# TAx implications running a UK business from Spain



## Mac Man (Jun 28, 2011)

Hi

Not sure if this has been asked/answered before.

I'm looking at running a UK based internet business from Spain next year. The company is completely UK based i.e. we have staff in the UK and the business has an office/storage facility there. All transactions are UK based. It's a Limited company.

Anyone know if we will be liable for Spanish tax as we'll be living in Spain all year round.

We'll be paid as employees of the business and take a min wage + dividends.

Or worse... could we be double taxed - ie UK and Spain? Being employees of a company I'm assuming we won't be liable for that 250 euros a month you have to pay whether you work, or not.

Main reason for asking is I understand that Spanish tax rates are pretty steep compared to UK rates. ALthough we'll be well under UK 40% tax rates.


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## jojo (Sep 20, 2007)

Mac Man said:


> Hi
> 
> Not sure if this has been asked/answered before.
> 
> ...


I know very little, but I do know that you pay your taxes to the country where you live for more than 183 days a year. If nothing else, those taxes etc wil;l ensure that you and your family have medical cover in Spain. 

Someone with more knowledge than me will be along I'm sure 

Jo xxx


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## 90199 (Mar 21, 2010)

You should ask this question to the U.K. tax authorities. You should also inform them when you become resident in Spain

I live in Spain 365 days of the year, I pay my taxes in the U.K. I have no choice in this matter.

The U.K. and Spain have an agreement that tax will not be deducted twice so I only pay tax in the U.K. because I do not have an income here in Spain, had I income here I would have to pay Spanish tax.

Hepa


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## xabiaxica (Jun 23, 2009)

Hepa said:


> You should ask this question to the U.K. tax authorities. You should also inform them when you become resident in Spain
> 
> I live in Spain 365 days of the year, I pay my taxes in the U.K. I have no choice in this matter.
> 
> ...


but that's pension, isn't it?

income tax from work is treated differently

the OP would for sure have to make a tax declaration here - maybe there'd be no tax to pay if taxed at source in the UK - maybe there would be 

jojo is right about the advantages of having your tax & ins paid in Spain though, if you're living here & aren't of pensionable age


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## 90199 (Mar 21, 2010)

Not all pension, I have to submit a U.K. tax return each year and next year I shall also submit a Spanish return.

The O.P. should really take professional advice in both the U.K. and Spain, for there will be many conflicting views and information that will be forthcoming on this thread,

Hepa


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## Mac Man (Jun 28, 2011)

Hepa said:


> You should ask this question to the U.K. tax authorities. You should also inform them when you become resident in Spain
> 
> I live in Spain 365 days of the year, I pay my taxes in the U.K. I have no choice in this matter.
> 
> ...


So much confusing advice about...
I've read the details about living in Spain over 182 days means you're classed as a resident. But I've no idea what exceptions there might be if all your income is generated in the UK. Spanish tax rates look pretty unattractive. But the difference might not be so great once any deductions and allowances are made - like you have in the UK. I'd like we'd be able to claim for things like flights to and from UK as these would be legitimate expenses in respect of running the business from Spain.

Just wondered if anyone has 1st hand experience of running a UK business from Spain.


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## xabiaxica (Jun 23, 2009)

Hepa said:


> Not all pension, OAP yes.


well I shan't ask any more then


there are lots of discussions on the forum about the implications of not making a tax declaration here in spain if you live here - no matter where your income is from

the best thing anyone can do really is get themselves a good gestor and/or accountant who understands SPANISH tax rules - and follow their advice



there is a poster here Bernice whose family lives here & they have a UK based income - she will no doubt be able to give her experiences

actually, Mac Man, if you look through her posts, you'll see that she has commented here before about it


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