Does Buying Property Grant You Residency

Purchasing property in Spain does not give you any automatic right to residency. However, having somewhere to live is an essential part of applying for residency.

Residency in Spain can be either permanent or temporary. It’s important that you know which residency is right for you based on how you intend to use your property. There are also multiple application routes for permanent residency.

For this, as a non-EU citizen, you will need a long-term visa, also known as a residence permit. For most British, American and other non-European Union nationals, looking to retire to Spain this is an important step to securing permanent residency.

90/180 days rule

Non-EU/EEA nationals can visit Spain and the Schengen Area (26 EU countries) for a maximum of 90 days within any 180 day period. The rule applies across the entire area, not one country, so spending 90 days in Spain means that you have to completely leave the Schengen area for the next 90 days before re-entering.

The 90/180 days rule is important if you own a holiday home that you intend to use for some of the year but will not be living in permanently as your sole residence. Depending on your country of origin, you may need to secure a Schengen Area Visa prior to travel.

Nationals from the UK, USA, Australia, Canada, and New Zealand, among others, do not need a Schengen Area Visa to visit any Schengen countries.

Temporary Spanish residence

A one-year temporary residence visa is available in Spain. This visa can be renewed up to a maximum of five years.  It is suitable for people that:

• Are married to, or are the children or parents of, a Spanish citizen.
• Students studying at a Spanish university or college.
• Self-employed business people with business in Spain that is demonstrably viable.
• Investors who make a significant investment in Spanish business or property.
• Anyone who has been offered work in Spain but do not meet long-term residency requirements.

Getting a Spanish residence permit via a visa

Becoming a resident in Spain as a non-EU citizen first requires you to get a visa. The most popular long-term visas for non-EU citizens to apply for are:

Non-lucrative visa (NLV)

The most popular choice for retirees, for the non-lucrative visa you will need a “passive” income of around €27,000 (and rising each year with Spain’s minimum wage) plus €7,000 for each additional family member. You may not work in Spain or outside. As well as that you will need health insurance and a letter of good character from the police.

The initial visa lasts for one year but can then be renewed every two years until you reach the five-year threshold for permanent residency.

Golden visa

Spain is phasing out its residence by investment visa, at least for residential property. For now, however, this grants residency to non-EU citizens who invest €500,000 or more in Spanish property. This investment can be in one or multiple properties, and the primary requirement is that the investment amount is debt-free.

Digital nomad visa

This visa Teletrabajadores de Carácter Internacional) allows non-EU citizens to get residency in Spain while working for companies outside Spain. It is proving increasingly popular, and can be extended for up to five years. As with other visas you will need to show the right level of medical, police and health insurance requirements.

Applying for residency visas

To apply for residency visas you will need to gather all the necessary documentation and make an appointment, usually at the Spanish embassy or consulate in London or Edinburgh.

• Proof of residence, such as a copy of your title deeds or rental agreement.
• Your NIE, which is not (as some assume) proof of residency. However, you do need it to claim residency.
• Your passport.
• A certificate from a bank to show you have sufficient funds to support yourself in Spain for one year.
• Medical insurance, and for the first year you may have to go private.
• The correct form.

Registering your residency

You will need to register your residency on the central register of foreign nationals (registro central de extranjeros) and with the local town hall (padrón municipal) within three months of your arrival. All international newcomers to Spain must do this, even EU citizens.

Both EU and non-EU citizens with a visa have to register on the padrón municipal at their local town hall within three months of their arrival. It is simply a way of ensuring that the local authorities know who lives there and can budget and allocate resources accordingly.

Failing to register can incur a €3,000 fine.

Tax residency in Spain

A person is regarded as a tax resident of Spain if they live there for more than 183 days of the year. You can also be regarded as a tax resident of Spain if your main base or centre of activities is in Spain. For example, if your spouse and/or under-age dependent children live in Spain.

Benefits of obtaining residency in Spain

Obtaining residency in Spain offers several benefits. If you are a resident and you don’t work, after a year you can apply to join the public health insurance scheme in Spain, known as the Convenio Especial.

Residency also allows you to move your possessions to Spain without paying duty on it. The removal company can deal with all the customs declarations on your behalf. If you have successfully applied for residency, you will need to show proof to enable you to be exempt from paying import duty and VAT.

Residency also allows you to travel freely within the Schengen Area.

Once you’ve been a resident of Spain for five years, you can apply to become a permanent resident, which will give you access to the same healthcare as a Spanish citizen.

After ten years of legal residency, you can apply for Spanish citizenship if desired.