Moving to Spain Archives - Lifestyle Services UK Spain

1. What is Modelo 720?

Modelo 720 is a mandatory tax form in Spain for tax residents to declare assets held outside Spain if they are above a certain value.

2. Who is required to file Modelo 720?

Any individual or entity that is a tax resident in Spain and holds assets abroad exceeding the reporting limits must file this declaration.  When you move to Spain, you complete it the year after you become tax resident.

3. What are the declaration thresholds?

The Modelo 720 must be filed if the total value of assest in three categories exceeds €50,000. If previously declared, updates are required only if the value has increased or decreased by more than €20,000.

After moving to Spain your first tax declarations are due the year after you become tax resident in Spain.  The tax year in Spain runs with the calendar year, 1st January to 31st December and the basic rule is that you become tax resident when you’ve spent 183 days in the year in Spain.

Your tax obligations arise for the fiscal year in which you become resident in Spain, not from the date you got your residency.

Here we provide a useful summary and information of the first tax declarations for anyone who doing their Tax in Spain for the first time.

Getting your tax right when moving from the UK to Spain requires an understanding of all the things that need to be done and when to do them.  Here we provide information about all the things you may need to do or consider to make sure you get your tax right both on the UK side as a leaver and on the Spanish side becoming tax resident in Spain.

Things you may need to do to get Your Tax Right Before Moving from the UK to Spain

Check Capital Gains Tax (CGT)
Selling assets before leaving could have tax implications. UK property remains subject to CGT even if you are non-resident. Conversely, assets such as your main home which are exempt from CGT in the UK, could get caught in Spanish CGT if sold around the time or after your move to Spain.

Personal Pensions, ISA’s and Investments
Growth in personal pensions such as SIPP’s is subject to CGT annually and ISA’s lose the tax status that they offer to you as a UK resident.  Anyone who has these type of financial assests should get professional advice on getting their financial affairs optimised for Spanish tax before becoming tax resident.

Tax Planning Advice
Seek expert help to optimise tax efficiency, especially for pensions, investments, and property.

Understand Ongoing UK Tax Obligations
Although Spanish residents are liable for tax in Spain on all income including that arising in the UK, there are some exceptions and types of income that continue to be taxed in the UK.

For example, pensions from Government employment, such as police, local authority, teachers NHS etc, under the double tax agreement are only taxed in the UK.  Income from letting property must have any tax due in the UK settled first, but may also be taxed in Spain, if the amount of tax due in Spain is higher than that already paid in the UK.  In this case you pay the difference in Spain.

Aside from the above and income from employment while physically present in the UK, all other personal income is no longer liable for UK tax once you are tax resident in Spain.

If you receive rental income, you will need to register as a Non-Resident Landlord and continue submitting a tax return in the UK as a non-resident.

Notify HMRC that you have left the UK
Once you have left the UK, you should notify HMRC by completing form P85. You can submit form P85 to notify that you left the UK.  If you have a Government Gateway ID you can do this online.

https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85

If you are bringing personal possessions such as household goods or a car to Spain as part of you move, you can apply for a customs duty and VAT exemption.  The customs tax office will usually accept proof of notifying HMRC of leaving the UK, amongst other docs, to grant a waiver.

National Insurance (NI) Contributions
Consider Voluntary NI Contributions: If you plan to claim a UK State Pension in the future, you may want to continue making Class 2 or Class 3 contributions if you don’t alreayd have the maximum years of contributions.

Getting Your Tax Right After Moving from the UK to Spain

Get a Digital Certificate

A digital certificate is an electronic document that verifies a person’s identity online. It functions like a digital ID card and is used to authenticate users, encrypt data, and digitally sign documents, ensuring secure online interactions with public administrations, banks, and businesses.  A bit like the UK’s Government Gateway ID.

Having a digital certificate in Spain provides several benefits, including:

>Secure Online Identification, – Allows individuals to authenticate themselves securely in online transactions with public and private entities.
>Electronic Signatures – Enables legally valid digital signatures on official documents, contracts, and applications.
>Access to Public Services – Facilitates online interactions with Spanish government portals (e.g., tax agency, social security, and municipal services) without needing in-person visits.
>Convenience & Time-Saving – Eliminates the need for physical paperwork, reducing bureaucracy and allowing 24/7 access to essential services.
>Tax & Administrative Procedures – Enables filing tax returns, obtaining official certificates, and managing business registrations electronically.

Spanish Tax Office Registration
If you are not already registered with the tax office in Spain as then you will need to do this.  If you own a property, you should already be registered, however as a non-resident.  In either case the registration or updating of status is done by completing form ‘modelo 030’.

