You can’t pay UK company tax in Spain, if it is registered in UK then it is liable to UK tax. As far as Spain is concerned you are not self employed here so you don’t have to pay autonomo.

You are considered to be a tax resident if you spend more that 183 days in Spain so either don’t or pay in the UK and the Spanish won’t hassle you (yet anyway) but even if they do and you can prove you have paid UK income tax they can’t tax you again.

However you might find the Spanish system is cheaper! there are more allowances like a mortgage for instance (if it is on your primary main residence)

Suggest you see if you settle in Spain first - tax is not a day 1 issue…...............

agreed, and cherers for the advice, i very much appreciate it. 😊

I think the bottom line is “get professional advice” which i’m of course going to do but i have to be careful as getting advice can be very expensive, especially if its the wrong advice!!!!!!

You may have found this if not its in English from the Spanish govt explaining taxation in Spain and has some useful links to govt web sites.

http://www.uv.es/ibanezs/SpanishTLRG.pdf

This is the govt web site for tax

http://www.agenciatributaria.es/wps/portal/Home?channel=1af861cd949a1010VgnVCM100000d7005a80____&ver=L&site=56d8237c0bc1ff00VgnVCM100000d7005a80____&idioma=es_ES&menu=0&img=0

We have recently purchased a house in Spain using a company called Wincham Inheritance Tax consultants-we bought this way for several reasons.
First of all because Wincham set us up as a Ltd Company in the UK,meant we didn’t have to pay the 7% buyers tax and the sellers didn’t have to pay 3% tax.Also we don’t have to make Spanish wills.We don’t pay Spanish inheritance tax which applies to all next of kin As the house was bought as a Company it simply means our shares will pass to our children without IHT .Most importantly for me,it means when I set up my business in Spain,I will only be taxed in England .Wincham will do my end of year taxes for me,and keep hold of all my legal documents which I can view online.They also set us up with a CIF number,which is the equivalent of a NEI number but for a company.Lastly,they also arranged our Spanish bank account,so all we had to do was turn up & sign a few documents.They made it extremely straightforward - we didn’t even have to travel Spain for the house to be transferred to us.My contact at Wincham is a lovely chap called Mark Roach.Obviously there is a fee for their service,but I saved this just on the 7%.buyers tax.
P.S.-for those of you who already own a house in Spain,it would be worth talking to Mark about the Inheritance Tax implications,as your property could still be transferred into a LTD Company,saving thousand of pounds when the worst happens.
Hope this is helpful.

Sounds very clever and complicated.

Did you sign a document or have something in writing that all this was taken on advice and all liability lays with the company concerned.

As simply registering as a limited company and not actually trading or a business may be viewed by the authorities as tax avoidance.

That would be my main concern with these kinds of people.

And whether anybody has come across any legal precedence or is this a scam to sell before the authorities notice the hole in the law.

pegsy - 18 July 2009 02:29 PM

We have recently purchased a house in Spain using a company called Wincham Inheritance Tax consultants-we bought this way for several reasons.
First of all because Wincham set us up as a Ltd Company in the UK,meant we didn’t have to pay the 7% buyers tax and the sellers didn’t have to pay 3% tax.Also we don’t have to make Spanish wills.We don’t pay Spanish inheritance tax which applies to all next of kin As the house was bought as a Company it simply means our shares will pass to our children without IHT .Most importantly for me,it means when I set up my business in Spain,I will only be taxed in England .Wincham will do my end of year taxes for me,and keep hold of all my legal documents which I can view online.They also set us up with a CIF number,which is the equivalent of a NEI number but for a company.Lastly,they also arranged our Spanish bank account,so all we had to do was turn up & sign a few documents.They made it extremely straightforward - we didn’t even have to travel Spain for the house to be transferred to us.My contact at Wincham is a lovely chap called Mark Roach.Obviously there is a fee for their service,but I saved this just on the 7%.buyers tax.
P.S.-for those of you who already own a house in Spain,it would be worth talking to Mark about the Inheritance Tax implications,as your property could still be transferred into a LTD Company,saving thousand of pounds when the worst happens.
Hope this is helpful.

You may want to read this from this site.

http://www.spainexpat.com/spain/forum/viewthread/2814/

It points out that the setting up of limited companies is classed as anti avoidance and the IHT sellin is all over Expats.

Mr Roach is a member here and probably ever expat site available from what i`ve read.

i actually agree with you. It is too carefully worded and “gushing” to be a legit post. Suggest you report it as spam.

Mark has been selling and promoting this all over expat sites.

He even runs seminars to train others in the way of selling it.

One company is charging around 8,000 euros, most accountants charge around ?200.00 for similar advice as most of it is relatively straight forward once you`ve had simple instructions.

Thousands of sole traders set up LTD companies every week, its not difficult.

The biggest hurdle in Spain is they need it all translated into Spanish.

I personnally wouldn`t touch it until someone has managed to die and avoid the tax first, once a case has been tested then it can be classed as legit, otherwise it could be a legal minefield.