Living in Spain and working remotely for UK based company

Hi, I am also applying for the DNV and relocating to Spain. My question is, do I have to return to the UK every year to not lose my UK/British status, even after obtaining Spanish residency? Thank you.

A number of the above posts seem to cover situations where an individual is working for a UK company and then transfers abroad but still works for the UK Company. What is the tax situation for a UK individual who moved to Czech 3 years ago and has worked for a Czech Company and paid Czech taxes during those 3 years. They now have an offer to stay in Czech but work for a UK company and receive a salary from the UK Company. Are they able to apply through a P85 for a NT code so they receive salary without deduction of UK tax and then pay Czech tax on that salary. Does the NT code also impact the Employee National insurance deduction.

Hi,
You will still be classed as a British national no matter where you live, it is just your tax residence that will change
Thankyou.

Hi Sinclas

Yes. The UK/Czech tax treats advises that as a resident of the Czech Repbulic, you would be taxable in the Czech Repbulic on your UK employment, provided you are not in the UK undertaking work for that UK employer.  
After your employment with the UK employer commences, you should submit the P85, to let HMRC know that you are not resident but employed by a UK employer (Get your Income Tax right if you're leaving the UK (P85)).

Thank you

Good afternoon, I am planning to leave UK at the end of this year. I have already my Settle Status because I have been living in UK for more than 5 years. I am planning to move to Spain for 3 years and them come back. Questions: - can I come back to UK with my Settle status without lose my right to work and live here? - if I request to transfer my taxes paid here in UK to Spain, will I lose my Settle status condition? Or I will still have my condition to come in the next 5 years and do not lose it? Thanks a lot

Hi,

Sorry, we can only answer HMRC questions on this forum.

Please contact UK Visas and Immigration for advice.

Thank you.

Hi HMRC team, I will be relocating to Spain in a couple of months as well and am hoping to stay employed via my employer's UK entity (they do not have a Spanish branch). I looked at the 'Travel to Spain for work' page you shared previously but can't see the content I am looking for: I am an EU (and British) citizen and will not require a work visa. Please can you help me understand: - if I can stay employed via my employer's UK entity if I fill out the P85? - if I will have to file a self assessment every year to claim back the paid tax and NI paid? Or will my employer have to start paying me my full salary (pre tax and NI deductions)? - if there are any other tax / contributions I will need to pay in the UK (I will not own a property here once we leave but will still have a pension fund and an ISA here)? - if I will then need to file a yearly tax return in Spain to pay all taxes and NI (equivalent) to the Spanish gov? If you happen to have the Spanish website with info on this, please do share. Many thanks in advance for your advice! C

Hi, I am a British citizen and have been based in Spain for the past 9 years, I hold residency here in Spain and I have been on a Spanish contract paying tax here. I have just accepted a job for a UK company and I will be remaining a Spanish resident. Therefore, I have completed the P85 form to notify I will be out of the UK and receiving income overseas. the question I have and also my employer, is what information for my new UK employer need from me to be able to put me on a 'non-uk resident' work contract in the UK. I understand that I will be paying tax here in Spain and only here in Spain, however, what does my new UK employer need to include on the work contract so they don't deduct any tax from the company at source. Will I receive a new tax code once my p85 is reviewed? Sorry for the long message. Thank you in advance! Frank

Hello HMRC Admin. My wife and I intend on moving to Spain. I'm a British Citizen but will obtain Spanish residency. My wife is a Spanish Citizen with UK Settled Status. Our plan is to move (to live and work in Spain for a UK company remotely) in June 2025, however when filling in the P85 form, we can only specify a date in the past. In this case, should we make the move and then fill out the P85 form, to stop paying UK tax? I'm assuming, as we only become officially tax resident in Spain after 183 days in the calendar year, we have a few months for the forms to be processed. Is that the correct process?

Hi Charlotte,
Please refer to Tax on your UK income if you live abroad.
HMRC cannot advise you on another countries filing requirements.
Thank you.

Hi Frankie Wheeler,
Your new UK employer would set you up on their systems as normal, which will update HMRC systems with your employment.  
The P85 should show your UK employment details, so that we can arrange for your employment to pay your employment tax free, as it is taxable in Spain. You will still be liable to pay class 1 National Insurance contributions.

Hi HMRC, I moved to Spain in Jan 2024 on a Digital Nomad Visa which is valid until December 2025. The company that employs me is based in the UK and filed an A1 on my behalf, I have always been paying UK taxes via the PAYE system. Should I remain a UK taxpayer or should I have stopped paying UK taxes and filed in Spain? Thanks in advance for your help.

Hi AMMS,
You cannot apply until you actually move to ensure your plans go ahead.
Thank you

Hi Michael,
The tax treaty between the UK and Spain
Spain: tax treaties
Will give Spain the taxing rights on your employment income from the date you became resident.
 You will need to complete a P85, confirming you have left the UK, but still remain employed by a UK employer.
Get your Income Tax right if you're leaving the UK (P85)
You will need to declare your employment income in Spain.
Thank you. 

 

Hi HMRC, I have a small business, UK based (one small office) and UK registered. A team member has requested to work from Spain on a DNV for 12 months; they are a UK citizen and currently we PAYE. From the business perspective, please can you advise the following; • are we are OK to just continue to pay the team member as normal into their UK account? • are there any other tax implications to consider for the employer? • are there any other liabilities for us as an employer to consider? • are there any requirements for us to register a Spanish office as an arm of the business? Thank you in advance for your guidance.

Hi,

Employees working abroad

Above link provides details on how to deal with Tax & NI for employees working abroad. You will need to speak to the Spanish tax authority to confirm if there will be any requirements from

them. 

Thank you.

Hello HMRC, I'm planning to move to Spain while working for a UK company (they have no entity in Spain) My company wants to know the full implications on how they'll pay my tax and national insurance. I have a Irish passport, so I'm classed as an EU citizen. Thanks 

Name removed admin .

Hi,
You should complete the form P85 (provided you do not need to submit a tax return) at:
Get your Income Tax right if you're leaving the UK (P85)
In the form, you declare that you will continue to be employed by a UK employer. We can then provide them with a NT tax code, so that they do not deduct tax (they will continue to deduct NIC). You will instead pay tax on your employment income in Spain.
Thank you.

Hello, I work in the UK for a UK-based company, and I pay taxes via PAYE. I also have rental income from property. My wife and I are looking to move to Spain and work fully remote from there. I’m currently working remote within the UK. I am EU-citizen and have Settled status in the UK. My employer had a legal entity in Spain. Would it be possible to : - move to Spain - submit a P85 to HMRC - continue getting my salary in the UK (without tax deductions as I no longer live here). It would be paid in gross - be responsible for paying taxes in Spain (24% reduced rate Beckham Law) - have my UK rental income at a lower tax bracket? - no visa needed as I’m EU citizen. Seems like a dream situation but there has to be a catch, otherwise too many people would do it (get UK salary pay Spain taxes. Thanks

Hi ,
 

You can continue to work for a UK employer and be a resident of Spain, where you would pay tax on your employment income.  Both you and your wife You should complete for P85, to notify HMRC that you are leaving the UK, will continue to be employed by a UK employer and will be renting out a UK property.  You and your wife will each need to complete a self assessment tax return every year to report and pay any tax due on the rental income.  You will also be required by the Spanish tax authorities to report your UK (foreign) propert income, where you can claim a tax credit for any UK tax paid on this income .  Although your employer will not be deducting UK tax, they will continue to deduct class 1 national insurance (this is not covered by the tax treaty) . Thank you .