4 ms·

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.