ubiqueYour employee is moving to Spain. Their job does not have to end.
Someone good is leaving the country for a partner, a family or a cheaper flat. Letting them keep their UK or US contract from abroad creates tax and legal exposure for both of you. Moving them to a local contract through Ubique removes it, with no gap in employment.
Transfer completed within one payroll cycle in Ubique-run countries.
Two problems appear the day they land
Tax residency
Once your employee spends enough of the year in the new country, usually 183 days, they become tax resident there. Their salary must be taxed and social contributions paid locally. A UK or US payroll cannot do that. The employee ends up with a filing mess and, often, double contributions. The employer ends up with a withholding obligation it is not registered for.
Permanent establishment
This is the one that worries finance teams. If an employee works in a country for your company, especially one who signs contracts, negotiates deals or manages a team, the tax authority may decide your company now has a taxable presence there. That can mean corporate tax on a share of your profits, back-dated registration and penalties. It does not require an office. A laptop in a flat in Valencia is enough.
The risk is highest for sales, leadership and anyone with signing authority. It is lowest for junior individual contributors, but not zero.
The 90-day rule of thumb
Under 90 days in a calendar year, most countries treat the stay as business travel and nothing changes, provided the person has no local contract and keeps their home tax residency. Over 90 days, plan a transfer. Over 183 days, it is no longer optional. Some countries (Spain, Portugal, Germany) look at the pattern over several years, so repeat stays count.
Not a substitute for advice
Tax treaties, remote-work visas and social security agreements change the picture. Ubique's legal network in 20 countries give you the specifics for your case before you decide.
Ubique becomes the local employer. You keep the person.
A local employment contract through Ubique's entity in the destination country gives the employee a local payslip, local contributions and local benefits. Your company has no presence there, so permanent establishment risk from the employment falls away.
For the employee
Taxed once, in the right country. Pension and health cover that match where they live. A contract that local banks and landlords recognise. Same manager, same team, same equity where the plan allows it.
For finance
No local corporate registration. No withholding obligation. One invoice from Ubique in your home currency. Ubique Calculator shows the new employer cost before you agree the salary.
For People teams
Leave balances, expenses and documents stay in the same dashboard. Compliance changes in the new country arrive in real time. One account manager for every country.
No gap in employment, no loss of service
The home contract ends on a Friday. The Ubique contract starts on the Monday, or the first of the month, whichever you prefer. The person is never unemployed, which matters for mortgages, visas and their own peace of mind.
Agree the terms
Decide whether to keep the salary, convert it at a fixed rate, or benchmark it locally. Ubique shows employer cost under each option.
Recognise prior service
The new contract states the original start date for seniority, notice and severance purposes. Accrued leave is either paid out or carried over, depending on what the home country allows.
Close the home contract cleanly
A mutual termination or transfer agreement in the home country, prepared by Ubique, so there is no claim later and the home payroll stops on the right date.
Start local payroll
Registration with tax and social security, enrolment in mandatory benefits, first payslip on the local payday. Equity plan participation continues through Ubique's equity service where the plan permits.
Timeline
Ubique-run countries: contract within one business day, registration in two to five, transfer complete within one payroll cycle. Partner-served countries add one to two weeks. Start the conversation before the 90-day mark.
What it costs
Employer of Record from £499 per employee per month, plus local employer contributions, which may be higher or lower than at home. No transfer fee.
If they move back
Transfers work in both directions. If the employee returns, Ubique closes the local contract and you re-hire them on the home contract with service preserved.
Keep the person. Lose the exposure.
Tell us the destination country and the role. We will map the transfer on the call.