Brexit Implications for Residency in Spain

WORDS RAQUEL PÉREZ

As from 1 January 2021, British citizens and their non-EU family members are now subject to Spanish immigration rules for thirdcountry nationals, meaning any privileges under EU freedom of movement have come to an end. However, UK nationals and their family members who established residence in other EU Member States before the end of the transition period in accordance with EU free movement law, will maintain their free movements rights.

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 members require a visa for the purposes of residence, studies for periods longer than 90 days, work, professional, artistic or religious activities. Those who intend to spend more than three months in Spain have the obligation to become a resident and apply for the TIE card and, for more than six months, to become a tax resident which will imply paying taxes in Spain on their worldwide assets.

A lot of British people came to Spain staying up to six months who didn’t applied for residency. Now, in order to become resident in Spain, they need to contact the Spanish consulate and apply for a Visa. The most common is the non-lucrative visa, which allows an individual to come and stay in Spain as long as they wish but not to work. Oher people can apply for a different type of residency permit if they are married to someone who is protected by the withdrawal agreement or to another EU national.

There is another option which is the golden visa, but this will entail purchasing a property with a value of €500.000 per family, depositing €1 million in a bank account in Spain or buying government bonds of around €2 million. If this is an option for the applicant, they don’t need to become tax resident in Spain.

British citizens, before coming to Spain, should arrange a NIE certificate and open a Spanish bank account. They need also to be aware of the following:

- You are tax resident if you spend more than 183 days in a year in Spain (A tax year runs from 1st of January to 31st of December).

- You can take out 25% of your pension tax free, but if you become a resident, you would be liable to tax in Spain.

- If you have a UK property as your main residence which you sell as a Spanish tax resident, you would potentially be liable to Spanish CGT.

TO APPLY FOR A NON-LUCRATIVE VISA THE SPANISH CONSULATE WILL REQUIRE THE FOLLOWING

1 Two copies of the National Visa Application form completed and signed by the applicant.

2 Two recent colour photos with white background, 3´5 cm x 4´5 cm.

3 Original passport, valid for at least 1 year from submission of application.

4 Police Clearance from countries of residence for the last 5 years. This document has to be apostilled and translated into Spanish by a sworn translator.

5 Medical certificate issued by your GP doctor. The applicant must be accredited to not suffer from any disease that can have serious health consequences in accordance with the provisions of the International Health Regulations 2005. This document should also be apostilled and translated into Spanish.

6 Medical Insurance with an insurance company authorised to operate in Spain.

7 Documents proving sufficient financial means for your living expenses and accommodation (€2.151,36 per month plus €537,84 for each family member). Approximately €27.000,00 in savings or income.

8 Form EX-01: Non-Profit Temporary Residence Authorisation Application Form.

9 Form 790-052.

The visa will be approved for three months and you need to physically attend the Spanish consulate to receive it in your passport. Once you have it, the application for the permit should be filed at a police station in Spain within the following month. You don’t need to acquire any other visa. The TIE card permit is valid for one year to be renewed for another two years and then for five years (this is the last renewal).

SECOND STEP IN SPAIN ONCE YOU HAVE THE VISA

The requirements for the application of the TIE CARD once you have the VISA are:

1 Registration at the town hall (by either renting or buying a property in Spain, as you need to prove a domicile).

2 Financial situation as provided to the Spanish consulate.

3 Private health cover for at least one year.

4 Copy of passport and NIE certificate. 5 Form X15.

If you are living in Spain and you don’t have a residency permit or your TIE card yet, be aware that your situation should be legalised as soon as possible.

Pérez Legal Group Tel: (+34) 952 833 169. www.perezlegalgroup.com