Early retirement but have UK LTD company

Posted: Mon Jan 31, 2022 9:08am

5 replies112 views3 members subscribed

Posts: 11

Joined: 31 Jan 2022

Hi All

After a bad fall from a roof 3 years ago and being lucky to survive, life changed for us. The injuries are all but healed but we decided that working long hours was not for us. Since then I have done little or no work rather I employ someone to do the work for me. In the UK I have offices and staff. We have spent a lot of time travelling, we are not rich but have decided to retire in Spain.

The problem.

For taxation purposes, my wife and I still draw a wage from the uk business. I am reading this could be a problem for the NLV visa. We have around €35,000 and will be selling our house and buying in Spain, San Miguel De Salinas. We just love it there. There will be a little left over to top up the cash in the bank.

There are many law firms advertising they can help and I am sure some can but it would be nice for someone local to help. We believe is we change to dividends, then this will get over the problem but if e do this too soon, we will pay a lot of tax in the UK.

I know when I come to Spain I will pay tax, thats good and fair.

Has anyone here seen or know of something similar or can offer professional advice.

Currently in Spain but due to go back on Saturday to serve our 90 days prison sentence in the UK until we can return again.

Thanks in anticipation

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Posted: Mon Jan 31, 2022 1:12pm

Stephanie86

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Posted: Mon Jan 31, 2022 1:12pm

I have friends with a similar financial situation, who receive dividends. But your safest bet would be to find a local gestor accustomed to dealing with foreign residents, or an abogado, but they will charge more. Professional advice is going to be far safer than anyone on here, however well intentioned and helpful.

Posted: Mon Jan 31, 2022 1:20pm

Marconi661

Original Poster

Posts: 11

Location: San Miguel de Salinas

Joined: 31 Jan 2022

Posted: Mon Jan 31, 2022 1:20pm

Stephanie86 wrote on Mon Jan 31, 2022 1:12pm:
I have friends with a similar financial situation, who receive dividends. But your safest bet would be to find a local gestor accustomed to dealing with foreign residents, or an abogado, but they will charge more. Professional advice is going to be far safer than anyone on here, however well inte...

Read more...

...ntioned and helpful.

Thanks for this. I understand advice here can be, varied. I suppose a gestor near San Miguel woud be good with the relevant experience. Might be good if someone knows one or one messages through here.

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Posted: Mon Jan 31, 2022 2:41pm

Herefordjack

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Posted: Mon Jan 31, 2022 2:41pm

Why will you pay a lot of tax in the UK if you stop receiving a salary and start receiving dividends?

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Posted: Mon Jan 31, 2022 3:03pm

Marconi661

Original Poster

Posts: 11

Location: San Miguel de Salinas

Joined: 31 Jan 2022

Posted: Mon Jan 31, 2022 3:03pm

Herefordjack wrote on Mon Jan 31, 2022 2:41pm:
Why will you pay a lot of tax in the UK if you stop receiving a salary and start receiving dividends?

If I was to stop now, before coming to Spain, salary is deducted before profit whereas dividends are paid on profit so after tax has been taken. For example, if I were to pay £20,000 wages, that can be deducted from the turnover. Whereas If I didn't pay the salary, I'd pay 19% corporation tax on that £20,000.in the UK I'd also be £12,000 is non taxable allowance leaving income tax on the remaining 8% ish.

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Posted: Mon Jan 31, 2022 3:32pm

Kimmy11

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Posted: Mon Jan 31, 2022 3:32pm

Hi Marconi661,

I'd recommend you see a qualified fiscal specialist - neither lawyers, nor gestors, will necessarily be qualified to advise on tax matters. This is the company we use for our tax advice:

https://www.abacoadvisers.com/

Kind regards,

Kim