eu_family_member_residency_card

Is Spain Breaching EU Law with Residency Process for Non-EU Family Members of EU Citizens?

by Moving to SpainResidency

When a citizen of an EU country decides to move to Spain, they have a fundamental right to be accompanied by their non-EU family members. This right is protected under Directive 2004/38/EC, a key piece of EU legislation that outlines the conditions for free movement and residence within the EU. Yet, in practice, Spain’s implementation of this directive raises serious legal concerns.

Many applicants and immigration professionals report that Spain’s approach to residency applications for non-EU family members of EU citizens is overly burdensome, inconsistent with EU law, and fraught with procedural barriers. This article explores Spain breaching EU Law with Residency Process for Non-EU Family Members of EU Citizens and failing to comply with EU obligations—specifically as clarified in the European Commission Communication C/2023/1392, published in the Official Journal of the European Union in 2023.

1. Legalisation of Foreign Documents: Blanket Requirement vs. Case-by-Case Evaluation

According to the EU directive and the 2023 Communication (Section 2.2), public documents such as marriage or birth certificates issued in non-EU countries should not require legalisation (such as an apostille) unless there are specific doubts about their authenticity.

EU Guidance: “Member States may only require legalisation … in exceptional cases where there is a genuine doubt as to the authenticity of a document.”

However, Spanish immigration offices routinely and systematically demand legalisation of all foreign documents, regardless of circumstance. This blanket requirement is not only disproportionate but also directly contradicts EU law.

2. Restriction of Acceptable Proof of Family Relationship

EU law offers flexibility regarding how applicants prove a family relationship. It allows the use of any appropriate documentation, depending on the circumstances—especially important for unmarried or long-term partners.

EU Directive: Applicants “may use any appropriate document to prove the existence of a family relationship or durable relationship.”

Spain, in contrast, mandates specific types of documents (e.g. official marriage certificates, birth certificates) and routinely rejects alternative evidence, even when it is relevant and legitimate. This restrictive approach runs counter to EU principles of proportionality and flexibility.

3. Unlawful One-Year Cohabitation Requirement for Partners

The directive allows non-EU partners in durable relationships to apply for residency, but leaves it up to Member States to assess these on a case-by-case basis.

Spain, however, often imposes a strict requirement: applicants must prove one full year of prior cohabitation with their EU partner. This rule is not found in EU law and fails to respect the Directive’s individualised assessment mandate.

Many couples—especially those separated by visa constraints or long-distance relationships—find this requirement impossible to meet, even when their relationship is genuine and longstanding.

4. Demands for Proof of ‘Effective Residence’ and Departure from Country of Origin

Applicants are also routinely asked to prove they have permanently left their home country and are now effectively residing in Spain. This includes requests for:

  • Rental contracts or home ownership documents

  • Municipal registration (empadronamiento)

  • Utility bills

  • Employment contracts or proof of income

This poses a legal paradox: non-EU family members are often only permitted to stay in Spain for 90 days, during which time they must submit their residency application. Expecting applicants to already have such documents assumes the outcome of the application, undermining the entire purpose of the facilitated process the Directive guarantees.

5. Impact on Vulnerable Applicants

Most non-EU family members arriving in Spain do so under visa-free travel or short-stay visas. They are often:

  • Financially dependent on their EU citizen family member

  • Without independent income or assets

  • Without formal residency status or municipal registration

Spain’s procedural demands—documentation, legalisation, cohabitation proof—create a de facto barrier to family reunification. This situation disproportionately affects vulnerable individuals and undermines the right to family life, which is protected by both EU and international law.

Conclusion: A Call for Compliance and Reform

Spain’s current residency process for non-EU family members appears to violate several key elements of EU law, particularly as clarified in the European Commission’s 2023 Communication on Directive 2004/38/EC.

