Go-to-Spain ::: Article13: Residency & Tax

If you own a property in Spain, it is important to understand the tax liability. You will be classed as a resident of Spain for tax purposes if any of the following criteria apply:

1. If, during one calendar year, you spend more than a total of 183 days in Spain - whether in one visit or several visits. You are deemed to be resident for tax purposes on the morning of the 184th day. (This applies whether or not you have taken out a Residencia - formal residence permit). If you refute that you are tax-resident, you will have to prove that you have spent 183 days in the calendar year outside Spain.

2. If it is your intention to live in Spain indefinitely once you arive, you will become tax-resident the day after you arrive. If you have a Residencia (see section on 'Residence Permit' below), this shows your intention to stay and it will then be difficult to disprove that you are tax-resident.

3. If your spouse lives in Spain and you are not legally separated (regardless of how many days you spend in Spain)

4. If your “centre of vital interests” is in Spain. This is fairly new, and hardly ever applied. The interpretation is confusing - but may be applied if, for instance, you have a business in Spain, even if you spend more than 183 days per calendar year outside the country.

If you live on a boat within 12 nautical miles of Spain, the above rules apply in determining whether or not you are tax-resident.

As a tax-resident you are liable for: income tax, capital gains tax and inheritance tax (succession duty) - all of which is calculated on your worldwide assets. There are, of course, other tax liabilities such as IVA (VAT), Basura, Renta, gift taxes, etc. However, gift tax and inheritance tax are paid by the recipient rather than the donor. Inheritance tax can be very high, especially if it is a nephew or neice who inherits. (The further removed the relation is - the more the tax). As in any country, the taxation laws are complex. It is imperative that you take good financial advice and make a Spanish will as soon as you purchase a property in Spain.

Information here on
NIE number (identifies you for tax purposes in Spain)

RESIDENCE PERMIT (Residencia)
Obtaining a residence permit in Spain is necessary for anyone planning to live indefinitely, to study, or to work in Spain. They must apply for a residence card within 15 days of arriving in Spain. Before arriving in Spain it is best to contact embassies and consulates in Spain or in your own country. If you are planning a short stay (on a short-term contract perhaps) then you will be issued with a temporary residence card for the period required. Children under 18 years of age can be included on the parents' residence card. The Obtaining a residence permit in Spain

European Union Citizens:
The legal requirements for EU citizens intending to reside in Spain are as follows:
EU citizens no longer need either a visa or work permit to establish themselves in Spain. They are allowed to remain for six months, by the end of which time they should be in possession of a residence card, (Residencia). Obtaining a residence permit in Spain, you must either have a job, or have proof of sufficient funds to support yourselves and your family. A fiscal number (NIE number in section above) also needs to be applied for, but this is a mere formality, as, in the case of foreign residents, the numbers are identical.

Non-European Union Citizens:
Non-EU citizens, planning to live in Spain, need to apply for a work and residence permit (the worker), or a residence permit only (non-workers or dependants).

Citizens from the United States, and most South American countries, are allowed to visit Spain, as tourists, without any permit or visa, for a maximum of 90 days out of 180. Most other countries will require a tourist visa.

Work and Residence Permit:
Obtaining a residence permit in Spain to work, (Residencia): The employing company in Spain must first process the application, on behalf of the employee, in Spain. Once the authorities in Madrid have stamped the official job offer, this is then passed to the employee in the country of origin, or last legal residence, so that the visa application can be processed at the nearest Spanish Consulate. When the work permit is granted, the authorities notify the hiring company in Spain, as well as the Spanish Consulate where the visa has been applied for, and the employee can return to the consulate to collect the visa. The employee may now legally reside and work in Spain, even though the process is not yet complete: it may take a few more months and two trips to the police station before the final work and residence cards are obtained.