Posted: Sun Jun 14, 2020 10:39am
Ya, when we first started to get serious about our move a few years back that one took me by surprise too! The VAT thing too. But, better for you to discover this now than a month after you've moved and had a big hole put into your finances. Least now you'll have like I did, time to cost the additional expense in.
I've spoken to lots of people who base their businesses in the UK but live in Spain, invoicing in GBP, paying tax (or not) in the UK then bringing their money to Spain via various methods. I did look into this but whilst I'm not entirely sure if it's actually illegal (I never got that far into research: I suspect somehow it can be done legally if you spend enough on exploiting loopholes!) it does, from what I can work out, open you up to getting taxed on the money twice: Once in the jurisdiction the money is made/banked and again when you move it to Spain.
I once got chatting to a tradesperson who mostly worked for Brits on their holiday homes. They paid him into his UK bank account, he transferred it to his Spanish bank and thought this was all fine and dandy. I suspect though sooner or later he's going to get a very nasty Spanish tax bill.
Anyway, I digress. Bottom line is if you or your partner are going to go the self-employed route ensure you do all the research as there are costs involved that you might not be aware of. For instance, on top of the monthly payments you need to make quarterly tax returns, and I think these must be done via an accountant, who will charge.
Again, not trying to put you off or be negative, just passing on the hidden self-employed "nasties" I've discovered in the last few years as we researched our own permanent move to Spain.