Working in Spain for non-resident employers

Providing services remotely is, thanks to today’s technology, increasingly common. You can live in one country and provide services to a person or company based in another. However, this scenario can be confusing with regard to taxation and social security.

Today’s technology allows you to provide someone with services without ever having to physically meet them. For instance, communications, consultancy work and the transfer of knowledge are all services that can be provided remotely via the Internet, with no physical or geographical barriers. If you are a Spanish resident, which, as a rule, means that you live here for more than 183 days a year, you are subject to Spanish labour, tax and social security regulations with regard to the services you provide.
But there are grey areas in the Spanish legislation when it comes to remote working. It is straightforward if you are self-employed. In this case, you are simply registered and treated as self-employed by social security and the tax office. You have the same obligations as any self-employed resident.
However, you may not technically be self-employed if:

  • You only provide services for one person or company.
  • The receiver of your services trained you or provided you with or paid for the tools required to carry out the work commissioned.
  • You carry out the work according to the instructions of the service receiver, and the resulting products are sold on by them.

If these cases, the service receiver is actually your employer, and they are required to register you with the social security as an employee and meet their tax and employer obligations in Spain. It doesn’t matter if the company or person receiving your services does not have a permanent premises in Spain. Their obligations are clear, and you can report them for not meeting them.

Carlos Prieto Cid – Lawyer

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