Cancel my Residencia

 nothing happens if you are not resident you just carry on doing as you are now and yes you can travel freely around the eu except for the uk of course where you need your passport

The comments in respect of where to pay tax are of course interesting and this is a very common subject of discussion among expats and people thinking of moving to Spain. When we moved to Spain I spoke to the British Tax authority (HMRC) and found them very helpful.   However, I was attracted to this particulat thread because it was about how to "Cancel my Residencia" and we still don't seem to have progressed on that point.  For those who don't live in Spain and are unaware the "Residencia" is simply a document declaring that you have your name on the Register of Foreigners at a local office (often in a National Police station). It used to be a small plastic card that was used basically as an identity card.  About 5 years ago they changed it to a piece of paper and it's use as an I.D. was devalued because nobody carries it around with them.  In fact, I am not sure now what real value there is to obtaining this document.  Many expats live in Spain without ever being registered. Therefore, what is so critical about cancelling it?  That's a genuine question because I don't really know. I might be missing something.

Therefore, what is so critical about cancelling it? That's a genuine question because I don't really know. I might be missing something.
 

I think the original post (copied below) explains why.......................................

Hello, This is my first post. In Decemer 2009 I wanted to buy a car for my holiday home here which I spend 3/4 months a year in. I was informed my the garage i would need an NIE number and residencia. This I did and got the car. I got a telephone call from my bank yesterday saying the police had contacted them and may freeze my only Spanish account as I had not been paying any tax for being a resident. I now have to cancel this residencia. How do I do this. I currently pay all taxes etc through Abaco but rather than pay them, thought I would do it myself and save some money. Any accurate help please?

Hi poppyseed,

I see what you're saying but on closer inspection I wonder if the original post contained an inncuracy. The writer states that he /she was told by the car dealer to obtain N.I.E. and residencia in order to buy a car to keep at the holiday home which they visited for 3/4 months per year. If only visiting for less than six months he was not a resident and should not have got a residencia.  I have several neighbours who have bought cars to keep at their holiday homes.  None of them are residents of Spain and do not have residencias.   The matter about the bank account may be because there are two different types of accounts for residents and non-residents.  Which puts us back at square one  ...  and I'm still wondering what happens when a person leaves Spain and does not inform the powers that be that they have gone.  I know lots of people who have left in recent years and I I can't believe that they have all gone through the same long-winded procedure to cancel everything.  

Further to my last point , I realise that the original post writer still needs to cancel the residencia because it's affecting his bank account not because he's leaving the country, so it's obviously right for him to pursue it.

Hello all. I may not have explained the situation fully. I was in a short term rent and was going through buying a house and wanted a car. The dealer said I needed the residencia as I never had any title deeds. This was confirmed by the translator who helped me fill in the forms. (I wish I had seen this site then). As I said I thought no more about it until the bank phoned to say if I was a resident I need a residents bank account and my exsiting one may be frozen by the police. I have Abaco working on this and it can be cancelled but not back dated. Thanks again, Gary

 there is an advantage to the residents bank account the charges a a lot less

To cancel residencia, involves returning to the initial place where issued. One must have passport, N.I.E. and Residencia take everything relating as there will be form filling to reverse.  It would be wise to have an interpreter with you should you not be fluent in the language.

Re; tax situation.

Whether non-resident or resident a tax declaration has to be submitted through the channels every year you are a property owner.

Your completed tax return will be returned to you duly stamped by the tax office,  this is your proof.

There has been 300,000 letters sent out to those people who have not submitted tax returns for 2007,2008,2009,2010,and 2011.

The tax office has police involvement ,  embargo's[  freezing] can be enforced on bank accounts  and sadly to a house.

To keep anyone on the right side of the law ,  I would suggest  the services of a gestor / asesoria for all legal paperwork.

