Taxation UK Pensions Spain

Taxation of UK Pensions in Spain

by PensionsPersonal Tax Returns

Spanish residents are subject to tax on all their worldwide income, and this may also include taxation of UK pensions in Spain.  Unlike the UK where aside from the tax free lumpsum, payments from pensions above the earnings threshold, are subject to income tax, in Spain, the applicable rate of tax and whether you pay tax, depends on the type of pension.

Since Brexit, the variation in taxation of UK pensions in Spain has become even more complicated due to the fact that some types of UK pensions are no longer considered to be pensions in Spain.  To illustrate how complicated taxation of UK pensions in Spain can be, the following shows all the different tax scenarios that could apply to various UK pensions and payments from them.  They can be:

  • Exempt from declaration
  • Declarable but totally exempt from being taxed
  • Partly exempt from taxation
  • Taxed as regular income
  • Considered as withdrawals from a savings account
  • Taxed as investment income
  • Treated as capital gains
  • Exempt from Wealth Tax
  • Included as assets for Wealth Tax purposes

Considering the above, it’s clear that working out or understanding taxation that will apply to a UK pension in Spain isn’t straightforward and requires a good level of knowledge on the matter.  So how does Spain differentiate the types of pension or income that in the UK we consider to simply be a pension?

Taxation of UK Pensions in Spain vs Retirement Savings

One of the biggest differences in taxation of UK pensions in Spain, arises due to the fact that personal pension schemes, such as Self Invested Personal Pensions, or SIPP’s, are no longer considered as pensions for Spanish tax purposes.  Instead they are treated as retirement savings or investment schemes and therefore subject to taxation as general investments, i.e. tax on the capital gain.

In many circumstances this can be advantageous as Spain’s rates of tax for capital gains are a lot lower than general income tax rates.  Additionally, if you are planning to move to Spain, you could potentially crystalise all gains, prior to taking up residency and thus ‘arrive’ in Spain with 100% capital in your retirement savings scheme.

Conversely as retirement savings or investment schemes are counted as assets forming part of overall wealth, larger UK personal pensions may create or increase a Wealth Tax liability, whereas pensions in Spain are exempt from Wealth Tax.

The second major difference is the Pension Commencement Lump Sum, or 25% UK tax free cash payment.  This is taxable in Spain.  If paid from a scheme considered to be a pension in Spain, e.g. a company pension, it will be subject to general rates of income tax, if taken from scheme considered to be retirement savings, e.g. a SIPP, capital gains tax rates will apply.

Let’s now look in more detail at the taxation of different types of UK pensions in Spain.

UK pensions treated and taxed as general income in Spain

UK state pension

The UK state pension is considered as pension income and therefore taxable as general income in Spain.

UK company pensions

Income from UK employment pensions such as final salary and group pension schemes, is treated as general earned income by Spain, the same as if it were a salary paid by an employer.

UK Government pensions

Pensions paid by the UK Government, would be to subject to general income tax, however under the terms of the double tax agreement between the UK and Spain, these pensions may only be taxed in the UK and are exempt from taxation in Spain.

To name a few, UK Government pensions including Teachers, NHS, Fire Service, Police, Armed Forces, Civil Service, Local Government are all pensions that are exempt.   Whilst the pension may not be taxable itself, it will be considered against the Spanish personal tax allowance, so if you have other income may use up lower tax rates, so the other income is taxed at higher rates.

There are some exceptions to the UK Government pension Spanish tax exemption.  If the pension administered and by a third party, e.g. some NHS pensions are a Capita scheme, then the pension is counted and taxed as general income in Spain

UK pensions treated and taxed as retirement savings or investments in Spain

Under Spanish tax law, for a personal pension held outside of Spain to be counted as a pension in Spain, it must be regulated as pension in the EU.  Until the UK left the EU, all UK personal pensions fell under EU pension regulation, but since Brexit they no longer do, and are therefore deemed to be retirement savings or investments.

Generally speaking, any personal pension that is not a work pension paid by the employer or the employers pension scheme, gets this treatment.

Under tax rules in Spain, it is only the capital gain in a retirement savings scheme that is taxed when a withdrawal is made.  So to work out how much of a payment is taxable, you need to know the difference between the amount that was paid in, the contributions into the scheme, and the value of the scheme at the time of the withdrawal.  This is often quite complicated and could involve checking through hundreds of transactions over many years. If records are not available, it will be impossible to prove the difference to the tax office, in which case the tax office would require the full amount withdrawn to be taxed as a capital gain

Annuities Purchased with UK Personal Pension Funds

Once again another different way a type of UK pension income is taxed in Spain.  Income from annuities purchased using funds saved in a UK personal pension scheme has a separate tax treatment.

