UK taxes or Spanish taxes?

Question

Hi there,

I am French national, working for a British company in the U.K.

I would like to work in Spain, as my job does not require residence in the U.K.

However, I don’t know what costs are involved if I choose to move to Spain. As Spain’s cost of living is lower than in the U.K, I would not ask for a pay raise. However, in terms of taxation I don’t know what my situation would be.

The ideal situation is to stay under English laws, paying my taxes and NI in the U.K, and receiving my wage in the U.K.

If my first residence is in Spain, is my company obliged to pay Spanish taxes and contribute to the Spanish National Insurance?

Thanks for your recommendations!

Answer 1

Who you work FOR is immaterial. You would be living and working in Spain so would have to pay taxes there. You will have no connection with England other than having an English Company as an employer.

Answer 2

Whatever country you live in, you pay the taxes in that country, as long as you are registered by work and resident of the country that you live in, then you are fine.

Answer 3

If you become tax resident in Spain, then you would fall under their tax laws. However, if you are under PAYE employment with a UK company, then provided you meet the non resident conditions and do not do any work in the UK, then your salary should not be liable to UK tax.

You should fill in the form P85 when you leave the UK and request an NT tax code to be operated against your UK salary income.

Answer 4

Pay them where you live.

Answer 5

You pay taxes to the country where you live in, so long as you work there. There are cases where people live somewhere but don't work there so don't pay any taxes at all.

See all Tax exile people..