Andalucía has become one the top 3 regions in Spain with the least taxes.  On the 21st September 2021, the regional president, Juanma Moreno, announced the scrapping of Wealth Tax in Andalucía.

The tax has accounted for just 0.6% of income for the regional government (€95m annually), and Moreno believes the change will have a very positive impact on increasing revenue by attracting investment.

A large number of the highest wealth tax payers left Andalucía in 2020, resulting in a loss of income of estimated at around €18m (€3.5 million euros in wealth tax and €14 million in personal income tax).

The president is hoping that removing Wealth Tax will encourage people with high income who spend long periods in Andalucía, but are not tax resident, to make it the region their permanent home and pay tax there.

The Spanish ‘Golden’ Visa for Property Investors offers residency to individuals who make a real estate investment in Spain of €500,000 or more.  The Golden Visa scheme has been in existence since September 2013 when legislation for the ‘residency by investment scheme’ was passed.  The aim being to attract foreign investors at a time when the economy of Spain was not in a very good place.  Since it’s inception, over 25,000 foreign investors have benefited from the scheme.

The main nationalities benefiting have been Chinese, Russian and US.  However now that the UK is no longer in the EU, Spain can expect to receive, if it’s not doing so already, significant numbers of Golden Visa applications from British Nationals who wish to enjoy their holiday residence, without the 90 day Schengen limitation.

What does the Spanish Golden Visa Offer UK British Nationals?

The Spanish Golden Visa is valid for 1 year.  During this time the holder of the visa can apply for permission to reside in Spain and get a residency card, better known as a TIE, tarjeta de identidad de extranjero .  Golden Visa residency permission is granted for 3 years at a time and is renewable indefinitely providing the minimum level of investment and other eligibility requirements are maintained.

A Visa for Residence, Work, Travel & Part Time Living in Spain

Golden Visa Residency allows holder and their family to remain in Spain for an unlimited period of time.   Time spent in Spain does not count towards the Schengen limit, so travel in the rest of the Schengen area up to 3 months out of 6 months, is also still possible.

Spouse or legal partner, children under 21 years who live in the household, and dependent ascendants can also obtain residency under the Golden Visa scheme.  So the entire family can benefit. The investor and family members can also work or run a business in Spain if they so wish.

Unlike the Non-Lucrative and other types of residency, there is no minimum amount of time that must be spent in Spain to keep residency.  This makes the Golden Visa ideal for British ‘swallows’, owners of second homes, who want to spend the winter months in Spain, typically around a couple of months at the end of the year, and 3 months at the beginning of the year before the summer.

How does a British UK National Apply for a Property Investor Golden Visa?

The Golden Visa holder is not required to travel to Spain to apply for the visa, and the visa is the only one where the application can be made by a representative.  The application can be made via the Spanish Consulate in the UK, in which case a visa is issued, or if the applicant is already in Spain, the residency permission can be applied for directly through the Ministry for Work and Social Economy.  Once residency permission is granted the investor has to travel to apply in person for the TIE, so for this stage in the process you have to be in Spain.

You must be legally present in Spain to apply directly for residency permission under the Golden Visa Scheme, (without the need to first obtain a visa).  If you are able to apply directly for residency, you do not need to apply for a visa via the Spanish Consulate.

Summary of Property Investor Golden Visa General Requirements

The applicant must:

• Have a valid passport with at least 1 year before expiry
• Not have entered or stayed illegally in Spanish territory
• Not have been refused entry in any of the 26 Schengen countries
• Have sufficient financial means to cover personal and family living costs (€28,000 for the applicant plus €7,000 for each family member)
• Be 18 years or over, with no criminal record in Spain nor in the countries where they have resided in the previous 5 years
• Have public or private health insurance with an insurer authorised to operate in Spain
• Have purchased property in Spain (after September 2013) amounting to an overall net investment of €500,000 or more
• Provide certificate from the land registry to prove the investment.

FAQS About the Property Investor Golden Visa

CAN THE INVESTMENT BE MADE USING A COMPANY

Yes, the investment can be made through a company or other legal entity provided:

i) The company or legal entity is not located in a tax haven.

ii) The applicant has the majority of the voting rights in the company and is fit enough to appoint and dismiss the majority of the company directors.

