An overview of residence and tourism in Spain.

In Spain, you can reside full-time as a resident or holiday part-time as a non-resident. If you own a property in Spain and visit in total 183 days, 6 months, when holidaying during one year, then you will be classed as a non-resident. All of the owners are required to pay a yearly tax amount for the property. This tax is called the Non-Resident Tax, also nicknamed the ‘Sunshine Tax’. If the property will be rented, whether short term or long term, then you must pay a ‘Rental Tax’ instead.

A quick note on Brexit. All non-EU-nationals, British citizens included, who are not residents of Spain are allowed to holiday 90 days in the EU or Schengen zone out of each a 180-day period. This can either be in one block of time, or in several smaller stays. This is called the 90-day rule. This means that, provided you don’t do it all in one block, you can spend six months a year in the EU. You cannot spend 90 days in Spain and then 90 days in another EU country. You must leave the whole Schengen area in order to ensure you don’t fall foul of the law.

On the other hand, if you spend more than 183 days, 6 months, residing during a year in Spain, then you will be considered a Spanish resident. Additionally, if you earn an income whilst being in Spain, you could be classed as a fiscal resident and be liable to pay Spanish income tax from your worldwide income and assets. Therefore, you would need to file a Spanish tax return.

Both non-resident and full-time resident property owners have to pay the IBI, Impuesto sobre Bienes Inmuebles, tax, which is similar to a local council tax. Depending on where you live in Spain, the IBI tax will be called the SUMA tax.

What types of resident applications are there though? There are several residency methods to choose from and these include:

• The work permit (employed / self-employed) - Allows non-EU/EEA citizens to live and work in Spain.

• The Golden Visa - Residency through investment.

• The Family reunification permit - The immigration procedure through which a non-European citizen with a residence permit in Spain can bring their relatives to the country.

• The Non-lucrative visa - Residency in Spain without engaging in any remunerated activity.

• And The Schengen visa - Allows tourists to visit Spain, and all the other countries in the Schengen Area, for periods of up to 90 days.

Applying for Spanish residency. 

Relocating to Spain requires you to understand how Spanish laws, taxes & resident applications work compared to your native or previously residing country. Your Spanish residency card can be:

• Short term. 

• Long term. 

• Permanent. 

European Union citizens will obtain a green card with their personal details and no photo. Non-European Union citizens will obtain a blue/pink card with their personal details as well as a passport photo on it. 

Proof of income. 

You are required to provide proof of income in order to obtain a Spanish Residency. You will need a sufficient level of income and indicate that you will not become a financial burden to the state. 

Proof of medical cover. 

If you are under pensionable age you will need to show proof of a private health insurance policy (without excesses). However, if you are a pensioner then you may be entitled to receive state healthcare. 

What do I need in order to gain residency? 

There is a process for obtaining a Spanish residency. There are four important items you will need to secure if you wish to live in Spain on a permanent basis. These include: 

• N.I.E. (Número de Identidad de Extranjero). 

• Residencia, or Spanish residency card - T.I.E. card (Tarjeta de Identidad de Extranjero). 

• Padrón (Empadronamiento). 

• S.I.P. (Sistema de Informacion Poblacional) health card. 

The application process. 

The process of applying for residency in Spain depends on your current working status, if you are employed, a pensioner, unemployed or self-employed. For a full brief of the journey to obtaining residency in Spain, please do contact PSI Consultants and our consultants will guide you through the whole process.

Número de Identidad de Extranjero - N.I.E.

N.I.E. is an abbreviation for Número de Identidad de Extranjero, which translates as Tax Identification Number for Foreigners, or Foreigners’ Identification Number. The Spanish government have connected the N.I.E. number to residency, where the N.I.E. appears on the Tarjeta de residencia (residence card), and to social security in Spain.

The N.I.E. is your all-purpose identification and tax number in Spain. You need it for everything that involves a tramite or official process in Spain. For example, you will need an N.I.E. number to buy a property, buy a car, get connected to the utilities and, most importantly as far as the Spanish state is concerned, pay your taxes. Without an N.I.E. number, the Spanish tax authorities are unable to assess or process annual tax payments such as income tax (IRPF), and the annual wealth tax (Patrimonio), both of which are declared by residents and non-resident property owners.

