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Should I become a Spanish resident?
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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 purposes
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:
o You stay in Spain for more than 183 days (including sporadic absences and day traveling in and out of Spain).
o The main base of your professional activities or economic interests is in Spain.
o Your spouse and minor age children reside in Spain.
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What are the benefits for residents in Spain?
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Tax benefits
• In Capital Gains Tax: From 2015 on, residents in Spain are exempt of capital gains if- as always- they sell their first residency and reinvest in first residency within two years or...) and this is NEW!
You are over 65 years old and:
a) Sell your first residency even if you do not reinvest in first residency again.
b) Sell any real estate asset and invest these funds in a life annuity as a complement of your pension, with a maximum limit of 240.000 euros
• 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
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.
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What are my obligations as Fiscal resident?
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The main obligation if you become a resident is that of submitting your world-wide incomes to the Spain treasure.
Most countries in northern Europe have now higher income tax rates than Spain . As a consequence, the income levels for the higher tax rates start lower in Spain than in other countries.
Obligation of informing of all assets worldwide ( 720 form)
If you are a Spanish resident, you need to have a Spanish registered car and a Spanish driving license, unless you have got an European driving card.