Live in Iceland while having a job in Spain

By Mark 18 May 2022

Can I work remotely for a company in Spain while being in Iceland?

It is usually doable, but we recommand to check the following key points first:

  1. The company must have a registered office in Spain.
  2. You must have a valid Spanish ID (passport) or your ID card.
  3. The company must have a valid Spanish tax number.
  4. The company must have a valid VAT number.
  5. You must be registered with the Spanish tax office.
  6. The company must have a bank account in Spain.
  7. The company must have a Spanish address for the registered office.
  8. The company must have a Spanish address for the office.
  9. The company must have a Spanish address for the VAT office.
  10. The company must have a Spanish address for the tax office.
  11. The company must have a Spanish address for the bank account.
  12. The company must have a Spanish address for the working address.

How to live in Iceland and find remote work in Spain?

Finding remote work in Spain if you are located in Iceland might be difficult, therefore we recommend you to move to Spain and work remotely. In this post we’ll share our experience in finding remote work in Spain from Iceland.

We’ve been living in Spain for about a year and we’ve found a remote job in Spain that is just perfect for us. We’ve worked remotely for more than a year now and we can say that it is one of the best experiences we have had.

How a company in Spain can send my salary in Iceland?

When working remotely for a corporation in Spain, you salary can be send to Iceland but it will be deducted from your bank account.

This is a question that I get asked quite often, and I am going to try to explain it in a way that is easy to understand.
The problem is that many people do not understand the concept of a company in Spain.
So let’s start with a definition:
A company is a legal entity that is created for the purpose of conducting business.
A company can be a sole proprietorship, partnership, or a corporation.
In the case of a corporation, it is also possible to have a limited liability company (LLC) and a limited liability partnership (LLP).
When a company is created, it is registered with the Spanish Registry of Companies and the Spanish tax authorities.
The company is a legal person that can own property, and can hire and fire employees.
The company can also have a legal personality and can sue or be sued in court.
The company is a separate legal entity from its owners, shareholders, and employees.
In other words, the company is a separate legal person that can exist independently from its owners.

So, what does that mean for you?
The company in Spain has its own bank account, and it will be the one that receives and pays the salaries.
The company in Spain will also have its own tax number, and it will be the one that pays the taxes.

Where to pay my taxes when working remotely in Iceland for a company in Spain?

If you are working remotely in Iceland for a corporation established in Spain, taxes could seem complicated but in fact , it’s quite simple.

In this article we will show you how to calculate your income taxes in Iceland, and how to pay them.
We will also show you where you should pay them and how to get a refund.
Note: This article is based on the 2018 tax year.

What is the tax in Iceland?
The tax in Iceland is based on your income and the amount of tax you pay depends on your income.
In 2018, the income tax in Iceland is 25% on the first €12,000 of your income.
After that, the tax rate increases to 28%.
The tax rate is applied to your income from all sources, including:
salary
wages
profit
bonuses
interest
dividends
rent
sales
self-employment income
If you earn less than €12,000, you are taxed at 25%.
If you earn €12,000 or more, you are taxed at 28%.
If you are a single person, you are taxed at 25%.