I moved to spain a few months ago from the UK and am registered as a foreign resident and have an NIE number. When I left my job in the UK my employers asked if i would work part time for them on a temporary contract to help them out.  I agreed and being two thirds through a six month contract they have offered me another 6 months. (I connect to my company via a VPN connection over the internet). In order to do things properly I have done loads of checking from both the Spanish and UK ends and become thoroughly confused over when and if i should pay tax and NI in Spain…I had got to the point where I thought i should be doing this now. To help me, my company also did some checking and have been told (by HMRC) that since I work for a UK company and am paid into a UK bank account then I must continue to pay UK tax and National Insurance…even though I am resident in Spain.  Has anyone else come accross this sort of situation? Apparently my P60 tax forms are sufficient to keep the Spanish tax people happy.

Its a mine field.

You need to contact a specialised accountant that deals within this area, you may find you`ll end up paying tax to both countries when you may not need to etc etc.

I know they`ve tightened the rules recently because of the amount of foreign home owners trying to avoid tax liability.

from my limited knowledge becuse your resident in Spain, over 90 dya limit you may have to contribute something in Spain.

Fortunately, with the Double Tax Treaty I won’t have to pay in both countries and since I am not a home owner (here or in the UK), I’m not trying to avoid any liabilities. In fact, the more I think about it, Spain benefits because I spend all my money here and I take nothing out.

As you are being taxed on the income in the UK I dont think you will have a problem here - you can do a voluntary declaracion de renta if you want to get into the system (but as you dont own property it is probably not worth it) If you are planning to be a perm resident here long term then you should get out of the UK tax system and have your UK earnings paid gross and declare them in Spain and pay tax here - but as you have just about missed this tax year (June 30th deadline for declaracions) wait and see how it goes next year.

thanks. sound advice.