WORKING IN SPAIN FOR A BRITISH COMPANY

Hi

We are moving to Spain in August and my employer has generously let me keep my job and work from home when we move to Spain.They will be paying my wages and transferring them over to my spanish bank account but I am wondering am I liable to pay income tax for this in Spain?

Not if you already have paid tax in the UK. But you need to work out where it will be most beneficial for you to be fiscally resident. Will you be effectively self employed? You need to also think about healthcare issues - if you are not contributing to the Spanish Social Security system, you will not be eligible for National Health in Spain, and will need private cover.

Hi I wont be self employed and my company are going to provide me and my family with private cover as I currently am with Bupa through them. I just wanted to make sure that on down the line they couldnt chase me up for something I was unaware of at the start of my move.

Assuming therefore that income tax will be decucted in UK, you won't be liable in Spain due to the double taxation treaty.

Live in Spain, work from home for a British company, get free private health care.............apart from the crap exchange rate, it sounds like you've got the perfect arrangement. Best of luck to you.

Mrs d - Roberto is correct re the double taxation, other things you may wish to consider;

a) your uk company pays wages into your UK account you then transfer via Moneycorp or similar yourself?-likely to get a far better deal

b) regardless of you being employed there are many things you can still claim for hence getting a monetry return each year-this applies in the UK not just because you are based abroad.

The merits of assuming residency really need to be discussed in far greater detail.

According to the Customs & Excise website PDF concerning the double taxation law between the UK & Spain it only seems valid for interest on savings or dividends and NOT income from a job?

http://www.hmrc.gov.uk/cnr/dtdigest.pdf