Key Areas of Non-Compliance:

  • Systematic legalisation of documents without justification

  • Restrictive documentary requirements for proving family ties

  • Mandatory cohabitation rules not found in EU legislation

  • Proof of settlement requirements incompatible with the 90-day entry window

These practices hinder the exercise of fundamental EU rights and frustrate the purpose of the Free Movement Directive. The European Commission has made it clear: Member States must facilitate—not obstruct—family reunification for EU citizens.

What Can Applicants Do?

Affected individuals can:

  • Submit a complaint to the European Commission

  • Petition the European Parliament

  • Seek legal advice to initiate appeals or judicial review

  • Request assistance from rights organisations or legal NGOs

 

This article is based on first-hand experience supporting non-EU family members through the Spanish residency process. It is intended as a general overview and does not constitute legal advice.

bringing uk car moving to spain

Change A UK Vehicle Address to Northern Ireland to Avoid Spanish Customs & VAT: Legal Loophole or Organised Fraud?

by LegalTax

In the post-Brexit landscape, importing vehicles from the UK to Spain has become a somewhat onerous and in many cases very costly affair.  Customs duty at 10% and VAT 21% can amount to thousands or tens of thousands, with high end vehicles, on top of all the other costs.  Against this backdrop some vehicle import and registration businesses operating in Spain, are touting what they describe as a “legal loophole” based on the Northern Ireland Protocol—a method they claim allows UK car owners to change a UK vehicle address to Northern Ireland to avoid Spanish Customs & VAT.

These services are being sold to both individuals relocating to Spain, and holiday home owners importing their cars from mainland UK.  However, what’s being presented as a clever workaround, is in reality, a serious criminal offence—for both the organisers and their clients.

This article sets the record straight and explains what’s really at stake.

The Scam: Fraud Disguised as a “Loophole”

Here’s how the fraud scheme works:

  1. A mainland UK based and registered vehicle (England, Wales, Scotland) is intended for import and registration in Spain.

  2. To avoid import VAT (21%) and customs duties (10%), the importer is advised by a “vehicle registration agent” in Spain to re-register the vehicle in Northern Ireland first.

  3. This means falsifying the information on the V5 registration document by changing the registered keeper’s address, to an address in Northern Ireland—a procedure that the registration agent facilitates.

  4. The vehicle is then “imported” to Spain, on paper, from Northern Ireland, supposedly qualifying it for duty-free treatment under the Northern Ireland Protocol and EU-UK Trade and Cooperation Agreement.

  5. Thus, the vehicle is registered in Spain, without customs duty or VAT paid—under false pretences.

These businesses charge a fee for their services, including ‘working the loophole’ and may falsely assure clients that:

  • The process is “perfectly legal,”

  • “Everyone’s doing it,” and

  • The Northern Ireland Protocol creates a valid exemption.

None of this is true.

⚠️ Why It’s Illegal

🚫 It’s Not a Loophole – It’s Fraud

There is no legal exemption for importing a vehicle from England, Scotland, or Wales via an untrue registered keeper Northern Ireland address.  Falsely representing the origin of a vehicle to avoid tax is customs fraud.

The scheme involves:

  • Falsifying information on official documentation

  • Misrepresentation of facts (i.e. the vehicle’s origin and owners residence),

  • Deliberate or dishonest intent to evade tax.

Under both UK and Spanish law, this is not a civil “grey area” — it is criminal conduct.

⚖️ Legal Consequences for Vehicle Owners

Even if clients are misled or unaware, they are legally responsible for the fraud carried out in their name. Potential consequences include:

🇪🇸 In Spain:

  • Criminal tax fraud charges (Article 305 of the Penal Code) if tax evasion exceeds €120,000.

  • Fines up to 6 times the amount of tax evaded.

  • Vehicle seizure by the Guardia Civil or Spanish customs.

  • Invalidated vehicle registration, meaning the car may not be legally driven or sold.

  • Insurance complications: Invalid registration can void cover.