The number itself is made up of an initial letter followed by seven digits followed by a verification letter. The initial letter is an X before July 2008 and a Y afterwards. It is issued by the National Police of Spain. The N.I.E., which in accordance with Article 101 of the Rules for foreigners in Spain, was approved by Royal Decree 2393/2004 on December 30, 2004, is required for the purchase or sale of real estate, vehicles and boats, or in order to work or study. There are many other transactions that require the parties involved to possess an N.I.E. Number. In some cases, alternate identification, e.g., passport number, may be used. The N.I.E. number itself is issued on a standard A4 green page, with the recipients full name (as written on the passport used during the application process), their place of birth, their nationality, and the number itself, along with a stamp and signature provided by the National Police.

Who needs an N.I.E. in Spain?

• Any foreigner who becomes a resident for tax purposes in Spain needs an N.I.E. number in Spain.

• Any non-resident foreigner who buys property in Spain. If a couple buys a property in Spain together, and they register the property in both their names, then both of them must obtain an N.I.E. number in Spain.

• Anyone who wants to work in Spain, or start a business in Spain.

When do you need to have an N.I.E. number?

If you are buying property in Spain, then you need to have an N.I.E. number by the time you sign the deeds of purchase before a notary, an event known in Spanish as the escritura.

Getting your N.I.E. number in time for escritura means applying at least 1 month beforehand if you are applying in Spain, and at least 2 months beforehand if you are applying via a consulate abroad. The actual time it takes depends upon where you apply, and the time of the year. You might be able to get an N.I.E. number in person in Spain in a couple of days, but it could also take weeks, so best allow yourself plenty of time.

How do you apply for an N.I.E. number?

The first thing to understand is that dealing with the Spanish bureaucracy is often perplexing, not to mention a frustrating affair. The way they interpret the regulations in Andalusia might differ from the way they interpret the same rules in Catalonia. In one area, for example, Barcelona, you need to book an appointment online in advance to request your N.I.E. number, then spend hours waiting in a queue, whilst in other areas you can just turn up and get everything done in half an hour.

What is required in order to obtain an N.I.E. number?

To obtain a Spanish N.I.E. number you will need to schedule an appointment at your closest police station that deals with N.I.E. numbers. You will need to organise all the necessary paperwork, including:

• You must print out this N.I.E. number Spain form (EX-18), complete it and take two copies with you to the appointment. Only the Spanish N.I.E. form is valid and not the English N.I.E. form.

• You must also have an original and a photocopy of a document that explains their reason for wanting an N.I.E. This can be a property purchase agreement, mortgage contract, employment contract or any other official document that certifies you have financial or professional interests in Spain.

• Bring your passport, both the original and photocopies and some passport-size colour photos.

• You will have to pay taxes for your N.I.E. number. You need to fill in a 790 online form, print it, bring it to a bank and pay.

Obtaining the Residency card - T.I.E. card.

A key component of how to get Spanish residency is getting your Spanish residency card (or residencia). This is the document that officially registers you as living in Spain. It is issued at the appropriate Foreigner’s Office or police station depending on where you live. In many areas, you need to obtain your residencia before applying for your padrón, but this does vary. You can usually obtain your residencia on the same day that you apply, providing you have all the necessary paperwork. What this consists of varies from region to region, so always check beforehand.

However, usually, this consists of:

• N.I.E., or your foreigner’s tax number.

• S1 form if you are a pensioner or proof of Spanish health insurance if not a pensioner.

• Proof of fee payment for the residencia application.

• The completed residency application form.

• Passport.

• Two passport size photos.

• Proof of income.

• The recommendation is to always bring the original and a copy of each document in the list above.

You must be able to demonstrate that your life in Spain is financially sustainable. You will be expected to show bank statements that cover the previous three months and that you have a monthly income of above €800 per person. If you have come to Spain to work then your employer should provide you with un certificado de vida laboral – which is proof that you have worked here.

If you are under pensionable age, then you must have proof of Spanish health insurance if you are not going to work. The insurance must be fully comprehensive and you may also need to show proof of payment. The convenio especial enables you to pay into the National Health System on a monthly basis. However, you need to have been a resident here for a continuous year to be eligible. The convenio especial does not cover the cost of prescriptions, health transport services or health cover when in another EU country.

If you are a member of an EU country then your residencia does not need to be renewed. If you are not, then renewal is every five years.

N.I.E. vs T.I.E.

First of all, A N.I.E. (Número de Identificación de Extranjero) is your Foreign Identity Number that is assigned to you by the Spanish Consulate in your home country. You will receive this when you get your Visa; the N.I.E. is yours throughout your stay in Spain. The format of the number looks something like this: X1234567-Y

The T.I.E. (Tarjeta de Identidad de Extranjero) is your Foreigner’s Identity Card which allows you to stay after your Visa is expired. Likewise, if you decide you want to stay in Spain longer you will be able to renew the T.I.E. instead of going through the gruelling visa process again. Hence, the information, like your address, the school where you are working, and the period of validity changes every year. Above all, the time at which your card is valid is usually going to last from when your contract starts until the end of the contract. After that, you have ninety days to renew the card without having to get a new visa.

