# Anyone running a UK business from Spain?



## Mac Man (Jun 28, 2011)

Ok. My first post here.

So.... does anyone here run a UK based business from Spain? The reason I ask is that my wife and I are looking to relocate to Spain next year and do exactly this.

She speaks fluent Spanish and her family is originally from Andalucia and we have lots of contacts in the region, including my sister who has lived in Spain for 20 years.

The business we have is web based and we are looking to marketing and manage the business remotely and have a small packing/warehousing operation in the UK. 

So I was just wondering if anyone else has done something similar.... and how they are doing. 

I've loads more questions... but will save some for later. In teh meantime is there a sticky or some faqs on receiving SKY TV? Plus any information on the best/cheapest way of making/receiving calls to and from the UK. We will need a non-Spanish number that people can call for customer service. I was thinking maybe setting up a Skype number. So any experience on either of these most welcome.


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## bernice34 (Nov 3, 2010)

Hi and welcome , we do exactly that . Well my OH does. We have been out here since march and so far so good. The Internet is better than we expected , we have a skype number which 0208 and my OH has a deal with o2 that any one ringing him from the UK to his mobile will only pay the normal rate or use there free minutes. If he phones them then it gets pricy ( on mobile) ! He flies bAck once a month for meetings . All in all its been brilliant ! 
Good luck and please feel free to ask anymore questions , will to my best to answer or I can get the OH to ! 
Bernice


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## Mac Man (Jun 28, 2011)

bernice34 said:


> Hi and welcome , we do exactly that . Well my OH does. We have been out here since march and so far so good. The Internet is better than we expected , we have a skype number which 0208 and my OH has a deal with o2 that any one ringing him from the UK to his mobile will only pay the normal rate or use there free minutes. If he phones them then it gets pricy ( on mobile) ! He flies bAck once a month for meetings . All in all its been brilliant !
> Good luck and please feel free to ask anymore questions , will to my best to answer or I can get the OH to !
> Bernice


Thanks Bernice

Whereabouts are you based? We would be office based most of the time so a Skype number will be ideal for us... assuming the broadband speed is good. From what I've heard Spanish comms seem to be pretty good.

What sort of business do you run, if you don't mind me asking?


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## bernice34 (Nov 3, 2010)

Hi , we are based in Javea , my OH is a code assessor for sustainable homes and it is mainly web based . We rent a house in the hills with a little apartment Attached , so Ollie can have peace from the kids and we have enough room when people come and stay . Our business address is still in the UK and we have our mail forwarded to Spain . 
Where would you be looking ? It's a wonderful opportunity to be in and we are very grateful that we can do it especially in this economic climate . 
Bernice x


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## Happyexpat (Apr 4, 2011)

I have been here for nearly 10 years running a UK based web design business with my son who is still based in the UK. We live in the Campo but have had no real problems with the internet, not as fast as I would like, but good enough. We use Skype with a London No for contact and of course email.
Its been a lot easier than we envisaged and we wouldn't want to go back. My advice, just go for it but choose your location carefully with travel and communications in mind. Let us know how you get on, its always fascinating!


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## Mac Man (Jun 28, 2011)

Happyexpat said:


> I have been here for nearly 10 years running a UK based web design business with my son who is still based in the UK. We live in the Campo but have had no real problems with the internet, not as fast as I would like, but good enough. We use Skype with a London No for contact and of course email.
> Its been a lot easier than we envisaged and we wouldn't want to go back. My advice, just go for it but choose your location carefully with travel and communications in mind. Let us know how you get on, its always fascinating!


Early days yet (obviously). Be good when we can finally get out there. Just want to make sure we're as well prepared as we can before we arrive. I've seen/read too many stories of people who move out on a whim and then have major problems down the line.

Location wise we'll be based about an 90 minutes North of Malaga.. so pretty easy to get to and from the UK. We've checked out the sort of properties available to rent in the area and we should be able to get something decent for 300 Euros a month (inc local 'council' taxes). Broadband services are good in the town. Are Spanish mobile internet services any good?

