Working from home in Spain or moving: not without consequences

Several articles appeared in the press (HLN, GVA) about compatriots who - partly because of the corona crisis - are planning to move to Spain permanently. In addition, we read reports about working from home in Spain. At Confianz, we have already received several questions about this.

What many people forget, however, are the tax implications of a move. After all, contrary to popular belief, Spain is not a tax haven.

Watch is our webinar on teleworking from Spain.

Do you have assets in Belgium?

In Spain, there are mainly two taxes that hurt. On the one hand, there is the Spanish wealth tax. Thanks to high exemptions per person, this tax is not too bad for many Belgians.

On the other hand, the Spanish capital gains tax. With Spanish personal income tax returns due by 30 June, we are once again seeing the consequences of moving without planning. Consider, for example, people who sold their home in Belgium and now have to pay a substantial capital gains tax to the Spanish tax authorities. The same applies to individuals with share portfolios or companies.

Will you be working from home in Spain?

There may also be tax implications for those who start "working from home". You may become a tax resident in Spain and pay Spanish taxes on your worldwide income and assets. Alternatively, part of your income may be taxed in accordance with Spanish law. Finally, as an expat, you may also be able to rely on the Beckham Rule.

For every individual, the situation is different. Therefore, it is recommended that you have your situation vetted.

Read more about emigrating to Spain and the implications on your taxes.

Avoid surprises

Before moving permanently to Spain, you can best consider the implications for you of any move. In this article, we have focused on the tax aspects, but you should also consider inheritance law factors and your social security. For instance, Spanish legislation in terms of benefits and health care is fundamentally different from Belgium.

Read more about health insurance in Spain.

Do you have any questions about emigrating to Spain? If so, please feel free to contact on.

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