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  • Employee & Employer Taxation Rules and Actions - allowing the (Spanish) Digital Nomad Visa

    Hello Can you kindly explain in detail what all actions are needed to be taken if a British employee, who is being paid a permanent salary (PAYE), decides to live and work in Spain under their new Digital Nomad Visa please? The employee is a permanent employee for a UK company, and the contract is for permanent paid employment. The British employee who would be living in Spain would opt to apply to pay the more lucrative 24% Spanish income tax on his/her income earned. Under the 'Beckham' rule and UK-Spain double taxation treaty, how does the employee and British employer process this change in taxation so ultimately the employee will only pay income tax in Spain and not the UK, but are still receiving the British salary each month for full time work carried out? I understand the employee may need to change the tax code of this relocated employee to 'NT', possibly complete the P85, but what are all the action and requirements needed from the British employee to be fully compliant and allow the employee to work and live in Spain and become a resident abroad? Also what are all the actions needed from the employee, and how do they complete the UK Self Assessment to have all of their income and NI and taxation processed so they are ideally only paying tax once and to Spain not to the UK? Please can you explain all steps, processes and Self Assessment entries that are needed from both the employee and the employer? Please state all considerations and actions that will be needed and also any alternate options that can allow this and may be available (for example is it easier and preferred change the British employee contract to become 'self employed' or are they needed to become a contractor) etc Thank you