The annuity payment is deemed to be a part return of capital and part taxable income.  The split between capital return and taxable income, is determined by the age of the person at the time the annuity is taken out.   The table below shows the splits for lifetime annuities according to age when purchased.

Up to age 40 years 40% is taxable
Age 40 – 49 years = 35%
Age 50 – 59 years = 28%
Age 60 – 69 years = 24%
Age 66 – 69 years = 20 %
70 years plus = 8%

Taxation of UK Pension Transfers & Lump Sum Payments

A Spanish resident transferring a UK company pension into a personal pension, i.e. a final salary defined benefits scheme into a flexible drawdown personal pension scheme would be deemed by the Spanish tax office to be taking an income payment and income tax would apply to the full amount transferred.

Similarly, a transfer from a flexible drawdown personal pension scheme, to for example, an overseas pension scheme, (QROPS or ROPS), would be viewed as a crystallisation of the fund and liable for capital gains tax on all the growth, (or the full amount if the capital/growth split cannot be evidenced).

As already mentioned, UK pension tax free lumps, in many cases, or if not planned carefully, will be liable for tax in Spain.  Basic guidance is to make any changes and to take lumpsums before taking up residency in Spain.  Our advice to anyone with pensions planning to move to Spain is to take advice from professionals who fully understand taxation of UK pensions in Spain.

UK Pensions and Wealth tax in Spain

We highlighted at the start that sizable personal pension pots may present Spanish wealth tax issues.  To generalise, if the personal pension is not accessible, e.g. you are under UK pension age (currently 55), then the scheme should be exempt from wealth tax.  However if it is accessible, e.g. you are age 55 with funds in a SIPP, then the funds won’t be exempt.

Taxation of UK Pensions in Spain and Planning for Spanish Residency.

It is clear that the taxation of UK pensions in Spain is not straightforward.  There are huge pitfalls and mistakes that can be made as well as significant tax advantages that can be achieved with well advised planning.

Financial Advisers in the UK do not know and understand the Spanish tax system and the many variations in taxation that apply to the different types of UK pensions.  Similarly most gestors and accountants in Spain who complete tax returns for clients who have UK pensions, don’t know and understand the different ways in which tax applies in Spain to the different types of UK pensions.

As a result without the correct guidance and advice, many individuals end up with incorrect tax declaration, pay more tax than they should have, or worse still expose themselves unwittingly to huge tax liabilities.

To avoid potentially life changing costly mistakes, we cannot emphasize strongly enough the importance of getting the correct guidance and advice.

OLS Legal Financial Tax specialise in UK to Spain change of tax residency planning.  Our Financial & Tax Consultants are UK trained and qualified financial advisers and have decades of experience helping individuals from the UK to plan this very important part of their transition to Spain.  Supported by our Spanish tax adviser professional partners, they are able to guide and advise you whatever your situation.

Fill in the brief form below to provide us with details about your situation and get a free no obligation initial review.

Free No Obligation Spanish Tax Review

Spanish Residency

Financial & Tax Consultation

The initial review of the information and feedback is free of charge.  If following the review if you would like a full consultation, fees start at £249 / €295+IVA.

UK Financial Advisers With Clients Living in Spain and other EU countries

by BrexitFinancial

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

 

 

 

UK Banks To Close Accounts & Withdraw Services for Brits Living in the EU

by BanksBrexitFinancialLatest

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.

Lloyds Bank confirmed to The Sunday Times that it will be withdrawing services from Holland, Slovakia, Germany, Ireland, Italy and Portugal – a move that will affect 13,000 British customers.

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

What is Modelo 720?

by FinancialLegal

Modelo 720 is the form which has to be completed by Spanish residents to declare overseas assets to the Tax Authorities.  The requirement applies to anyone who lives in Spain, who owns, or is beneficiary to overseas assets worth €50,000 or more.

The Modelo 720 overseas assets reporting requirement, was introduced to clamp down on tax fraud being committed by Spanish residents who have acquired, or intend to acquire, assets, and or hide wealth outside of Spain in order to evade paying tax.  You can read more about this in our article – Overseas Assets Declaration.

