setting up a uk company

Hello,

 Can any one tell me is it possible to work in spain as a teacher or a fitness trainer and set up being self employed in the UK  ie paying the National insurance and income tax there in the  uk . Although  i understand being resident here in spain you would have to pay income tax aswell or does that come under the double taxation agreement with both countries that you only pay one lot of income tax to one of the countries . I know i wouldnt be entitled to health care under the state system as not paying the seguridad social here in spain  but i guess private medical is an option .

anyone !!

You mention a "UK Company" in one sentence, then "self-employed" in the next. Which one are you actually thinking of? They are totally different. If a UK limited company, you would be an employee on a salary - regardless of whether you control/own it. Also, there are rules as to how many non-resident directors a company may have. There are ways around that (nominee directors, for example), but you start to tun up the overheads at that point, and are getting into some potentially tricky and complex areas of company law.  The taxation issues are also potentially complex. Yes, there are double taxation treaty provisions, but you really should get expert advice on this from someone who specialises in the area.

I am not quite sure why you would want to do this? By the time you have added up the costs of running the company, filing all the required returns, preparing and filing the accounts, possibly paying for nominee directors and such, plus private health cover in spain, I can see it costing you considerably more than simply working as an 'autonomo' here and qualifying for free health care and other benefits.

If you are working in Spain, whether you have a company or not, you will have to pay Spanish social security at 245 euros per month.

 I cant see the logic in what you are doing?

Maybe you have your own reasons.

The autonomo payment is €254.21 per month for anyone interested/

Thankyou for your replys ,

Forget the title setting up a uk company  its not a company its being a freelancer .

Basically im  a Fitness professional and my partner is an English teacher we work free lance we would love to be autonomo here in spain but  cant afford it  i have been quoted €260 per month seguridad social plus payment of income tax every 3 months .

As  you know you would be having to turn over a good monthly income to cover this the government dont make it easy for anyone to set up being self employed thats why here we have the problem of the majority working black - under the table which im not in favour of but can see why it happens  thus the interest in being self employed in the UK  on the PAYE scheme paying national insurance contributions there towards my pension  keeping my stamp up also i know you can do this voluntary .

My question is if i were to to do this would i be paying my income tax in the UK or here in spain or both countries is there a double taxation agreement between Spain and England.   I know English  people who work here in real estate as self employed working through different  companies etc that pay there social security back in the UK and pay income tax here  in spain when they make sales .

Ok thanks .

What (I think) you are suggesting would not be legal. You cannot be self-employed in Spain and pay taxes/social security in the UK. I think if you tried this you would have two lots of tax inspectors taking a very close look at your residence and domicile status. Not a very pleasant prospect.

Even if you were employed by a UK Limited Company, you would still have to deal with Spanish Social Security and taxes:

www.tumbit.com/how-to-guides/articles/95-working-for-a-uk-employer-in-spain.html

So, you would be no better off at all. The practical reality is that if you are tax resident here, and working here, you do not have much choice.