# return to uk for work....and tax



## andyviola (Aug 11, 2018)

Hello, finding it tough to find IT work in Spain, so considering myself only returning to UK to work. My wife adores Spain and would likely stay here in Spain in our purchased home.

But what of the tax implications? If working in UK obviously I will be taxed there. But I will remain tax resident in Spain (as wife and main residence would be there) so would be taxed in Spain too (on foreign earnings). Am I correct that due to double-tax arrangements, I would be able to reclaim my uk tax at the end of the uk tax year?


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## MataMata (Nov 30, 2008)

You can only be tax resident in one place at a time, if that is Spain then that's where you will pay your tax but note that your wife and main residence being in Spain are only factors in determining your tax residency, of themselves neither are necessarily conclusive.

Another issue to be aware of is if you do not have permanent residency in Spain yet (5 years resident or more) then you can only be outside of Spain for a maximum of 6 months in any one of those first 5 years and the maximum time you may be outside off Spain in the entire 5 year period is 12 months so depending on how long you have had your residency that could potentially severely limit your opportunities for working in UK.

Furthermore if you were to spend 183 days in the UK (not consecutive but in a 365 period) you would automatically become UK tax resident.


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## andyviola (Aug 11, 2018)

MataMata said:


> You can only be tax resident in one place at a time, if that is Spain then that's where you will pay your tax but note that your wife and main residence being in Spain are only factors in determining your tax residency, of themselves neither are necessarily conclusive.
> 
> Another issue to be aware of is if you do not have permanent residency in Spain yet (5 years resident or more) then you can only be outside of Spain for a maximum of 6 months in any one of those first 5 years and the maximum time you may be outside off Spain in the entire 5 year period is 12 months so depending on how long you have had your residency that could potentially severely limit your opportunities for working in UK.
> 
> Furthermore if you were to spend 183 days in the UK (not consecutive but in a 365 period) you would automatically become UK tax resident.


Yes I have only been in Spain 2 year. So are you saying that if I wanted to work full time in UK (>183 days) and my wife stay in Spain, I would be opening a mother fooker of a can of worms? re tax and residency and complexity


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## DonMarco (Nov 20, 2016)

How are you proposing to work fulltime in the UK and be resident in Spain? Daly commute? Think again.


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## MataMata (Nov 30, 2008)

andyviola said:


> Yes I have only been in Spain 2 year. So are you saying that if I wanted to work full time in UK (>183 days) and my wife stay in Spain, I would be opening a mother fooker of a can of worms? re tax and residency and complexity


Unnecessary verbiage but yes.


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## xabiaxica (Jun 23, 2009)

If you have been resident for just two years, you can only be out of Spain for 6 months in every 12 without losing right to residency...but whether you personally are resident or not, if you are supporting a family resident in Spain, as far as Spain is concerned YOU will still be tax resident, even if paying income tax at source inthe UK. You wouldn't have to pay the same tax twice, but because thresholds are currently lower in Spain, there will still be tax to pay here.


The 12 months mentioned by MataMata doesn't apply to British citizens covered by the Brexit WA, such as yourself.


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## NickZ (Jun 26, 2009)

Don't confuse tax residency with taxes owed. If you're working in the UK you pay UK employment taxes.

You would then seek an offset from Spain under the treaty. 

The problem not mentioned by the others is if you start spending time in the UK you might fall under the UK definition of tax resident.






Tax on foreign income


Find out whether you need to pay UK tax on foreign income - residence and ‘non-dom’ status, tax returns, claiming relief if you’re taxed twice (including certificates of residence)




www.gov.uk





At which point you'd have to convince one of the two countries which of the treaties tie breakers applies to you.


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## andyviola (Aug 11, 2018)

So xab i would be taxed initially in uk then in Spain but would have to reclaim all tax from uk? Cant see hmrc paying me gross?


NickZ said:


> Don't confuse tax residency with taxes owed. If you're working in the UK you pay UK employment taxes.
> 
> You would then seek an offset from Spain under the treaty.
> 
> ...


not worth the effort and nervous breakdown  thanks


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## xabiaxica (Jun 23, 2009)

andyviola said:


> So xab i would be taxed initially in uk then in Spain but would have to reclaim all tax from uk? Cant see hmrc paying me gross?
> 
> not worth the effort and nervous breakdown  thanks


The tax you paid in the UK would be deducted from what you owed to Spain. 

You'd really need an expert to help you - at least at first.


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## andyviola (Aug 11, 2018)

xabiaxica said:


> The tax you paid in the UK would be deducted from what you owed to Spain.
> 
> You'd really need an expert to help you - at least at first.


thanks for your explanation


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## andyviola (Aug 11, 2018)

Deleted


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