Living in Spain, Working for an Irish Company

Granadino

Hi all. A long time away from boards.ie but back in, with a new identity. No trolling this time around!
I am working for an Irish company, and recently living in Spain. I am clueless as to where I could go for advice on tax. An accountant obviously, but anyone in the same scenario?
I will be over and back regularly for work.
I am guessing I'd be paying tax in 2 countries? At the moment, I don't have a bank account, or social security number as it's early days.

Granadino

@mods, could I ask this to be moved to the taxation forum?

Granadino

Anyone?

anotherfinemess

Granadino wrote: »

Anyone?

I moved to Spain recently for my retirement. There's a lot of bureaucracy here which takes days and weeks of sitting in queues, so I advise you to find a gestoria who you can pay to do all this for you. Don't use a solicitor (abogado) cos they cost a lot more. Good luck

redcup342

Granadino wrote: »

Hi all. A long time away from boards.ie but back in, with a new identity. No trolling this time around!
I am working for an Irish company, and recently living in Spain. I am clueless as to where I could go for advice on tax. An accountant obviously, but anyone in the same scenario?
I will be over and back regularly for work.
I am guessing I'd be paying tax in 2 countries? At the moment, I don't have a bank account, or social security number as it's early days.

Where is your work based ?
Are you just working remotely in the Irish Market ?

Granadino

redcup342 wrote: »

Where is your work based ?
Are you just working remotely in the Irish Market ?

Work is all based in Ireland, so over and back each month for now, so officially I'm on "holidays" in Spain, though I'm working online...

redcup342

Granadino wrote: »

redcup342 wrote: »

Where is your work based ?
Are you just working remotely in the Irish Market ?

Work is all based in Ireland, so over and back each month for now, so officially I'm on "holidays" in Spain, though I'm working online...

That's the way to do it  
If you do register your Habitual Residence in Spain then the EHIC isn't good enough anymore, you need to apply for an S1:
https://europa.eu/youreurope/citizens/work/social-security-forms/index_en.htm
Tax Wise as long as you don't work in the Spanish Market then you just do your Tax Return in Ireland as normal, you may be required to do a Tax Return in Spain depending on your circumstances but even then you would just declare 100% of your Income under the Tax Treaty with Ireland. 
Being unregistered can be a bit of a balls long term if you want to get everything local (bank account/mortgage, utilities etc) and you'll pay a bit more for accommodation, but you can theoretically stay on holidays for years with no issues.

juanchoja

I'm planing to move to Malaga next year, I have two children both going into Primary School, one is Autistic. I have already sorted the school logistics, but I want to know if anyone got around working for an Irish company, paying Irish PAYE while living in Spain? My aim is to stay for 1-2 years to try out. we have a house with a Mortgage in Ireland which we would rent, and I don't wish to stop paying Irish contributions until we make the decision to live permanently in Spain unless is absolutely necessary.

Any insights?

Boardie2020

Currently looking into this as well and it seems difficult to sort out - The way i am thinking of approaching it is get company to apply for PAYE Exclusion Order and then pay tax return in Spain at end of tax year

amadangomor

juanchoja wrote: »

I'm planing to move to Malaga next year, I have two children both going into Primary School, one is Autistic. I have already sorted the school logistics, but I want to know if anyone got around working for an Irish company, paying Irish PAYE while living in Spain? My aim is to stay for 1-2 years to try out. we have a house with a Mortgage in Ireland which we would rent, and I don't wish to stop paying Irish contributions until we make the decision to live permanently in Spain unless is absolutely necessary.

Any insights?

Interested in an answer to this.

Was hatching a plan to retire at 60. Mortgage will be paid off so was wondering if I could live in Spain and pay Irish PRSI/PAYE on the rental income I receive if I rent out my house in Ireland?

Was hoping that my PRSI contributions from 60 on would count towards a full Irish pension when I reach Irish retirement age.

faceman

amadangomor wrote: »

Interested in an answer to this.

Was hatching a plan to retire at 60. Mortgage will be paid off so was wondering if I could live in Spain and pay Irish PRSI/PAYE on the rental income I receive if I rent out my house in Ireland?

