Income Tax - UK Nationals Working/Living in Portugal & Spain

[shanagarry]

Can somebody in the know help me understand the position regarding the payment of income taxes (PAYE equivalent)?

My son is considering employment in Spain (he is a UK National and Resident) and is being lead to believe that as a UK national working and residing in Spain he will be required to pay Spanish income tax at 23%. Is this true?

If so - what is the position in Portugal based on the same criteria

[td]

I found this by Googling - I don't know if a similar facility exists in Portugal:

Special Expat Income Tax Regime in Spain

As of 10 June 2005, the Spanish government approved a new tax regime for expatriates working in Spain. This was Royal Decree 687/2005.
This tax rate for expats could be advantageous to avoid paying the upper levels of the rate table outlined above. In order to qualify, the expatriate must meet following:

Expats must not have been a resident in Spain at any previous time during the 10 years before their current work or position in Spain.
Their position must be under a legal employment contract with a Spanish company or through secondment employment, or with a non-resident company holiding a permanent establishment (i.e. a branch) in Spain.
The work must be performed in Spain, although some flexibility is allowed. Work may be partially performed outside Spain if the salary for work abroad does not exceed 15% of the total salary for the year. If the working contract provides that the individual performs functions in another group company, this limit goes up to 30%.
The expat’s income must be subject to Spanish NRIT (Non-Resident Income Tax).
If you qualify, this means you’ll be subject to a special flat tax rate for expatriates at 25% for all Spanish income sources, and you will be taxed as a non-resident regarding all income, capital gains and wealth taxes.

Note: You’ll have to make the decision within six months from the start date of your social security registration. The period of time you can claim this expat tax rate starts from the first year when the expat has spent more than 183 days in Spain and continues for a total of five years or more.

Further note: Due to the special nature of this tax, you’ll very likely need a tax advisor to ensure proper adherence to the decree.

[steve]

If you are deemed to be resident in Portugal for tax purposes you are required to submit a tax return to the IRS and pay tax in Portugal on your worldwide income. If tax is payable on the same income in the UK the position is adjusted under the double taxation treaty between the two countries. It is never clear to me whether the IRS calculation automatically adjusts for tax paid in the UK or whether you have to pay both lots and claim the UK tax back. As far as a salary is concerned if you are tax resident in Portugal you may be able to get agreement for a UK salary to be paid gross but obviuosly you would still be liable for NI in the UK.

Double taxation is still something of a minefield here in my opinion and accountants and tax officials may give conflicting advice.

[EMM]

We too may face the same issue ( tax in Portugal ).
As we understand it as " self employed " we can submit green receipts up to a limit of E10,000 euros after which we become liable for social security.
We must also submit a tax return for all income scourced in portugal.
We do not intend becoming " Resident " as we will not be in portugal for the qualifying period.
Any tax paid in Portugal can be offset when completing your UK tax return ( foreign income ) so as to avoid double taxation.

I currently have 15% deducted at scource on commissions earned on sales generated for a Portuguese company.( we are in discussion regarding Green Receipts ).
They provide me with tax certificates.

Looks like we need to contact the experts.

[shanagarry]

Is there a concessionary rate - like the 25% in Spain