Overseas Assets Declaration – Modelo 720
The Modelo 720 is a mandatory tax form in Spain for tax residents to declare assets held outside Spain if they of value above €50k.  If applicable, it has to be completed by 31st March the year after your first tax year in Spain.

Final Non-Residents Tax Return- Modelo 210
New Spanish residentrs who owned property in Spain prior to moving, may need to file a final modelo 210 non-residents tax return.

Personal Income Tax Return – Modelo 100
Your first personal income tax return is due the year after you complete your first tax year in Spain.  E.g. if you moved in 2024 and spent 183 days in Spain in that year, your first income tax return is due by June 30th 2025.  You will need to complete a tax return in Spain if you want to de-register from paying tax in the UK and or make a claim for a refund of tax from HMRC under the double tax  agreement.

Double Tax Refund Claim
You will continue to be registered with HMRC as a UK tax payer until you have provided proof that you are now a Spanish tax payer.  The proof required is a certificate of fiscal residence issued by the Spanish tax office.  This certificate usually cannot be obtained until you have completed your first tax return in Spain,

In many cases there will be a period where you pay tax in both the UK and Spain.  Fortunately there is a Double Taxation Agreement (DTA) between the UK and Spain, so if you do pay tax twice you will be able to claim back the tax paid in the UK that you shouldn’t have paid.

The Double Tax Claim Form can be downloaded here.

When you submit or send the form, you’ll need to include the Certificate of Tax Residence in Spain and a copy of your residency certificate / TIE (front and back).

If you need to make a claim for a refund of tax paid in the UK, then you can complete a double tax claim form and send it to HMRC.

https://www.gov.uk/government/publications/double-taxation-united-kingdomspain-si-1976-number-1919-form-spain-individual

The following is a link to the section of the HMRC website that provides information about tax when you’ve left the UK.

https://www.gov.uk/tax-right-retire-abroad-return-to-uk

In 2024 Spain implemented significant reforms to its immigration laws to enhance migrant integration and address labour market needs.

Key Spain rule and law changes that are relevant to people that are not citizens of EU countries who are looking to move to Spain include:

Property Investor ‘Golden Visa Residency

In November 2024, the residency scheme for property investors, or ‘Golden Visa’ as it’s commonly known, was deleted from the Law, (Ley 14/2013, de 27 de septiembre, de apoyo a los emprendedores y su internacionalización), that brought it into being.  As of 3rd April 2025, the ‘Golden Visa’ is no longer available to new applicants.  Existing holders of the visa / residency and their family members can carry on renewing their residency, for as long as they continue to qualify under the rules as they were.  New applications by family members of existing holders are also possible.

Non-Lucrative Visa

An update to another law published in january 2025, (Real Decreto 1155/2024, de 19 de noviembre, por el que se aprueba el Reglamento de la Ley Orgánica 4/2000, de 11 de enero, sobre derechos y libertades de los extranjeros en España y su integración social), adds a condition of renewal that the applicant must ‘have actually and effectively resided in Spain for more than one hundred and eighty-three days during the calendar year’.

This counters the September 2023 Spanish Supreme Court ruling which declared null, the article of law that allowed temporary residence permits to be terminated when there had been absences from Spain for more than 6 months in the year.

This means that becoming tax resident in Spain is now a requirement for anyone who wants to renew their non-lucrative residency on an ongoing basis.  The same article also notes that at renewal, ‘failure of the foreign person to comply with their tax and social security obligations during the validity of their authorization, will also be checked and assessed.

Other changes in the same law also defined specific details that documents from foreign institutions such as bank statements must include.  These are listed as:

a) The business name or full name of the bank or credit institution, as well as its address.
b) The complete identification of the accounts.
c) The date of opening or cancellation or, where applicable, the dates of granting and revoking the authorization.
d) The account balances as of December 31 of the year prior to the year in which the application is submitted and the average balance for the last year.

Although not mention in this law, we have experienced an increasing number of requests from immigration for foreign bank statements to be certified by a notary public and legalised and translated.

Other Visas & Residency

Student Visa

For those who come to Spain to study higher education for more than one year they will now not hhave to renew their residency permission every year.  The initial permit will be vaild for the full duration of the period of study.

Options for working up to 30 hours per week, while studying and or getting a work permit after finishing studies are also improved.

Undocumented Immigrants

Changes in the Law lighten the requirements for individuals who are in an ‘irregular residency situation’ who wish to get themselves straight.  Theses changes include shortening the period of ‘irregular reidence’ from three to two years, removing the requirement of proving integration where the individual has immediate family that are permanently resident in Spain, and second chance for those who have not been able to renew the residency that they had.

According to new agency Reuters, Spain plans to regularize approximately 300,000 undocumented migrants annually over the next three years to address labor shortages and sustain its welfare system amidst an aging population.

