We first published this article around this time last year.  At that time Brexit had finally just ‘been done’, and the transition period begun.  In the prior 18 months to 2 years there had been a scramble amongst Brits to formalise and secure their Spanish resident status.  That scramble only intensified through the next twelve months, to almost a crescendo in the last months of 2020, with unprecedented numbers of Brits applying for Spanish residency.

Considering the tax related queries we have also been receiving, it’s clear that for quite a few, Brexit made the main priority simply getting residency with the formal side of residency, put to one side or overlooked completely.

So we’ve refreshed and republished this article and it will hopefully provide answers to most general questions that you may have about tax in Spain, if you’ve recently taken up residency in Spain.

Understanding and planning fiscal residency and Spanish tax is of course important.  Tax in Spain is very different to the UK, which is why we provide information about it, and offer consultation on Spanish taxation along with our residency services.  This helps our clients understand and plan this part of their transition to full-time Spanish residency.

Here we provide an overview of the tax related requirements and key points that most need to consider when becoming resident in Spain.

Tax related requirements once you’ve taken up residency in Spain

There are lots of things to consider when taking up residency in Spain, and where tax is concerned, the starting point is understanding all the differences Spanish resident status brings with it.

You are generally liable to pay taxes in the country in which you reside.  This means that once you have taken up residency in Spain, you will be subject to Spanish taxation.  The obligation to pay taxes in Spain arises when you meet the residency measure based on the 183 day rule.  This responsibility applies regardless of whether you have registered as a resident or not.

What do you need to do after becoming a Spanish resident

Individual circumstances are of course all different.  It’s therefore important to know the key things that apply and need to be done in your own personal situation.

Generally speaking, when you change residence from one country to another, in most cases there is, or should be an element of financial and tax planning.

Basic planning begins with knowing the taxes that will apply, the returns that need to be done, and when.   Then it’s a case of getting a clear picture of how these will apply in your situation, and the implications so you can plan accordingly.

The following is a summary of the Spanish key tax dates and when they apply according to when you became resident.

Spanish Tax Return Deadlines

Non resident property tax Modelo 210 – 31^st December following year (e.g. 2020 must be submitted by end of 2021)

Overseas assets declaration Modelo 720 – 31^st March the year after becoming resident

Income tax return Modelo 100 – 30^th June the year after becoming resident

What returns need to be done and when?

If you took up residency in 2018, by now (if applicable) you should have completed your Overseas Assets Declaration and first Income Tax Return in Spain.  If you have assets and income to report, but haven’t, we recommend you seek advice.

Non-residents 2019

Anyone who was not resident and owned a property in 2019, should have completed their non resident tax return (Modelo 210) for that year by the 31st December 2020.  If you were a non-resident property owner in 2019 and haven’t done your non resident tax return for 2019, you should do so as soon as possible to avoid increased penalties.

New Residents 2019

If you took up residency / became resident in Spain in the first half of 2019, you will be deemed tax resident in Spain for 2019, and should have completed a tax return in June 2020.  You should also have submitted an overseas assets declaration (Modelo 720) in March 2020, if you owned assets outside of Spain, of value €50k or more.

For a person that took up residency in the second half of 2019, last year, 2020, was their first fiscal year in Spain.  If they owned property, they should have completed a non resident property tax return for 2019 before the end of December 2020.  If applicable the Modelo 720 is due by the end of March this year.  Some would say this should have been done in March 2020, it depends on interpretation of becoming resident, i.e. is it the when registering as a resident, or when you become a fiscal resident?  Income tax returns are due by the end of June.  Anyone not aware of this, or who hasn’t looked into this or started planning, should do so now.

New Residents 2020

Anyone who became resident in Spain in the first half of 2020, will be deemed tax resident in Spain for 2020.  If property owners, they should have completed a non resident property tax return for 2019 last year.  The Overseas Assets declaration, Modelo 720, is due by the end of this March and income tax returns by end of June.  As above anyone not aware of this, or who hasn’t looked into this or started planning, should be doing this now.

If you took up residency in the second half of 2020, then this year, 2021, is your first fiscal year in Spain.  If applicable, your will need to complete a non resident property tax return for 2020 before the end of this year.  Overseas Assets Declaration can be completed this year if applicable, however income tax returns won’t be due until June 2022.

Anyone in this scenario, should be taking advantage of the fact that they have time to plan, and fully understand their tax position as a Spanish resident.

What are the differences between UK taxation and tax in Spain?

Tax in Spain has a general reputation of being excessive compared to the UK.  This is not surprising if for example you compare income tax.  The basic income tax allowance in Spain is €5,550 vs £12,500 in the UK, and the tax rate rises to 30% as soon as your taxable income reaches €20,200.  These are clearly negative differences.

There are however also many positive differences.  For example, in a family with 4 children, the parents each get a €19,100 tax allowance.  Rental income from a residential property also has a massive 60% reduction applied before it is taxed, and the top rate of tax on dividends in Spain is 24% versus 38.1% in the UK.

We aren’t going to list every difference in this article, and the above examples illustrate that the differences aren’t necessarily all negative.  How it works out for each individual taking up residency in Spain, depends on their situation and how they plan and prepare for their transition to being a Spanish tax payer.

Planning for tax in Spain before taking up residency

Contrary to perception Spanish taxation is often not as bad as many thought, or were lead to believe that it would be.  The reality is that if you become resident in Spain, you are liable to pay tax in Spain.

Rather than avoid the matter as many do, anyone who’s just moved over, taken residency this year or is planning to, should be considering the fiscal aspects of their transition and getting ready for Spanish taxation.

By taking time to plan, it is possible to minimise potential Spanish tax exposure, limit it, or at very least fully understand it.

We recommend anyone moving to Spain to follow these 5 steps:

Simple Steps to Successfully becoming a Spanish Tax Resident

• Learn about the tax system – what needs to be done and when
• Understand how the Spanish tax regime differs in your situation and what tax you will have to pay
• Find out what tax treatment applies to assets you own and tax breaks that you currently enjoy
• Make changes in your financial set up to minimise, limit or avoid Spanish tax
• Get professional advice on financial or tax matters in both the UK and Spain

Spanish Residency Financial & Tax Consultation

If you are not sure about your tax position, have questions about tax in Spain, or would like assistance with any of the steps above, we can provide you with an initial review of your situation and at no cost.  We’ll highlight key tax points relating to tax, your situation and answer your general questions.

You may need further help understanding how tax in Spain affects you, or planning to limit how much it does.  In which case our team of financial and tax consultants specialised in change of residency planning between UK and Spain, are here to help.

Request Your Spanish Tax Consultation

Phone/WhatsApp (+34) 951 77 55 44 / (+44) 033 000 10 777

Read more about Tax in Spain

Read more about Overseas Assets Declaration in Spain

This information is provided for informational purposes only and we do not warrant it’s accuracy or completeness.  It is not intended to provide advice, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before making financial or tax related decisions.

The TIE, Tarjeta de Indentidad de Extranjero, is the Spanish identification card for citizens from third countries (non-EU) who reside in Spain.  The Withdrawal Agreement TIE is a special version of this card, issued to British UK nationals who have retained EU rights under the terms of the Brexit Withdrawal Agreement.

The qualifying requirements for applicants e.g. for proof of means remain the same as they were when the UK was in the EU.  British UK nationals living in Spain who had not obtained a residency certificate, had until the 31st December 2020 to apply for the the Withdrawal Agreement TIE.

You can now only apply for the Withdrawal Agreement TIE in two circumstances:

a) you are a qualifying family member of a British UK national who has either the green EU residency certificate, or the Withdrawal Agreement TIE.

b) you were living in Spain last year and can prove this

A qualifying family member may be a spouse, civil partner, child or other legal dependent.

We can assist with applications for the Withdrawal Agreement TIE in both cases.  If you are able to provide the necessary documents, (see below), and would like help with your application please get in touch.

The process below is the procedure for applying for the Withdrawal Agreement TIE.  British UK Nationals could apply under the terms of the Withdrawal Agreement up until the 31st December.  Thereafter the Withdrawal Agreement TIE is only available to  and immediate family members of those that already have Spanish residency.

The Withdrawal Agreement TIE ‘tarjeta de idenitidad de extranjeros’ for British UK Nationals

Applying for the Withdrawal Agreement TIE for British UK Nationals

There are two stages in the process.  In the first stage an application is presented to the Foreigners Office (extranjeria) in the province where you reside.  The second stage is completed at the National Police Station in the area that you live.

The initial application can be presented in person or by an authorised representative, and can be done face to face at the Foreigners Office, or submitted online.

In most places, you have to call the foreign office to make an appointment to present your application.

The online submission system is working well, and the Foreign Office are encouraging the use of this system.  To submit you application you need to have a digital signature and certificate in place.  If you don’t have one, you can authorise someone else or a company to complete the online submission on your behalf.

This is done using the ‘Designacion de Represenante‘ form.

First Stage TIE Application & Documentation Required

The wide variances that exists from one town to the next regarding documents for EU residency certificate applications, does not apply to TIE applications, as all applications are processed at the provincial head office not at the Police Station closest to where you live.  This makes it a lot easier to assess and prepare applications, and provides a lot more consistency.

Official translations of documents that are not in Spanish must be provided.

Documents to prove that you were living in Spain prior to 31st  December 2020

If you are applying for the Withdrawal Agreement TIE retrospectively, you will need to provide sufficient proof that your were actively living and present in Spain prior to 31st December 2021.  The list below provides some examples.  The more you can provide, the higher chance you have of your application being accepted.

*receipts of transactions with establishments in Spain
*bank or credit card statements showing transactions in Spain
*proof of medical consultations, dentist or doctors appointments
*vet appointments in Spain
*contracts of any nature entered into in Spain
*receipts for supplies (electricity, water, gas, internet…)
*receipts for fixed or mobile telephones at your address in Spain
*documents from public or private entities that demonstrate having received a service in Spain
*plane ticket/boarding card from entering Spain showing arrival in Spain
*entry stamp in Spain on passport
*certificates with public or private entities stating a relationship with them in Spain (clubs, associations, training centres, gym…)
*income tax returns in Spain
*tenancy agreement
*shopping receipts with name and address
*proof of owning a car, ITV receipts, mechanic bills etc

When your application is received, a receipt will be issued confirming that it has been presented.  It will then be reviewed accordingly at the foreigners office.  If for any reason your application is not immediately accepted, 10 business days will be given to supply any additional information that may have been asked for to continue with the application.  An application that is deemed not to meet criteria will be rejected.

Notification of the approval of your application will be sent within 3 months, and you have one month to make an appointment and complete the second stage application at the National Police Station.

Second Stage TIE Application

The second stage application process is relatively straight forward, and appointments are readily available in most areas at the Foreigners Offices and National Police Stations.

For your second stage application you need to have a pre-booked appointment.

You can make an appointment through the following link:

Proceso automático para la solicitud de cita previa

For your appointment you will need:

*EX23 application form
*Your first stage approval notice / existing EU residency Card and a copy
*Passport and a copy ( a copy of your passport and the application is acceptable if you are in the process of renewing it)
*Small passport (carnet size) photo 32mmx28mm
*Recent padron
*Modelo 790 form with €12 tax paid and stamped by the bank, or with payment receipt attached

When you present your application your fingerprints will be taken, and if everything else is in order, you will be given confirmation of your processed application and told to make an appointment to go back and collect your card.  The card will usually be ready in around 5 or 6 weeks.

Your first TIE is valid for 5 years.  At the 5 year expiry of your TIE you can apply for a 10 year permanent residency TIE

Need a Hand Applying for Your TIE?

Withdrawal Agreement TIE Late Application Service Request

Call / WhatsApp

(+34) 951 77 55 44 / (+44) 033 0001 0777

A month has passed since the Brexit transition period ended and the UK finally left the EU.  If enquiries, posts and comment in social media and other forums are anything to go by, there is a major lack of understanding of the requirements and costs for British Nationals to get Spanish Residency.

We covered the general requirements in our article Spanish Residency Requirements for British Citizens and UK Nationals 2021.

Here we drill down further into what the new Spanish residency requirements for British National mean in real terms.

Spanish Residency Requirements for British Citizens as Nationals of Third Countries

The single biggest change that UK nationals seem to be failing to understand, is that British citizens are now nationals of third countries, and therefore subject to general immigration rules.  This means that UK nationals who wish to come and live in Spain must first obtain a long stay visa, BEFORE they can actually come to Spain and apply for their residency.

Visas are obtained through the Spanish Consulate in the UK and applications must be presented with supporting documents present, correct, legalised, certified and officially translated as necessary.

The requirement for British nationals to obtain a visa in order to get Spanish residency, adds significant cost to the process, and also excludes a wide demographic of Brits who have previously made up a large section of migrants from the UK to Spain.

What Are The Visa Eligibility Requirements and Costs?

Applicants must have a sufficient secure income, such as a pension, and private medical insurance.

The minimum income required for a single person is just over €27,000 per year.  Just under €6,800 per extra per year is required for each additional dependent family member applicant.  So married couple applying together need a minimum income of €34,000 between them, and a family with 3 children €54,000.

The total application costs will depend on the applicants circumstances and the type of visa being applied for.  We are going to use a couple, Mr and Mrs Bloggs, who are recently retired applying for a non-lucrative visa as an example.

Private Medical Insurance

This cost will of course vary.  This example assumes the couple who are both aged 67, are in good health with no pre-existing conditions.

Documentation Costs

Each applicant must obtain a police report and medical certificate.  These must then be legalised (apostile stamp attached), and then officially translated by a Spanish Government authorised (Sworn) translator.  A police reports cost £55, medical certificate £40, legalisation £30 per document (plus £5.50 postage per order), official translation £40 per page.

As Mrs Bloggs doesn’t have sufficient income to qualify for a visa in her own right, she must apply as a dependent of Mr Bloggs and provide a marriage certificate, legalised with apostile and officially translated.

Other documents that would need to be certified and translated are those confirming income, e.g. P60’s, pension letters, private pension payslips, bank statements and so on.  Document certification (official authentication) is done by a notary public and costs £50 per document.  Not all documents need to be certified.

Visa Application Fees

The non lucrative visa application fee is £516 and paid directly to the Spanish Embassy.

So to summarise, the couples visa application estimated costs (in Euros) are as follows:

€1,700 – private medical insurance (1 year policy)
€840 – documentation costs
€1,166 – visa application fees
€3,706 – total estimated costs

Costs which are in GBP such as the visa fee, have been converted to EUR, the exchange rate at the time of writing £1 = €1.13.

Spanish Residency Card Application (TIE – Tarjeta de Identidad de Extranjeros)

Once the visa has been approved, the successful applicants can travel to Spain and apply for their Spanish residency cards.

The application is made at the National Police station in the area that they are going to be living in Spain.

Given the amount of initial financial outlay that has to be made BEFORE getting approved for residency, understanding the requirements and being prepared ready with a properly prepared application are of obvious importance. The last thing you want to do is spend thousands of pounds only for your approval to end up being long drawn out process because of a poorly prepared application .

Similarly you don’t want to commit to the expense of a visa application if you’re unlikely to get approved.  For this reason, if you are unsure whether you qualify, or don’t understand the requirements and process, its advisable to pay a firm that does, to review your situation and advise you, before you commit to the costs of a Spanish visa application.

Spanish Residency for Applicants Living in Spain Before the End of the Transition Period.

Individuals who were living in Spain before the end of the transition period and who are able to prove this, may still be able to apply for residency under the withdrawal agreement terms.  The cut off for such applications is the end of March.

If you are thinking about applying for a residency visa or Spanish residency, and want to be sure about how your should go about this, please feel free to contact us to arrange a review of your situation.

Get In Touch

(+34) 951 77 55 44 / (+44) 033 000 10 777

The Brexit transition period ended 31st December 2020. This means there are now new Spanish residency requirements for British citizens / UK nationals effective from January 1st 2021.

British citizens / UK nationals now have to follow the same process as other non-EU national citizens of third countries to get Spanish residency.

Since July 2020, British citizens / UK nationals taking up residency in Spain, have had to partially follow the non-EU process, as Spain introduced the ‘Withdrawal Agreement’ TIE ‘tarjeta de identidad de extranjeros‘. The TIE is the foreigners ID card which all non-EU nationals have to obtain when they reside in Spain. During the transition period, and thereafter for those who already have a Spanish residency certificate, a special ‘withdrawal agreement’ card is issued. This ‘Withdrawal Agreement’ TIE card confirms the holders protected rights as a former EU citizen according to the terms of the Withdrawal Agreement.

The process for obtaining the ‘Withdrawal Agreement’ TIE ‘tarjeta de identidad de extranjeros‘ was the same as for other non-EU nationals. however the qualifying criteria remained the same as for the Spanish residency certificate for EU citizens.

Christmas Eve marked the moment the UK finally reached a Brexit agreement with the EU, full details of which have now been published.  The so called ‘Free Trade Agreement: a new economic and social partnership with the United Kingdom’, is of most interest to UK nationals living in Spain and other EU countries, those planning to and those with other interests such as business or a holiday home.

The agreement covers not just trade in goods and services, but also a broad range of other areas such as, tax transparency, air and road transport, energy and sustainability, fisheries, data protection, and social security coordination.

Notable points for UK nationals in Spain or other EU countries in the agreement are that:

• It provides for zero tariffs and zero quotas on all goods that comply with the appropriate rules of origin.
• On transport, the agreement provides for continued and sustainable air, road, rail and maritime connectivity, though market access falls below what the Single Market offers. It includes provisions to ensure that competition between EU and UK operators takes place on a level playing field, so that passenger rights, workers’ rights and transport safety are not undermined.
• On social security coordination, the agreement aims at ensuring a number of rights of EU citizens and UK nationals. This concerns EU citizens working in, travelling or moving to the UK and to UK nationals working in, travelling or moving to the EU after 1st January 2021.

This agreement at least brings closure to the uncertainty that has been hanging for so long, and is good news in part for many British Nationals in Spain.

Zero tariffs and quotas at least means that goods won’t cost more due to tax, and UK vehicles brought to Spain won’t be subject to customs import taxes as long as they were originally UK or EU vehicles.  As free movement will stop, there will be more checks on goods and people coming into the Spain and the EU from the UK.

The agreement on social security coordination will be welcomed by many who have moved to Spain to retire, or planned to, as many will have been relying on the reciprocal healthcare arrangement as their means of access to healthcare.

The deal also allows UK Nationals to visit EU countries for up to 90 days without the need for a visa.  Longer stays will however require a visa, so there will be a new lengthy step in the process for UK Nationals who want to move to Spain.

Read more about the post Brexit visa requirements for UK citizens in the EU.

Spanish Residency Long Stay Visas

The United Kingdom left the European Union on 31 January 2020.  The transition period that to negotiate future arrangements between EU and the UK ends on 31st December 2020, with a deal finally agreed at the last minute.

As of the end of the transition period, privileges enjoyed under EU freedom of movement come to an end.  British UK Nationals and their non-EU family members will be subject to all Spanish immigration rules for third-country (non-EU) nationals.

However, UK nationals and their family members who took up residency in Spain and other EU Member State before the end of the transition period in accordance with EU free movement law, will maintain their free movements rights after 31st December 2020.

As British Nationals will no longer be exempt from travel restrictions, new regulation will come into force on 1st January including the requirement to obtain Visa’s and possible travel bans.

The website for the Spanish Consulate in London notes:

‘In compliance with EU Regulation 2018/1806 of the European Parliament and of the Council of 14 November 2018 British passport holders travelling to Schengen countries for holidays, business or to visit family do not require a visa for stays of up to 90 days in a 180 day-period, provided the visit is not for gainful activity. Please note that the 90 days will start counting from the date they enter any of the Schengen countries, including Spain.

British citizens and their family member need Visas for journeys undertaken after 31st December 2020 for the purposes of residence, studies for period larger than 90 days, work, professional, artistic or religious activities.’

Most nationals of non-EU countries require visa to enter Spain, including if the stay is intended to be less than 90 days for tourist purposes.  (A tourist visa known as a Schengen visa, valid for all of the countries in the Schengen area, is issued by the Spanish Embassy in the applicant’s home country, or the embassy of the Schengen country in which a traveller will arrive).

The deal for UK Nationals, is the same as the deal enjoyed by citizens of around 35 other non-EU countries where a Schengen visa is not required to just to enter Spain.

The holder of a Schengen visa is not permitted to work or to stay longer than 90 days in the entire Schengen area, not just Spain. The same applies to nationals of non-EU countries that are exempt from needing a Schengen visa.  So, if the intention is to stay more than 90 days, a long stay visa will be required.

The Spanish Consulate has also published a list of long stay visa fees that will be applicable for British Nationals from January 1st.

Visa Fee List British Citizens

In their FAQ’s they also detail what you need to do if you are a UK citizen who wants to move to Spain and need to get a residence visa.

Read more about Spanish Residency for non-EU citizens and Spanish Residency Long Stay Visas

Nationals of non-EU countries require a visa to enter Spain, if the stay is intended to be more than 90 days.  The Schengen visa in most cases cannot be used to apply for residency in Spain.

There is an exception when an immediate family member is joining a family member who already lives in Spain and holds Spanish residency.   In all other circumstances a citizen of a non-EU country must apply for, and obtain a long stay visa through the Spanish Embassy in their home country.

Since UK has now left the EU, UK citizens / British nationals also have to apply for a visa if they want to live or work in Spain.

Once the visa has been issued, the applicant can travel to Spain and apply for residency and get their TIE, ‘tarjeta de identidad de extranjero‘.

The following is a summary of the main types of long stay visas that citizens of non-EU countries can apply for.

Non-lucrative residence visa

The non lucrative residence visa is for those who have means to support themselves without working whilst residing in Spain.

Residents with this visa, cannot engage in any economic activity in Spain, and to obtain the visa must have private medical insurance and prove that they have either sufficient capital to fund the duration of their residency, or adequate secure income, e.g. pension.

Work Visas

There are numerous different types of Spanish Work Visas. In most cases the applicant is required to apply in person through the Spanish embassy or consulate in their home country.  Some countries have special schemes, for example for Canada, the Youth Mobility Program.

Employment Visa

Highly skilled non-EU nationals can apply for jobs for which there is a lack of suitable candidates within the EU. The employer requests a Work Visa from the Ministry of Labour.

These applications can take  6 to 9 months to so forward planning is needed. Once the Ministry of Labour has approved the application, the embassy or consulate issue the work visa.  The applicant can then travel to Spain and apply for their Spanish residency card.

Seasonal Workers Visa

The process of obtaining a visa for seasonal work, is similar to the process for highly-skilled workers, the employer applies on behalf of the worker.

Seasonal workers have to have suitable accommodation arranged, all travel costs are covered, and proof that they will return to their country once the job has finished, as the visas is only valid for the duration of the seasonal work contract.

Self-employed & Freelance Workers Visa

This is a one year visa which is renewable if conditions continue to be met.

A business plan is required to demonstrate that the self-employment / freelance activity will generate sufficient income.  This has to be supported by evidence, e.g. pre-signed contacts, or proof of an existing business activity that will continue, e.g. online marketing or teaching online.

EU Blue Card

The EU Blue Card is Europe’s answer to the US Green Card.  It is for people who spent at least 3 years completing a higher education qualification which allows them to work as a skilled professional.  People who have a minimum of 5 years’ professional experience at a high level are also eligible.

The prospective employer submits an initial application for a temporary residency and work permit on the behalf of the employee.

A valid work contract under the scheme, is one that includes a salary which is at least 50% more than the average wage in Spain (or 20% more if the skills are in demand).  Once approved, the applicant then applies through the Spanish embassy or consulate in their home country for a residence and work permit as an employee.  When they arrive in Spain they then apply for their TIE. Spanish residents foreigners ID card.

Blue cards are valid for one year and can be renewed if conditions are still met.

Au Pairs Visas

Individuals aged between 17 and 30 can apply for a special Au Pairs visa via the Spanish embassy or consulate in their home country before coming to Spain.  Applicants need to have an Au Pair agreement with a host family stating the salary and conditions, (proof of sufficient finances to self-support), and private medical insurance.

Entrepreneur Visa

Those with a high-tech, high-growth business idea and the qualifications to pull it off can apply for an entrepreneur visa.  The business plan has to be approved by the Ministry of Economy and Competitiveness and the applicant must have the financial means to start the business.  If you are in Spain already (legally – including on a tourist visa) you can apply, or through the usual route of the Spanish embassy in your home country.

The entrepreneur visa is a temporary work residency, valid for two years and renewable.

Investment Visa

The Spanish Residence Permit Program, more commonly know as the Golden Visa, allows investors and their families who meet the requirements to secure Spanish residency by investing in Spain.

Any of the following are the defined qualifying investments:

*€500.000 or more into real estate
*€1,000,000 bank depositor or purchase of share in a Spanish company
*€2,000,000 into Spanish Government bonds

In addition, starting a business that creates employment, contributes to technological or scientific innovation or that has a strong socio economic impact will also qualify the investor

The ‘Golden Visa’ doesn’t impose a minimum period of residence. An initial residency card is granted for one year (or two years if you visit Spain), and can then be renewed every five years, and then again for another five years. Permanent residency can be applied for after you’ve actually lived in the country for a period of five years. Please note that applicants will be required to visit Spain to collect their biometric data.

While it is not necessary to live in Spain in order to obtain and renew the residency visa permit, the pathway to citizenship does require the investor or qualified family members to live at least 6 months per year in Spain for ten consecutive years. Investors must also travel to Spain twice a year, leaving no more than 5.5.-6 months between each visit. This will then allow eligible investors and/or their families to apply for Spanish citizenship. Some nationalities, including former Spanish colonies, can benefit from a reduced length of full-time residency in order to be able to apply for nationality.

Pre-requisites for the investor visa applicants must:

*have a clear criminal record.
*not be on the nation’s list of undesirable people.
*hold valid medical insurance and an official health certificate
*not have previously been refused visas or entry into the Schengen zone.
*have enough funds to support themselves in Spain.

Student visa

As the name suggest, this visa allow Spanish residency for those coming to study in Spain.  You can apply for the student visa for undergraduate courses, Masters, Ph.D. and other short term qualifying studies.

The student visa is valid for one year and renewable.  It also allows work for up to 20 hours per week on an internship, gives easy access to getting a work permit once your studies have finished.  Student visas also allow the students family members to get Spanish residency subject to the conditions of financial means being met.

Canada Youth Mobility Program

The Youth Mobility Program offers Canadians aged between 18 and 35 the opportunity to live and work in Spain.  There is a limited quota of 1,000 per year, and successful applicant get the opportunity to gain work experience related to their area of expertise, complement their post-secondary training with an internship, and improve their knowledge of the Spanish language, culture and society.
Eligible applicants must first get an NIE, and unlike most other visas, the application doesn’t need to be made in person at the Spanish Embassy and can be made by post.

We wrote an article recently detailing that many British nationals living in Spain and other EU countries, have received letters from their UK banks telling them that their accounts will be closed at the end of 2020.  This due to no Brexit trade deal having been agreed.  

That article explained the impact of no Brexit trade deal on financial services providers in the UK.  After 31st December 2020, these service providers will not legally be able to carry on providing services to their expat clients who reside in Spain or other EU countries.

The Brexit transition period ends at the end of the year, and with it the financial services licence EU ‘passporting’ rights which allow UK firms to provide financial services in EU countries. 

As a result many providers, including Financial Advisers, are withdrawing their services as advisers where their client is a UK national living in the EU.  It is only a small minority of financial service providers that have taken the necessary steps to establish themselves in the EU so they can continue providing their services. 

It is therefore quite likely that from 2021, most expats living in Spain or other EU countries will not be able to receive advice or services from their UK Financial Adviser.  Clients and advisers alike who are affected by this, should be acting now to make alternative financial arrangements. 

UK Financial Advisers and Advice in the EU After the Transition Period

The UK is unlikely to get any special access to the EU over and above any other third country.  That was a benefit of being in the EU.

Any UK IFA firm that wishes to carry on business with clients in an EU country such as Spain, will need to be authorised by the regulator of that country to be able to do so.

The options an adviser may have are to:

• Get approved to advise in the EU country in which they have clients
• Partner up with a firm that is already established in the EU
• ‘Sell’ their EU based client to an EU firm of advisers

Getting a financial services licence, is not a quick or straight forward process, and it’s not cheap either, so this will not be viable for most UK financial advisers.  This means that many Brits living in Spain and other EU countries who currently have UK financial advisers, will need to find new one.

Brits In Spain With UK Financial Advisers

If you live in Spain and have a UK Financial Adviser, there is a good chance that they are not going to be able to legally carry on as your adviser next year.  If they have told you they can, you should ask them to provide you with confirmation of the EU permission that they have obtained.

We have heard of UK advisers that have told their clients that they just need to just use the UK address of a friend or family.  The issue cannot be fixed by pretending you live in the UK.  If your adviser is not licenced to advise in Spain their Professional Indemnity Insurance will not cover their advice or services.  The UK regulator and their insurance provider would certainly take action, if they became aware of advisers doing this.

If you are affected by this or think you may be, and haven’t already spoken to your UK financial adviser you should do so.  If you’re not sure what to do or need to find adviser in Spain, we can recommend firms and advisers who are licenced to advise in the UK, Spain and other EU countries.

Please feel free to get in touch and ask to speak to one of our Financial Services Advisers.

Contact Us

Phone & WhatsApp (+34) 951 77 55 44 / (+44) 033 000 10 777

The UK press and expat papers in Spain have all carried articles warning that thousands of Brits living in the EU will have their UK bank accounts closed by the end of the year.

In the UK the The Daily Mail, The Guardian, The Times and The Daily Telegraph to name a few, have all detailed how banks including Lloyds, Barclays and even the Queen’s bankers Coutts, will be closing expat accounts and withdrawing services.  The reason for this is the UK’s failure to agree a post-Brexit trade deal to allow cross border Financial Services to continue.

Banks are having to make decisions as to which EU countries to pull out of and which to continue operating in.

The bank, which is Britain’s biggest banking group, started writing to its customers living in these countries since August, telling them that their UK bank accounts would be shut on December 31.

Barclays also confirmed that its banking and credit-card customers living in the EU had started receiving letters.

Why Are UK Banks Closing Accounts & Withdrawing Services for Brits Living in the EU?

Until now the UK banks and other financial service providers have been able to use the EU ‘passporting’ system to provide services to customers living in other EU countries.  In the absence of a Brexit trade deal, the UK will no longer be able to use the passporting system,  This means when the transition period ends, it will become illegal for UK banks and other financial service providers to offer their services to British customers living in EU countries unless they have a licence in each country to do so.

Given the relatively small amount of customers that UK banks have that live in the EU, for most UK banks and other financial service providers, it is not commercially viable to go through the process of obtaining licences and establishing branches in each EU country where they have British expat customers.

Which UK Banks Are Closing Accounts and What Services Are Being Withdrawn?

All the major UK Banks have either already confirmed that they will be closing expats accounts and withdrawing services, or are in the process of reviewing the services that they offer.  Closures will affect current and savings accounts, ISA’s, credit cards and investment accounts.

It is not just bank accounts that are affected.  Customers are also having their credit card facilities withdrawn.  And its not just banks that will not be able to continue offering services.  All financial service providers will lose the ability to serve customers in living in EU countries, unless they have opened up shop in each country where the want to provide their services.  This includes insurance providers, investment companies and firms who provide financial advice.

Will Any Banks or Other Financial Service Providers Continue Offering Services?

Most banks have already made the decision not to continue offering services in the EU.  The decisions are simply based on the commercials.  If it’s not commercially viable for big banks with thousands of customers in the EU, to continue operating, then the same will apply to other financial services providers.  Not least financial advisers.

Many Brits who moved to Spain have kept their UK financial advisers.  This is understandable given that they will usually have had a relationship with them for many years and can therefore rely on them and trust them.  The vast majority of UK financial advisers will will not have the means or justification, to go to the expense of setting themselves up in Spain, to continue servicing a few clients who live there.

The reality is that many thousands of Brits throughout Spain and the EU, stand to be abandoned by their UK banks, financial advisers and other service providers due to Brexit.

Read more about UK Financial Advisers and their EU resident clients post Brexit.

What Do Should I do If My UK Banks or Financial Service Provider is Unable to Provide Services in the EU?

A short term measure could be to use the address of a friend or family member.  This could help you keep your account open for the time being giving you some time to plan and sort out new arrangements. If you do this, it’s important that you check the terms of the the accounts that you have.  Most accounts that include a credit facility, (overdraft, credit card etc), actually require you to be resident in the UK, not just have a UK address.

It really does depend on your situation, and the reason why you use the account provided by your UK bank.  If you need an account denominated in GBP (pounds), to make and receive payments, then online account providers like for example Revolut, may have a solution.  They offer accounts in the main currencies including GBP, and support direct debits in both EUR and GBP.

Some Spanish banks also offer GBP accounts, and there are also a few international banks such as Standard Bank, that provide accounts in all the main currencies.  With the advent of online banks, it’s also quite easy to open accounts with EU online banks, so there are quite a few options to set up alternative banking arrangements.

One thing to also be aware of is that come 1st January, Spanish banks will be able to charge to receive payments from UK banks, so it’s worthwhile taking the time now to fully review your banking setup.

Of course, whilst there are options, when relationships stretch back many decades and your banking has been a habit of a lifetime, being abandoned is a bitter pill to swallow.

If you are affected by this or think you may be, the first thing you should do is contact your UK bank or financial adviser to find out where you stand.  If you then need to set up new banking arrangements, it’s advisable to do so without delay.

If you’re not sure what this means to you, whether you’re affected, or not sure what to do and would like to speak to a professional who can guide and advise you, please feel free to get in touch and ask to speak to one of our Financial Services Advisers.

Contact Us

Phone & WhatsApp (+34) 951 77 55 44 / (+44) 033 000 10 777

Fortunately these days, if you don’t know the Spanish language, translating basic documents is relatively easy.  There are abundant translation apps such as the popular Google Translate which a quite accurate.  Of course, if you need to have a Spanish translation of a more detailed or official document, you’ll need to get someone to do the translation for you.

There are various types of official document translations and certifications that you might need when living in Spain or during the process of applying to do so.  E.g. for visa and residency applications.

Sworn Translations

These are translations done by an official translator who is legally authorised as a translator.  Sworn translations, are accompanied by a signed declaration from the translator attesting to the accuracy and authenticity of the translation. The translator appears on an official list of certified translators and interpreters approved by the Spanish Ministry of Foreign Affairs.  The translator will sign and certify any translations they complete.

Sworn translations have a formal status with authorities, so these are what you have to get when you need to translate documents for things like visas, residency applications, social security etc.