There are several reasons to became resident in Spain, specially is you are thinking about selling your property, which include:
- If you are fiscal resident in Spain, and over 65 years of age, you are no subject to capital gain tax when you sell your property under the condition that it was your main residency for the previous three years.
- No retention of 3% of the property sale price and deposited by the buyer in the tax office, as a guarantee against your tax liabilities.
- When selling your residence in Spain, you can rollover the capital gains tax by purchasing a new main residence within two years prior or after the sale, even if you are returning to the UK or other European countries.
- If you are a resident and you bequeath your estate to your spouse and/or children, who are also are residents, you can reduce radically inheritance tax.
If you visited the “oficinas de extranjeros” based in some of the police stations of the province in the last 3 months in order to become resident you may be aware of the new regulations.
European Economic Area (EEA) citizens can reside in different EEA countries, nevertheless for stays over three months there are several conditions to be met, most of them are established in article 7 the European Parliament directive 2004/38/EC.
Spanish Royal decree nº 240/2007 put in force partially Parliament Directive 2004/38/EC in Spain, but the deficit and the overstretched Spanish finances, forced the Spanish administration to take actions in order to cut expenses also regarding the benefices of EEA residents and published order PRE/1490/2012 which implement article 7 of Directive 2004/38/EC in the Spanish residency laws for EEA or Swiss citizens.
Rules for residency periods in Spain over 3 months
To get register you need: passport or national ID card, 3 pictures, form EX-18, (http://www.interior.gob.es/file/55/55502/55502.pdf), administration fee paid and some other documents depending on the different cases:
- Citizens working in Spain either as self-employed or employees. Proof of inscription in the Spanish social security system, (certificate of inscription or “vida laboral”…), employment contract registered in the INEM, IAE certificate from the tax office for self-employed, registration of the company in the commercial registry, articles of association of company… An important detail: if you were previously working in Spain, you will still be considered “worker” if for example, you are temporarily unemployed because of sickness, or been working for a year or more but presently unemployed and registered at the unemployment office or for following a training program related to their employment.
- EEA applicants not being working. They will have to demonstrate that:
- – You have a medical insurance (public or private) that will cover you during the stay in Spain. (If you are retired you can still show a certificate from your country that evidences that you are covered in Spain).
- – You have enough resources to support yourself.
- Students. Conditions: To be registered into a recognized academic institution, to have a medical insurance, or the European Health Insurance card, to declare that you possess enough resources to live in Spain.
- Family members of an EEA or Swiss citizen residing in Spain complying with the conditions above: spouse or registered partner (common law marriage), minors supported children, supported citizens of age (incapacity…)
Order PRE/1490/2012 doesn’t affect or change any rules related to permanent residency.