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Homeworking In Benidorm....

Posted: Sat Jul 11, 2020 3:12pm
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Posts: 3

Location: Benidorm

Joined: 11 Jul 2020

Hi Guys,

Prior to Covid-19 I had always planned on moving to Benidorm in 2021 but since the Covid-19 situation, my circumstances have change.

I now work at home on a full-time basis with no plans to bring back office working, so i thought about potentially bringing this forward and start renting in Benidorm whilst using my UK income.

I've had a look online and it all looks confusing regarding being the country for so long and taxation in the UK and Spain.

Please could anyone recommend the best way to go about this?

I'll be living on my own but income wise is around £2000-£3000 per month so i'm sure that will fit any criteria.

Thanks in advance.

Posted: Sat Jul 11, 2020 4:22pm

jimtaylor

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Posts: 5612

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Location: Mudamiento

Joined: 2 Feb 2017

Posted: Sat Jul 11, 2020 4:22pm

If you're going to be living and working in Spain then, irrespective of where your income comes from, you would have to register here as self-employed - autónomo - be registered for IVA - VAT, employ an accountant, and pay social security contributions.

I haven't yet done a guide about self-employment, but for everything else you would need to know and do, click the link for Jim's Guides in the menu bar at the top of the page.

Posted: Sat Jul 11, 2020 4:30pm

UKAsh2020

Original Poster

Posts: 3

Location: Benidorm

Joined: 11 Jul 2020

Posted: Sat Jul 11, 2020 4:30pm

jimtaylor wrote on Sat Jul 11, 2020 4:22pm:

If you're going to be living and working in Spain then, irrespective of where your income comes from, you would have to register here as self-employed - autónomo - be registered for IVA - VAT, employ an accountant, and pay social security contributions.

I haven't yet done a guide about self-employment, but for everything else you would need to know and do, click the link for Jim's Guides in the menu bar at the top of the page....

 

Read more...

...

Hi Jim,

Thanks for your reply.

So I would have to pay income tax and NI in the UK on top of social security in Spain too? 

I might need to rethink!

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Posted: Sat Jul 11, 2020 4:46pm

jimtaylor

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Posts: 5612

star8739 helpful points

Location: Mudamiento

Joined: 2 Feb 2017

Posted: Sat Jul 11, 2020 4:46pm

Depends on when you move here, For any year in which you spend 183 days or more, you would have to pay tax in Spain. After your first tax return, you can get out of the HMRC system. As I said, read my guides. Many people blithely think it's simple, but it's actually very complicated.

Posted: Sat Jul 11, 2020 5:15pm

UKAsh2020

Original Poster

Posts: 3

Location: Benidorm

Joined: 11 Jul 2020

Posted: Sat Jul 11, 2020 5:15pm

jimtaylor wrote on Sat Jul 11, 2020 4:46pm:

Depends on when you move here, For any year in which you spend 183 days or more, you would have to pay tax in Spain. After your first tax return, you can get out of the HMRC system. As I said, read my guides. Many people blithely think it's simple, but it's actually very complicated.

Thanks Jim.

It all now makes sense! :)

Posted: Sun Jul 12, 2020 12:31pm

Kimmy11

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Posts: 6871

star12565 helpful points

Joined: 8 Aug 2017

Posted: Sun Jul 12, 2020 12:31pm

Also, there's a Dual Taxation Agreement between Spain and the UK, so as long as you organise matters correctly, you shouldn't be taxed on the same income in both countries - Jim's done a guide on the DTA too!

Kind regards, 

Kim

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