Generally, any income you earn from the moment you arrive in Spain, if you're actually working there, should be taxable in Spain. As you say, your worldwide income, i.e. income not derived from work you're doing in Spain that is currently taxed in the UK will become taxable there once you become tax resident.
I'm familiar enough with Spanish tax rules to know that they can be quite complicated (my family live there) so I would err towards listening to your Spanish accountant on this one unless your UK accountant also has some specialist experience in this area.
It's possible that the answer lies somewhere between the two - dividends drawn from YourCo technically aren't remuneration for services performed, so arguably they should be taxable as worldwide income wherever you're tax resident. If you're continuing to work and receiving a salary from YourCo then it should probably be taxed in Spain from the outset.
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Previously on "Spain, Autonomo, Residency and getting paid!"
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Are you working in Spain or the UK?
Your UK accountant is correct if you commute and work in the UK. If you work remotely you should register as self-employed in Spain.Last edited by BlasterBates; 24 November 2020, 12:24.
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Spain, Autonomo, Residency and getting paid!
Just moved to Spain. Ltd co in UK split 50/50 with spouse.
Our move to Spain is permanent, we are happy (and want to) pay taxes here whenever that time comes and we have both registered as autonomo. Indeed our residency application was on this basis - so we have a strong preference to stay as autonomo's, plus by paying into the system we get state healthcare.
The plan was for us to both invoice as autonomo, our UK co. However.....
My Spanish accountant says:
- I can invoice my UK Ltd company as autonomo.
- Our autonomo income is taxable in Spain right away.
- Other worldwide income will be taxable in Spain 183 days into 2021.
My UK accountant says:
- I can't invoice my UK Ltd company and should instead continue to take a salary and dividends.
- We will have a split year from the set date at which we were deemed to have started living overseas.
Does anyone know which one is correct?Tags: None
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