Hi,
Can anyone help, looking to move to Alicante City, hubby works offshore so will be outside of Spain at least 120 days per year, who will be claiming our tax UK or Spain or both, any advice will be appreciated
Thank You
Aman
Posted: Fri Jan 24, 2020 10:46am
Thank you for this information.
Finding it hard to find information required on tax issues as he works offshore
This is greatly ap
I was an offshore worker!
Assuming he's a UK PAYE employee then he will have no option but to pay tax in UK, those are HMRC rules and neither Spanish residency nor numbers of days in or out of the country override them.
He will have to complete Spanish tax returns but the tax he's paid in UK will be offset against what he's paid in UK. Note that his overall tax burden will go up (possibly significantly) because the allowances in Spain are not as generous as in UK. this is just a fact of life and not as some seem to think some form of double taxation.
As UK employee paying NI he will be entitled to a Workers S1 which will cover your health care in Spain in this case though it's issued by HMRC not DWP and will be renewable annually on it's anniversary for as long as he continues to work and pay NI.
In the circumstances the only point of a 'Spain Individual' will be to get interest on UK savings and investments paid net of UK tax but they will still have to be declared in Spain.
Posted: Fri Jan 24, 2020 1:39pm
Thank you for this valuable information. It’s such a shame about the tax system. We so want to live a life in Spain but to think I will pay 42% in the UK whilst not living there and paying tax in Spain which we don’t mind as we will be there is something we have to consider
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