I need to get paid as a consultant. I am a at ax resident of UK, I am a citizen of Spain and I want to live in the EU and use UK to pay my taxes.

[resident101]

Hi Everyone!

So I was offered job from a company based in LATAM. They will hire me as a consultant. I lived in the UK last year and 5 months ago I came back to Spain, so I am still a tax resident of UK. I don't want to get involved with Spanish taxes, I prefer to open activity in the UK and pay my taxes there, I will also issue invoices for the LATAM company to pay me from this UK entity.


My doubt is that in 3 weeks I will have lived for 6 months in Spain, so technically I will soon become a tax resident of Spain, but I am not planning to stay in Spain and will probably go to another EU country soon.

- What do you think of this set up?
- So do you think it's ok for me use a sole-entrepreneurship in the UK?
- What if stop being a tax-resident of the UK while I use UK as the jurisdiction for my activity, would that be an issue for UK authorities?
- Or UK simply won't mind to get some tax from me?

I hope I was clear, if you could give me a hint, it would good!

Cheers!

 

[Larin]

Hi Everyone!

So I was offered job from a company based in LATAM. They will hire me as a consultant. I lived in the UK last year and 5 months ago I came back to Spain, so I am still a tax resident of UK.

This is incorrect. Depending on your situation you may have become a tax resident the day you moved back to Spain.

I don't want to get involved with Spanish taxes, I prefer to open activity in the UK and pay my taxes there, I will also issue invoices for the LATAM company to pay me from this UK entity.

My doubt is that in 3 weeks I will have lived for 6 months in Spain, so technically I will soon become a tax resident of Spain, but I am not planning to stay in Spain and will probably go to another EU country soon.

You will definitely become a tax resident of Spain once you have been in the country for more than 183 days, but you have likely already become one anyway.

- What do you think of this set up?

You can have a company anywhere in the world and invoice whomever you want from it. However, depending on where you move to in the world PE/CFC rules will apply. Your UK company may be treated as a local entity for tax purposes largely negating any tax benefits. However, it may still be easier to maintain/operate a UK entity than an entity in another country.

- So do you think it's ok for me use a sole-entrepreneurship in the UK?
- What if stop being a tax-resident of the UK while I use UK as the jurisdiction for my activity, would that be an issue for UK authorities?

UK will not care, but as I mentioned your UK company may become a non-resident in the UK due to you (being a sole proprietor/manager) not living there.

 

[resident101]

Thank you for your reply.

Will keep investigating this.

All the best

 

[vividalmidal]

Hi Everyone!

So I was offered job from a company based in LATAM. They will hire me as a consultant. I lived in the UK last year and 5 months ago I came back to Spain, so I am still a tax resident of UK. I don't want to get involved with Spanish taxes, I prefer to open activity in the UK and pay my taxes there, I will also issue invoices for the LATAM company to pay me from this UK entity.


My doubt is that in 3 weeks I will have lived for 6 months in Spain, so technically I will soon become a tax resident of Spain, but I am not planning to stay in Spain and will probably go to another EU country soon.

- What do you think of this set up?
- So do you think it's ok for me use a sole-entrepreneurship in the UK?
- What if stop being a tax-resident of the UK while I use UK as the jurisdiction for my activity, would that be an issue for UK authorities?
- Or UK simply won't mind to get some tax from me?

I hope I was clear, if you could give me a hint, it would good!

Cheers!

Hello,
First of all, forget Spain for any type of tax residency, as Spanish Tax Authorities are a real pest, probably one of the worst in the world, with their stupid Modelo 720 and all they rarities.
If I were you, I would set up a company in a country where the company is Tax Residency, as it does not matter where you do the activity, wether you offer your services in LATAM, Africa, etc.... where you do the activity. Singapore is the best jurisdiction for Consultancy Services, good Accounting and low taxes with friendly environment.
Estonia can be another option as well, but definetly SG is the best.
Take care, Cheers!

 

[amancalledsun]

Can't help you here OP but wanted to ask a questions to the others for a friend who is thinking of moving to Spain. With business taxes going up in the U.K he thinks Spain won't be too much of a problem.

If moving to Spain with a U.K. business, Is it possible to keep the business in somebody elses name in the U.K and take a salary in Spain rather than move the business to Spain? What would be the pro's and cons with that.