ARE THEIR RESTRICTIONS ON THE USE OF THE PROPERTY?

There is no restriction to the use of the property by the investor.  They can live in it or rent it out.  Commercial property is also a qualifying investment under the Property Investor Golden Visa Scheme.  If the property is sold, then the investor and any beneficiary family members lose the right of residence.

WHAT ABOUT TAX RESIDENCE?

As the investor is not required to stay a minimum time in Spain, tax domicile is not affected unless they make Spain their country of habitual residence, i.e. the country in which they spend the majority of their time.  The starting measure for this is the 183 day rule.  You are deemed to be a Spanish tax resident if you spend 183 days or more in Spain during any one calendar year.  Spain would also be deemed to be your country of fiscal residence if for example you spent 180 days in Spain, 120 in the UK and the other 65 in another or other countries.

DOES THE GOLDEN VISA OFFER PERMANENT RESIDENCY?

Golden Visa residency can lead to permanent residency in Spain, independent from the investment.  To obtain permanent residency the holder of the visa must prove effective residence (more than 183 days per year) throughout a qualifying period of 5 years.

HOW LONG DOES IT TAKE TO GET A GOLDEN VISA AND OR RESIDENCY PERMISSION?

The Golden Visa applications processed by the Consulate is granted within 10 days of submission. The residency permission applications are processed electronically and granted within a maximum time limit of 20 days from submission.

If you need more information or advice about getting Golden Visa residency in Spain, or would like to employ the services of a professional company that specialises in Spanish residency visa, we’ll be glad to assist, so please get in touch.

Get A Free Spanish Residency Visa Assessment

To get an appointment to submit a Non-Lucrative Visa application at the Spanish Consulate in London, you must first send a request by email.

Attached to your request you must provide a sworn translation to Spanish of your Police Certificate (ACRO report).

Need help getting sworn translations?   Click here

Requesting an appointment to apply for Non-Lucrative Visa at the Spanish Consulate in London

Importing a high value car from the UK in Spain post Brexit, now comes with added costs.  As the UK is no longer in the EU and the standard process to import and register a UK car in Spain now involves customs.

This means on top of the registration tax which in most cases will be 17% of the vehicle value, 10% customs duty and 21% VAT will apply, unless you can find away around it.

Paying nearly £50k to register a £100k motor is simply not a consideration.  There are however various ways these huge costs can be avoided, bringing the cost of importing and registering high value cars in Spain down to a few thousand Euros, rather than tens of thousands.

We first published this article in February last year.  At that time Brexit had finally just ‘been done’, and the transition period begun.  Through 2019 and 2020 unprecedented numbers of British nationals formally registered as resident in Spain to secure their residency rights under the Withdrawal Agreement.  The numbers of residency applications spiked in the last months of 2020.  Immigration reported receiving many thousands of last minute applications in December alone.

This year we’ve been receiving a lot of queries this year relating to Spanish residency and tax in Spain.  For many it seems, the main priority was getting residency with the consideration of tax, put to one side on in some cases completely overlooked.

So we’ve refreshed and republished this article, and it will hopefully provide answers to most general questions that you may have about tax in Spain, if you’ve recently taken up residency in Spain.

Christmas Eve marked the moment the UK finally reached a Brexit agreement with the EU, full details of which have now been published.  The so called ‘Free Trade Agreement: a new economic and social partnership with the United Kingdom’, is of most interest to UK nationals living in Spain and other EU countries, those planning to and those with other interests such as business or a holiday home.

The agreement covers not just trade in goods and services, but also a broad range of other areas such as, tax transparency, air and road transport, energy and sustainability, fisheries, data protection, and social security coordination.

Notable points for UK nationals in Spain or other EU countries in the agreement are that:

• It provides for zero tariffs and zero quotas on all goods that comply with the appropriate rules of origin.
• On transport, the agreement provides for continued and sustainable air, road, rail and maritime connectivity, though market access falls below what the Single Market offers. It includes provisions to ensure that competition between EU and UK operators takes place on a level playing field, so that passenger rights, workers’ rights and transport safety are not undermined.
• On social security coordination, the agreement aims at ensuring a number of rights of EU citizens and UK nationals. This concerns EU citizens working in, travelling or moving to the UK and to UK nationals working in, travelling or moving to the EU after 1st January 2021.

