Question
We are a married couple with UK passports looking to move to Spain. We have a limited company from which we take dividends. Is this allowed on an NLV and once we have spent our 183 days in Spain and are tax residents, where/how would we be taxed on our dividends?
Answers
These are the answers of some Facebook group members:
“There are two separate issues.
To answer your question, there is no law preventing you from obtaining dividends from a UK Ltd whilst you are on an NLV in Spain. However …
if you intend to rely on those dividends as your source of income on your NLV application, that may be rejected.
When you say “we have an Ltd”, you need to be clear about whether that means you own it (you’re the Shareholders), or that you run it (you’re the Directors). If the latter, than the company becomes tax resident in Spain, along with you. So both you and the company are liable to pay tax in Spain.”
“You can absolutely use the dividends for the nlv, any source of money is good, you will be asked to prove you are only taking dividends and not working even online. The company does not become a tax resident as you are taking dividends i am hoping you have s manager/shareholder? Then because of this the company will be classed as a fixed property and the fact it runs with staff it cannot be made to alter from Spain.
The usual tax returns apply both uk and Spain with dividend having to be declared”
“Also be very careful about your work status, if you own a ltd company anf only take dividends as a salary and not taking paye as a way to get around the no work aspect of the nlv then be prepared for some questions and proof you carry out ko work for said company.”
