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Posted Tue, 17 Jan 2023 11:15:59 GMT by Theresident
Spain have just introduced a digital nomad visa which gives remote workers the ability for 1 year (extendable upto 5) to live/work in spain. I'm a UK citizen and all my income derives from activity online, I can pretty much carry out my work from anywhere in the world as i do not physically handle an item and it is all digital goods. More recently i was looking to work from abroad, I still have a home in the UK and not looking to sell but as i have the ability to work from anywhere i was looking to spend 1/3 or upto 1/2 of my time working 'from' spain. I guess you could still say that i would be resident in the UK since i still have my main home here and would be here the majority of the time. My first question is, where will my income then be liable for tax? because if i did work from spain and the money then got paid into a spanish bank account, i would then pay all the income tax due in spain. I would then also declare any worldwide income to HMRC on my self-assessment and so would i be then liable for tax on income that has already been taxed abroad? For example: 1. Make 80,000 ( GBP or Euros) in income from digital sales 2. according to spain tax calcuators total tax due is 26,821 3. which leaves me with 53,179 net 4. I either then have to declare the 80,000 or 53,179 figure (not sure which one it would be) to HMRC. 5. once i put either of those figures into my SA as overseas/worldwide income, would i then be taxed again by HMRC even though it has already been taxed in spain? Secondly, whilst i'm in the UK (and not in spain) i will still be doing my work and any associated admin related to my work, would this then classify me as 'working from the UK' and then liable for UK tax for that proportion of income? The easiest way for me to explain this is if you were in a foreign country (thailand) on holiday, and you ran out of money. You dont have a visa that allows you to work so you cant just go find employment to top up your funds, but like myself i can use my phone or laptop and generate money from my home country (UK) whilst in Thailand in order to top up my funds.
Posted Fri, 20 Jan 2023 12:41:34 GMT by HMRC Admin 25
Hi Theresident,

You will pay tax in the country that you consider yourself tax resident and it will be on your worldwide income.

Thank you. 

 

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