Residence permit in Spain!
What was it like after a trip to Spain?
How often have you visited the idea to stay and live in this beautiful Mediterranean country?
If you are reading this article means - looking for opportunities to implement his plan.
As they say, the thought is material, and you are close to the embodiment of dreams.
So you've decided to get a residence permit in Spain. Let us examine this question in more detail.
What is required to obtain a residence permit in Spain?
Spanish authorities have willingly granted a residence permit off, and the official income is several times higher than the cost of living in Spain. It is possible to register as a legal entity and profit from your own business. The residents, who in the future will want to settle in Spain to work on contract, will be able to do it without any difficulty. But they will get this right only if the residence will be extended for a second term.
It should be noted that the legislation associated with a residence permit in Spain varies periodically. The presence of a real estate property is largely accelerates the process of obtaining residency, however, the requirements for owners of all of the above objects.
Documents required to obtain a residence permit shall be submitted to the Spanish konsultstvo, located in the State of which you are.
Waiting for the result lasts up to four months, although Spanish law decision may be delayed up to six months. If the answer is in the applicant's passport will make a special entry visa, which is marked with the letter "D". It gives the right of unimpeded entry and movement in Spain and the countries of the European Union. Upon arrival in Spain you can easily get a residence permit valid for one year, that is in the country you will become the owner of a resident card, which allows you to live in the country permanently.
In the future, when the term card expires, you can renew it without having to travel outside of Spain.
To extend the residence card must:
- Reside permanently in the country most of the year;
- Open an account at a Spanish bank;
- To confirm the official income that you have at home.
Documents required to obtain a residence permit in Spain:
- Profile with photos, two copies for each family member (to be completed in Spanish and English);
- A letter of motivation (why you want to live in Spain);
- A foreign passport and civil + copies;
- Medical certificate that there are no dangerous diseases;
- Medical insurance;
- The criminal record + apostille;
- Income statement on the applicant's home country;
- Tax return;
- Extract from the bank;
- Marriage certificate;
- A document confirming the ownership of the property.
All documents in Russian be translated into Spanish and then legalized.
Our company «TOSKOVIC Real Estate Business Investments & Consulting Company - TOSKOVIC ESPAÑA» will be with you at all stages of integration into Spanish society, as well as to obtaining residence visa to Spain! TOSKOVIC Company®
Sincerely, TOSKOVIC Company®
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With all the respect,
«TOSKOVIC Investments Funds»
«TOSKOVIC Real Estate Business Investments & Consulting Company»
Tax in Spain - is a very complicated affair and there are potentially severe fines and penalties for anybody who fails to declare and pay the correct tax in Spain.
Given that Spain has become of the most popular destinations for expats to relocate to anywhere in the world, for expats living in Spain, understanding the many different taxes in Spain is vital. Staying abreast of tax in Spain is made harder still by the Spanish government who is regularly changing its tax rules, and often those most affected are expats holding significant assets abroad.
The Spanish Tax Year!
The first thing to know is that, Spanish tax year runs from January to December.
Spanish tax treaties with the EU countriesIn 2006 Spain signed a double tax treaty with the some countries of the European Union which means that you should not have to pay tax twice on the same income.
Foreign asset reporting law in Spain!
Since March 2013, if you live in Spain and own assets in excess of €50,000 outside of Spain you are required by law to declare those assets (up to the 31st December of the previous year) to the Spanish government by the 31st March each year (from 2014 onwards).
Failure to correctly declare any offshore assets could incur severe penalties or even a criminal charge (if the tax avoidance is in excess of €120,000).
The purpose of the law is to reduce the amount of tax avoidance while also maximising Spanish tax revenue, primarily from expats living in Spain.
Assets which are required to be declared include, but is not limited to:
-Assets held in any bank accounts
-Life insurance policies
-However, the assets may be able to benefit from a variety of tax-efficient vehicles which could help you reduce any unnecessary tax payments.
If you are unsure what you need to do, or you have failed to declare any assets you should seek advice from a Spanish tax expert.
Am I a tax resident in Spain?
Typically you would be considered a tax resident in Spain if one or more of the following apply to you:
You have spent more than 183 days in Spain within a single calendar year regardless of whether you are formally registered Your primary professional activities are conducted in Spain – essentially if you are self or otherwise employed in SpainYour main interests (eg your spouse or children who are still dependent on you) live in Spain.
These rules have been simplified for illustrative purposes, so if you are unsure you should always seek advice from a Spanish tax expert.
Income tax in Spain!
At the most basic level, Spanish tax residents are liable for to pay income tax on their worldwide income, once personal allowances have been taken into account.
However, a non-resident of Spain is only required to pay tax on any Spanish income (such as rental income from a Spanish property). The income tax for non-residents is charged at a fixed rate and there are no personal allowances or deductions.
