Working from Spain - good idea?

**SimonMac** · 22 January 2012, 21:56

I have property in Spain so will be following this with interest

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**northernladuk** · 22 January 2012, 22:10

Have a look over the Gibralter end of the Costa Del Sol. Between Peurto Banus and Gib went crazy about 3 years ago because they resolved the arguement over airspace in to Gib airport so more airlines started doing regular services in. That means that whole side of the Costa del that was over 1.5 hours from Malaga which was too far for holiday makers suddenly became 15 mins from Gibralter airport.

They built urbanisations like they were going out of fashion. The entire coastline from Gib was just cranes as far as the eye could see. A rumour went round Disney were looking at some eco theme park in that area as well (Manilva).. Anyway.. all went to crap

There are literally 1000's of properties owned by the bank or empty. You can name the price for what you want to buy one for and for rent. I know, I have a penthouse flat in one of them and the rent people want to pay doesn't cover the interest.

Peurto De Le Dequesa, Sabillinas through to Estapona is cheap as you like but nice beaches, near to Gib and can go to Morocco for a day trip. Have a look around there.

**BlasterBates** · 23 January 2012, 06:38

If you do want to do this on a permanent basis you should be taxing it in Spain. Bear in mind the tax authorities will probably want to tax it even if it is less than 6 months because it is a business, and in other countries where they also have a 183 day rule like Germany or the Netherlands contractors have come a cropper using the 183 day rule only to find it doesn't apply to their 3 or 4 month contract. i.e. the 183 day rule means you become liable for tax on worldwide income rather than just a business activity in their country. However the fact that this is over the internet means there would be no way they could find out about it; i.e. you're not working for a Spanish company. Compare it to renting a garage in Spain and manufacturing some widgets there and then taking them back to the UK to sell; that's how the Spanish authorities would see it were they to find out about it.

**BlasterBates** · 23 January 2012, 09:40

If you are going to work abroad, what you could do is work for a few months from a low tax offshore location like the Isle of Man, Jersey Cyprus or whatever. As long as there is a double taxation treaty it would mean anything taxed in the low taxation area would be exempt. You obviously need advice from an accountant as to which countries and how to set up the offshore co. But this would be a bonafide offshore business. I suspect HMRC would enquire and assume it isn't so possibly not worth it the hassle but definitely legal.

**bobspud** · 23 January 2012, 10:24

I'd ask an accountant. Seems to me that if you start claiming relocation expenses and the odd air fair here or there it could cost you far more in tax if the spanish see you as a trading company.... otherwise if you rented a house and just worked from the poolside and kept your income in the UK I find it hard to believe that spain would even notice you...

**SimonMac** · 23 January 2012, 14:48

How would it work putting invoice through from Spain? What I am wanting is to install a Telephone line and Internet for the business along side my Spanish personal line. If I get the invoice in the company name (assuming I can get it in a UK Business name but thats a question for another forum) will that be allowed?

**Dearnla** · 23 January 2012, 14:52

Don't claim any expenses, just operate as if you were based in the UK, invoice in the UK, pay your taxes as though in the UK. Nobody can stop you taking a "Holiday" in Spain, just don't bill any of it through your LtdCo.

My son has moved to the USA but is working for a UK company, billing through his Ltd Co in the UK and will pay all his taxes in the UK, as he is delivering all his services in the UK. The fact that he is remote working through the network connection and Skype is neither here nor there.

David Attenborough's work took him all over the globe for months on end, but he still got paid in UK and paid UK taxes, didn't he?

**northernladuk** · 23 January 2012, 14:59

Originally posted by Dearnla View Post

My son has moved to the USA but is working for a UK company, billing through his Ltd Co in the UK and will pay all his taxes in the UK, as he is delivering all his services in the UK. The fact that he is remote working through the network connection and Skype is neither here nor there.

David Attenborough's work took him all over the globe for months on end, but he still got paid in UK and paid UK taxes, didn't he?

David Attenborough travels FROM the UK to make his films on short term assignments. That is different to him moving there as your son has and fudging the local tax laws. I don't think the US govt will see it as being neither here nor there.

**yasockie** · 23 January 2012, 15:01

Originally posted by Dearnla View Post

Don't claim any expenses, just operate as if you were based in the UK, invoice in the UK, pay your taxes as though in the UK. Nobody can stop you taking a "Holiday" in Spain, just don't bill any of it through your LtdCo.

This, a friend did just that - you can rent a nice seaview flat on the costas for 400 euro easily.
A fast broadband add 30 euro to that. Given that even in UK you can't claim all your living expenses, why risk an investigation over a potential tax saving of 200 pounds at best?

Finally as long as it's a private matter, why would HMRC mind - they're getting taxes which otherwise they wouldn't - they should be happy about it.

Also if you plan to settle in Spain, you might be tempted to get a NIE number and a residency, while I think it's illegal not to get it after 6 or so months, my personal advise would be to skip it - just fly away for a weekend regularly or better yet drive.

While properties are certainly cheap and life is good, food is similarly priced as is gas and everything else, so not that much cheaper, but totally worth it imo.

Working from Spain - good idea?