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Moving to spain

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    Moving to spain

    Hi,

    I will move to Spain soon and have my fiscal residence there, but I will keep my contracting company in the UK
    Is it possible to pay my salary and dividend into a Spanish bank account and pay my personal taxes in Spain instead of uk ?

    Thanks

    #2
    If you are intending to work in Spain then you need to register your Ltd company in Spain and then let a local Spanish accountant do your accounts. In that case your Ltd company would not be taxed in the UK. If you intend to work in the UK i.e. travel to the UK every week then you just run it as it is. In the case that you are resident in Spain but commute to the UK you declare your UK earnings to the Spanish authorities and they take into account tax paid in the UK.
    Last edited by BlasterBates; 23 August 2016, 20:33.
    I'm alright Jack

    Comment


      #3
      Also if you are selling the flat in London and thinking of shipping the money across to Spain declare it for that year you moved the money across or even if you have savings in the UK you have to declare that money via Spanish yearly document Modulo 720 Declaraciones de Bienes En El Extranjero. Otherwise the Spanish authorities will spot you transferring say £40k one year from UK to your bank account, you'll say "But I paid tax on all that money governor !" and they will reply "No, muchacho you should have declared it for that tax year .. we will slap you a 20% fine on all that lovely money, adios cabron !". Happened to a Spanish girl that sold her flat, shipped the money across to Spain and then got a nasty letter from the officious Spanish. Every UK current, savings account has to be accounted for every year they are in existence for just in case the government in Spain is about to collapse and they need it all from you. Good luck ! Also careful of rip off accountants, a so called family friend accountant ripped me off for 1000 Euros to do the Modulu 720 and La Declaracion de La renta... I've done them online myself since then and said goodbye to that master Spanish fiscal accountant..

      Also re-reading your question I think i know what you're getting at, pay yourself regular wages and dividends from your UK limited but into your Spanish bank account, hmmm dunno about that one, the normal thing to do is to pay the wages and dividends into a UK personal current account and THEN transfer the money across from that UK personal current account to a Spanish current account but I'm guessing that you won't have a permanent residence in the UK to keep your UK current account .. right ??? for letters etc (and I think the law / standard practice requires it - burn me on that one law vultures if you could). I believe you will be taxed on income based on your place of residency so those wages and dividends should be taxed under the Spanish tax system I believe, the VAT/Corporation tax pertains to the limited company right ? so that would fall under under UK tax. Also make sure that you don't pay the tax on interest for savings / current account in the UK, you pay those in Spain if you are resident there.
      Last edited by sbakoola; 23 August 2016, 17:17.

      Comment


        #4
        To be honest, I did the declaración de la renta before it was available online and spent the most kafkaesque day in queues. 1000€ I'd have to think twice about it

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          #5
          Yes I will still have my flat in the UK to keep my company and bank accounts.

          So if I well understand I need to open a new company in Spain, do invoices from my Spanish company to my English company and after that I can get a an income from my Spanish company

          Comment


            #6
            Originally posted by Antman View Post
            To be honest, I did the declaración de la renta before it was available online and spent the most kafkaesque day in queues. 1000€ I'd have to think twice about it
            the cheeky s*d emailed me this year asking to ... lets do it again ... you start gathering all the paperwork for me !!! both declarations took me about 3 hours to do from start to finish, a 13 year old could have done them.

            Thing is they change their story do Spanish accountants verbally and in writing claim that it's 500 Euros for everything then months later the 2nd declaration is due and they charge you more, that type of b*llocks. So much for family recommendations.

            In some ways that is a fault of Spanish business they try and diddle you at the outset and pretend that they didn't do when they want repeat business, it's not a great long term strategy. I could tell you other stories about family cheating each other in Spain for money but I wont. Seems like there is absolutely no moral code here, cheats are derided but secretly admired, politicians are crooks, you're best out of it... Brexit all the way and I say that as a Spanish national. My business in Spain is to have external clients when I ship product, enough said.
            Last edited by sbakoola; 23 August 2016, 19:24.

            Comment


              #7
              Originally posted by BlasterBates View Post
              If you are intending to work in Spain then you need to register your Ltd company in Spain and then let a local Spanish accountant do your accounts. In that case your Ltd company would not be taxed in the UK. If you intend to work in the UK i.e. travel to the UK every week then you just run it as it is. In the case that you are resident in Spain but commute to the UK you declare your UK earnings to the Spanish authorities and they take into account tax paid in the UK.
              I think the OP aim is to slowly drain the Company monies paying salary and dividends up to a certain personal tax treshold, much as you would do if you take long sabbatical or retire in UK but don't want to MVL.

              And the question is how to tax this personal income in Spain instead of UK. HE didn't say he wants to keep contracting in Spain with his UKco.

              If my assumptions above are correct then OP's best bet is to ask a Spanish accountant.

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