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Not negative at all. It is actually quite accurate. I started up in Spain 5 years ago and was the worst decision ever. Never again. For several reasons our ven

by joeyspn 12y ago

Not negative at all. It is actually quite accurate. I started up in Spain 5 years ago and was the worst decision ever. Never again. For several reasons our venture failed and I was stuck with hundreds of thousands of € in debt w/o any protection, with me and my co-founders scared of losing our homes, and severely affecting our personal lives. Spanish gov is specialist in showing a big smile in the pics that appear in the press, but the evil is in the details. When things go wrong you're alone. There's not legal protection for failed startuppers. Starting up in Spain w/o resources is extremely difficult, and can really mess up your life forever. Looking back, I wish I had started with a LTD in UK, and working from Spain (yes, you can). It's what I'm doing next. My 0.02

scalesolved 12y ago
How would the tax situation work with having a LTD in the UK and residing in Spain?
- fauigerzigerk 12y ago
  You would normally have to make payments into the Spanish social security scheme. The rules are actually quite complicated but if you live and work in Spain that's where you have to contribute to social security. Owning a UK limited company does not change that.
  - scalesolved 12y ago
    But would you have to pay tax on your limited company's turnover both in the UK and then subsequently in Spain?
    - fauigerzigerk 12y ago
      No, the company would have to pay taxes (corporation tax, VAT, etc) only in the UK, and if you personally get something out of the company, like a salary or a share of the profits, then you have to pay income tax or capital gains tax and social security contributions in the country you live in (i.e. Spain). There is some double taxation of course because the company first pays corporation tax on its profits and then you pay income tax or capital gains tax on any profits you take out of the company. But that is the same regardless of where you live. One way to mitigate this is for your company to pay you a salary.
fasteo 12y ago
Yes, you can, but it doesn´t make things better. You will have to pay taxes in Spain if any of these conditions apply: 1) You operate the company from Spain, i.e., having an UK address is not enough. 2) Less than 15% of your revenue comes from customers outside of Spain.

by joeyspn 12y ago

scalesolved 12y ago

How would the tax situation work with having a LTD in the UK and residing in Spain?

fauigerzigerk 12y ago
You would normally have to make payments into the Spanish social security scheme. The rules are actually quite complicated but if you live and work in Spain that's where you have to contribute to social security. Owning a UK limited company does not change that.
- scalesolved 12y ago
  But would you have to pay tax on your limited company's turnover both in the UK and then subsequently in Spain?
  - fauigerzigerk 12y ago
    No, the company would have to pay taxes (corporation tax, VAT, etc) only in the UK, and if you personally get something out of the company, like a salary or a share of the profits, then you have to pay income tax or capital gains tax and social security contributions in the country you live in (i.e. Spain). There is some double taxation of course because the company first pays corporation tax on its profits and then you pay income tax or capital gains tax on any profits you take out of the company. But that is the same regardless of where you live. One way to mitigate this is for your company to pay you a salary.

fasteo 12y ago

Yes, you can, but it doesn´t make things better. You will have to pay taxes in Spain if any of these conditions apply: 1) You operate the company from Spain, i.e., having an UK address is not enough. 2) Less than 15% of your revenue comes from customers outside of Spain.