Is there anybody that can provide me with some advice please. I am intending to relocate to Spain along with my wife and child. I have asked my company if I can work remotely from Spain (currently work from home in UK). I have had buy in from the customer I work for, plus my line management. Have hit a stumbling block with my HR mobility team. They are saying that as I am working in Spain (although my work is all UK based but carried out remotely) I would be liable to pay the Spanish tax and they would have to set-up a shadow payroll. This they will not do for one person because of cost to company. I do not intend to lose my UK residency and having spoken to the UK tax office they say that as long as I spend an average of 91 days in the UK I stay as a UK resident and pay UK tax. They were unsure though what the Spanish Tax people would require if anything. My question is do the Sapnish Tax office expect anything for working remotely from within their country. I am actually not carrying out any work duties for Spain or in Spain.
We will be living in our villa for which we pay all the usual taxes/fees to the Spanish government.
Any help would be much appreciated.

You should remain a UK tax payer if you remain a UK resident for tax purposes i.e. meet the visitation guidelines, average 91 days or more in a tax year in the UK. You will become Spanish Resident for Tax purposes after, I think, 183 days. You would be liable to pay Spanish tax on your worldwide income. However, under the EU double taxation treaty you cannot be taxed twice. So if you pay in the UK that’s it. That’s my view based on recent research for my situation.

Thank you for your response. Dp you know about social security payments would we be liable to pay these to the Spanish government?

I was afraid you might ask that! In short, I think, unless you become autonomo (self employed), the answer is no…and you’d need to be a Spanish tax payer for that. More important is if you’d be able to continue paying in the UK. Have a read of this thread:

http://www.spainexpat.com/spain/forum/viewthread/3481/

the situations are different but there is a way, short term (E101?), that might help you if you are being “posted” to Spain. I would suggest you phone HMRC Newcastle or look at the HMRC website there are sections for people living and/or working abroad either full time or temporarily. Of course, you might just be able to carry on as you do now. If you want to remain a UK resident then the EHIC would cover you for medical care (emergencies and some other stuff) in Spain. You’d need private cover for run of the mill stuff but you would still be entitled to everything in the UK - if you are still resident there.

Again, this info is based on my own research so far.