Moving and taking your business overseas Thread poster: Gregory Lassale
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Hello,
I am planning to move to Spain within the next 12-18 months and am wondering how things work as far as taking my freelance translation biz overseas. Will I need to register a company in Spain (and pay taxes to the Spanish govt) or can I keep operating under my US company name/tax number and still pay taxes in the US? I am planning on checking with an accountant but I was wondering if anyone here had any experience with moving abroad.
Thanks.
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You'll need to check the tax treaty between the US and Spain, also known as a double tax agreement.
Such agreements stipulate in which country different types of income are taxable, depending on domicile and more.
Most such agreements make you liable for income tax in the country of residence/work – and also any foreign company if all the wor... See more You'll need to check the tax treaty between the US and Spain, also known as a double tax agreement.
Such agreements stipulate in which country different types of income are taxable, depending on domicile and more.
Most such agreements make you liable for income tax in the country of residence/work – and also any foreign company if all the work is effectively carried out in your country of residence. I.e. you can keep your US company, but it will become taxable in Spain. This could add a layer of complication.
The best thing to do is most likely to register self-employment or a company in Spain.
And by the way, it does not affect tax liability in which country you are paid. Even if you have bank accounts in several countries, tax on all payments credited to them is in most cases due in your country of residence.
In case you don’t know about TransferWise already, you’ll probably find it useful for cost-efficient and fast transfer of funds between the US and Europe. ▲ Collapse
| | | | Sheila Wilson 
Spain
Local time: 08:09
Member (2007)
English
+ ...
| Moving a limited company or a freelance business? | May 16, 2020 |
The US has some harsh requirements for its citizens who work abroad, so you'll need to check that. I moved my freelance business from France to Spain eight years ago and only lost one client -- the only one I'd ever met face to face.
Gregory Lassale wrote:
wondering how things work as far as taking my freelance translation biz overseas. Will I need to register a company in Spain (and pay taxes to the Spanish govt) or can I keep operating under my US company name/tax number and still pay taxes in the US?
So do you pay tax in your own name, as a physical person/freelancer or do you run a limited company that pays corporation tax etc? It's an important difference. I know nothing about the latter. But you certainly can't run a US freelance business from Spain. You as a person will be fiscally resident here, so you'd need to register your freelance business here. It's easy to register as autónomo -- assuming you have the right to work here. But it can be costly and confusing to run a business correctly here. Even Spanish citizens tend to retain an accountant.
| | | | Gregory Lassale
United States
Local time: 02:09
English to French
TOPIC STARTER
I'm not a US citizen yet (permanent resident since 2003) but will be by the time I leave to avoid re-entry problems down the road. I am French and can legally work in Spain, so no problem there. I currently run my business as a DBA and pay taxes in my own name. I'll contact my accountant to get his opinion. Thank you both for the input.
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Gina Centanni
United States
Member (2008)
Spanish to English
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| Shouldn't be any problem at all | May 17, 2020 |
Gregory:
There shouldn’t be any problem at all as long as you are legally allowed to live and work in Spain, which you are. As others have mentioned, you will have to register as autónomo and pay taxes in Spain but you must also file a US tax return every year since the US taxes you on income you earn anywhere in the world, even when you are no longer a tax resident in the US. But you probably won't end up paying taxes to the US because aside from the double taxation treaty there is a f... See more Gregory:
There shouldn’t be any problem at all as long as you are legally allowed to live and work in Spain, which you are. As others have mentioned, you will have to register as autónomo and pay taxes in Spain but you must also file a US tax return every year since the US taxes you on income you earn anywhere in the world, even when you are no longer a tax resident in the US. But you probably won't end up paying taxes to the US because aside from the double taxation treaty there is a foreign earned income credit which allows you to exclude up to $100,000 of income earned while living abroad, or double that amount for a married couple filing jointly. I did the reverse move 13 years ago, from Spain to the US, and I still work with my Spanish customers, but now based in North Carolina instead of Madrid. ▲ Collapse
| | | | Gregory Lassale
United States
Local time: 02:09
English to French
TOPIC STARTER
That was very helpful. I'll look into registering as an autónomo as we get closer to moving there. Thanks Gina!
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