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Posted Sun, 19 Nov 2023 15:26:46 GMT by
I am looking to apply for a digital nomad visa in either Spain or Portugal. I am employed in the UK and work remotely, my UK employer will continue to pay me in the same way as now (living in the UK). I am confused how my income tax will be calculated as there are tax breaks for digital nomads when moving to both Spain or Portugal. Will I still pay the same level of income tax in the UK or will my tax code change when I leave the country? How will I pay the new rate of tax set by the Spanish / Portuguese government?
Posted Wed, 22 Nov 2023 14:35:47 GMT by HMRC Admin 8
Hi,
As a 'digital nomad' living overseas, you will continue to pay the same level of UK tax on your UK employment in any  tax year in which you spend 183 days or more in the UK (and are therefore deemed to be tax resident in the UK).
If and when your residency position changes, you should advise HMRC of the change in your residency situation via your Self Assessment tax return (if you are already within Self Assessment) or by completing form P85, at which point HMRC may amend your tax code to avoid double taxation.
Thank you.

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