Continue Reading

Exchanging Your Spanish Residency Certificate for the TIE for British UK Nationals

by BrexitLatest

The TIE, Tarjeta de Indentidad de Extranjero, is the Spanish identification card for citizens from third countries (non-EU) who reside in Spain.  Since July 2020 British UK nationals moving to Spain have also had to apply for this card, as the UK is no longer in the EU.

If you already have a Spanish residency certificate, you do not have to apply for the TIE, but you can voluntarily exchange your certificate for the card.

Both the Spanish and UK Government websites and their Consulate pages confirm that the green residency certificate, A4 and credit card sized remain valid for UK nationals and prove the holders residency and retained rights under the withdrawal agreement, having settled in Spain before the UK left the EU.  However considering the issues some have encountered during the recent Covid19 travel restrictions, e.g. multiple incidences of authorities and airlines not understanding the rules and denying certificate holders entry to Spain, it is advisable to get the TIE.

Aside from this the card is a full bio-metric national ID card, therefore so much more useful than the paper certificate.  The card also has the words ARTICULO 50 TUE, a reference to note that the holder was resident in Spain before the end of the transition period and has retained rights.

The Residency Certificate TIE Exchange Application Process

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

You need to have a pre-booked appointment.

You can make an appointment through the following link:

https://sede.administracionespublicas.gob.es/icpplus/index.html

For your appointment you will need:

*Completed EX23 application form
*Your 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 (if you have changed address since you obtained your residency certificate)
*Modelo 790 form with 12 euros tax paid and stamped at the bank

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 in 5 to 6 weeks.  You may have to wait longer.

If you currently have a temporary residency certificate, your new TIE will be valid for 5 years.   You can apply to get a permanent one, either when you reach the 5 year anniversary of the date you got your residency certificate, or at the 5 year expiry of your TIE.

If you currently have a permanent residency certificate (with the word ‘permanente’), your new card will be issued for 10 years and thereafter is automatically renewable.  If you have held a temporary residency certificate for more than 5 years (but didn’t upgrade it to permanent), you may also be issued with a 10 year permanent TIE.

The TIE for British UK Nationals

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

Need a Hand With Your Residency Certificate TIE Exchange Application?

Residency Certificate TIE Exchange Service

Call / WhatsApp

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

Non Residents Property Tax

by LegalTax

Aside from Local (IBI), Capital Gains, Wealth and Inheritance Taxes, non residents must pay tax on any income they receive that arises in Spain.  Income tax for non-residents is charged at a fixed rate of 19% if you are a resident in an EU or EEA country  For non-residents from the rest of the world, the rate is 24%.  This includes a non residents property tax.

Non Residents Property Tax on No Income

If you own a property in Spain and earn rental income from it, then this has to be declared.  What some non-resident owners of property in Spain are not aware of, is that they are also required to pay tax, regardless of whether the property is let out or not!

This tax is often referred to as an imputed income tax. Spanish tax legislation for some reason assumes that a non-resident owner derives some sort of benefit from owning property and provides a system to tax it.

Continue Reading

Can I keep my ISA’s when I move to Spain?

by BanksFinancial

ISA’s are very tax efficient ways to save or invest, as you pay no tax on savings interest, (not that you get any these days), and virtually no tax on investment returns. They are therefore usually the first type of saving or investment account that people will have.  For this reason, and the fact that there is a generous annual allowance to save into them, you like many other may have built up sizeable amounts in ISA’s.

You may also have reached, or be approaching retirement, and relying on this tax efficient ISA nest egg, to provide extra income to supplement your pension.  For some, an ISA may even be their ‘pension’.

ISA’s and moving to Spain

So if you’re moving, or have moved to Spain, can you keep your ISA?  The short answer is yes.  According to gov.uk:

If you open an Individual Savings Account (ISA) in the UK and then move abroad, you can’t put money into it after the tax year that you move (unless you’re a Crown employee working overseas or their spouse or civil partner).

You must tell your ISA provider as soon as you stop being a UK resident.

However, you can keep your ISA open and you’ll still get UK tax relief on money and investments held in it.

You can pay into your ISA again if you return and become a UK resident 

Great – you can keep your ISA, and continue to benefit from it’s tax efficiency!  Well not exactly.  When you move from the UK to Spain, you also move from the UK tax system to Spain’s tax system.  So you will continue to get UK tax relief, however your ISA will (or should), get Spanish tax treatment.

Continue Reading

What is QROPS?

by FinancialPensions

QROPS – Qualifying Recognised Overseas Pension Scheme.

A QROPS, or Qualifying Recognised Overseas Pension Scheme, is an overseas pension scheme that HM Revenue & Customs (HMRC) recognises as eligible to receive transfers from registered UK pension schemes.

To gain qualifying status, the scheme must meet the requirements set by UK law, and have notified HM Revenue and Customs (HMRC) that they meet the conditions to be a Recognised Overseas Pension Scheme, (ROPS).  To find out if a pension is a recognised by HMRC, you can check their ‘ROPS’, list.

QROPS were born as part of UK legislation on 6 April 2006. The legislation itself was as a direct result of EU human rights requirements, i.e. it had been challenged that an individual living in the EU who had a UK pension, was not able to move it to a scheme in the country in which they reside or any other EU country for that matter, which was contrary to the rights afforded by the EU founding principles of freedom – movement of people, capital, goods, and provision of services.

Who can have a QROPS?

Continue Reading

TIE Tarjeta de Identidad de Extranjero

by Immigration

The TIE, Tarjeta de Indentidad de Extranjero, or foreigners ID card, is the Spanish identification card for citizens from third countries (non-EU) who reside in Spain.

Once you have arrived in Spain with the relevant visa or otherwise meeting the eligibility for Spanish residency, you can begin the process to apply for Spanish residency to get your ID card, ‘tarjeta de identidad de extranjero‘.

Applying for the TIE ‘Tarjeta de Indentidad de Extranjero’ Foreigners ID Card

The process has three parts.  In the first stage an application has to be presented to the Provincial Foreigners Office, along with supporting documentation.  The second stage is done at the National Police Station in the area that the applicant lives, and when the card is ready after a few weeks, it is collected from the police station .

The first stage can be done in person or by a representative either at the Foreigners office or online.  The second stage has to be done in person, as you have to verify your identity and provide fingerprints.  The whole process takes around 3 months.

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 works well, and the Foreign Office encourages the use of this system.  To submit your 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 Tarjeta de Indentidad de Extranjero 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.

[creativ_columns structure=”50|50″][creativ_col position=”a”]

To present the TIE application at the first stage the following is needed:

*Completed application form EX11

Indentification

*Copy of valid passport / travel document and visa
*Proof of address in Spain

Healthcare

*Private medical insurance policy / certificate with proof of the last payment
*Proof of social security payments if employed or self employed

[/creativ_col][creativ_col position=”b”]

Income / Proof of Financial Means

The exact documents required for proof of financial means varies depending on circumstances.  Any of the following as applicable may be required:

*Contract of employment
*Payslips or pension statements
*Bank statements 
*Investment statements
*Contract for rental property 

Dependant Applicants

*Birth certificate for child / dependant spouse applicants
*Marriage certificate / record of civil partnership for spouse / partner

[/creativ_col][/creativ_columns]

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

Additional documents to support your application

The Foreign Office when reviewing applications apart from checking that qualification and eligibility, may also request further information validating your arrival and situation in Spain.

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 working days will be given to supply any additional information that may have been asked for to continue with the application.

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:

https://sede.administracionespublicas.gob.es/icpplus/index.html

For your appointment you will need:

*EX17 application form
*Your first stage approval notice
*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
*Current proof of address (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 in 5 to 6 weeks.

Holiday Rental Regulation in Andalucia

by LegalLetting & Renting

Until fairly recently, private holiday rental regulation in Andalucia has been relatively uncontrolled.

For holiday property owners in Andalucia, this all changed at the beginning of 2016, when the regional government, Junta de Andalucia, brought in a host of regulations to conform with changes in national legislation.

Properties under Holiday Rental Regulation in Andalucia

Holiday rental regulation in Andalucia applies to:

  • Individual privately owned properties where the complete dwelling is let for holiday purposes.
  • Rooms in individually privately owned properties, in which the owner resides, e.g. bed & breakfast, Airbnb.

The maximum capacity, i.e. number of beds/people that can stay in the accommodation is limited by the occupation license, subject to overall maximum of 15 beds for complete dwellings and for bed & breakfast type arrangements – 6 beds, with no more than 4 beds in any one room.

Owners of holiday rental properties that fall into these categories, firstly need to list their property with the Registry of Tourism of Andalusia (RTA), in order to meet the first part of the regulatory requirements; secondly, meet the requirements within a year. During this time owners will not be allowed to host tourists/rent accommodation until fully compliant.

The Requirements of Holiday Rental Regulation in Andalucia

Continue Reading