Working remotely in Spain for a UK company involves various tax, social security, and legal considerations that depend on your residency status. Whether you are a non-EU citizen on a Digital Nomad Visa (DNV), a non-EU citizen with another visa type, or an EU (including Spanish) citizen, how you handle income tax, social security, and employer obligations differs significantly.
🚨 Important: The correct visa, employment contract, and payment setup impact your ability to stay in Spain legally and the taxes you pay. Consult a cross-border tax expert in Spain early to avoid costly mistakes.
Quick Comparison Table: Tax & Social Security Considerations by Residency Type
| Residency Type | Can You Work Remotely? | Tax Residency Rules | Social Security Contributions | Employer Options |
|---|---|---|---|---|
| Non-EU Citizen on Digital Nomad Visa (DNV) | ✅ Yes | Taxed in Spain if a resident (183+ days) | Must contribute to Spanish social security | UK employers can register in Spain, or worker can register as autónomo |
| Non-EU Citizen on Self-Employed Visa | ✅ Yes | Taxed in Spain if resident | Must register as autónomo | Must invoice UK company as a freelancer |
| Non-EU Citizen on Student Visa | ✅ Yes, up to 20 hrs/week | Taxed in Spain if a resident | Must register as autónomo | Must invoice UK company as a freelancer |
| Non-EU Citizen on Non-Lucrative Visa (NLV) | ❌ No | Taxed in Spain if a resident | Not applicable | Working remotely is not allowed |
| EU Citizen (Including Spanish Citizens) | ✅ Yes | Taxed in Spain if a resident | Must contribute to Spanish social security | UK employers can register in Spain or worker can register as autónomo |
Updated Tax and Social Security Regulations (2025)
- Beckham Law: Still available but only applies to employees hired in Spain, not freelancers.
- Self-Employed Social Security: Contributions start at €230/month (income-based).
- Freelancers (Autónomos): Must file quarterly income tax (IRPF) and VAT declarations if their activity qualifies as an economic activity in Spain.
Need Tax Advice?
Need clarity on your tax obligations and a solid financial strategy ? Schedule a consultation with our recommended tax advisor, Louis, to gain complete clarity and peace of mind.
Understanding the Difference Between Employees and Freelancers in Spain
The way you work remotely for a UK company in Spain affects your taxes, social security, and legal obligations. Here’s a breakdown of how it differs:
Employees vs. Freelancers: Key Differences
| Category | Employee (Hired by UK Company) | Freelancer (Self-Employed / Autónomo) |
|---|---|---|
| Tax Residency | Taxed in Spain if resident (183+ days) | Taxed in Spain if resident (183+ days) |
| Who Pays Social Security? | Employer (if registered in Spain) or worker (if employer does not register) | The worker (must register as autónomo) |
| Access to Spanish Healthcare & Pension? | ✅ Yes (if social security is paid) | ✅ Yes (if autónomo contributions are paid) |
| Payroll Process | Paid a salary (PAYE in Spain if employer registers) | Must invoice the UK company |
| Employer Registration in Spain? | Optional (can set up payroll in Spain) | Not required |
| Can Use Beckham Law (24% Flat Tax Rate)? | ✅ Yes, if eligible | ❌ No |
Working Remotely in Spain for a UK Company: Employer Obligations and Social Security Rules
1️⃣ UK Employer Registers in Spain
- The UK company sets up payroll in Spain.
- The employee is on the Spanish payroll and pays Spanish income tax & social security.
- The worker is not required to register as an autónomo.
2️⃣ UK Employer Does NOT Register in Spain
- The worker must register as autónomo (self-employed).
- The worker pays their own social security (€230+/month).
- The worker invoices the UK employer for services.
Non-EU Citizens on a Digital Nomad Visa (DNV)
If you work remotely in Spain for a UK company using a Digital Nomad Visa (DNV), you must follow specific tax and social security rules:
READ MORE >> Spain Digital Nomad Visa >> Full 2025 Guide
Tax Residency & Income Tax
- Spanish Tax Residency: If you stay 183+ days per year, you may become a tax resident and pay Spanish income tax on worldwide income.
- Tax Rates: Spain’s progressive tax system ranges from 19% to 47%.
- Beckham Law: If eligible, you can pay a flat 24% tax rate on income up to €600,000 instead of progressive rates.
- UK-Spain Double Taxation Agreement (DTA): Your UK employer should not deduct UK tax.
Social Security
- You must contribute to Spanish social security.
- Your UK employer can register in Spain, or you must register as an autónomo.
Steps to Take
✅ Inform your UK employer that UK tax/National Insurance should not be deducted.
✅ Apply for Beckham Law (if eligible) for a lower tax rate.
✅ Register with Spanish tax authorities.
✅ Set up social security payments (via employer or autónomo registration).
Non-EU Citizens with Other Visa Types
If you hold a Self-Employed Visa or Student Visa, you can work remotely but must register as autónomo and manage your own tax and social security contributions.
🚫 Non-Lucrative Visa (NLV) does NOT allow remote work. If you work remotely on an NLV, it is illegal.
EU Citizens (Including Spanish Citizens)
If you are an EU citizen living in Spain and working remotely for a UK company, you must consider tax residency, social security, and employer obligations.
Tax Residency & Double Taxation Agreement
- If you live in Spain for 183+ days per year, you may become a tax resident and pay Spanish income tax.
- Submit a P85 form to HMRC to confirm UK tax non-residency.
Social Security
- You must contribute to Spanish social security.
- Your UK employer can apply for an A1 Certificate to keep you under UK National Insurance (rare for long-term work).
Salary Payment Options
Your UK employer can choose from three payment methods:
Paid in GBP to a UK Bank (Most Common)
- Salary paid in GBP to a UK bank account.
- Receiving a salary in GBP in a UK bank account can lead to additional costs due to exchange rates and bank fees.
- Ensure UK tax is not deducted.
READ MORE >> Transferring Money to Spain Quickly and Cheaply
Paid in EUR to a Spanish Bank
- Employer registers in Spain and pays Spanish social security.
- No currency exchange fees.
READ MORE >> Best Banks in Spain for Expats
Paid via Invoice as a Freelancer
- You must register as an autónomo and invoice the UK company.
- You pay self-employment social security (€230+ monthly).
- Requires quarterly tax filings.
The Upsides & Challenges of Remote Work in Spain for a UK Company
Working remotely from Spain for a UK company offers huge benefits—a lower cost of living, access to Spain’s fantastic healthcare, and the chance to enjoy a better work-life balance. If set up correctly, you can take advantage of favorable tax schemes like the Beckham Law while living in one of the most desirable countries in Europe.
However, the challenges shouldn’t be underestimated. Navigating Spanish tax residency, social security obligations, and employer compliance can be complex, and mistakes can be costly—both financially and legally. Whether it’s ensuring that your employer doesn’t deduct UK tax, setting up your autónomo status properly, or choosing the best way to receive your salary, getting expert advice early can save you money, stress, and potential legal issues down the line.
The key takeaway? Plan ahead, get informed, and consult a cross-border tax expert in Spain before making decisions. A little preparation now can save you a lot of trouble (and money) later!
