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Working for a Holland Based Company, living in Spain

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Mrupnorth

Hello,

I am currently a contractor living in Spain working for a UK company.

I have previously worked as an employee for a company in Gibraltar UK where I paid my taxes and SI and as a resident in Spain where I paid the tax difference.

Say the income tax in Gibraltar was 23% and the income tax in Spain was 30% I would pay:
23% in Gibraltar
7% in Spain.

My current company is now setting up a company in Holland and wants to move me to an Employee rather than a contractor however I will still be living in Spain.

I would like to know if this is going to be possible, any hurdles and anything else I need to know about income tax and other payments?

Any assistance/references are appreciated.

Many thanks

Cynic

Hi and welcome to the Forum.

Where you pay tax is decided by where you are deemed as being resident (so live more than 183 days in any tax year); so, if you are resident in the Netherlands for more than 183 days, you will be assessed there for your worldwide income.

If you commute daily from Spain to the Netherlands to remain living in Spain the Belastingdienst won't have any interest in your personal taxes.

I know the Dutch Government have cross-border working agreements with Germany and Belgium, the countries they share a border with and where Dutch nationals have been working across for many years; I would be surprised if they had such an agreement with Spain, your company would be well advised to consult with the Belastingdienst to see if there are any tax agreements.

On last point; if you're a British passport holder and intend to live in the Netherlands, then I suspect you will have to apply for a residence permit to live and work there.  The residency you gained in Spain out of Brexit can not be extended to allow you the rights you currently have in Spain to the Netherlands, the Dutch will regard you as a Third Country National.

Hope this helps.

Cynic
Expat Team

Mrupnorth

Hello,

Thanks for the information - The intention is actually to stay living and working from home in Spain, Registered at the Netherlands company based as an "Employee" very little commute, once a quarter if that.

Do you think that may be covered under a cross border agreement.

Cynic

Hi again.

Mmmm cross-border working is just that, people live in one country, but work in another just across the road; I suspect suggesting that Spain and the Netherlands could have such a relationship is stretching reality (the border would be 1,300 km wide).  Whatever this all sounds very strange.  I've never heard of anybody doing what you're telling us, perhaps there is a misunderstanding somewhere.

My advice remains the same, your company needs to speak to the Dutch regulators to see what you need to do in order to do this.

I'd be interested in hearing the outcome of this.

Cynic
Expat Team

Mrupnorth

Thanks I spoke to them after calling this number:


It seems all covered under and I quote the general border agreement within the EU,

and under the rule called “the 183 day rule†where If I do not work from the site in a 183 day period out of 365 then I am not liable to paying any tax in the Netherlands and the “General Cross Border Agreement†is in place for EU countries to allow this. Therefore I will continue to do my tax submissions in Spain every year.

Although I got this advice from the belastingdienst, it does still seem like I am missing something, I thought I would have to pay something in the Netherlands

Cynic

Hi again.

That's good news; thank you for the update.  My advice is to write an e-mail to your company, advising them of the actions you've taken, who you spoke to etc, then should anything "happen" in the future, you've done all that can be reasonably expected to protect your employer and yourself.

There is a tax treaty in existence between Spain and the Netherlands; this will take you to an online English language pdf copy you can download and check out for yourself.

As for missing something, in the Netherlands, they have 3 distinct personal taxes.

Income tax - you've covered

Social taxes - for pension and social security - you won't pay it, but neither will you have any rights to a Dutch pension, or sick money if you are sick; you may want to check that and also what cover you will get should you incur an injury while at work.

Council taxes - pays for sewage, water etc.  If you stay in a hotel, it's included in your hotel room charge.

Hope this helps.

Cynic
Expat Team

Mrupnorth

Amazing thank you for your help and guidance on this issue.

kaos13

Hi again.

That's good news; thank you for the update.  My advice is to write an e-mail to your company, advising them of the actions you've taken, who you spoke to etc, then should anything "happen" in the future, you've done all that can be reasonably expected to protect your employer and yourself.

