Opening a Spanish office with UK workers - implications?
Discussion
Evening All,
I am thinking of opening up an office in Spain to allow staff to work from there during the summer . ( Ibiza or Mallorca)
The idea would be that with connectivity and virtual office that they would essentially be based in Bristol as far as any clients are concerned but would in fact be working from a spanish physical office. the company is UK registered and the employees would also be uk registered for PAYE.
Ive seen somewhere that they would need to register in Spain for social security before working but I wanted to see if anyone else had done anything similar and what the implications were.
The dieafwould be that some staff would be based there year round, with others dipping in and out for maybe 2-3 months at a time in some cases.
Thank you
Owen
I am thinking of opening up an office in Spain to allow staff to work from there during the summer . ( Ibiza or Mallorca)
The idea would be that with connectivity and virtual office that they would essentially be based in Bristol as far as any clients are concerned but would in fact be working from a spanish physical office. the company is UK registered and the employees would also be uk registered for PAYE.
Ive seen somewhere that they would need to register in Spain for social security before working but I wanted to see if anyone else had done anything similar and what the implications were.
The dieafwould be that some staff would be based there year round, with others dipping in and out for maybe 2-3 months at a time in some cases.
Thank you
Owen
Those who are based in Spain all year round would be Spanish Tax Resident and would be subject to Spanish taxes. You would need to appoint an agent in Spain to administer Spanish taxes on these salaries being paid to those Spanish tax residents.
I am sure they would also be fully under Spanish employment regulations as well.
As for those who are in Spain part time and the UK part time, you are going to enter the murky waters of determining where their tax residencies lie and what taxes take priority.
And, of course, whatever happens on 23 June this year may have a big impact on such operations.
I am sure they would also be fully under Spanish employment regulations as well.
As for those who are in Spain part time and the UK part time, you are going to enter the murky waters of determining where their tax residencies lie and what taxes take priority.
And, of course, whatever happens on 23 June this year may have a big impact on such operations.
OK, thanks thats helpful so far.
It may be a mix of residents for year round, and then uk based guys going out for "working holidays" for a few weeks at a time. Ive eben talking bout this concept for a while and keen to explore it. clearly one or two will abuse it but hopefully for the majority it will be a good thing.
what also concerns me is broadband on Ibiza as we will be running phones and office over vpn
It may be a mix of residents for year round, and then uk based guys going out for "working holidays" for a few weeks at a time. Ive eben talking bout this concept for a while and keen to explore it. clearly one or two will abuse it but hopefully for the majority it will be a good thing.
what also concerns me is broadband on Ibiza as we will be running phones and office over vpn
Without being totally clear on what these employees would be doing from the Spanish office, if they are generating income on behalf of the company in Spain then there is a very real risk that there will be a deemed permanent establishment ('PE') of the U.K. company. This could have a range of other issues, particularly Spanish corporation tax, so it's worth considering the arrangements on a wider tax scale.
Obiwonkeyblokey said:
OK, thanks thats helpful so far.
It may be a mix of residents for year round, and then uk based guys going out for "working holidays" for a few weeks at a time. Ive eben talking bout this concept for a while and keen to explore it. clearly one or two will abuse it but hopefully for the majority it will be a good thing.
what also concerns me is broadband on Ibiza as we will be running phones and office over vpn
If its anything like Majorca, they are well ahead of the uk with fibre broadband etc.It may be a mix of residents for year round, and then uk based guys going out for "working holidays" for a few weeks at a time. Ive eben talking bout this concept for a while and keen to explore it. clearly one or two will abuse it but hopefully for the majority it will be a good thing.
what also concerns me is broadband on Ibiza as we will be running phones and office over vpn
In fact some of the beach area has free council provided wifi
Plus 3/4G pretty much anywhere, unlike the uk!
im going over next week to view a couple of office and have made some good contacts there regardig working overseas. apparently you can spend 183 days there without it affecting your tax or residency statuts, so I could set up a virtual office and have everyone based in the UK legally but spending a few weeks a year out there assuming they dont kill themselves!
I work in many locations, mostly around Europe but also in the US. I go to an office to meet my fellow co-workers and perhaps we might go to a trade show while we're there or something. But I'm still doing my work, which is sales to UK and parts of Europe. It doesnt matter to the company, other than travel and accommodation, where or which office I'm at, or even if I'm in an office (currently in a hotel for the next few days) and as far as clients see, they call a number for me that's rings a soft client on either my laptop or phone. Far as they're concerned I'm 'somewhere' and they just want a number to call that gets through to me
If it's a perk, then there's no getting away from it. But you might like to take the team to do some customer visits for example. I'm sure there's ways to position it
If it's a perk, then there's no getting away from it. But you might like to take the team to do some customer visits for example. I'm sure there's ways to position it
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