All of these changes, effective May 20, 2025, aim to streamline the processing of residence and work permits, aligning with national regulations and European directives. They reflect Spain’s commitment to improving migrant integration, addressing demographic challenges, and ensuring that immigration policies align with labour market needs.

Property Tax of 100% for Non-EU Buyers

Despite what you may have seen or heard, a 100% property tax for non-EU buyers of property has not come into affect and is unlikely ever to.  It was simply an idea put forward by the Prime Minister as a measure to help address some significant imbalances in Spains property market.

Foreign buyers make up around 15% of ther overal market, and this percentage includes nationals of EU countries (approximately half) and Non-EU nationals who are resident in Spain.  The actual percentage of non-resident non-EU national buyers is really quite small, so bringing in such a tax woudl have little  effect.

In any case even if this tax were to come in, it should not scupper anyones plans for buying a property and moving to Spain.  All they’d have to do is move first and then buy which is what a lot of people do anyway, i.e. rent for 6 to 12 months to explore, get a feel living in Spain and find that perfect home in Spain before committing to their purchase.

British citizens / UK nationals now have to follow the same process as other non-EU national citizens of third countries to get Spanish residency, i.e. there is a requirement to first obtain a visa.

The financial means required for a British Citizen / UK national to obtain a residency visa, is a lot higher than it was when the UK was in the EU.  A single applicant needs to have around €30k per year in either income or savings, whereas a citizen of an EU country €6k is sufficient.

British nationals also have to obtain a police criminal report, get official supporting documents legalised, and medical certificates are also required for most visa applications.

The EU travel rules for non-EU family members of EU citizens are different to the general rules for other nationals of non-EU countries.

If you are a citizen of an EU country living in or or travelling to another EU country, your family can join you, including core family members who are not EU citizens.

Non-EU core family members include spouse, children, dependent descendants, dependent parents or dependent grandparents. It also applies to non-EU registered partners, however only if the country they are travelling to considers registered partnerships as equivalent to marriage.

What documents does a non-EU family member need to travel to an EU country with their EU family member?

Depending on which country the non-EU family member is from, aside from a valid passport from their home country, they may or may not need a visa.

A non-EU family member who is a citizen of a country who’s nationals are allowed visa free travel to the Schengen area will not need a visa, whereas a family member from a country where Schengen visa are required will.  The exception to this is where the non-EU family member holds a residency card issued by and EU country that is in the Schengen area.

For example a South African married to a German would need Schengen visa to travel to Spain with their spouse, however if they held a German residency card, they would not.

If a visa is required for a non-EU family member, according to EU rules it should be free of charge and processed under a fast track application procedure for core family members of an EU citizen.

A visa for a non-EU family member can be declined fir they fail to prove:

• they are a family member of the EU citizen
• that the EU citizen lives in or will travel to an EU country other than the country of their nationality
• they will join or accompany the EU citizen in that country

Additionally, EU countries have the right to refuse visa application for reasons linked to public policy, security or health, and reasons linked to abuse or fraud.

How long can a non-EU family member stay in an EU country with their EU family member?

Non-EU family members are entitled to accompany or join their EU family member without any conditions or formalities for consecutive periods of up to 3 months per EU country visited.  They are not subject to the overall limitation of up to 90 days in a 180-day period that applies in the Schengen area, i.e stays different EU countries can be combined without an overall time-limit.

So for example they could stay for 3 months in Spain, then 3 months in France consecutively, whereas other non-EU nationals would have to leave the Schengen area after a 3 months stay in Spain and would have to wait another 3 months before they could visit another Schengen country again.

Conditions of the EU rules on residence apply to non-EU family members of EU citizens visiting EU countries

EU citizen and non-EU family member staying in an EU country for up to 3 months

For stays less than 3 months, all that is needed is a valid passport and an entry visa for the non-EU family member if applicable.

EU citizen and non-EU family member staying in an EU country for more than 3 months

The applicable EU directive (2004/38/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 29 April 2004) allows each member state to set its own administrative and registration formalities for EU citizens of other EU countries coming to stay in their country for more than 3 months.  Articles 7, 8 and 9 cover residence for periods or more than 3 months and the administrative requirements that may be put in place.

While requiring the registration formalities is optional for each member state for EU citizens, it is are not optional for the their non-EU family member.

Article 9

Administrative formalities for family members who are not nationals of a Member State

1.   Member States shall issue a residence card to family members of a Union citizen who are not nationals of a Member State, where the planned period of residence is for more than three months.

2.   The deadline for submitting the residence card application may not be less than three months from the date of arrival.

3.   Failure to comply with the requirement to apply for a residence card may make the person concerned liable to proportionate and non-discriminatory sanctions.