There is a tax treaty in existence between Spain and the Netherlands; this will take you to an online English language pdf copy you can download and check out for yourself.

As for missing something, in the Netherlands, they have 3 distinct personal taxes.

Income tax - you've covered

Social taxes - for pension and social security - you won't pay it, but neither will you have any rights to a Dutch pension, or sick money if you are sick; you may want to check that and also what cover you will get should you incur an injury while at work.

Council taxes - pays for sewage, water etc.  If you stay in a hotel, it's included in your hotel room charge.

Hope this helps.

Cynic
Expat Team

- @Cynic



Hello good evening! 

My name is Daniel, I am Spanish, but living and working in Netherlands. 
You were so helpful just with the info in here, but I still having some doubts I hope you can help with please!

My situation is the following, I have a good position on my company, and I am able to sort this paper work by myself, meaning that I don't need to ask my boss (Friend) as he will not know, and too much hassle for him, so I can set it myself, by contacting wherever is needed. With this context I want to know the following things if you are able to help please!

1- I have in mind to work from home in Spain, and keeping my current work from Netherlands. Could you please share some links, or information or you could kindly tell me to know what is needed as employee and employer to achieve this please!? In taxes implications for both sides please, I am not able to google correctly this matter.

2- The other option could be create an own company myself in Netherlands, and moving to Spain, but I dont know how to find the correct information either the specialist to ask about this matter, and I wonder if there is some website, or institution can help in this matter? Or if you can do this too, I will fall in love! 1f604.svg

3- In the other hand, I have in mind even going further distance if worth, wherever, as I am not tied to anything, and I wonder if there is some countries being like "friendly" to the Dutch Taxes, or countries agreements that make everything more stable, or worth in some places, as a worker (Option 1) or as Self employment working for the current company (Option 2) 

Thank you very much in advance. I hope someone can clear me a bit the mess I have in my mind 😅
Kind Regards!!





Cynic
Hi and welcome to the Forum.

Cross-border working on steroids I guess.  To try and give you a steer though, EU regulations do provide for cross-border workers, whether what you would wish to do would qualify is another matter.

The problems I foresee are more around taxes and health insurance.  You are assessed for taxes based on where you are deemed as being resident, if you move to Spain from the Netherlands, then the moment you notify the Gemeente of your moving, the Dutch taxman and Health Insurance provider will be aware of this and you will no longer be assessed for Dutch taxes or pay Dutch healthcare.  So you will need to notify the Spanish equivalent to ensure your taxes are properly dealt with and you have appropriate healthcare cover.

There may also be work-based issues - Health & Safety, contractual issues; for example if your boss back in the Netherlands doesn't pay you, or makes you redundant, what rights do you have and how would you enforce them.

You may wish to ask your questions on our Spanish Forum.

Hope this helps.

Cynic
Expat Team
Guest9717

Hello there,


Slightly similar situation but a few small differences and searching some advice.


I have been offere a position for a company based in The Netherlands, but I continue to reside in Spain and do not plan on moving. I am a UK citizen but I am a resident here in Spain (pre-Brexit).


Ideally I do not wish to register as autonomo / self-employed... We want to find a way to have me registered as an employee. I know their are third party companies such as Deel who can support with employing expats but the company does no like this option. I am hoping someone can help me find the best way to continue with the job move whilst also maintaining my residency in spain and ensuring the necesary taxes are paid here.


Looking forward to hearing from you, Cory.

Mahara Harish

@kaos13 yes sir

Mahara Harish

Applicant for seasonal fram worker job

stumpy

@Mahara Harish


If you are looking for work best you go online and search for a job, The forum s not set up as an employment agency.

You can place your CV in the jobs section at the top of this page.

Cynic

Hello there,
Slightly similar situation but a few small differences and searching some advice.

I have been offere a position for a company based in The Netherlands, but I continue to reside in Spain and do not plan on moving. I am a UK citizen but I am a resident here in Spain (pre-Brexit).

