Advice needed

[deano6410]

Hi guys,

I am in the process of starting two online businesses, I am based in Madrid at the moment and have been told that I can avoid tax by registering the company in England.

Is the above true?

I am looking to start up a sports writers agency and an online business turn key site.

If you have any advice for either then please let me know.

Many thanks.

Dean.

[bumfluff]

As far as I know, you have to pay tax according to the laws of the country you're registered in. I haven't heard anything about that kind of business being tax exempt here, but I could be wrong.

[Brian Turner]

I've not heard anything on being tax exempt either - though I'm not an account, nor conversant in the slightest with Spanish tax laws.

I seem to recall something about being applicable to pay income tax if you are resident in Spain for six months or more - if I remember right, a few years back Spanish authorities were chasing up Sean Connery's golf record, to see whether his passion for golfing in Spain had led to him spending more than six months in the country - because if he had, he would have been liable to pay Spanish income tax.

Anyway - I'm not sure how it stands in the UK, but my understanding is that if you live in Spain and register a company in the UK, you will indeed avoid paying tax on the company's income to the Spanish government - but will instead pay all taxes regarding the company's income to the UK government.

Presuming the Spanish authorities do not believe that you are involved in Tax Evasion on the issue - I inquired about setting my own company offshore - in the Isle of Man, where my partner has immediate family - but the general impression is that unless I actually lived in the IOM, the UK's Inland Revenue (tax office) would come down hard on myself.

So, in short, I'll be very suprised if you can avoid paying income taxes by registering in the UK.

[pueblosnet]

hi!!

if your main acctivity it's in spain, you only have to pay spanish taxes,

[discountdomains]

The UK doesn't have any tax exempt options unless you are a charity.

I think Ireland has the lowest tax levels in the EU for companies, so that may be better.

Clare