If a member state has a requirement for registration for EU citizens for periods of residence longer than three months according to the directive ‘failure to comply with the registration requirement may render the person concerned liable to proportionate and non-discriminatory sanctions’.

What is the registration requirement for EU citizens and their Non-EU family members in Spain?

If the EU citizen and their non-EU family member family want to stay longer than 3 months in Spain, then the EU citizen is required to report their presence to the relevant authorities, and their non-EU family member must apply for a residence card.

In Spain the procedure for the EU citizen is an application for a ‘residency certificate‘ which is done at the National Police station.  This has to be done before the non-EU family member can apply for their residency card, as the EU family members residency certificate is required in their application.

Read more about getting a residency card for a non-EU family member of an EU citizen in Spain.

Spanish residency for non-EU family members of an EU citizen in Spain, is an extended right.  Family member includes spouse or civil partner, children or dependants of who are part of the household, and under 21 years of age.

A citizen of an EU country has an automatic right to live in Spain, however must obtain their Spanish EU citizen residency certificate before their non-EU family members can then apply for their Spanish residency.

The non-EU family member makes their residency application in Spain, and must be legally present when they do so.  The non-EU family member does not need to apply for a long term residency visa before they come to Spain.  If they are a national of a country who’s citizens enjoy visa free travel as tourists to the Schengen zone, they can travel to Spain under Schengen rules and make their family member residency application whilst they are within their 90 days allowed under Schengen rules.

There are nine Spanish Consulates in the USA.  The Consulates of Spain in the United States of America provide a number of legal and administrative services to both Spanish citizens and those intending to travel to or do business with Spain.  This includes processing long term visa applications such as the non-lucrative visa for retired people who want to live in Spain.

Below are details of each Spanish Consulate in the USA and the areas that they cover.

Spanish Consulate in Boston

31 St. James Avenue, Suite 905 Boston, MA 02116
cog.boston@maec.es
Jurisdiction: Maine, Massachusetts, New Hampshire, Rhode Island, Vermont

Spanish Consulate in Chicago

180 N. Michigan Avenue, Suite 1500 Chicago, IL 60601
cog.chicago@maec.es
Jurisdiction: Illinois, Indiana, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Ohio, Kentucky, Michigan, Minnesota, Missouri, Wisconsin

Spanish Consulate in Houston

1800 Bering Drive, Suite 750 Houston, TX 77057
cog.houston@maec.es
Jurisdiction: Alabama, Arkansas, Louisiana, Mississippi, Tennessee, New Mexico, Oklahoma, Texas

Spanish Consulate in Los Angeles

5055 Wilshire Blvd., Suite 860 Los Angeles, CA 90036
cog.losangeles@maec.es
Jurisdiction: California (counties: Imperial, Kern, Los Angeles, Orange, Riverside, Bernardino, San Diego, San Luis Obispo, Barbara y Ventura), Arizona, Colorado, Utah

Spanish Consulate in Miami

2655 Le Jeune Road, Suite 203 Coral Gables, FL 33134
cog.miami@maec.es
Jurisdiction: Florida, South Carolina, Georgia

Spanish Consulate in New York

150 East 58th Street, 30th & 31st Floors New York, NY 10155
cog.nuevayork@maec.es
Jurisdiction: New York, Connecticut, Delaware, Pennsylvania, New Jersey

Spanish Consulate in San Francisco

1405 Sutter Street San Francisco, CA 94109
cog.sanfrancisco@maec.es
Jurisdiction: Alaska, Northern California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington, Wyoming, US Pacific

Consular Section at the Spanish Embassy in Washington, DC

2375 Pennsylvania Avenue, NW Washington, DC 20037
cog.washington@maec.es
Jurisdiction: Maryland, Virginia, West Virginia, District of Columbia, North Carolina

Spanish Consulate in San Juan, Puerto Rico

Edificio Mercantil Plaza, Piso 11 Oficina 1101 Avenida Ponce de León s/n Hato Rey – Puerto Rico 00918
Cog.SanJuandePuertoRico@maec.es
Jurisdiction: Puerto Rico, Islands of Culebra and Vieques, Virgin Islands

The Spanish Non-Lucrative Visa offers residency to third country nationals who have the financial means to support themselves without working.  The Non-Lucrative Visa residency scheme is therefore ideal if you are retired or have passive income, for example from a portfolio of properties or other investments.  The Non-Lucrative Visa is for people who intend to take up full-time residency in Spain.

What does the Spanish Non-Lucrative Visa Offer?

Spain’s Digital Nomad Visa and Residency is now more than a year old and has become the second most popular Spanish residency after the Non-Lucrative Visa.  This visa or residency permit allows the holder to live in Spain and work remotely or online.  It can be applied directly in Spain, or via the Spanish Consulate in the country in which you currently reside.