In this article we will look at what we consider the most important things to think about prior to moving to Spain and we try to give as much advice and helpful information as possible in order that you may get started.
Visa and Residency in Spain
Whilst at the moment the UK is still part of the EU and therefore we still have free movement within the EU, if you are planning on staying in Spain for more that three months you must tell the Spanish Government that you intend to do so.
You will need to register at your local ‘Oficina de Extranjeros’ or at a designated Police Station. As ever in Spain you will need to make an appointment and you will need to have already got yourself an NIE link number and once you have advised them you will be given a Registration Certificate.
Once you have been registered as a Resident for five years you are then able to apply for a Permanent Residence.
If you would like to book an appointment to become a Resident or a Temporary Resident you can do so here https://sede.administracionespublicas.gob.es/icpplus/index.html
Healthcare in Spain
For trips to and from Spain and the rest of Europe as an EU citizen you are eligible for a free European Health Insurance Card which will cover for you for any necessary treatments you may need to receive whilst you are away. This does not replace your personal travel insurance but we through recommend applying for one here https://www.nhs.uk/NHSEngland/Healthcareabroad/EHIC/Pages/about-the-ehic.aspx
If you are registered to work in Spain and are paying Social Security (our version of National Insurance) then you have the same access to the Spanish state run healthcare system as any Spanish national.
If you are going to Spain to study you may be covered by healthcare paid from by the UK, check the here to see if you are entitled. https://www.nhs.uk/NHSEngland/Healthcareabroad/movingabroad/Pages/Studyingabroad.aspx
If you are retired or do not intend to work while you live in Spain then we would suggest that you take out private health care insurance, advising your insurer of where you live. Some retirees are eligible and the best way to find out is to contact the Overseas Healthcare Team on +44 191 218 1999.
It is important to note that if you fall ill and are prescribed a treatment the Spanish healthcare system will expect you to contribute a percentage of this subscription, it is not the same as the UK. A rough guide of the percentage you will be expected to contribute can be seen below;
Working in Spain
If you are an EU citizen the you have the right to work in Spain without the need for a work permit.
As with the UK you can either be employed or self employed. If you are employed the Spanish Government has a similar system to PAYE where your tax and Social Security (their equivalent of National Insurance) is taken off your monthly wage, if you are self employed or ‘Autonomo’ as it is called there then similar to the UK you will be responsible for your Tax and Social Security, we recommend you employ the services as an English speaking accountant to assist you with this. Sadly, Spain is not as pro business and therefore being Autonomo is not as attractive as it is the UK but we will go on to discuss Taxation in the next section.
Taxation in Spain
|Annual income||Social situation||% of contribution||Capped at|
|Less than €18,000||Working age||40%||No cap|
|Between €18,000 and €100,000||Working age||50%||No cap|
|State pensioner |
|Over €100,000||Working age||60%||No cap|
|State pensioner||60%||€60/month |
Firstly you will need to understand where you are considered to be a ‘Tax Resident,’ this is usually the country where you reside for six months or more per year. Understanding where you are Tax Resident is clearly easier if all your income will be derived in Spain, i.e. you are employed/self employed in Spain and you do not have any other income. However if you have pensions, benefits, income from property or from any other sources, or capital gains from sales of property that are derived from the UK you will need to speak to the Tax Authorities in either Spain or the UK in order to understand how you will be taxed, the likelihood is that they will refer to you to an Accountant that is proficient in international business so be sure that you think this through and take advice if needed.
You will also need to declare all assets you may own with a value in excess of €50,000, you do this by submitting a Model 670.
Thereafter, the income tax rates although they do vary slightly depending on where in the country you are;
– Up to €12,450: 19%
– €12,450–20,200: 24%
– €20,200–35,200: 30%
– €35,200–60,000: 37%
More than €60,000: 45%
If you become a Resident in Spain you are eligible for are certain tax deductions. The basic personal allowance for if you are under the age of 65 is set at €5,550, or €6,700 from age 65 and €8,100 from age 75.
If you have children under 25 living with you, you can claim an additional allowance of:
– €2,400 for the first child
– €2,700 for the second
– €4,000 for the third
– €4,500 for the fourth
– Additional allowance of €2,800 for each child under three years.
If you have a parent or grandparent living with you and your total income is less than €8,000, you can claim an allowance of €1,150 if they are over 65 and €2,550 if they are over 75.
In general, you can claim tax deductions in Spain for:
– payments into the Spanish social security system
– pension contributions
– the costs of buying and renovating your main home
– charitable donations
Capital Gains Tax is also payable for at 19% for profits up to €6,000, at 21% for profits between €6,000 and €50,000 and 23% for all profits in excess of €50,000
For all further liabilities we recommend consulting with your tax adviser and/or accountant.
Pensions in Spain
If you retire to Spain you will be able to claim your UK Pension on the condition that you have paid enough National Insurance Contributions to qualify for it, you can get a ‘State Pension statement’ by clicking here if you would like to check what you will be entitled to.
If you are working in Spain and deemed to be a Tax Resident you will be contributing to their Social Security system and therefore may qualify fir a pension there when you retire, again we suggest that you speak to your tax advisor and/or accountant to understand this system in the detail it requires.
Driving in Spain
Please click here to see our Blog on Importing a Vehicle to Spain which also includes advice on Buying a Car in Spain.