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German wants to live in Spain and while working for an US company

Smartdevil

Hello and hola,


I have a quick tax related question.


My plan is to live in Spain while working for an US based company as an independent contractor. As far as I know I have 3 options.

a. Being self-employed working as an IC.

b. Starting a company based in Spain. Contract between the US company and my company and I am getting paid by my own company in Spain.

c. Same as b. but with an offshore based company.


What's my best tax saving option in this case assuming the income is about $100k?

Any suggestions, por favor?

See also

Taxes in SpainPaying tax in SpainTax in Alicante : Get to know SUMATaxes for °µÍø½ûÇøs in SpainUK Civil Service Pension in Spain
gatomalomalo

Depending on the Area of Spain you want to live, maybe you can get in contact with a Lawyer to get for advice. I know a good law firm in Alicante (Comunidad Valenciana).

gwynj

@Smartdevil


Welcome to the °µÍø½ûÇø.com forum and good luck with your potential move to Spain!


You're an EU citizen, so it's very easy for you to move to any EU country, for any reason.


Structure-wise, a lot depends on whether you want to hang out in Spain for a couple of months, or whether you want to live indefinitely in Spain. And whether your USA gig is a long-term, exclusive deal, or a short-term one-of-many thing.


That's because your USA gig lets you be a remote worker living in county X. Or you can be one of the Digital Nomad types flitting around to beautiful locations around the world. You can, if you count your days, even be a Perpetual Tourist (PT), who doesn't end up a tax resident in any of the countries he visits (tax residence typically triggered by the substantial presence test, or > 183 days per year). In which case, you could potentially have "offshore" in a very low tax jurisdiction.


But, yes, otherwise your options are as you list. Essentially, there are two options, you can be self-employed, or have a company. But the question is where. You can be self-employed in Germany (assuming you are, currently), or Spain, or potentially elsewhere. Or, you can incorporate a company and invoice your employer via this entity. This company could be in Spain, anywhere in the EU (mobility applies to companies and citizens), outside the EU (non-haven, such as UK or USA), outside the EU (tax haven, such as BVI, Seychelles, Caymans). Listed havens are a bit of a red flag, so I think it would not be the best option. Especially when UK/USA and some EU countries can be quite good on the tax issue, without any negative attention.


The travelling life is the option if you want to absolutely minimize your tax burden.


If you like the simple life, it's probably easier to live in Spain and be self-employed (in Spain), especially if you have only one client.


If you're just fed up with Germany and want a change of scene... and you are likely to have multiple clients... then maybe consider a low-tax EU corporation (Ireland, Bulgaria), possibly with personal/tax residence too.