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Spain Summary Guide

Spain Residence

As Spain is a member of the European Union, citizens of the EU (and their family members) are free to enter the country simply by producing a passport (except for those from countries that are also party to the Schengen Agreement) or ID card. Non-EU residents must have a visa to enter Spain, with the exception of those countries that have an agreement with Spain to waive this requirement. A visa should be obtained before departing to leave for Spain. Visas may be granted for purposes of work, study or other specified reasons.

EU residents do not require a Work Permit to work in Spain. For the purposes of longer-term employment, however, and with regard to paying taxes in Spain an individual should apply for a NIE (Numero de Identidad de Extranjero – Foreigner Identification Number), which is now granted as part of the registration certificate process (prior to 2007, a separate application was required).

Within three months of coming to Spain, a Registration Certificate (Certificado de registro como residente comunitario) must be obtained from the local council (or Ayuntamiento) and provides proof of residence in Spain (details contained the Certificate include: The aforementioned NIE, name, address, and nationality).

In order to obtain a registration certificate, either a rental contract or utility bill (showing the address) must be shown.

Reciprocal healthcare arrangements will usually be in place, but a Spanish Social Security Card (Tarjeta de la Seguridad Social) and corresponding membership number should also be obtained from the nearest social security office for a stay of longer than three months, and requires the completion of the relevant application form, and the provision of passport and proof of residence in Spain.

EU residents are no longer legally obliged to obtain a Residency Card (Tarjeta de Residencia), although they are permitted to do so. As a residency card is often required to prove identity in Spain, eg for bank transactions, proof of address and so forth, it is probably a good idea to apply for one. However, in practice, authorities generally seem happy to allow EU/EEA nationals to use their NIE together with their passport as proof of identity.

Non-EU residents require a visa and a work permit, whether employed or self-employed. There are a number of different types of work permit that can be issued for periods of between nine months and five years.

Non-EU individuals intending to work in Spain in either of the capacities mentioned above must produce the required documentation when applying for a Work Permit. If an incoming worker is to be employed, evidence of a job offer (contract, letter) must be supplied.

For those who are to be self-employed, the documentation requirements include passport, criminal records certificate, medical certificate, photographs and a description of the business and the individual’s qualifications to run that business.

Non-EU residents require a visa and a work permit, whether employed or self-employed.

Several different types of work permits exist in Spain, and can either be applied for at the Spanish consulate in the individual’s home country, at the Foreigners' Office (Oficinas de Extranjeros) or at the a Ministry of Labour provisional office (Delegación Provincial del Ministerio de Trabajo).

The types of work permit as as follows:

For employees:
- Type A: Seasonal/temporary work; non-renewable, following the expiry of the nine-month term
- Type B: Tied to a specific geographic area and profession; renewable following the expiry of the one year term.
- Type C: Issued after a type B permit has been held, and has expired; no geographical restrictions, and renewable (or convertible to a permanent work permit) following the expiry of the three year term.

For the self-employed:

- Type D: Tied to a specific geographic area and profession; renewable for a two year period following the expiry of the one year term.
- Type E: Issued after a type D has been held, and has expired; no geographical restrictions, and renewable (or convertible to a permanent work permit) following the expiry of the three year term.

Type F work permits are available for workers (both employed and self-employed) who cross the Spanish border daily to work there from their country of residence; renewable following the expiry of the five year term.

Self-employed workers seeking to establish a business in Spain must prove that they are prepared to invest a significant amount (currently EUR120,000) in their Spanish venture, or that the activity being undertaken will be beneficial to the Spanish economy, for example by employing Spanish workers.

Non-EU residents must obtain a Residency Card and NIE (as well as a visa).

 
 

Spain Summary Guide Contents

 Spain Summary

 Spain Summary Chart

 Spain Residence

 Taxation of Business People in Spain

 Living and Doing Business in Spain

 Business Forms in Spain

Latest Comments

Expat Brit

Hi,

I am facing a dilemma and would like to invite any reader to advise me.

I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.

In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.

However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?

If anyone has pertinent advice on these points, I’d be grateful to hear them.

TJM @ Eindhoven, NL

T. Dog

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Jersey vs. Malta??

Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary

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Purchasing investment-link insurance for my staff

Would that count as income tax to my staff? And would that count as expense to my company?Michael

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Irish crisis - effects on small business?

Hi all,

Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.

Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...

Thanks,Kate

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Living in France contracting to Australian company

I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD.
Do I pay tax in France or Australia or both ?
Any help or guidance would be much appreciated.France move

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