Spain-based, but UK paid?

tomkh82

Hi,

My partner and I are moving to Spain next month, permanently and it will be our full-time residence. My employer has been very supportive and has granted me permission to continue working from home in Spain. However, I chatted with them yesterday and I was advised it's not as straightforward as simply letting me do it (they were planning to continue paying me into my UK held bank account, and drawer up a letter confirming my 'home working')

My employer has spoken to an external advisor who has presented the following options, as a way forward -

1) I get paid in Euro's - but I may foot the bill for the admin/costs associated.They reckon eu250 - 300 a month)
2) The company registers an office in Spain...can't see this happening, plus, employer contribution is apparently higher in Spain, so also a deterrent,
3) I go self employed...happy to do, but, worry over holiday/annual leave etc.

Now, I am not an expert on these matters and neither are they, so we are both looking into how to resolve this. But, I would have thought the 'Double Taxation Treaty' would come into effect? i.e I am paid as normal in the UK, but I fill in the relevant form to inform the Spanish tax authorities I am already paying tax in the EU and therefore nothing else is to change, obviously this side of Brexit. I think there must be a reasonable way forward with this, and I live in hope it will be facilitated.

I work for a mid-size American company, who have a large 'home-based' sales force, globally.

If any one can help or point me in the right direction I would be very grateful!

Thanks,
Tom.

steampowered

I'm not an expert on this but if you will be an employee based in Spain, I would have thought Spanish employment law would apply and your employer should be paying employment taxes in Spain.

I don't think you can simply choose to work in one country but be deemed employed in another. Otherwise everyone would be employed in the country offering the lowest employment taxes.

It might be easiest to go self-employed. You'll have to arrange your tax affairs though ... see http://www.expatica.com/es/employment/How-to-set-up-as-a-freelancer-or-as-self-employed-in-Spain_471622.html.

It would be worth speaking to a Spanish accountant who deals with British expats about this.

zaax

You will need a spainsh tax advisor / translator as dealing with the Hacienda can be very taxing

paddyrg

Your employer is extremely generous to entertain this, and it's going to be complex - if you're paid in Spain you'll be working Spanish hours, tax, pension, holiday provision, etc - so being paid UK rate will take a twist anyway.

I think the cleanest method will be if you form a limited company/use an umbrella which can continue to invoice gross of holiday etc., then you work it out outside of local employment laws

tomkh82

Thank you to all who took the time to reply.

I'm still working with my employer regarding possible solutions. Once one is reached (hopefully!) I will re-post to share my knowledge and experience.