Current business is still growing and part of it is easily manageable from a remote location as the manufacturer will drop ship for us. The other 2 sides of the business rely on us making the UK fulfillment side of things work well. This will be the tricky bit.


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## Happyexpat (Apr 4, 2011)

Spanish mobile internet is improving all the time. We are currently using vodafone, which was fluctuating a few weeks ago but is now giving a steady 7mb download and 1.5 up. Having said that it is very expensive compared to the UK!


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## RockDog (Jun 12, 2011)

I have been working in Spain for 5 years for my own UK based LTD company - I am an employee !! (and a director). All my clients are UK, pay in Sterling direct to my biz account and I am reg's with UK tax office. They know I am here. I work remotely and and go back for important clients but most comms done thru web/email/phone. I like the flexibility / freedom... I'm sure if I was in UK I would do more business as it's easier to upsell one-2-one but it's a price I like ot pay to beable to 'al fresco' when I want. I would suggest you see a Spanish accountant / lawman about your tax as well as talk to your UK accountant to make sure you get as legal as you can. As you will need to do a spanish Tax retrun (even though it will be zero). So far I have had no problems - but why do I think someone will p*** on my fire!! ... at least I am not a burden on the Spanish state or UK... I sleep well at night and earn my keep.


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## BewdleyDuck (Jun 22, 2011)

This thread is custom made for me too

I'd be keen to find out more

Can anyone else throw light on the issue?


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## Stravinsky (Aug 12, 2007)

BewdleyDuck said:


> This thread is custom made for me too
> 
> I'd be keen to find out more
> 
> Can anyone else throw light on the issue?


Well, as rockdog said ...... I dont want to p**** on his fire, but yes I run a UK limited company from Spain, and yes you have to declare your earnings in Spain if you are a tax resident here ..... and that doesnt necessarily mean a zero tax return unless you are well into constructive accounting


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## BewdleyDuck (Jun 22, 2011)

Im looking to run my existing business from Spain (suppling businesses in the UK with labour services in the UK) and I have a plan to establish a second business in the Canaries to take advantage of the benefits available in that zone.

I may be compelled to live in the Canaries to do this of course but to be fair I think mainland Spain would be more affordable, would that be doable?

The new business would be in the financial services sector which is permissable in the canaries, my main business however doesnt fall into that category sadly so Ill still pay tax etc in the UK (mores the pity)


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## BewdleyDuck (Jun 22, 2011)

actually i may have misread your reply at first..... if my income is UK based and I pay tax in the UK surely its not declarable in Spain

(thats for the existing business)


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## xabiaxica (Jun 23, 2009)

BewdleyDuck said:


> actually i may have misread your reply at first..... if my income is UK based and I pay tax in the UK surely its not declarable in Spain
> 
> (thats for the existing business)


it depends upon where you LIVE - not where the business is

you have to do a tax return in Spain if you LIVE here - you _might_ not actually have to pay any though if you are paying tax in the UK


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## Stravinsky (Aug 12, 2007)

BewdleyDuck said:


> actually i may have misread your reply at first..... if my income is UK based and I pay tax in the UK surely its not declarable in Spain
> 
> (thats for the existing business)


That depends on a lot ...... but in general if you are a tax resident in Spain then thats where you have to declare your income for taxation. There is a dual taxation treaty between the two countries which means that you wont (overall) pay tax twice .... but the dual taxation treaty does not preclude you from making a Spanish tax return as some might think.

Your tax burden, in general, is where you are a tax resident ... and by the sounds of it that would be Spain for you

If it is a Limited company, then that gives you a few more options ... but if you are taking a salary from the company then that is income and in theory is declarable in your country of tax residence / residence


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## BewdleyDuck (Jun 22, 2011)

Stravinsky said:


> If it is a Limited company, then that gives you a few more options ... but if you are taking a salary from the company then that is income and in theory is declarable in your country of tax residence / residence


Limited Company is what it is yes, you made a very good point there, needs more investigation


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