Working from home in Spain for a UK employer

Hi Clara,

I have done this sort of thing previously and it can be a great way to work and live. You'll have the Spanish lifestyle with an English salary.

You will have to arrange with the UK company how and where to pay your tax. One UK company I worked for about 8 years ago could not have me on the books as a UK employee because I lived in Spain and had no UK address. This meant I could not pay my tax in the usual PAYE system in the UK and so I had to set myself up as a consultant and take care of my tax in Spain. I used a very good accountant who helped me set up as an autonimo (self employed) and he did my regular tax returns.

I would not advise trying to go under the radar these days. The Spanish tax office are cracking down on everyone and issuing big fines if they catch people avoiding tax. I have seen a few people get caught and it is financially not worth it.

Being an autonimo means paying monthly social security payments and you will need to set these up with the local Hacienda. I did mine in Jerez. I think this system is about to change so that autonimos pay social security based on what they are earning. This is much fairer than the current system of 1 set monthly amount regardless of income. Look this up in the Spanish news at 

https://english.elpais.com/economy-and-business/2022-01-14/spain-proposes-new-social-security-contributions-for-self-employed-from-184-to-1267-depending-on-income.html

It is relatively straightforward to set yourself up but be aware that Spanish beaurocracy can be frustrating at times. Whenever you go, take copies and originals of every document and form of ID you have because some days they want it and some days they don't. The minimum will be NIE/TIE card, Passport, birth certificate, drivers license and Padron.

Apart from that, you will need very good and stable internet and a peaceful environment so the work calls do not get disturbed.

I hope this helps. Let me know if you have any further questions.

Good luck

Jeremy

I'm a carer and travel 4x4 weeks off and on. I'm employed in UK and a resident of Spain, therefore don't pay Spanish tax.

With new Brexit rules, non residents are only allowed 3 in 6 months a year to stay in Spain. Border control will also stamp your passport.

You eill need an NI number when you live in Spain, for that you have a number of hoops to jump through.

Hope this helps.

Lesley.