I have a question. I am on permit B working in a permanent position for the last +4 years. I would like to if it is possible to keep my Swiss address, pay my krankenkasse etc but take flights regularly to Spain to be more with my family. My current company has some restrictions with the data being showed up in other countries, but perhaps I found a new one who can deal with it.
So, where is the line where it dictates where you are living and where you should pay your taxes? I would like to do what I mention but probably I'll be a month or two fully in CH then back to Spain just for 5 days (including weekend) a week and two days in CH with flights.
You are taxed on worldwide assets and income where you tax resident.
You are taxed where you physically perform work, even if you are not tax resident.
If there is a double taxation agreement between the two countries in which you work (Spain Switzerland almost certainly have this), you get a tax credit for taxes paid in the other country.
It would be the other way around, no? I will get my salary and everything as I am working/residing in CH but partly (or mostly to be honest) living in Spain.
Perhaps I need to do the double taxation, which I guess I'll be ending up paying more taxes that if I am just working and living (100%) in CH. But then, I wonder, what's the limit? what if I don't have regular periods in and out of CH, what if I work 2 days in CH and 3 days in SP, I should pay both countries, isn't it? A pro-rata based on the time spend on each place? I am not sure, why I can travel to Spain for 3 months no problem and get my salary and everything normal, but If I go more regular then I am considered to be living there instead of visiting... it is very confusing
Well... if there is lockdowns and they close the airports and road frontiers then yes, but I am planning to start this on April/June, I believe Covid won't be that critical during that period... :\
The objective of the permit B is that you live in Switzerland, which in practice means 365 days / 2 ~182 days per year. If you plan to be 5/7 ~ 260 days per year in Spain, the conditions of the B permit are not met. Probably no one will ever find out. However, I have no idea what happens with health and accident insurance.
The line you're asking is not in the law, it is on document you sign and give to your employer. Legally, your employer is liable for calculating, discounting and paying your income tax. The tax rate is based on what you tell your employer in the yearly form you sign declaring an address, civil status, religion, number of kids, etc. If you have a B permit, it means you have residence in CH, therefore pay taxes in CH.
In the end, it would be simpler if you worked as freelancer. Employer will love it because no payments for social deductions, illness and accidents insurance, etc. Also, if you work from outside CH, no VAT.
This is not going to work, it is as simple as that.
First and foremost there are tax consequences for employers who employ external employees which can result in them having to pay corporate taxes in Spain. I would be surprised if the legal eagles will be happy to sign off on that.
Next is your tax status - you will be considered resident in both countries for tax purposes, so you can expect to have complex tax filings and possible consulting fees.
You will not meet the criteria to retain your B permit and as a consequence of your tax status, it will be canceled. Remember the burden of proof is on you.
Either established a Swiss business that takes on a Swiss client and outsource the work to Spain or establish a Spanish business that provides of shore services to Switzerland. Those are the most likely options to be considered by a potential Swiss company.
This is correct. I forget the threshold number of days per year before the employer is tax liable; off the top of my head it's around 25 days. My advice would be to add a week here and there to pad his holidays but to otherwise forget his plan.
I was thinking about what if the company delegate him for the days to work in Spain. Surely it's possible to meet all residence conditions when one is officially delegated to temporarily (even months) work abroad.
It would be a joint decision between the revenue authorities in both countries, not expect either to give up in such a situation. That's why I said it would mean complex submissions and possibly consulting fees.
From personal experience, look closely at the rules in Spain AND in Switzerland governing where you are deemed to be a resident and a tax resident. Less than 183 days per year living and/or working in Switzerland could cause you some issues, regardless of any dual taxation arrangements.
On the paid advice of multiple immigration solicitors and financial advisors, and as a B permit holder in Switzerland, I am VERY careful to keep my working and non-working days in Switzerland greater than the days I'm travelling & working in the UK or USA, or living in my shack in France, and I try to not work in France at all when I'm there - that country has a number of tests for determining tax residency that can over-ride the "standard" 183 day rule for physical presence, inclusive of one that looks at which country you generate revenues from.....
Granted, France isn't Spain, but my point is that expert advice specific to your own situation might be a good plan to avoid hassle.
So, now I get that I need at least 183 (more than half a year) to keep my permit B, but then, I wonder, if I do 2 full days a week and one-half day, does it count as 3 days a week (because I am leaving on that 3rd day)? if so, then I can come and spend another 30 days of my holidays fully in CH... but all this trouble just to be "present" here in which sense? how do they know I am here or there? how can I prove to them that I am or not hear more than I say etc?
Regarding the double taxation is clear to me that I'll be spending more in Taxes than just be in CH, but at the same time, here I could get a +160k a year easy, whereas in Spain, the same job will give me 40/50k a year, so, I guess it is worth it the trouble and extra consulting fees to make this happen, isn't it?
The other thing I read is to make yourself a contractor, then it would be easier or even cheaper? that I have no idea :\
Sorry for coming back to the days a week here or there and how they track you (which is not clear to me). What if I leave on Sunday night from Spain and arrive here Sunday, stay part of Sunday, Monday, Tuesday, and leave Wednesday morning. This every week. I did work and stay in CH 4 (2 partially) days in a week, that would be 4 CH 3 SP, hence, Permit B and everything else is ok, just double taxation and consulting fees for the complex situation, isn't it?
How is that? I am party 2 days in both countries (Spain / CH) and 2 full days in CH and 3 full days in SP. How does this translate into 4 CH 4 SP (a week of 8 days)? Do they look at the times you enter to leave the country to count it as a day or not?
If what you say is correct, then I'll be happy to do that and spend an extra week at some point to make the 50% 50% more than 48% SP 52% CH
OP you would prefer to live mostly in Spain but just get the Swiss salary. Why do you bother about permit? You can easily get it back if you wish to relocate full time to Switzerland. For the commuting scenario you can ask for permit G.