Due to the recent law change, residencia cards are no longer issued to EU citizens. Under the new system, an applicant will receive a residencia certificate incorporating their personal details. Non EU applicants will still be issued with a Residencia card.
Anyone legally working, either as an employee or in a self employed capacity, is automatically counted as a Resident but must still apply for the certificate of residencia. Those who are not working but live in Spain for more than 183 days in any one period throughout the calendar year, or who wish to be regarded as Resident will need to apply for the certificate of residencia. They should also complete a Spanish Income Tax Declaration every year and pay Spanish Income Tax on world wide income. Due to a new Law passed in 2012, they will also be obliged to submit an ASSET DECLARATION for any assets over 50.000 Euros in any of the 3 groups OUTSIDE OF SPAIN. The 3 groups are: 1) Bank Accounts; 2) Investments, Bonds etc.; 3)Property.
If you are selling a property, the Notary Office will need proof that an individual is a Resident, and therefore subject to different rules in respect of Capital Gains Tax payments. This new certificate of residence is not sufficient proof on its own. You will need to obtain a certificate of Residence for Tax Purposes from the Tax Office (Hacienda). This will only be granted if you have submitted a Spanish Income Tax Declaration in the last year.
Requirements to Apply for a Residencia Certificate
You will need the following:
These documents are then presented to the Comisaria in Denia/Benidorm, together with the payment form – Modelo 790. You will be issued immediately with your certificate of residence.
If you have a form S1 from the DHSS in England, you must take this to the Seguridad Social office in Denia, together with the residencia certificate, to register on the health service. The form S1 may be for temporary cover, usually up to two years, for individuals taking early retirement or looking for work. Or it may be for permanent cover and is issued when the age of 65 is reached for men and 60 for women.
Holders of an S1 will receive a temporary medical form, which should be taken to the health centre local to your area. Eventually you will then be issued with the plastic SIP card.
The application for the residencia certificate must be made in person at either Denia or Benidorm. If you wish, Hot Property can recommend a lawyer to complete the residencia application form and prepare the paperwork/ copies on your behalf. The charge will be 50,00 Euros + IVA.
Please remember that once you have obtained your Residencia certificate you should exchange your British Driving Licence for a Spanish Licence, again your lawyer can assist with this process.
If you are in possession of the previous residencia card, then once this has expired, you should apply for the new certificate of residence. You will not be reminded when your Residencia needs renewing, so it is up to you to check.
The new certificate of Residence is a permanent document and will not need renewing.
Advantages/Disadvantages of Being a Resident
Asset Declaration for all assets OUTSIDE SPAIN with a value in any one of the groups of more than 50.000 Euros (see above)
As a Non-Resident each direct heir will receive a free allowance of 15.956,57 Euros and have to pay Inheritance Tax as per the Tax Office tables. As a Resident, each direct heir residing in the Alicante Province will receive a free allowance of 40.000 euros. Furthermore, a 99% discount in the Inheritance Tax payable if they can prove they were resident in Spain during the last 5 years (with the Padron Certificate from the Town Hall)
On the sale of your property:
Should you require further advice on taxes, we recommend you seek the assistance of a registered tax adviser and Hot Property can recommend one, on request.
Rules regarding Residencias are regularly changing and, whilst we endeavour to amend our information accordingly, Hot Property advise you check the current position regarding Residencia certificates if you are considering applying for same.