Remote work for US company while living in Spain

[jermike33]

I’m debating moving abroad to Spain as my current job now allows me to be fully remote.

Is it possible to be a W-2 employee for a US company while I live abroad? Or will I have to convert to a 1099 independent contractor?

Since my income is from a US company and Spain would have no knowledge of my income then there should be zero tax paid in Spain, correct?

Also if I can remain a W-2 employee, then could I decline employer medical coverage? I will have my own private insurance in Spain, which is way cheaper than what I currently pay in the US.

Update: Thanks everyone for the information!

It seems that rather than paying taxes in the US I will need to pay taxes in Spain first and since Spain’s taxes are higher there may not be any additional taxes to pay in the US due double taxation treaty. Except for California who says they are not part of that treaty and will still charge full state taxes.

 

[emily120709]

@jermike33

Since my income is from a US company and Spain would have no knowledge of my income then there should be zero tax paid in Spain, correct?

I am not aware of any country where you can live without owing taxes. There may be some countries where you can, practically speaking, get away with tax fraud. But that's not exactly ethical.

 

[daynadear]

@jermike33 I work for a global company but is based in the us. There was a person who had moved up to Canada during the pandemic. They told this person they had to move back to the us since they were on us payroll. Besides the taxes your company may not legally be allowed to pay you in another country?