BLOG

The answer to this question depends on several factors, such as:

• Your country of residence: It is the country where you have your center of vital interests (family, housing, etc.).
• The country where the company located: It is the country where registered the company for which you work
• The country where you carry out your work: It is the physical place from where you perform your tasks.

General principles of taxation in remote work:

• Principle of residence: Generally, you will pay taxes in the country where you are a resident fiscal.
• Source principle: In some cases, you may have to pay taxes in the country where Where the source of your income is located (i.e. where it is located the company).
• Conventions to avoid double taxation: These international agreements seek to avoid paying taxes twice times on the same income.

Common situations and their implications:

• Worker resident in Spain who teleworks for a Spanish company:
  • Normally, you will pay taxes in Spain on all your income, regardless of where you are physically.
• Worker resident in Spain who teleworks for a foreign company:
  • If you spend more than 183 days in Spain in a year, You will generally be considered a tax resident in Spain and you will pay taxes here for all your income.
  • If you spend less than 183 days in Spain, you can apply certain exemptions or deductions in your country of residence.
• Worker residing abroad who teleworks for a Spanish company:
  • If you spend more than 183 days in Spain in a year, You can be considered a tax resident in Spain and pay taxes here for income obtained in Spain.
  • If you spend less than 183 days in Spain, you will generally pay taxes in your country of residence.

What should you take into account?

• Double taxation agreements: Find out about the existing agreements between your country of residence and the country where you are located the company.
• Specific legislation: Tax regulations can change frequently, so it is important stay up to date with the latest news.
• Professional advice: Consult a tax advisor for personalized advice and adapted to your specific situation.

What What can you do to manage your tax situation?

• Document your activity: Save all documents related to your remote work (contracts, payrolls, invoices, etc.).
• Communicate your situation: Informs the company and the tax administrations of the countries involved about your teleworker situation.
• Plan your taxation: Anticipate your tax obligations and organize your documentation with sufficient advance notice.

Practical example

A tax resident worker in Spain decides to work remotely from Portugal for six months for a Spanish company:

• If you do not exceed 183 days outside of Spain, the period will continue. being a tax resident in Spain.
• Portugal could demand payment of taxes if it considers that it is generating income in its territory, but the payments could be exempt under the double taxation agreement between both countries.

Recommendations for remote workers

1. Check the tax agreements between your country of residence and the place where you will work.
2. Inform your employer if you plan to work from another country to ensure you comply with legal and fiscal obligations.
3. Avoid double tax residency, which can complicate your tax obligations.
4. Hire a tax advisor specialized in international taxation to manage complex situations.