As you know, all those UK citizens wanting to move permanently to Spain for the first time or all those living here without having a green residency card in force could apply for residency permit with virtually the same requirements as European citizens until the end of transition period.

The main difference since 6^th July 2020 is based on the process, which has been split into 3 steps:

1. You or your representative will submit all documents proving you comply with all requirements (mainly having full health coverage in Spain and being financially solvent to live here). This may take up to 3 months to be solved.

1. Once your file is approved, you will need to go personally to the Foreign Office within a month and complete the process of identification (photograph, finger print and paying the administrative fee).

1. The residency card will arrive within approx. another month and you will need to go and collect it in person.

It is quite important to proceed before the end of transition period, otherwise the EU requirements for UK citizens would no longer be valid and you would need to apply for residency with strict conditions for non-EU citizens.

If you would need any further information or assistance on our behalf, do not hesitate to let us know at www.andalucia-lawyers.com

Following instructions from Spanish Foreigners Office, from 6^th July and until the 31^st December 2020 -providing there is no extension of the transition period-, all UK nationals willing to keep their condition as residents in Spain after Brexit could exchange their green residency permits for new ones called “TIE” (non-EU residency cards). For the moment it is just an option, but these non-EU residency cards could be compulsory after transition period as per information from the Foreigners Office.

You could be in any of these situations:

• TEMPORARY RESIDENCY CARD
  • If you have legally lived in Spain less than 5 years – you can exchange it for the new residency permit that will be valid for 5 years.
  • If you have legally lived in Spain more than 5 years, but you do not have the permanent residency card – you can exchange it for the new residency permit that will be valid for 10 years.

• PERMANENT RESIDENCY CARD
  • You must exchange your permanent residency card for the new residency permit that will be valid for 10 years.

The process is quite simple:

1. Obtaining appointment at the Foreigners Office (Brexit)
2. First visit: submitting the application.

This time you would need to bring a photograph and they will take your finger print.

You will need to pay a small administrative fee.

1. Waiting for a couple of weeks until card is ready
2. Second visit: collecting your new residency card

It is quite important to exchange your residency card before the end of transition period, otherwise the green card would no longer be valid and you would need to apply for residency with strict conditions for non-EU citizens.

If you would need any further information or assistance on our behalf, do not hesitate to let us know.at www.andalucia-lawyers.com

SPECIAL TAX ON PROPERTIES OWNED BY NON-RESIDENT COMPANIES IN TAX HEAVENS COUNTRIES

• What are the basic characteristics of the special tax on real estate owned by non-resident entities?

Entities residing in a country or territory considered a tax haven that own or possess real estate in Spain are subject to Non-Resident Income Tax through a special tax that is due on December 31 of each year and must be paid in the following January. It is declared through the form 213.

The tax base is made up of the cadastral value of the real estate and a 3% tax rate.

• Is there any exemption?

The following entities are not liable to pay this special tax:

• States, foreign public institutions and international organisations
• Entities that carry out economic exploitations different from the simple possession or lease of real estate
• Companies listed on officially recognized secondary stock markets

• Why should I pay this special tax?

The Spanish Tax office (AEAT) is sending notifications to all those entities that own real estate in Spain that have not submitted this tax.

The payment and submission of the last 4 years which has not prescribed is being claimed along with penalties and interests.

• How can I pay this tax? Can the entity tax situation be changed?

In Andalucia Lawyer we can assess the pros and cons of continuing with an opaque structure that perhaps made sense years ago, but that can be questioned today. Get in touch!