Applying for the T.I.E.

You have 30 days to apply for the T.I.E. once you arrive in Spain to apply for the T.I.E.

Legally, you must have the T.I.E. to stay in Spain once your visa has expired. Consequently, if you plan on travelling around Europe once your visa expires, they will not allow you to re-enter Spain unless you have a valid residency card.

You have 60 days prior to the expiration of your T.I.E. and 90 days after it expires to start the renewal process.

You do not have to have a brand new card before those ninety days are up, you just have to show that you have been approved to continue living in Spain and that you have applied for a new card.

When will I receive my T.I.E. card?

It takes 30 days for the card to be processed and made for you to pick up. When you go to your first appointment and turn in your paperwork they will give you a paper that you must bring back with you to pick up the card. On the paper, it will have the earliest date you can pick up your T.I.E.. Above all if you’re renewing you will need to bring your old card, your passport, and the letter that says your card is being processed.

Obtaining the Padrón.

The Padrón is short for empadronamiento, and it is a certificate given to justify that you live in Spain on a more or less permanent basis. This allows the local government to calculate how many people are living in an area and helps them to petition for grants to improve local facilities.

Officially, all residents in Spain are required by law to register on the padrón. The padrón is simply a way for the town hall to know how many people live in their area, without entering into investigations as to a person’s official residence status or financial affairs. In addition, the information provided at registration is confidential and protected by data-protection laws.

The Padrón is essential for many daily aspects of life in Spain and can be obtained from the local Town Hall. Each office asks for different paperwork in relation to this and it can sometimes be a frustrating task. We can verify the paperwork required and provide a translator to accompany you to the Town Hall to obtain this certificate.

It is obligatory for anyone staying in Spain for more than six months to obtain a Residencia and a Padrón. The Padron enables the town hall to do a headcount on the number of permanent dwellers in the area and therefore petition for grants to maintain and improve the infrastructure.

You also need to keep on this register if you wish to use, amongst others, the local school facilities, medical facilities and many times, if you wish to apply for facilities offered via Social Security. 

The Padrón Certificate is needed to register at a health centre and also for a variety of other institutions including getting children into school and a car registered. The Padron has a validity between 30 – 90 days, however only needs to be updated when you actually need to show it to the authorities.

When for you need a padrón?

You also need to keep on this register if you wish to use, amongst others, the local school facilities, medical facilities and many times, if you wish to apply for facilities offered via Social Security.

Residents who can demonstrate the requisite time on the Padron, can also receive benefits or a cash grant when getting married to another resident or may qualify for financial assistance for any children they have had here in Spain.

By registering on the Padrón, you will also help the Municipality to receive more financial assistance in the form of subsidies and grants from provincial, regional and government authorities for the provision of services. Those who register for the same, have the right to vote in local elections if registered on the ‘Padron’.

You do not have to own your property in order to register, just have an address where you habitually live, no matter whether you are the owner; you rent, or live with family or friends. 

The process for obtaining the Padrón.

The Padrón is the certificate that enables you to apply for a S.I.P. (health card) and other local benefits within your town, such as enrolling your child in a local school, obtaining a bus pass, or using the local library. To obtain the three-monthly certificate you need to register, which you can do at a town hall office.

You will need to take with you:

• Proof of where you live e.g. a rental contract or title deed.

• Passport.

• Residencia, if your region requires that you apply for this first.

• Your most recent water bill and electricity bill (now asked for by some town halls).

Once you are registered, the certificate is valid for three months. After this period, you can return to the same office with your passport and previous padrón and they’ll issue a new one. You should renew your padrón at least every five years in order to ensure that your name is kept on the register. Town halls may contact people who have not had their certificate reissued for years and ask them to reaffirm their presence in the area. This is a quick process and helps them to confirm who exactly is living in the town.

How do I register on the padrón?

You don’t have to own your house to register, just have an address where you habitually live, no matter whether you are the owner, you rent, or live with family or friends.

Nor is registration a long-drawn-out process. Simply go to the padrón office of your town hall and fill in the form they provide. Take along official identification, such as a passport, and also your N.I.E. or residence certificate/card, a recent utility bill in your name, and the deeds to your house or a copy of your rental contract. Although you may have to return to collect your certificate, the actual registration is completed all on the same day.

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