Run UK business while living in Spain

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09 Jun 2015 4:14 PM by Davemspain Star rating. 1 posts Send private message


Does anyone have legal/tax information on how to run your UK business while living in Spain?

I run my own UK limited company and have recently moved to Barcelona. First I was advised to become autonomo but as my company is already set in the UK I have now been told it would be best to keep my company as is and pay corporation tax to the UK and income tax in Spain on wages.

I am quite confused with all this and am struggling to find a good accountant/gestor. Any help would be appreciated.

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09 Jun 2015 5:20 PM by theline Star rating. 84 posts Send private message

If you are the sole shareholder/director of your company, I believe that the company (at least in theory) should change residency to Spain after 6 months of you being resident abroad. This doesn't happen automatically, but if the Spanish government find out you own a company abroad, they may start asking questions.

Another thing to be aware of is that if you are paying yourself in UK dividends via your company, you will have to pay the difference in tax to Spain. Unfortunately tax on foreign dividends in Spain is significantly higher than in the UK, and there is not the generous tax credit we get back home. You'd probably find yourself paying around an additional 20% tax on any dividends you pay yourself.

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09 Jun 2015 6:04 PM by Tadd1966 Star rating in Los Montesinos. 1754 posts Send private message

I think theline is correct esepcially on dividends (I think the limit before you pay tax on any dividend is 1500€ year

Also if you are employed by the UK company and receive a salary that is taxed is Spain you would have to pay the Spanish equivalent of NI stamp and your company would have to pay the employers Spanish NI which is higher than the UK employer contributuoon.

By going autonomo (self employed) in Spain you would not be an employee of your UK company and would have to provide invoices as a supplier (contractor) to your UK company and pay Spainish tax on your income (salary and dividends) and the autonomo stamp which is a minimum of around 230€ month (I think), which is not linked to earnings

Do you intend to work from home (Spain) or commute

“The greatest enemy of knowledge is not ignorance; it is the illusion of knowledge”

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