relocation project?


Basically - NO.

Company assets aren't legally yours until you've taken them as income or as a divi!

You would need to show income into a Spanish bank (3 or more months worth) and/or savings in a Spanish bank of around 6000€ per person.


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