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How to switch paying taxes in another country to Spain?


Groupy
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Hi there! I need help with taxation between the UK and Spain!

I've been residing in Spain but still providing freelance services to companies based in the UK. I'm employed by a UK-based umbrella company and they handle my taxes, but I know legally I need to pay them in Spain instead of the UK.

Could you please advise me on the steps to end my UK tax payments and start paying taxes in Spain?

I think I need to register as self-employed in Spain and pay income tax every quarter. If anyone knows of a good and affordable accountant who can help me, please let me know. I'm uncertain about what occurs in the UK. Do I need to invoice my freelance clients directly when I no longer need the umbrella company, and then keep the necessary records in order to pay the tax in Spain? What is the best way to inform HMRC of this change?

Does anyone here have experience as a freelancer trying to find work in the UK without a UK tax address? I'm really worried about this. I heard about the new digital nomad visa, but I wasn't sure if it would apply to me since I am already a resident of Spain.

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Hi, I think I can help with some of the questions. First of all, I would recommend you to make a change asap, even there is a double taxation agreement signed between UK and Spain. Secondly, you need to register as a freelancer in Social Security services and notify Tax Agency (Hacienda) about it.

Recently, there was a change in social security procedures and starting from January 2023 all the Autonomos make their contribution based on amount their income.

 

So, the steps are the following. Inform your company that you will send them the invoice for the services every month starting from ...the date you choose.

Make yourself a freelancer (Autonomo) in Spain.

 

To my knowledge you shouldn't inform HMRC, you only need to take into account that a fiscal year in the UK and in Spain is different. From 6th April to 5th April of the next year, so they might ask you about your income if you switch now, but as I said there is a double taxation agreement in place, so you shouldn't worry.

 

 

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This all will work with no issue if you have the right to work in Spain. If not, you would need to get an authorization first.

I'm Spanish Adviser and you can ask me any question related to Spain. Our people speak 🇬🇧 🇺🇸 🇪🇸 🇩🇪 🇫🇷 🇺🇦 🇷🇺.

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Dear friends,

My wife and I have been living in Benalmádena, Spain since July 2021 and are uncertain about how to handle taxation. Is it better for us to pay taxes here or in England? We would like to consult a professional regarding this issue. Please give your opinion, feedback is much appreciated. I greatly appreciate it.

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Hey @Givi

There is no much choice to decide what is better for you, unfortunately. As a rule of sum, if you reside in Spain for more than 183 days / year and your economical interests are in Spain, you need to pay taxes in Spain. I would recommend to use just 183 days rule to decide where to pay your taxes.

I'm Spanish Adviser and you can ask me any question related to Spain. Our people speak 🇬🇧 🇺🇸 🇪🇸 🇩🇪 🇫🇷 🇺🇦 🇷🇺.

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  • Anderson changed the title to Need a tax advice. How to switch from paying taxes in the UK while residing in Spain?

If we relocate to Spain prior to 1 August 2023 and do not fulfill the required 183 days before the end of the 2023 tax year. Once 2023 days have passed, will I become a tax resident in year 2024 on day 183 or do the count of days begin anew from January 1st 2024? Will we have reached 183 days by the end of June 2024?

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  • Anderson changed the title to How to switch paying taxes in another country to Spain?

@Groupy As a rule, 183 days counts in a tax year, which in Spain is from 1st of Jan to 31st of December each year.

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I'm Spanish Adviser and you can ask me any question related to Spain. Our people speak 🇬🇧 🇺🇸 🇪🇸 🇩🇪 🇫🇷 🇺🇦 🇷🇺.

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