Spain digital nomad visa

[jamesbrown]

jamesbrown I am not trying to convince anyone but we have the usual types sea-gulling on a thread and not actually offering helpful information. The thread is in the business section, its not really a debating thread about 'why' and offering life counselling about decisions. Its about the 'how'. Every John in the UK will have 50p about the 'why', its subjective and I would suggest if someone wants to debate the why and is not planning on moving to Spain, keep it in General, don't seagull this thread. Thankyou.

As for the driving licence, if you plan to live in Spain (as I do), you will be able to swap your UK drivers licence for a Spanish one, you will need to do it in under 6 months into the residency. Source: British ambassador to Spain.

What to do with UK Home? Sell it. What to do with the language? Learn it. What to do about a Spanish car? Buy one. What to do with your shoelaces? Tie them.

You aren't the thread police. I think it's perfectly reasonable to post about some of the issues that might be encountered. Some of these issues will have a read across from one jurisdiction to another.

[WTFH]

As for the driving licence, if you plan to live in Spain (as I do), you will be able to swap your UK drivers licence for a Spanish one, you will need to do it in under 6 months into the residency. Source: British ambassador to Spain.

What to do with UK Home? Sell it. What to do with the language? Learn it. What to do about a Spanish car? Buy one. What to do with your shoelaces? Tie them.

OK, so you're not talking about being a nomad, you're talking about relocating to Spain full time.
There's a big difference. It's like the difference between being a contractor with multiple clients and working for one client for 5+ years, but calling yourself a contractor.
Going on holiday to a country for a month and coming back with your attitude is a lot different to upping sticks, selling up and moving.

You might want to start a new thread for people who want to move to Spain permanently, rather than be a nomad.

[oliverson]

So, back to the digital nomad visa.

I just can't stop thinking about this, already having a second home in Spain, and with the 25% Corp. Tax on the horizon.

I've mailed my accountant for some advice, but the way I see it, if I'm tax resident in Spain, i.e. spend 183+ days over there, then I can't be tax resident here in the UK also. That would mean I could spend 182 days in the UK, doing some of the work here. This flips my current 'modus operandi' of being UK resident but spending several months a year in Spain, working out of there, on it's head.

The fly in the ointment is going to be the driving licence. My understanding is that a UK licence is no longer valid 6 months from date of residency. But say I swapped my UK licence for a Spanish one, what then? According to the the Gov.uk site, the Spanish licence is valid for the UK, seeing as technically I passed the swapped licence here in the UK.

Other concerns would be the Tesla. I really don't want to cancel the lease so I'd have to try come to some agreement with the leasing company.

Plenty of obstacles to overcome then, but if I can do that, I get to enjoy NOT paying 25% Corp. Tax to a government that turned it's back on me in a pandemic, ruined my industry with IR35, ruined my country. Cherry on cake, the right to roam the EU again without the 90/180 day rule.

[sadkingbilly]

So, back to the digital nomad visa.

the way I see it, if I'm tax resident in Spain, i.e. spend 183+ days over there, then I can't be tax resident here in the UK also.

yes you can.

[ladymuck]

So, back to the digital nomad visa.

I just can't stop thinking about this, already having a second home in Spain, and with the 25% Corp. Tax on the horizon.

I've mailed my accountant for some advice, but the way I see it, if I'm tax resident in Spain, i.e. spend 183+ days over there, then I can't be tax resident here in the UK also. That would mean I could spend 182 days in the UK, doing some of the work here. This flips my current 'modus operandi' of being UK resident but spending several months a year in Spain, working out of there, on it's head.

The fly in the ointment is going to be the driving licence. My understanding is that a UK licence is no longer valid 6 months from date of residency. But say I swapped my UK licence for a Spanish one, what then? According to the the Gov.uk site, the Spanish licence is valid for the UK, seeing as technically I passed the swapped licence here in the UK.

Other concerns would be the Tesla. I really don't want to cancel the lease so I'd have to try come to some agreement with the leasing company.

Plenty of obstacles to overcome then, but if I can do that, I get to enjoy NOT paying 25% Corp. Tax to a government that turned it's back on me in a pandemic, ruined my industry with IR35, ruined my country. Cherry on cake, the right to roam the EU again without the 90/180 day rule.

I guess your Ltd Co has zero outgoings and so is pretty much 100% profit? Based on a 220 day working year, you're on north of £1100 a day? Nice.

[jamesbrown]

I've mailed my accountant for some advice, but the way I see it, if I'm tax resident in Spain, i.e. spend 183+ days over there, then I can't be tax resident here in the UK also.

Sure you can. It's actually quite hard to lose your UK tax residency under the SRT. If you want to move to Spain, you're going to have to move to Spain properly. Very few or no UK ties at all. I thought you'd come to the same conclusion earlier? Anyway, I think you were right first time... it's not impossible, but retaining your UK company or any other major ties to the UK won't really work.

[jamesbrown]

I guess your Ltd Co has zero outgoings and so is pretty much 100% profit? Based on a 220 day working year, you're on north of £1100 a day? Nice.

Bear in mind that the marginal tax rate between £50k and £250k is 26.5%. In other words, small businesses with profits above £50k (i.e., pretty much all professional services contractors) are hammered.

[oliverson]

Sure you can. It's actually quite hard to lose your UK tax residency under the SRT. If you want to move to Spain, you're going to have to move to Spain properly. Very few or no UK ties at all. I thought you'd come to the same conclusion earlier? Anyway, I think you were right first time... it's not impossible, but retaining your UK company or any other major ties to the UK won't really work.

I just can't let it lie! Each passing day gets closer to the 25% CT and all I can see is that smug f***er Sunak with his hand out!

[eek]

Bear in mind that the marginal tax rate between £50k and £250k is 26.5%. In other words, small businesses with profits above £50k (i.e., pretty much all professional services contractors) are hammered.

As I said to someone earlier today - currently an inside IR35 contract paying more than the outside IR35 market rate isn't a bad position to be in.

[sadkingbilly]

I just can't let it lie! Each passing day gets closer to the 25% CT and all I can see is that smug f***er Sunak with his hand out!

Take a lower paying job then? give up contracting.