Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

US citizen working for US company as a telecommuter in Spain

Asked by: Emily A - 3 April, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 I have requested to work remotely (aka telecommute) for my company for a 6 month period. I am currently employed out of the Colorado office, my company is headquartered out of California, and I would be living in Spain.

My company has told me that I cannot telecommute from Spain is because if I am working from a foreign country for more than 8 weeks, there are tax and worker compensation laws that require my company (a corporation) to be registrerd in Spain.

In my case, I would still be an employee of the Denver office, my paychecks would still be direct deposited into my bank account in Colorado, and therefore I understand that the applicable taxes would still be Federal and State of Colorado taxes. I will not be performing any work for a Spanish client, and all of my work will be still be US-based work.

Does my employeer need to pay any taxes in Spain in this scenario?

Thank you!
Answered by: Robert Kowalski - 5 April, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear Emily,

Not being a CPA, and especially one that specializes in international taxation, I would not be able to answer your question as it is asked. In fact this question might better be addressed to an attorney who specializes in international labor laws.

With that being said, you might want to consider a different approach: if you form a company (such as an LLC), through which you would provide a service to your US employer, your physical presence in Spain might not be relevant anymore since you are not an employee, but a subcontractor working though a separate legal entity (an LLC).

If you like run it with your employers to see what they think about this idea.

Comments:

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment