Residencia

Friends have been told by their lawyer that they have to pay 600€ a month each into their bank account for 3 months. They will then get a bank certificate. Is this a new rule? We did not have to do this in 2010. Seems a strange rule.

Sack the lawyer and go elsewhere and find another

** EDITED - Against forum rules **

Friends have been told by their lawyer that they have to pay 600€ a month each into their bank account for 3 months.

This often a requirement to get free banking. 

It is similar to pesioners who have their pension paid into a bank they will usually get free banking

Or there may be a confusion if the account holders are non resident. In that case they will need to provide. or have the bank obtain for them a certificate of non residence

To get residenia you will need to show you have income to support yourself but that does not mean you have to do what your lawyer says

He may have reasons but IMO get a 2nd opinion from another lawyer 

You will not get a definitive answer on here for many reasons

Whats free banking to do with a bank certificate? I get free banking and have never been asked or told about anything like this.

baz

yes I get free banking but did not get a certificate or any mention of one and recently a new neighbour did not need a bank certfiicate whilst getting residencia whom we helped with the process

I have an NIE but not this green residenia paper thing. I now live permanently in Spain, I am retired (got fed up of falling down). What happens if I can’t be bothered paying to get this bit of paper and what benefit do I get from getting it?.

Frank

depends upon your area even though it is a requirement some are less worried about it and a bit slack some may say

but in general you may be aksed for it when you apply for your SIP card with the S1 or when you complete your annual tax returns etc.

Without it and you are permanently in Spain you may be automatically a resident for tax purposes but this can depend upon individual circumstances

Thank you Mr Tadd

I don’t want to go off subject too much. I am in Algorfa. I already have my SICK card, got with my NIE and letter from Newcastle.

Don’t send in any annual tax return, only have OAP and small private pension (all paid into UK bank). I thought OAP not taxable according to know all down the pub.

Could I get deported or imprisoned for not having bit of green paper?

Frank

Suggest contact hmrc and a tax expert in spain and get professional advice

As a resident if spain you are required to do a tax  return and your worldwide income must be declared plus any taxes you may have paid in another state that may be subject to bi lateral tax agreements etc

You could always trust tony down the pub or one of the self proclaimed experts on s forum

I know what I do and that is use a qualified professional for advice

Uknow   What happens if I can’t be bothered paying to get this bit of paper and what benefit do I get from getting it?.

You are technically, probably actually,  illegally in Spain, but whether anything will be done is doubtful. But for sure you are legally tax resident.  That means, if you should have submitted a 720 re assets outside Spain in excess of 50,000 euros, you are probably liable to heavy fines and penalties

However, when Brexit comes onto effect one’s status in Spain leading up to that time might determine your subsequent position.  At an extreme you might be excluded from Spain as you will have been living here illegally and you have demonstrated you were prepared to ignore the law in Spain.

Good luck

.

Me thinks this is a bit of a wind up and an aka 

It has that feeling about it Tadd.   

So if you don't have these important bits of paper, and you don't fill in the appropriate tax forms, don't pay the correct taxes, and you do have outside assets, and live in Spain according to some 'Illegally', in the 'Extreme' after Brexit you could be thrown out...Well now thats the best part of the Spanish, English, Swedish, Norwegians, Russian, and any other population going, will the 10 legal persons who are left behind be able to earn enough to run the country then?

After all if your illegal in Spain,  in the EU or not..Your out !

Tadd As a resident in spain you are required to do a tax  return and your worldwide income must be declared plus any taxes you may have paid in another state that may be subject to bi lateral tax agreements etc

I was writing my reply when you posted that. 

Thus inadvertently I repeated what you said, with without giving you due credit for it

ADD

But you don't need to submit a Spanish tax return if you have employment income of less than €22,000 from one source. This would include UK OAP.

http://www.advoco.es/hot-topics/39-do-you-need-to-submit-a-spanish-tax-return.html

Situation 4: I earn less than €22,000 a year

Just as in the UK, Spain has a system of taxation at source which means that a lot of people never fill in a tax return. If you have a salary and some bank interest which have both been taxed at source by your employer and bank respectively, you will already have paid your tax and will usually not have to do a return, provided the combined income does not take you into higher tax rates.

The cut-off point is €22,000 income in the year from employment and pensions, including those from overseas. This limit falls to €11,200 (€12,000 from 2015) under the following circumstances:

- the income has not been taxed at source

- the income comes from more than one source (e.g. two jobs or two pensions, or one of each).  If the other sources add up to €1,500 or less you can still use the €22,000 exemption

But a return becomes obligatory in certain circumstances however low your earnings:

- if you have a claim for double taxation

- if you are due a refund

- if you have made pension contributions

- if you are claiming deductions for cost of buying your main residence

- if you have capital gains or income above certain limits (see below)

Remember that it may be in your interest to make a tax return when your earnings are low, for example if you have worked for only part of the year and may therefore be due a rebate because your personal allowances exceed your income from the months you worked.

Note that you will always be required to submit a tax return in your first year of tax residency, however low your income.