Ideally I do not wish to register as autonomo / self-employed... We want to find a way to have me registered as an employee. I know their are third party companies such as Deel who can support with employing expats but the company does no like this option. I am hoping someone can help me find the best way to continue with the job move whilst also maintaining my residency in spain and ensuring the necesary taxes are paid here.

Looking forward to hearing from you, Cory.
-@Cory Whittaker

Hi and welcome to the Forum.


If your Dutch employer is happy for you to be resident in Spain, then I can't see a problem in you actually doing it, but as always, it's the admin that causes the most problems.  I can tell you that your employer will not be paying anything to any Spanish authority, there is no scheme that exists to do this, it will be down to you to arrange and declare/pay whatever is due in Spain.


You will have an issue with tax; you say you're resident in Spain, which means the Spanish tax authorities will assess your world-income for taxes.  I suggest you go and speak to the Spanish tax authorities and ask them how you will pay whatever taxes you are liable for.  Other things to watch out for are health insurance (the Dutch have both employer and employee contributions) and work-related insurance (so who is liable in the event of you being involved in an incident while working from home in Spain,  Also things such as pensions (AOW in Dutch), these are compulsory deductions from your world-wide income, I assume that Spain has something similar, so how are these charges paid.


I hope this helps.


Cynic

Expat Team

elizabeth86

Hi Daniel (and Mrupnorth), Could I follow up and ask if you managed to work ? I want to convince my Dutch university employer to allow me to work from Spain eventually, and am wondering how difficulty this will be and what this entails for them. Tax wise on my own income tax, I am clear on the double tax treaty, etc.

KyPie

Hi All, following this thread and wanted to find out what the end result was for those who posted here? I have a similar question to everyone, and there are some gaps I have in my research I am hoping someone who posted on this thread initially can answer.




I am permanently employed by a Dutch company, who will allow me to move to and work in Spain (and therefore pay my taxes in Spain), while maintaining my employment with them full time (I am also clear mostly about the double tax treaty, and I am an EU citizen).


What I am trying to understand is what stops me from moving to Spain tomorrow, for example, and declaring my tax, registering residency etc in Spain by myself?


The advice I received from tax consultants is that for this to be possible, a Remote/Deel type setup has to be done, or basically one in which a Labour representative office is set up for my company, which I am not clear on why this has to be done, or of it's just a service being pushed (which essentially the consultants or companies set this up, do the paper work etc, run payroll, do taxes on your behalf, etc)? Or is this something that actually has to be done because of payroll, social security etc in Spain being needed?


Basically, has anyone in this thread ended up creating a labour rep office or similar because of this (and understands why it has to be done)? Or actually found a way to do all of this by themselves or without these round about ways? - Looking for a real use case, and not guesses here please, it would really be appreciated :)


Thanks :)

cees67

Hello everybody,


I've been busy to prepare my family and myself to move to Spain. I'm a resident in the Netherlands for now, and was planning on being a resident in Spain after this schoolyear.

I'm working for a dutch based company. When I would be a resident in Spain I'm obliged to pay taxes over my income in Spain. The sollution my employer has for this is Remote, a company simular like Deel I believe.

Last holiday we have been looking for homes in Spain and our plans are very real.


Untill today, my boss told me the taxrules in Spain are changing and from next year the company where a Spanish resident is working for outside Spain is going to be forced to do a complete tax assessment every year in Spain. My boss is saying that the company will never do that if there are only a handfull employees working in that country.


Is anybody known with these changes in taxrules in Spain?


Hope somebody can help me with this.


Thanks!

Meldecito

@Mrupnorth  HI mrupnorth,


i am writing you about this,


Working for a Holland Based Company, living in Spain


I have few questions hopefully you can help me.

-  How did you do with social security is your employer paying you in spain?

- which bank does your employer use for payment, dutch or spanih?

- when you say you will manage your own taxes, means your employer will deposit you gross and then you will pay the taxes in spain by yourself?


Best regards.

hope really much you can help me with this answers.

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