Can I be UK self-employed whilst resident in Spain?

John Rawlins wrote:

I think Timothy Barton has given you some very good advice. He also hints at something that he is probably too polite to state directly. Namely, if you are living in Spain then it is your moral and legal duty to pay taxes in Spain on all of your Spanish income. The excuse that's 'extremely complicated' is neither here nor there.

That's all - class dismissed.

Dr Neil wrote:

I think you are referring to social security payments (in the UK we don't count that as a tax but as Natinoal Insurance Contributions).

IN the UK.gov.org's website, online self-employment registration form there is a question - Are you resident in the UK? yes / no .....
To me it all seems strange as well which is why I'm asking for advice / if anyone has experience of this. I am not physically nor fiscally resident but it appears that I may be able to register as self-employed there.

Dr Neil wrote:

My income would not be in Spain it would be to a UK bank account and I would pay both Spanish and UK National Insurance contributions. The Spanish do not make life easy for self-employed people so I'm running away to another EU country that does. All EU countries are in the same boat now.

Susanna Garcia wrote:


Only if you don't expect the Spanish Inquisition!

Madeleine MacRae Klintebo wrote:



I'll never get any sleep tonight.

First a friend mentioned "I, Claudius" on FB and I've spent the last two hours stuck on YouTube. Now you're going to have me up for another two watching Monty Python...

Dr Neil wrote:

As many others - you have misunderstood my intentions. I pay tax in Spain already as an employed teacher and I'm not rying to get out of any taxes - my earnings from translation work would not warrant payment neither here nor in the UK as they would be too low, but again I don't care about paying tax nor social security. Why do we the Euro Bureaucrats if not gain some advantages of being a 'single state'? Or at least many memeber states with common laws making life easier. The UK government clearly helps and encourages self-employment whereas the Spanish government appears to put fences in the way.
My income would not be in Spain it would be to a UK bank account and I would pay both Spanish and UK National Insurance contributions. The Spanish do not make life easy for self-employed people so I'm running away to another EU country that does. All EU countries are in the same boat now.

Timothy Barton wrote:

Note that for the purposes of Social Security, a self-employed person is defined as "aquél que realiza de forma habitual, personal y directa, una actividad económica a título lucrativo, sin sujeción por ella a contrato de trabajo y aunque utilice el servicio remunerado de otras personas".

No mention is made of minimum earnings, but in the past the courts have interpreted this as meaning that someone earning less than the minimum wage for their self-employed work does not have to pay the 250€.

John Rawlins wrote:

My understanding is that the UK is the odd man out in Europe because it has extremely simple bureaucratic procedures. Spain has a more typically European level of bureaucratic complexity. However, most Spaniards are able to get by - and so I am sure that you can manage.

If you are already paying social security as an employee, and translation is just a sideline, then I am certain you are not liable for €250 monthly contributions - although the officials in the social security office may try to pull the wool over your eyes.

In the past, I have made tax declarations as an employee and self-employed at the same time without any difficulties.

However, make sure that your employers know because the SS and Hacienda will (rather naughtily) tell them on your behalf.

Timothy Barton wrote:



If you are already paying tax on your other work, that means that you're above the income threshold for the basic tax rate, so you'll be paying tax on your translation earnings too, even if you're only earning 10€ a month. Your income tax is based on your overall earning, including salaried work, self-employed work, interest on savings, etc.

I have the opposite case. I teach six hours a week at a university on a salary. If that were the only work I did I'd pay no tax on that, but since I earn a lot more from my freelance work, I have to pay tax on it. A few years ago the university were making a 0% withholding, but I made sure I put money away in a savings account as I knew I'd be paying lots of tax once I made my annual tax declaration, as turned out to be the case.

I don't think anyone is accusing you of trying to dodge tax. We're just advising you that your plans aren't legal, because of the 183-day rule. I fully understand your predicament, as it's one I had myself when I first started freelancing. The solution is to register with the tax authorities but not to register with Social Security, that way you won't have to pay the 250€ SS contributions.

Lutz Molderings wrote:

I'm not sure about the legal aspect, but it's certainly possible.

I'm British and although I pay income tax, VAT and NI in the UK, I don't really live there. I do spend a couple of months there every year, but most of the time I'm in Saigon.

I would actually rather pay my taxes in Vietnam, but it's virtually impossible unless you're married to a Vietnamese.

Anyway, all you really need is a UK address HMRC will accept, i.e. no PO box.
If you haven't got a physical address in the UK, google expat + address + UK and I'm sure you'll find what you are looking for.

Thanks Lutz, it's good to know that there are already people doing something similar. Can I ask, are you self-employed in the UK? The address I can do (what are parents for?).....thanks again....





[Edited at 2011-04-20 22:01 GMT]