mikelincs

Can anyone enlighten me as to what the benefits are of getting residencia. On receipt of my residencia, are there any benefits that a pensioner can get.

Fred James

There are very few benefits of having residencia apart from the fact that it is still a legal requirement for most ex-pats. You do get a nice ID card though!

Local benefits in some areas like a reduction in IBI and cheap bus fares are more likely to be conditional on being on the Padron rather than having residencia.

Tax residency, which is different from "residencia" has some considerable tax advantages in regard to CGT and IHT. Tax residency in non-optional. If you stay in Spain for more than 183 days in one calendar year you become tax resident and liable for income tax in Spain on your world wide income (there are a few exceptions).

gallerie9

hi
H am receipt of a company pension in Spain. We are going to apply for residency in a few weeks. I pay tax in the uk on this pension, what are the legalities do I pay it entirely in Spain and opt out the uk or just in the uk, can any one tell me the allowances in Spain, and can you claim for your spouse.

Fred James

When you become resident in Spain you will pay your income tax in Spain. If you have a UK Government “Crown” pension then this is the exception to the rule and it will still be taxed in the UK.

Even if you do not apply for Residencia you will still become liable for Spanish tax as a tax resident after spending more than 183 days in Spain in a calendar year.

You can get full details of how to go about getting your UK company pension paid tax free from the UK Revenue websites here
http://tinyurl.com/k72k6 and here http://tinyurl.com/k43ry

Income tax in Spain (if you are not employed and paying PAYE) is by self assessment and you fill in a form every year in May for the previous year’s income which is paid in two instalments in June and November.

You can choose to be taxed individually or as a couple depending on which gives you the lowest tax bill. Generally, if one partner earns little or nothing, joint taxation will be preferable otherwise separate taxation may be better.

Allowances in Spain are generally less than the UK but they are going to be increased significantly next year. At the moment the average income will pay slightly more tax in Spain compared to the UK but that may change to an even situation next year. You can get details of allowances and tax rates here http://tinyurl.com/hw577

lynnxa

[QUOTE=Fred James]There are very few benefits of having residencia apart from the fact that it is still a legal requirement for most ex-pats. You do get a nice ID card though!

[QUOTE]

Residencia is NOT a legal requirement for EU citizens

see here http://www.britishembassy.gov.uk/Fil...ving_spain.pdf

jdr

It is if you are not ... an employee, Self-employed, Students, EU national dependants of an EU or Spanish national (child) or those pensioners who have spent all or part of their working life in Spain*, no longer need to apply for a residence card and are able to live in Spain with a valid passport.
If you retired here or do not work, ie independent means, then you need to apply, so that they can keep tabs on you in all cases.
Typical Spanish red tape

Fred James

Lynnxa, I suggest you check out the UK Embassy website at

http://tinyurl.com/zyhjx

Where they say:-

Who Must Obtain a Residence Card?
Pensioners who have retired to Spain, people of independent means and non-EU national dependants of an EU or Spanish national, are still required to apply for a residence card.

lynnxa

sure, but that doesn't account for most of us 'brits', at least not in my experience & the area where I live

Fred James

Possibly true in your area but you said:-

"Residencia is NOT a legal requirement for EU citizens"

which is clearly not correct in all cases and would be misleading to anyone reading that statement without qualification.

In addition the Embassy clearly states that:-

"We advise that all residents obtain a residence card even if it is not obligatory for them."

Beachcomber

And could I just add that 'self employed' means registered as autonomo and paying income tax, VAT, and social security NOT being a member of the black economy scratching around for the odd 'cash in hand job' which, in my experience, is what the majority of foreigners do.

lynnxa

ok

it is a legal requirement for some, but not all, or even most, EU citizens

the Embassy says that it is not obligatory for all, even when advising us to obtain one

Beachcomber

In my experience most EU citizens living in Spain are either retired, living on independent means or working illegally without paying tax, social security etc.

The people in all three of these categories must have a residents card.

keithwalters

The biggest benefit from my point of view is that the law doesn't oblige you to carry your passport with you everywhere. The nice little card fits neatly into your wallet.

And before you say it, yes I know a lot of places will accept your credit card style driving licence as ID, but there are also plenty of places that won't too. Years ago, I went to Madrid and tried to stay in a hotel - I was already living in Spain, so didn't need my passport to get there and so left it at home. My tarjeta de residencia hadn't yet arrived in the post. They asked for ID and I gave them my driving licence - the gits booted me out of the hotel and I had to find another one!!

tim hortons man

Becuase my wife is employed she need to apply for a Social Security number and get her NIE, as she has an EU passport it was a pretty painless event (other than struggling to understand Spanish). Me on the other hand I have a Canadian passport so they wouldn´t accept my application. Once Chris has her NIE I can start the process but I´m not sure I´m going to bother. I ran the numbers and I'm better off paying the 15% black tax rather than the 7% legal tax and the 230 euros a month Social Security and I don't want to pay for private health care on top of SS.

From what've been able to gather thier are 2 ways of working illegally, one cash in the hand, the other is paying the 15% black tax and not filling a tax return. Generall those that pay the black tax are non EU teachers who aren't eligable for residency perments but are employed by an agency.

brussels_sprout

If you live in Canaries/Balearics/Ceuta/Melilla and have Residencia , you are entitled to big discounts on air/boat tickets (33%)