Hi,

I wonder if anyone can help!  I am in discussions with a company in regard to an IT contract in Spain.  The contract is for a one year period but may be extended.  I am very interested in the position but am trying to get my head round the financial implications in particular in regard to Tax prior to taking it too much further. 

I currently operate through a UK limited company for which I am the sole employee.  The agency (based in Europe) through which I would get this contract have told me that if I prefer I would be able to invoice them through my UK company.  Having read through several posts I believe I would have a few options, register in Spain as self employed, work as standard through Spanish system, setup a Spanish office of my UK company.  Is there anyone in a similar position? and if yes can you give me any advice?

I know I will probably need to get official advice but any informal help at this point would be much appreciated!!

Thanks
Sorne

Hi Sorne,

You’re on the right track. You should probably open up a Spanish “branch” office and run your business out of it while you’re in Spain. Take a very long, comprehensive read through the business in Spain section of the site and come back here if you have any questions.

Remember that you will only have to pay taxes on your income once, so figure out where you’ll pay the least taxes and go from there (then again, if it’s a small difference then go with whatever is the easiest to setup). If you’re going to be in Spain for a while (from the sounds of it you will be), setting up properly in Spain will be worth your while.