It is therefore important to understand whether you are a tax resident in Spain or not as it will have a significant impact on the Spanish income tax you are required to pay.
Under Spanish tax rules, your income is split into two main categories: income from general activities and income from savings. The total income from each category is classed as the base, after which deductions and allowances can be made.
Spanish tax on income from savings!
As previously stated, if you are a Spanish resident you will be taxed on your worldwide income from your savings, regardless where the savings are based.
Your savings income includes any income from:
-Interesting from savings
-Income from life assurance policies
-Income from annuities
-Gains made from the disposal or transfer of assets
The Spanish tax rates for savings income in 2015 are as follows:
-Spanish tax rate on savings income up to €6,000: 20%
-Spanish tax rate on savings income from €6,000 to €50,000: 22%
-Spanish tax rate on savings income over €50,000: 24%
-These Spanish tax rates change as follows from 2016
-Spanish tax rate on savings income up to €6,000: 19%
-Spanish tax rate on savings income from €6,000 to €50,000: 21%
-Spanish tax rate on savings income over €50,000: 23%
Spanish tax on general income!
Spanish tax residents will be taxed on all worldwide income which is not included as part of the savings income. This includes income from employment (i.e. salary), pension, rent and potentially income from gambling.
The Spanish income tax is made up of two parts, a national tax and a regional tax. Typically each figure is the same, however there may be regional variations.
From 2015 the Spanish income tax rates have been reduced and are as follows:
-Spanish income tax for incomes up to €12,450: 20% (10% national tax and 10% regional tax)
-Spanish income tax for incomes ranging from €12,451 to €20,200: 25% (12.5% national, 12.5% regional)
-Spanish income tax for incomes ranging from €20,201 to €35,200: 31% (15.5% national, 15.5% regional)
-Spanish income tax for incomes ranging from €35,201 to €60,000: 39% (19.5% national, 19.5% regional)
-Spanish income tax for incomes over€60,000: 47% (23.5% national, 23.5% regional)
Always check with the local Comunidades Autonomas before making any assumption about the regional rate. The above rates apply for residents of Madrid.
Spanish tax personal allowance!
If you are a Spanish tax resident you will receive a personal allowance for your Spanish income tax (from savings and general income). In Spain the allowance has been reduced in recent years.
For the 2015 Spanish tax year there is a basic personal allowance for people under 65 of €5,550. Once you reach 65, the allowance rises to €6,700 and from aged 75 this increases again to €8,100.
There are also a number of other allowances including married couple allowance, child allowance (dependent on the number of children under 25 you have living with you) and disability allowance.
Due to the complexity, it is recommended that you speak to a Spanish tax expert before trying to establish your overall tax allowance to ensure that you calculate your tax correctly.
Once you are a tax resident in Spain, you will be required to pay Spanish income on any income received from either the State or occupational pensions.
With the new pension rules, if you intend to take a lump sum (tax-free or otherwise), you should be aware that this may be taxable in Spain under the Spanish Savings Income Tax and will therefore not be tax-free.
This could have a significant impact on any decisions made regarding your pension and you should seek independent financial advice as to your best course of option if you are a Spanish tax resident.
Spanish Wealth Tax!
Since 2008, the Spanish government has introduced, removed and reintroduced the wealth tax which is a tax designed specifically for people who hold significant worldwide wealth, but are resident in Spain.
The tax amount is calculated against the declared worldwide assets held after a tax-free allowance of €700,000 is applied whether resident or non-resident in Spain.
For residents, there is an additional €300,000 tax allowance for primary residence in Spain.
In 2015, the tax rate is scaled from 0.2% to 2.5% (rising to 3.03% in Andalucia) depending on the total value of the worldwide assets.
There are exemptions from the wealth tax, and assets can be structured tax efficiently.
If you are in any doubt about what you owe, you should seek independent advice from both a Spanish tax expert and an independent financial adviser who will be able to minimise any tax liabilities while you are a resident in Spain.
Spanish Capital Gains Tax!
Spanish capital gains tax rules are not straight forward. Typically Spanish tax residents are required to pay capital gains tax on the disposal of any worldwide assets. However, non-residents are required to pay Spanish capital gains tax on gains made by the sale of any Spanish property.
With specific regards to the sale of property, there are a number of deductions and calculations which are required to understand when calculating the final gain for tax purposes.
You should always seek qualified advice from a tax adviser who has full knowledge of the Spanish tax system before submitting any tax return in Spain to avoid penalties or fines.
Whether you are considering moving to Spain or you have already relocated, if you need advice on your tax situation in Spain, we can help.
With all the respect,
«TOSKOVIC Investments Funds»
«TOSKOVIC Real Estate Business Investments & Consulting Company»