This agreement at least brings closure to the uncertainty that has been hanging for so long, and is good news in part for many British Nationals in Spain.

The United Kingdom left the European Union on 31 January 2020.  The transition period that to negotiate future arrangements between EU and the UK ends on 31st December 2020, with a deal finally agreed at the last minute.

As of the end of the transition period, privileges enjoyed under EU freedom of movement come to an end.  British UK Nationals and their non-EU family members will be subject to all Spanish immigration rules for third-country (non-EU) nationals.

However, UK nationals and their family members who took up residency in Spain and other EU Member State before the end of the transition period in accordance with EU free movement law, will maintain their free movements rights after 31st December 2020.

As British Nationals will no longer be exempt from travel restrictions, new regulation will come into force on 1st January including the requirement to obtain Visa’s and possible travel bans.

The website for the Spanish Consulate in London notes:

Nationals of non-EU countries require a visa to enter Spain, if the stay is intended to be more than 90 days.  The Schengen visa in most cases cannot be used to apply for residency in Spain.

There is an exception when an immediate family member is joining a family member who already lives in Spain and holds Spanish residency.   In all other circumstances a citizen of a non-EU country must apply for, and obtain a long stay visa through the Spanish Embassy in their home country.

Since UK has now left the EU, UK citizens / British nationals also have to apply for a visa if they want to live or work in Spain.

Once the visa has been issued, the applicant can travel to Spain and apply for residency and get their TIE, ‘tarjeta de identidad de extranjero‘.

The following is a summary of the main types of long stay visas that citizens of non-EU countries can apply for.

Non-lucrative residence visa

The non lucrative residence visa is for those who have means to support themselves without working whilst residing in Spain.

The TIE, Tarjeta de Indentidad de Extranjero, is the Spanish identification card for citizens from third countries (non-EU) who reside in Spain.  As the UK is no longer in the EU British UK nationals also have to apply for this card to take up residency in Spain.

During the transition period the qualifying requirements for applicants e.g. for proof of means remained the same as they were when the UK was in the EU.  However from the 1st of January most British UK Nationals will need to obtain a long stay visa, before they can apply for residency and get their TIE, Tarjeta de Indentidad de Extranjero.

Read more about the Brexit Agreement and visas for British UK Nationals.

The process below is the procedure for applying for the Withdrawal Agreement TIE.  British UK Nationals could apply under the terms of the Withdrawal Agreement up until the 31st December.  Thereafter the Withdrawal Agreement TIE is only available to holders of the green EU residency certificate, and immediate family members of those that already have Spanish residency.  It may possibly (not yet officially confirmed), be available to those who didn’t obtain residency documentation, who can prove that that they were otherwise legally residing in Spain, before 31st December 2020.

The TIE Application Process for British UK Nationals

There are two stages in the process.  In the first stage an application is presented to the Foreigners Office (extranjeria) in the province where you reside.  The second stage is completed at the National Police Station in the area that you live.

The initial application can be presented in person or by an authorised representative, and can be done face to face at the Foreigners Office, or submitted online.

In most places, you have to call the foreign office to make an appointment to present your application.

The online submission system is working well, and the Foreign Office are encouraging the use of this system.  To submit you application you need to have a digital signature and certificate in place.  If you don’t have one, you can authorise someone else or a company to complete the online submission on your behalf.

This is done using the ‘Designacion de Represenante‘ form.

First Stage TIE Application & Documentation Required

The wide variances that exists from one town to the next regarding documents for EU residency certificate applications, does not apply to TIE applications, as all applications are processed at the provincial head office not at the Police Station closest to where you live.  This makes it a lot easier to assess and prepare applications, and provides a lot more consistency.

Official translations of documents that are not in Spanish must be provided.

Additional documents to support your application

The Foreign Office when reviewing applications apart from checking that you qualify, are also looking to see that the applicant is actively living and present in Spain.  The list below taken from their request for further information on an application.  It is extensive and you may not be able to provide everything on the list, however the more you can provide, the higher chance you have of first time acceptance.

