Living in Spain but Working for a Company in Ireland

[gmc898]

Hi All,

First post here. I have found it particularily difficult to find an answer to my question anywhere else online and so I'm asking for anyones advice.

I am currently taking part on a graduate programme which includes a 12 month period where I will be working in Spain on behalf of a company based here in Ireland.

As I will be in Spain for more that 183 cumulative days I have to register for a residency certificate.

My question revolves around whether I am liable for Tax here or in Spain and also my payroll guy has said that there may be some exceptions to the amount I pay in tax here.

Any help would be greatly appreciated!

 

[sean.c]

Hi,

All expained here (as far as it can be explained without looking at your specific contract and work details)

http://www.revenue.ie/en/tax/it/leaflets/res1.html#section2

First of all, you need to find out if there are any double-taxation agreements between Spain and Ireland (there is).

Article 15.2 sets out the rules for deciding where taxation occurs. Altough you will be in Spain for >183 days, and thus meet the 1st requirement, the other 2 requirements are not met. So I think you will be taxed in Ireland only.

Of course, teh Spanish authorities might not agree.

I lived in Italy for 5 years (working remotely for a Dublin company) and never applied for residency because I didn't want the hassle of dealing with the Italian tax beaurocracy. Might not be an option for you though.

I would expect your employers to deal with all this for you.