Was hoping that my PRSI contributions from 60 on would count towards a full Irish pension when I reach Irish retirement age.

Spain would have no claim on the Irish rental if you are still tax resident in Ireland.

Jim2007

amadangomor wrote: »

Interested in an answer to this.

Was hatching a plan to retire at 60. Mortgage will be paid off so was wondering if I could live in Spain and pay Irish PRSI/PAYE on the rental income I receive if I rent out my house in Ireland?

Was hoping that my PRSI contributions from 60 on would count towards a full Irish pension when I reach Irish retirement age.

If you take up residency in Spain then you will taxed in Spain. But honestly, tax on your rental income will be a simple issue in comparison to the rest.

aidanlawlor

Hi,

Did you work this out in the end?

I am moving to Spain in Jan 2021 and will be working for an Irish company.

So I'm trying to figure out how to do this to be tax compliant.

Thanks

sariya

Aidan, did you company facilitated this process of moving to Spain? Can they advise you? We are in the same situation

sariya

From Deloitte guide called : Moving abroad
Irish Tax guide 2019 ( google it)


3.Taxation of employment income while abroad

3.1 Operation of PAYE when leaving Ireland
Where an Irish employee is leaving Ireland temporarily, depending on their Irish tax residence position and number of work days spent in Ireland, they may continue to have a liability to PAYE on their Irish employment income earned while working abroad.
3.1.1 Leaving Ireland with the intention of remaining Irish tax resident
Where an employee continues to be tax resident in Ireland, the Irish employer must continue to deduct PAYE and USC from their employment income notwithstanding that it may be wholly or partly earned abroad. This is likely to be the position applying to those commuting cross-border to perform all or part of their duties of an Irish employment in another jurisdiction.
In such cases, it is likely that payroll withholding taxes will also be due in the host country. Where a double taxation agreement exists between Ireland and the host country, the individual will be able
to file an Irish tax return in order to claim a credit for foreign taxes paid on their employment income, thus relieving any double taxation.
Where a double taxation agreement does not exist with a particular country, Irish Revenue will allow a deduction for foreign taxes against the income liable for tax in Ireland.
3.1.2 Leaving Ireland with the intention of breaking Irish tax residence
Where an employee is non-resident and
no duties of his Irish employment (or incidental duties only) are performed in Ireland, then it may be possible for the employer to obtain a PAYE exclusion order which exempts the employer from the obligation to deduct PAYE and USC for
the duration of the period spent working abroad provided certain conditions continue to be met.
Where a tax-resident individual leaves Ireland with the intention of being non- resident in the following tax year, a claim for ‘split year relief’ in the year of departure can be made, which essentially means that any employment income earned following their departure from Ireland is not taxable in Ireland and a refund of tax may be due to the individual relating to unused tax credits and standard rate bands.
Where an Irish employer does not make an application for a PAYE exclusion order and does not apply PAYE to earnings, that employer can be held accountable for any tax payable.
3.1.3 Leaving Ireland with the intention of breaking Irish tax residence but continuing to work in Ireland
Where an employee is non-resident in Ireland but continues to perform the duties of their Irish employment in the State,
then a liability to PAYE will continue for the period of their non-residence.
3.2 What to do when you leave Ireland
Where an individual is in receipt of income other than employment income, a tax return should be filed for the year of departure and any liability settled for the year. The individual should advise the Revenue of the circumstances of their leaving Ireland.
Where an individual employed under an Irish contact of employment leaves Ireland for a temporary period resulting in them being non-resident in either the year of departure or the following year, a refund of PAYE may be claimed when the relevant tax return is filed.
Where an individual is in receipt of employment income only but leaves during the year, their employer will provide them with a form P45 setting out their taxable income earned together with relevant taxes paid during the part of the year in which they worked here. A tax return or a Form P50 should be completed by an individual leaving Ireland to ensure that any unused balance of tax credits and allocation of standard rate band is fully utilised.

October

Have a look at Citizens Advice Bureau Spain - both website and Facebook page. It is a bit clogged up at the moment with Brexit questions but has a lot of good advice and information.