Taxes Spain or Netherlands

Member since 08 February 2017

deppykerMember14 May 2023 18:41:16

Hi everyone, I really appreciate your help in advance! I am working for a Netherlands based employer with the only entity in NL. For personal reasons Im moving to Spain this summer and I want to keep my job. My employer is looking into the options for me to either stay on payroll or go freelance for them. Can you please advise me on:

Can I still have the same employer contracted by them on payroll but live permanently in Spain, hence more than 183 days? If so, where do I pay taxes, social security, pension plan, etc?
In that case, when do I need to stop my health insurance etc? Before deregistering in NL or after I move to Spain?
Is it legal to be employed by a NL based company but work permanently from Spain? If so, I need to deregister from the Netherlands and register as a resident in Spain? Then I guess I need to stop my health insurance in the NL?
if I freelance for them in order to keep my job, can I have them as my only client? Is that legal in Spain?
last question, is there a link to help me calculate my taxes in Spain if I get the same contract and salary from my Dutch employer?

mega thanks in advance, I really appreciate you reading about my situation and helping me figure this out!

See also

The tax system in the Netherlands - Guide
Tax on property in Netherlands - 3 Replies
Taxation in the netherlands as a German expat with an UK income - 2 Replies
Income from property in the Netherlands - 3 Replies
Self employed in Netherlands Tax Questions. - 8 Replies
Is US SSDI (Disability benefit) taxed in the Netherlands? - 4 Replies
Double taxation expirience - Italy - Netherlands - 2 Replies

Cynic UK/Netherlands Expert

Member since 15 September 2015

CynicUK/Netherlands Expert15 May 2023 10:10:18

8078

Hi and welcome to the Forum.

I'm not a tax expert or advisor, what follows is based on my own experience and what others have told us here on the Forum. I'm assuming you'll be working from home in Spain. You're an EU citizen so have the right to live and work anywhere in the EU. I don't know if the Dutch have a cross-border working agreement with Spain as they do with those countries with a direct border (Germany/Belgium) - my wife's sister is Dutch, lives in Germany, works from home for a Dutch bank and still uses the Dutch medical system and schools for her kids; it's definitely worth asking the authorities in Spain.

Where you are assessed for taxes is decided by where you are deemed resident; so if you leave the Netherlands to live in Spain, then you will be assessed by the Spanish tax authorities from that date. The 183 days come into play if you reside in more than one country.

I suspect that your employer will come to the conclusion that it will be better for you to work as a freelancer as there are employer and employee payroll taxes (including medical insurance contribution and pension) that will still have to be paid in the Netherlands if you are on the payroll with a Dutch work contract/CAO. As a freelancer, it will be up to you to set yourself up in Spain so you pay whatever contributions (tax, pension, medical etc). You also need to consider the liability you will incur should your employer dismiss you or cease trading.

With regards to your specific questions; my answers are assuming there is no Dutch/Spain cross-border agreement in place:

No, a Dutch employment contract is not valid if you live in Spain.
You are required to notify the Gemeente where you live when you leave the country; your medical insurance will cease on that date, so you will need to set something up in Spain.
I don't know, but I don't see why not provided you have set yourself up as a company in Spain.
I don't know, that's a Spanish thing, I know the Dutch don't allow it the other way around.
There are plenty of online tax calculators; this link will take you to one such offer. I make no claim to its authenticity.

Anyway, I wish you the best of luck and maybe somebody will come up with something new.

Cynic

Expat Team