🇬🇧 In the UK:

  • Prosecution for fraud under the Fraud Act 2006 (false representation),

  • Conspiracy to defraud (if coordinated with others),

  • Potential involvement in money laundering under the Proceeds of Crime Act 2002,

  • Falisfying UK documents, possible charges under the Forgery and Counterfeiting Act 1981.

Even if the fraud targets Spanish tax authorities, actions carried out in the UK—such as registering the vehicle at a false Northern Ireland address—can form the basis for prosecution under UK law.

👨‍💼 Legal Risks for the Businesses Facilitating the Fraud

The businesses organising this process are at even greater legal risk, especially given that this activity is:

  • Widespread and organised,

  • Carried out systematically for profit,

  • Involving documents with false information, false representations, and cross-border fraud.

They may face:

🇪🇸 In Spain:

  • Money laundering charges (Article 301 of the Penal Code),

  • Participation in a criminal organisation (Article 570 bis),

  • Severe prison sentences and fines,

  • Prosecution under AML laws (Law 10/2010) for failing to report illegal activity.

🇪🇺 In the EU:

  • Investigation by OLAF (European Anti-Fraud Office) for undermining EU customs revenues.

Moving from the UK to Spain and bringing your vehicle

If you are moving from the UK to Spain, there are lawful exemptions available to avoid paying customs and VAT when importing your personal vehicle.

Obtaining these exemptions does require a fair bit of effort and paperwork, for example to prove prior residency in the UK, change of residency, ending of tax residency in the UK, ownership and use of the vehicle prior to moving, amongst others.

Registration agents present the Northen Ireland ‘loophole’ as a simpler and easier route to the correct way to avoid import taxes, meaning that countless unwitting individuals break the law to avoid tax that they could quite legitimately not have to pay.

Falsely routing your car through a Northern Ireland address you never lived at, and the car has never been kept at to avoid import taxes, is not a clever legal loophole alternative to doing things the right way — it’s a crime.

If You’re Offered This “Service” – Walk Away

Anyone who tells you this is a “legal loophole” is either deliberately deceiving you, or seriously misinformed. Either way, engaging in such a scheme can lead to penalties and fines, criminal charges, and confiscation of your vehicle.

If you’ve already been approached about or used such a service, you should seek legal advice.

📢 Who to Contact or Report To

If you suspect a business or individual is involved in this fraudulent activity, you can report it to:

In Spain:

  • Agencia Tributaria (Tax Agency): www.agenciatributaria.es

  • Guardia Civil / Policía Nacional (for vehicle and document fraud)

  • SEPBLAC (Spain’s anti-money laundering authority): www.sepblac.es

In the UK:

✅ Final Word

If it sounds too good to be true — it probably is.

Falsely registering a car in Northern Ireland to avoid customs and VAT is not a clever trick. It’s a deliberate organised cross-border tax fraud, with serious consequences for everyone involved.

If you’re relocating to Spain and bringing your vehicle, there are legal and compliant ways to do it.  Don’t let promises of a “legal loophole” jeopardise your future life in the sun.

gibraltar_designated_tax_haven_spain

Holding Assets in Tax Havens: Key Considerations for Spanish Tax Residents

by BanksFinancialMoving to SpainTax

In recent years, Spain has tightened its tax regulations concerning the ownership of foreign assets, especially those held in jurisdictions designated as non-cooperatuive “fiscal paradises” (tax havens). Among these, the Channel Islands of Jersey and Guernsey, as well as the Isle of Man and Gibraltar, are specifically listed in Spanish law. As such, Spanish tax residents with financial interests in these jurisdictions are subject to specific tax obligations — particularly regarding capital gains taxation on an annual basis.

This article outlines the legal framework, the implications for taxpayers, and the steps individuals should take if they currently hold or are considering holding assets in these locations.

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consejo de ministros

Update – End Of The Golden Visa For Property Purchases in Spain

by Buying PropertyImmigrationLatestLegalVisas

UPDATE

In November Congress approved a bill that included text to scrap the ‘Golden Visa’ and end this residency scheme as soon as January 2025. On December 2nd, the Senate vetoed the bill sending it back to Congress delaying the ending of the Golden Visa.  The legislation has now been passed and will come into effect 3rd April 2025.

It will be possible to apply for a ‘Golden Visa up to that date, and anyone who has been granted residency under the scheme will be able to continue renewing in the future.

Background to the End of the Spain’s Golden Visa

Just over one year after Portugal announced that its ‘Golden Visa’ for property investors would be coming to an end, Spain has signaled the end of the ‘Golden Visa‘ for property purchases in Spain.

On Monday 8th April 2024, President Pedro Sanchez announced, “We are going to start the procedure to eliminate the granting of the so-called golden visa , which allows access to the residence regime when more than half a million euros are invested in real estate. We are going to take the necessary measures to guarantee that housing is a right and not a mere speculative business,”

The residency by property investment scheme, offers a 3 year residency permit to foreigners from third countries who purchase a property for €500,000 or more.

The scheme, introduced in 2013 in the fallout of the housing market crash and financial crisis, was seen as a way to invigorate the real estate sector by attracting investment from foreigners, but has not been without criticism.  Not least for the lightweight background checks, and being viewed by other EU nations as a back door into the EU for individuals who would otherwise not gain access.

At home, the scrutiny is more political, with those averse claiming that it distorts, and has negative socio-economic affects.  It is this which Sanchez seems to indicate as the main driver, as he stated that nearly all approved ‘Golden Visas’ and residency permits for property investments were located in regional capitals such as Barcelona, Madrid, Malaga and Valencia, ‘cities where the housing market is stressed’.

He added “We do not want a speculative investment model with housing”, further commenting on the aim of his main policy to ‘guarantee access to affordable housing . . . and assure that no citizen has to spend more than 30% of their income towards having a suitable, quality home’.

In 2023, foreign buyers bought 15% of all homes sold in Spain with British buyers continuing to top the board as the nationality with the largest numbers buyers.

When Ireland, Portugal and Greece got rid of their ‘Golden Visa’ schemes, lack of affordable rental housing stock in its major cities was also cited as a main reason.

Others, including real estate experts have a different view and warn that ending the scheme could be harmful to the Spanish economy as the country will lose foreign investment into the property sector.

Whatever view taken, one thing now seems certain, the countdown has started and it is just a matter of time before Spain’s ‘Golden Visa’ for property investment comes to an end.

Until then, it remains an option for those who have €500k to invest in a property, and anyone looking to do so, needs to act now before it’s too late.

This article references information published by El Pais

Image credit: Sala del Consejo de Ministros, Edificio del Consejo de Ministros Photographs by Borja Puig de la Bellacasa via Wikimedia Commons

non_eu_citizen_travelling_eu

EU Travel Rules For Non-EU Family Members of EU Citizens

by ImmigrationLiving in SpainMoving to SpainResidency

The EU travel rules for non-EU family members of EU citizens are different to the general rules for other nationals of non-EU countries.

If you are a citizen of an EU country living in or or travelling to another EU country, your family can join you, including core family members who are not EU citizens.

Non-EU core family members include spouse, children, dependent descendants, dependent parents or dependent grandparents. It also applies to non-EU registered partners, however only if the country they are travelling to considers registered partnerships as equivalent to marriage.

What documents does a non-EU family member need to travel to an EU country with their EU family member?

Depending on which country the non-EU family member is from, aside from a valid passport from their home country, they may or may not need a visa.

A non-EU family member who is a citizen of a country who’s nationals are allowed visa free travel to the Schengen area will not need a visa, whereas a family member from a country where Schengen visa are required will.  The exception to this is where the non-EU family member holds a residency card issued by and EU country that is in the Schengen area.

For example a South African married to a German would need Schengen visa to travel to Spain with their spouse, however if they held a German residency card, they would not.

If a visa is required for a non-EU family member, according to EU rules it should be free of charge and processed under a fast track application procedure for core family members of an EU citizen.

A visa for a non-EU family member can be declined fir they fail to prove:

  • they are a family member of the EU citizen
  • that the EU citizen lives in or will travel to an EU country other than the country of their nationality
  • they will join or accompany the EU citizen in that country

Additionally, EU countries have the right to refuse visa application for reasons linked to public policy, security or health, and reasons linked to abuse or fraud.

How long can a non-EU family member stay in an EU country with their EU family member?

Non-EU family members are entitled to accompany or join their EU family member without any conditions or formalities for consecutive periods of up to 3 months per EU country visited.  They are not subject to the overall limitation of up to 90 days in a 180-day period that applies in the Schengen area, i.e stays different EU countries can be combined without an overall time-limit.

So for example they could stay for 3 months in Spain, then 3 months in France consecutively, whereas other non-EU nationals would have to leave the Schengen area after a 3 months stay in Spain and would have to wait another 3 months before they could visit another Schengen country again.

Conditions of the EU rules on residence apply to non-EU family members of EU citizens visiting EU countries

EU citizen and non-EU family member staying in an EU country for up to 3 months

For stays less than 3 months, all that is needed is a valid passport and an entry visa for the non-EU family member if applicable.

EU citizen and non-EU family member staying in an EU country for more than 3 months

The applicable EU directive (2004/38/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 29 April 2004) allows each member state to set its own administrative and registration formalities for EU citizens of other EU countries coming to stay in their country for more than 3 months.  Articles 7, 8 and 9 cover residence for periods or more than 3 months and the administrative requirements that may be put in place.

While requiring the registration formalities is optional for each member state for EU citizens, it is are not optional for the their non-EU family member.

Article 9

Administrative formalities for family members who are not nationals of a Member State

1.   Member States shall issue a residence card to family members of a Union citizen who are not nationals of a Member State, where the planned period of residence is for more than three months.
2.   The deadline for submitting the residence card application may not be less than three months from the date of arrival.
3.   Failure to comply with the requirement to apply for a residence card may make the person concerned liable to proportionate and non-discriminatory sanctions.

If a member state has a requirement for registration for EU citizens for periods of residence longer than three months according to the directive ‘failure to comply with the registration requirement may render the person concerned liable to proportionate and non-discriminatory sanctions’.

What is the registration requirement for EU citizens and their Non-EU family members in Spain?

If the EU citizen and their non-EU family member family want to stay longer than 3 months in Spain, then the EU citizen is required to report their presence to the relevant authorities, and their non-EU family member must apply for a residence card.

In Spain the procedure for the EU citizen is an application for a ‘residency certificate‘ which is done at the National Police station.  This has to be done before the non-EU family member can apply for their residency card, as the EU family members residency certificate is required in their application.

Read more about getting a residency card for a non-EU family member of an EU citizen in Spain.

Spanish residency card for family member of an EU citizen

Spanish Residency for non-EU family members of an EU citizen in Spain

by ImmigrationLiving in SpainMoving to SpainResidencyTIE tarjeta de identidad de extranjero

Spanish residency for non-EU family members of an EU citizen in Spain, is an extended right.  Family member includes spouse or civil partner, children or dependants of who are part of the household, and under 21 years of age.

A citizen of an EU country has an automatic right to live in Spain, however must obtain their Spanish EU citizen residency certificate before their non-EU family members can then apply for their Spanish residency.

The non-EU family member makes their residency application in Spain, and must be legally present when they do so.  The non-EU family member does not need to apply for a long term residency visa before they come to Spain.  If they are a national of a country who’s citizens enjoy visa free travel as tourists to the Schengen zone, they can travel to Spain under Schengen rules and make their family member residency application whilst they are within their 90 days allowed under Schengen rules.

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Beautiful,Luxury,Holiday,Villa,House,In,Marbella,Town,On,Costa

Tax in Spain for Residents and Non-Residents

by FinancialPersonal Tax ReturnsTax

Understanding tax in Spain is essential, not just if you live here, but also if you own a property in Spain.

The Spanish tax year runs from 1st of January to 31st December.  Residents have to complete their income tax return, declaracion de la renta, by 30th of June the following year, and non-residents have until 31st December.

Spain has a double taxation treaty with the UK, which means you can avoid getting taxed twice on the same income.

Resident or Non-Resident for Tax in Spain?

You are considered to be tax resident in Spain if any of the following apply:

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london_terrace

Overseas Assets Declaration

by LegalPersonal Tax Returns

Spain has legal requirement for its residents to make an overseas assets declaration, notifying the tax authorities of worldwide assets that they own or control.

Until relatively recently, failure to make an overseas assets declaration, or submission of an inaccurate one, could result in extremely costly penalties.  Unreported overseas assets that were later discovered by the authorities, would be treated as undeclared income on which tax should have been paid.

The legislation, (LEY 7/2012, de 29 octubre, de prevención y lucha contra el fraude fiscal), was passed in Spain in 2012.  It was aimed at deliberate high level tax evaders, and the fines and penalties could add up to more than 150% of the undeclared or incorrectly declared asset value.

In January 2022, the European Court of Justice passed it’s ruling agreeing with the European Commission, that the penalties for failing to properly disclose overseas assets are excessive and contrary to EU statutes and principles.

The three judges ruled that the excessive sanctions for incorrect or late compliance are disproportionate and discriminatory.  Adding that the penalties may deter businesses and individuals from investing or moving across borders in the EU single market, thus interfering in key founding principles of the EU, the four freedoms.

As the ruling was binding, Spain had to take steps to comply.   Where previously the late filing penalty was the greater of a minimum of €10,000, or €5,000 per undeclared asset, this is now a fee of €150 or €20 per asset.   The fine for incorrect or missing information, is a minimum of €300 and will vary depending on the deemed infraction.

The tax office can now only review or investigate overseas assets declarations going back 4 years, and if you had assets abroad, and you can show that they originated in years outside this, you cannot be taxed or penalized for undeclared income.

The EU agree with the principle of the law, so putting aside the EU ruling regarding penalties and sanctions, the declaration of overseas assets continues to be mandatory, for all residents in Spain.

Making an Overseas Assets Declaration

Modelo 720

An overseas assets declaration is made by completing a form known as ‘Modelo 720‘. The deadline for submitting the form is the 31st of March, and generally speaking the declaration only needs to be made once, as subsequent declarations are only necessary if assets have been acquired, or disposed of, or if existing declared assets have increased in value above a given amount.

Modelo 721

In 2023 new regulations were passed to require the declaration of crypto currencies held on overseas exchanges.  The Royal Decree 249/2023, de 4 april, and Orden HFP/886/2023, de 26 Julio, which approved the “Informative declaration on virtual currencies located abroad”.

The declaration is done by completing the form Modelo 721.  The declaration requirement began in 2024 in reference to the year 2023.

Whilst this overseas assets reporting requirement might seem intrusive, it is in reality only the result of what was a small move by the authorities, in their steps to counter the country’s rampant tax evasion.

Planning for Tax in Spain

Changing from UK to Spanish Residency and Understanding Tax in Spain

by BrexitLatestPersonal Tax ReturnsTax

Needless to say when taking up Spanish residency, understanding tax in Spain and planning for fiscal residency is important.  Tax in Spain is very different to the UK, so for anyone making the move, planning this part of the transition to full-time Spanish residency is should be firmly on the agenda.

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

As a resident in Spain you are liable to pay tax on:

  • General income
  • Interest on savings and investments
  • Capital gains on sale of assets
  • Wealth (if your total wealth is €700k or more – €1m including allowance for family home)*
  • Gifts and inheritance

*Allowances are lower in some regions – in Madrid and Andalucia wealth tax is currently waived. 

Large fortune tax is a new national tax on wealth that kicks in on net wealth above €3m.  (Regionally paid wealth tax is applied as a tax credit)

Spanish residents must also declare assets they own outside of Spain such as:

  • Property
  • Investments
  • Savings
  • Pensions
  • Insurance

When do you become resident for tax purposes in Spain?

Tax obligations arise for the fiscal year in which you become resident in Spain, not from the date you got your residency.  New residents in Spain need to be mindful that the Spanish tax authorities apply the default assumption that an individual who has obtained residency, (formally registered as a resident), in Spain, has done so because they are switching their habitual residence from the country that they were living in, to Spain.

Depending on your circumstances, this means that you could be deemed to be fiscally resident in Spain despite not having lived in Spain for 183 days of the year.  For example if in August last year you sold your home in the UK, bought a home in Spain, moved over and obtained residency, under the habitual residence rule you will be deemed to be Spanish tax resident in last year.  This is because Spain do not split the tax year, so the fact that you now only have a home in Spain overrides the 183 day rule, i.e. you cannot claim habitual residence in the UK if you no longer have a permanent home there.

On the other hand, if you moved to Spain and obtained residency, however have kept a permanent home in the UK, you could claim that your habitual residence did not change in last year applying the 183 day rule, as you spent more time in your home in the UK than you did your home in Spain.  This year as you will spend more than 183 days at your home in Spain, then you will be resident for tax purposes this year.

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 – 31st December following year (e.g. 2023 must be submitted by end of 2024)

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

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

Tax Return and Declarations Guide for Change of Residency

New Residents Last Year

If you took up residency and became resident for tax purposes in Spain last year, assuming that you were in receipt of income, your personal tax return is due in June this year.  If you owned assets outside of Spain, of value €50k or more, you should also have submitted an overseas assets declaration (Modelo 720) in March this year.

Anyone who took up residency in the second half of last year who can claim that their habitual residence did not change, assuming they spent less than 183 days in Spain in the year, then this year is their first fiscal year in Spain.  If they were an owner of a property owner in Spain the previous year, they will complete their last non resident property tax return this year and in June next year their first resident income tax return will be due.

New Residents This Year

Anyone who moved to Spain in the first half of this year, will generally be deemed tax resident in Spain this year.  If applicable, the Overseas Assets declaration, Modelo 720, is due in  March next year and income tax returns by end of June next year.

If you take up residency in the second half of this year, and are able to show that your habitual residence didn’t change, then next year will be your first fiscal year in Spain.  The Overseas Assets Declaration and income tax returns will not be due until the year after next.

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 (low income €14,000), 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 get an addition €19,100 tax allowance between them  Rental income from a residential property also has a substantial 60% reduction applied before it is taxed, and the top rate of tax on dividends in Spain is 26% versus 38.1% in the UK.

In some circumstances pensions may also attract less tax in Spain than in the UK.  Read more about Taxation of UK Pensions in Spain.

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.

For most it is certainly not a matter to be avoided.  Anyone who has recently take up residency in Spain or who is planning to, should be considering the fiscal aspects of their move, the possible tax implication what they need to do to be 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.  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.

Spanish Residency Financial & Tax Consultation

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Supreme Court Ruling Temporary Residency Spain

Supreme Court Ruling on Termination of Temporary Residence Due to Absence From Spain

by ImmigrationVisas

Earlier this year, the Spanish Supreme Court declared null, the article of law that allowed temporary residence permits to be terminated when there had been absences from Spain for more than 6 months in the year.  The Supreme Court ruling on termination of temporary residence due to absence from Spain, dismisses article 162 – 2.e) of Real Decreto 557/2011 stating that this should be regulated in the higher ranking immigration law, the ‘Ley Orgánica 4/2000’ and not in a regulation written in law of lower rank.  It therefore considers that the article limits the fundamental right of free movement of foreign citizens who have temporary residence in Spain as established in the Spanish Constitution.

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