Essential checklist when relocating to Spain

When relocating to Spain, it is essential to complete the following basic checklist to avoid potential problems in the future:

Residency or Visa Permit: a) For EU residents: If you plan to stay in Spain for more than 90 consecutive days, you must apply for a residency permit, regardless of your EU nationality. Obtaining residency in Spain is generally a straightforward, fast, and cost-effective process for EU residents. Residency permits are expedited for EU nationals and typically issued within 30 days. b) For non-EU residents: If you intend to stay in Spain for more than 3 consecutive months and are not an EU citizen, you usually need to apply for a visa to legally live and work in Spain. Several types of Spanish visas are available, including the Digital Nomad Visa (tax-free) and Golden Visas (for renewal purposes without residing in Spain). Failure to obtain a visa may restrict your stay to a maximum of 90 days within every 180 days. The processing time for visas varies, ranging from under 30 days to over six months, depending on the chosen visa category.

Bank Account: Opening a bank account is generally required for most activities in Spain. Spanish banks take money-laundering regulations seriously and will require clear proof of the origin of your funds. You will need to provide the following documents:

• Valid passport
• Payslips or tax returns
• International tax code
• Reference letter
• Additional documents are requested by the bank.

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NIE Number: A NIE number is an administrative identification required for tax purposes in Spain. It is widely requested in various situations, such as:

• Property transactions (buying, selling, renting)
• Inheriting assets in Spain
• Buying or selling a vehicle or boat
• Obtaining insurance
• Working in Spain (for short-term jobs under 3 months)
• Applying for a mortgage loan
• Paying import tariffs at customs
• Some private foreign schools may require a NIE number for enrollment.

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Work: EU residents generally do not face employment restrictions in Spain. However, non-EU nationals must obtain a work permit to legally work in Spain. Failure to do so may result in heavy fines for both the employee and the employer.

Taxes: Freelancers or self-employed individuals must ensure they are properly registered with the Spanish Social Security System and submit quarterly tax returns for personal income tax and VAT. Employed individuals will be enrolled in Spain's Social Security system by their employers and may need to file annual tax returns, depending on their income level.

Accommodation: Buying, Investing, or Renting Property: Seeking advice from a lawyer before committing to any property-related decisions is highly recommended. Consulting with legal professionals, such as Iberia Living, who have extensive experience in conveyancing and rentals, can help prevent potential issues.

Lastly, it is important to note that spending over 183 days per year in Spain makes you a tax resident.

To fully understand the legal and tax implications of this decision, it is advisable to consult with an independent lawyer.

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