*receipts of transactions in Spain or showing in bank statements
*proof of attendance at medical consultations – dentist or doctors appointments/vet appointments
*contracts of any nature entered into in Spain 
*receipts for utility supplies (electricity, water, gas, telephone …)
*receipts for fixed or mobile telephony at your address in Spain
*documents from public or private entities that demonstrate having received a service in Spain 
*plane ticket/boarding card from entering Spain showing arrival in Spain
*entry stamp to Spain in passport
*documents showing relationship with public or private entities in Spain (e.g. clubs  associations, training centres, gym …)
*income tax returns in Spain 
*tenancy agreement
*shopping receipts

When your application is received, a receipt will be issued confirming that it has been presented.  It will then be reviewed accordingly at the foreigners office.  If for any reason your application is not immediately accepted, 10 business days will be given to supply any additional information that may have been asked for to continue with the application.

Notification of the approval of your application will be sent within 3 months, and you have one month to make an appointment and complete the second stage application at the National Police Station.

Second Stage TIE Application

The second stage application process is relatively straight forward, and appointments are readily available in most areas at the Foreigners Offices and National Police Stations.

For your second stage application you need to have a pre-booked appointment.

You can make an appointment through the following link:

https://sede.administracionespublicas.gob.es/icpplus/index.html

For your appointment you will need:

*EX23 application form
*Your first stage approval notice / existing EU residency Card and a copy
*Passport and a copy ( a copy of your passport and the application is acceptable if you are in the process of renewing it)
*Small passport (carnet size) photo 32mmx28mm
*Recent padron
*Modelo 790 form with €12 tax paid and stamped by the bank, or with payment receipt attached

When you present your application your fingerprints will be taken, and if everything else is in order, you will be given confirmation of your processed application and told to make an appointment to go back and collect you card in 3 weeks.

Your first TIE is valid for 5 years.  At the 5 year expiry of your TIE you can apply for a 10 year permanent residency TIE

The New TIE for British UK Nationals

Need a Hand Getting Your TIE?

British Citizen TIE Application Service

Call / WhatsApp

(+34) 951 77 55 44 / (+44) 033 0001 0777

The TIE, Tarjeta de Indentidad de Extranjero, is the Spanish identification card for citizens from third countries (non-EU) who reside in Spain.  Since July 6th 2020 British UK nationals moving to Spain also have to apply for this card, as the UK is no longer in the EU.

If you already have a Spanish residency certificate, you do not have to apply for the TIE, but can voluntarily exchange your certificate for the card.

The card is a full bio-metric national ID card so much more useful than the paper certificate.  The card also has the words ARTICULO 50 TUE, a reference to note that the holder was resident in Spain before the end of the transition period.

The Residency Certificate TIE Exchange Application Process

The application process is relatively straight forward, and appointments are readily available in most areas at the Foreigners Offices and National Police Stations.

You need to have a pre-booked appointment.

You can make an appointment through the following link:

https://sede.administracionespublicas.gob.es/icpplus/index.html

For your appointment you will need:

*Completed EX23 application form
*Your existing EU residency Card and a copy
*Passport and a copy ( a copy of your passport and the application is acceptable if you are in the process of renewing it)
*Small passport (carnet size) photo 32mmx28mm
*Recent padron (if you have changed address since you obtained your residency certificate)
*Modelo 790 form with 12 euros tax paid and stamped at the bank

When you present your application your fingerprints will be taken, and if everything else is in order, you will be given confirmation of your processed application and told to make an appointment to go back and collect you card in 3 weeks.

If you currently have a temporary residency certificate, your new TIE will be valid for 5 years.   You can apply to get a permanent one, either when you reach the 5 year anniversary of the date you got your residency certificate, or at the 5 year expiry of your TIE.

If you currently have a permanent residency certificate (with the word ‘permanente’), your new card will be issued for 10 years and thereafter is automatically renewable.  If you have held a temporary residency certificate for more than 5 years (but didn’t upgrade it to permanent), you may also be issued with a 10 year permanent TIE.

The TIE for British UK Nationals

Need a Hand With Your Residency Certificate TIE Exchange Application?

Residency Certificate TIE Exchange Service

Call / WhatsApp

(+34) 951 77 55 44 / (+44) 033 0001 0777