Remote work in Spain? Learn about taxes and residency for European citizens

Thinking of moving to Spain? Learn about the different options available for taxpayers as a European citizen!

Are you a European citizen thinking about moving to Spain? Have you heard that you can enjoy a 6-month trial period without any obligations? Well, that's true! But what happens after those 6 months? Don't worry, we've got you covered!

In this post, we will discuss the different options available for taxpayers in Spain. Keep in mind that these rules only apply to citizens of EER countries. So, sit tight and let's dive into the scenarios:

Scenario 1: Your company has a division in Spain Easy-peasy! If your employer has an office in Spain, they can transfer you by payments only to this division. Nothing else changes. You'll be working for the same company, just in a different location!

Scenario 2: You still own a house in your origin country If you still have a house and residence in your own country, you can get an A1 certificate, which is requested by your employer. This certifies that you are working in another country for your own country and specifies where you pay your taxes and social contributions. Sounds good, right?

Scenario 3: You start an autonomo Be your own boss and start your own company! Invoice your employer and enjoy all the benefits of being self-employed! However, there are some things to keep in mind. The EU is cracking down on companies that work full-time for one customer, but there aren't any good alternatives within the EU yet. So, be careful!

Scenario 4: Your company sets up payrolling in Spain This is a bit more complicated for your employer. They have to set up a division only to pay your salary, which includes setting up a company. However, you can apply for "Beckham Law" which reduces the amount of taxes you pay in Spain. As a remote employee, you are eligible for this tax break! Yay!

What is Beckham Law, you ask? It is a law in Spain that offers a tax break to foreigners receiving income in Spain from a foreign company. And guess what? Recently, they have also added remote workers to the list of people who can benefit from this law. If you make more than 44000 per year, you already benefit from this law. Don't forget to apply for this tax break, as it isn't applied automatically. It requires some paperwork to handle in Spain, and the process can take up to 2 months. Before being accepted, you need to pay your regular taxes.

So, there you have it, folks! We hope this information has been helpful.

¡Hasta luego, mis amigos!

Jasper van Rijbroek

Jasper van Rijbroek

I'm a PHP and NodeJS developer who was born in Amsterdam, NL but now lives in beautiful Valencia, Spain. I work remotely full-time and enjoy blogging about everything related to this wonderful country. Let me know if you have any questions about Spain - I'd be more than happy to help!

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