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Since July, I'm working remotely from Spain for a French company under a French contract. I'm Spanish, I've never lived in France. All of the salary related taxes are payed to the French government.

I know I'll have to do some kind of income tax in Spain, but I'm not sure if my situation is legal or what kind of taxes I'll have to pay.

Update

These are the links to the Double Taxation Treaty between Spain and France

French

Spanish

From what I understand, Article 15 is what affects me. Truth is, Legal text is beyond my capacity, I don't understand its meaning even in my own language, but I tend to interpret that I shouldn't pay taxes in France. I'll definitely look for legal advice.

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    This will be handled by the double taxation treaty between France and Spain. If any benefits are involved that would become a bit murky. I would go to an accountant who deals in taxation matters in both France and Spain to get an opinion. – DumbCoder Sep 15 '17 at 9:11
  • Thanks for pointing me to the Double Taxation Treaty, I've updated my question – Maragues Sep 15 '17 at 10:28
  • That doesn't help. You need to get advice from a person dealing in these legal matters specifically. The documents I am assuming are in French and Spanish. Not sure if there are users here who understand legal language written in both Spanish and French – DumbCoder Sep 15 '17 at 10:31
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    I haven't found them in english, unfortunately. I've already appointed a meeting with a professional counselor, I'll answer my own question after I talk to him – Maragues Sep 15 '17 at 10:38
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    To answer the simplest question: Yes, you are allowed to live and work anywhere in the EU, and those two do not need to be in the same country. Of course, the downside (as you discovered) is that two sets of law apply, but both have to respect your EU rights. – MSalters Sep 20 '17 at 12:13
3

After a meeting with a financial advisor, these are the important points

  • I have to file my Income Tax Return only in Spain, my country of residence
  • My French employer shouldn't deduce taxes from my net salary. I'm not sure if any tax or only those related to social security, national taxes, etc.

I hope this helps someone else

  • Note that until now there is no withholding of taxes in France (there are mandatory contribution to the health and other insurance systems but that's something else). It should be introduced in 2019. That should in itself change the applicable rules but you might need to monitor the situation to make sure your employers applies the rules correctly. – Relaxed Sep 20 '17 at 12:40
  • Sorry, I mistyped in my earlier comment, it should have read “That should not in itself change the applicable rules”. – Relaxed Sep 20 '17 at 13:48
  • Thanks for pointing that out. In Spain they withhold the taxes from your salary, and in a yearly review they decide if they withholded too much or too little. – Maragues Sep 21 '17 at 10:57

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