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Working for a UK Employer in Spain

If you have been lucky enough to find employment working for a UK registered company in Spain – or even if your current employer is relocating you from the UK to Spain, you need to be aware of the implications.

Working for a UK Employer in Spain

Employees that have been contracted by a UK company, but to be located and working in Spain will be subject to the Spanish law regarding the Social Security contributions before they are able to commence with any work.

The Seguridad Social - Reglamentos Comunitarios (which is the government agency that oversees the employees of a foreign company in Spain) state that: "Workers contracted by a foreign business with the aim of carrying on their activity in Spain will be subject to Spanish legislation regarding the Social Security contributions before they are contracted to work. These workers are not considered displaced workers under the social security act, and are subject to the legislation of the country in which they carry out their activity. The foreign business must apply to the corresponding Tesoreria General (The agency where you apply for a social security contribution account number) to register the business with the Spanish social security and hence subsequently register the worker with the Spanish social security." So basically they breaking the problem down into 2 very simple points :

A.) As an employee of any company working here in Spain you are required to have social security coverage in order to start work.

B.) In order to be fully covered here in Spain you need to contribute into the social security system.

As in any EU country, before you can start to work both you and your employee need to be in a position where you are both paying your respective share of your contributions into that Country’s system. In the UK it is the Employer that takes the responsibility for the collection of these contributions – and it is no different in Spain, regardless of whether you intend to work for Spanish or foreign employer in Spain, social security contributions are deducted at source and then paid by the employer to the Spanish social security system. In the UK employers have an reference number to which each employee that they have are registered to, and once again it works the same way here in Spain. The social security doesn’t charge for a foreign business to register as an employer of staff in Spain. The intention here is obviously to reduce any illegal workers, and to ensure that all employees rights are protected and full social security can be extended to everybody working here in Spain. The registration process is something that your Asesor will be able to assist you with.

Comment on this Article

 
Definitely I will. Thank you for your advice :)
Ana Rodriguez-davies - Wed, 18th Jan 2012

This isn't necessarily as easy as you might think.

- For one, as a Spanish Resident you will obliged to pay yearly taxes - regardless of where you earned the income from, and will also either need to pay into the Social Security system OR take out private healthcare, as you will be entitled to nothing without it.

Furthermore, you will also be obliged to pay your taxes and SS in the UK.

- This is deffinately one of those occassions when spending £200 on some good quality tax advice will pay off, and they will be able to tell you exactly what your obligations are, and ways in which you can limit them.

Tumbit - Admin - Wed, 18th Jan 2012
Thank you so much for your prompt response!.. They are two Directors in the company so his business partner will stay in the UK and the company will be based in the UK only, but he will be resident in Madrid. I guess he will to pay his taxes in the UK then. Kind regards.
Ana Rodriguez-davies - Wed, 18th Jan 2012
Ana, Yes - this is possible, although how it all works will depend largely on where you are legally resident, and where you pay your taxes and social security contributions. It 'can' be a bit of a minefield as a lot can vary depending on your exact personal circumstances, and I would strongly recommend that you spoke with a Tax Specialist experienced in these matters.
Tumbit - Admin - Tue, 17th Jan 2012
Thanks. My husband has his own company in the UK. His job allows him to work from home so we are planning to live in Spain although he will carry working for the UK. Is this possible?
Ana Rodriguez- Davies - Tue, 17th Jan 2012
Albert : No.... we are a website concerned exclusively with Spain and not Ireland, and secondly we are not a Government body or agency. For some reason we get a lot of questions like this - especially from the Philipines. I would urge you to be careful here and not pay any money in advance as there are a number of scams around surrounding this issue.
Tumbit - Admin - Fri, 30th Sep 2011
Do you process work permits for foreigners who wish to get employed in Ireland
Albert - Fri, 30th Sep 2011
Sorry for the delay in replying : A Professional Tax Advisor would require a little more information before being able to provide you with useful and accurate advice. For example, do you both intend to Move to Spain and take up Residency here, or live mostly in the UK ? Also, what is your Nationality ? Do you have any other assets in the UK, Spain or any other country ? - If you can tell me what area of Spain you may be moving to I can point you in the direction of finding a professional Tax Advisor that will be able to be of service to you.
Tumbit - Admin - Tue, 23th Nov 2010
Please can anyone help with a query that I have as I have conflicting information. Basically, we are British and currently live in the UK. My Husband has been offered a job in Spain which pays between £50,000-55,000 per year. Can you tell me how much tax he will have to pay on this please as we are trying to figure out whether we can afford to take this offer. Thank you.
Emma - Tue, 14th Sep 2010

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