ZC1990
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RE: Digital Nomad Visa in Spain - Business Tax Implications for UK employer
Hi There Thank you for your response but I think you have misunderstood me a little. I will not be a UK tax resident as I would be away from the UK for at at least two entire tax years. But I would continue working for a UK company full time, being paid through PAYE into a UK bank account so not self-employed. But I would not pass the criteria for being a UK tax resident. I am trying to understand if for my company there are any business tax implications in this scenario that would make having me based in Spain a hinderance to them. Thanks :) -
Digital Nomad Visa in Spain - Business Tax Implications for UK employer
Hi There I'm hoping someone can advise me as I'm struggling to find a concrete answer on this. I would like to work remotely in Spain on their Digital Nomad Visa (being launched this year), which is similar to Portugal's D7 visa and allows people working remotely for a non-Spanish employer to do in Spain and pay tax there for 1-4 years. I work full time for a UK employer who are happy for me to do this so long as it doesn't have any negative implications for them tax wise on the business side and they can pay me through PAYE as normal. So two questions: 1) Are there any tax implications for the company I work for if I stop being a tax resident in the UK? Do they have to pay business tax to Spain even though they have no physical presence (i.e. an office or business registered) there? What about the national insurance? 2) I plan to be out of the UK from April 2022 for at least the full tax year. In this case will simply completing a P85 form mean I am not taxed from the date I specify? P85 forms require you to submit a P45 with it, but as I am not leaving my current employer this isn't possible. I would really appreciate any direction anyone could provide on this! Apologies if my questions are overly simplistic but my understanding of tax issues is fairly limited :) Thanks!