oops!   a little ammendment to my former message.

```````````````````````````````````````````````````````````````````instead of  ' for'  2007 etc.,   I  meant   'in'   2007 etc.,

Those letters were sent out in november 2011 from AGENCIA TRIBUTARIA   targeting those home-owners who have not submitted their tax declarations for the said years.

Anybody in that situation has the chance to put things straight with their taxes.   Failure to do so may lead to fines or even embargo's.  It goes under the heading   ' ANTI FISCAL FRAUD PLAN'

garyizme .... your last comment explains a lot.  It was explained to me by my bank that the reason for the different types of bank account is simply that residents and non-residents pay different taxes.  As has already been pointed out the Agencia Tributaria have been trying to get the non-residents to pay the appropriate tax (there are many thousands who don't) and they do this by obtaining the bank details.

paulsimkiss ... the suggestion that there needs to be a court order may be true (I really don't know) but (and no offence here) that sounds a little like assuming British practices are the same in Spain.  They do lots of things differently here and it does take a bit of getting used to.  I suspect the bank doesn't need such an order because I know of several unfortunate expats who have lost their wives / husbands / partners after moving here and the very first thing the bank do (if a joint account) is freeze the account.  They don't stand on ceremony and they don't get a court order.  It's done instantly by computer. This leads to all sorts of difficulties when the surviving spouse can't handle their finances (in one case it was over a year before it was sorted).  It is the perceived wisdon amongst our community that if the worst happens to your partner, do not be in any hurry to inform  the bank.  

Sorry I've strayed off topic again   ... 

Ive been told the residencia is only valid for 3yrs anyway ! and you have to renew it if you are not in the tax system

 sorry the so called residencia is for life

hey dont be sorry woop woop is all i can say as i cant see me being resident any where else lol

 i shall now sulk as you made me loose a whinge or was it aa moan

perhaps it was a whinmoan or could of been a moaninge but either way im sorry :-"

I followed this thread -- & several others on these themes -- and my understanding of residency, resident for tax purposes, domicile, etc., seems to be wrong so I ask to be put right/updated on:

One needs an address; the "domicile" or "place of usual residence" (as opposed to resident for tax purposes) for the national authorities (NHI, tax, car, etc). At one time for me that was a bank in Jersey which was just fine.

Today EU citizens can live anywhere within the EU and for as long as they like -- even no border controls at Schengen countries -- and "residency" now means where you are liable to pay income tax (resident for tax purposes, even if you pay no income tax) i.e. where you physically live for 183 days or more a year.  (I still haven't understood what happens if you do not live in any one country for at least 183 days a year; pay no income tax?)

So what happens when, lets say, a Brit lives 183 days or more a year in Spain but his entire revenue is from the UK, Well, he's clearly a resident of Spain for tax purposes so the Spanish taxman will tax him on his (global) income at the Spanish rate of tax. But so will the UK taxman at the UK rate of tax (because the revenue was generated in the UK). Now let us also suppose the Spanish taxman calculates our Brit's tax at €2k, but the UK taxman calculates it at €4k: Our Brit will pay €2k to the Spanish taxman and €2k to the UK taxman. This is the double-taxation agreement i.e. our Brit doesn't pay €2k in Spain and €4k in UK.

I also ask to be put right on the resident/non-resident in Spain question. My understanding is e.g. to buy a property, register a car, sign for a delivery, ..... one must have a NIE but a NIE doesn't define whether you're resident or non-resident. I agree that e.g. a non resident will not (rightly in my view) get a "health card" for access to the Spanish health system -- but in Spain everyone (EU citizen or not) has the right to emergency treatment -- and to private health care (if you wish to pay for it).

I've been asked by Spanish authourities (again rightly in my view) to prove I'm paying income tax in the EU but, at least in my case, the real issue is car registration: The taxman's clear on 183 days or more -- surely reasonable? -- so why can't the traffic department get its act together? Ask any law-abiding, want-to-do-the-right-thing expat and you'll get a different answer -- on licences, registration, ITV, insurance, .... --  or is this confusion just for instant & very lucrative revenue on most roundabouts; heads I win, tails you lose? And it worries me when I read on EOS "I had to do it, so you must too". What? Change plates so I get done twice to pay for you getting done once?

But surely there can be no issue on how one nation & culture applies its own national law & culture? If we're invited by e.g. an Arab or Israeli family, would we expect or ask for pork? Would a Spaniard ask a Brit farmer to skewer his bulls? No, so if your bank account is frozen due to a missing partner............ Unfreeze her (joke)

I can only comment on the car and traffico side of the post , i totally agree with traffico insisting none spanish cars are registerd here after 30 days now , because if you read any uk insurance policy there are two main things people forget when driving in spain on a uk car for a long time ,

1. you have a time limit you can spend abroad normally 30 days or 45 days at a time with out making your insurance invalid , also if you drive a car on british insurance with a british address but actually live in spain tand have not informed the insurance company ( which no one does as no english insurance company will insure a non british resident ! and there is a line that says " the vehicle has to be road legal " well 99% of the english cars have either no road tax or mot or both so again the insurance is invalid , plus the Gaurdia can not check insurance details ie has it been cancelled or so on unlike the uk police

2. Insurance in spain is far cheaper than the uk , so why would any one want to drive an english car on english insurance here ? only reason to avoid speeding fines and such ,

But saying this i do not agree with the old import tax which they call registration fee ( since the eu banned them charging tax on a eu vehicle for reregistring it in spain) how ever any one who buys a spansih car does pay tax on it if it is under 10 yrs old .

The UK Police can of course check on the PNC (police national computer) the insrance, registration etc details of any UK registered vehicle and could when I retired 24 years ago,.

And sorry but most of the rest of your post is incorrect  too.

You shouldn't have applied for a residencia because it is only for those who spend more than 183 days in Spain. To buy a car, you need only an NIE number and a current Padron,  As a resident, you are obliged to register to pay taxes on your world wide income and the authorities are tightening up on those who have not being doing so.