Legal tip 49. Benefits for residents in Spain
Wednesday, February 25, 2009 @ 7:42 AM
Should I become a Spanish resident?
This question is essential for the enjoyment of some benefits and very especially for the ascertainment of your taxes liabilities. Actually many laws in Spain apply the “fiscal residency concept” to classify the residential status of persons for other pursposes
For any European citizen, the acquisition of the Spanish residency is very simple: you just need to register yourself at the National Police station through a very simple process (previous appointment) and pay a small fee of around 10 euros.
If you don't have Spanish citizenship, you're a resident if either:
- You stay in Spain for more than 183 days (including sporadic absences and day traveling in and out of Spain).
- The main base of your professional activities or economic interests is in Spain.
- Your spouse and minor age children reside in Spain.
What are the benefits for residents in Spain?
Tax benefits
• In Capital Gains Tax: If you’re a resident and are at least 65 years old , there will be no tax liability for Capital Gains when you sell what it has been your home for more than three years.
• In Inheritance tax: There is a reduction (up to 99% in some regions) on the value of your home if you leave it to spouse, children or a close relative who is also a resident.
• Lower Income tax burdens: as in Spain the rates are lower than in most of northern European countries.
Health System benefits
Health system in Spain is universal, which means that everyone (national or foreigner) has rights to basic an urgent health services. ( We are very proud of that actually!)
Residents contributing to the Spanish Social Security system or a UK National Spanish resident receiving a UK state pension, will have rights to all the services of the Health system under same conditions as Spanish nationals.
And what about my obligations…..? Well, let´s leave it for mañana´s post, is it OK?
Silos Arte y Relax, Tarifa ( Cadiz) by Chodaboy at Flickr.com