Expiry date of Green Resident Certificate A4
and Wallet sized formats?
For those that have A4 sized green paper certificates
the date of issue is in words at the bottom of the document, just
above the signature (use Google translate if you don't know your Spanish
numbers), according to officers in the Tenerife South Extranjeria
(16/5/2013) your certificate will need to be renewed 5 years from
that date CONTRARY to what was told to applicants at the time of issue.
According to the English press here this information has now been
refuted by the Madrid authorities in a letter, who say there is no
obligation to renew. MORE HERE
Income Tax Increase extended for another year
The hike in personal income tax to 24,75% announced
by Prime Minister Mariano Rajoy just after taking office at the end
of 2011 was meant to be in place for only two years, 2011 & 2012.
However, Finance Minister Cristóbal Montoro announced on Friday
27/4/2013 that removing the hike before 2014 was not “feasible.”
So the 24,75% rate will remainin place for 2013.
______________________
The "New Driving Licence" rules
This debate rages all over Face book and local forums at the moment
(Jan 2013)- for those of you that read Spanish here is a link to
the SPANISH royal decree 818 of 2009 look at Chapter 2 section 1a
article 15 point 4 page 48083 and you will see that the medical
testing requirement regulations, amongst other things,
have been in force since 2009. Read more in English here here
<<El titular de un permiso de conducción
expedido en uno de estos Estados que haya adquirido su residencia
normal en España quedará sometido a las disposiciones
españolas relativas a su período de vigencia, de control
de sus aptitudes psicofísicas y de asignación de un
crédito de puntos.>>
Lets re-itrate again as confirmed with Trafico
(senior) civil servant January 23 2013
1) As far as Spain is concerned currently there is
still NO obligation to either inscript or exchange (canje) your UK
plastic licence provided your driving entitlement is still in force
(ie up until age 70)
2) If you are resident here then you should really be
complying with medical testing regs - as per EXISTING 2009 directive
http://www.boe.es/boe/dias/2009/06/0...-2009-9481.pdf
- however the medical paper would have to be carried with you as CURRENTLY
there is no system for just registering the medical compliance.
3) In 2015 you will be required not only to comply
with medical testing regulations but renewal and points accumulation
regulations, nearer that time the actual system to do so will be announced.
A Guardia Civil patrol working out of Icod
have arrested two men, aged 34 and 40 years old, accused of
stealing about five tons of copper wire. The defendants were
intercepted driving a rental truck carrying the stolen goods, which
had been lifted from a constructor’s compound used to supply the
island ring road works in El Tanque. One of those involved worked
for the constructor.
WHEN THE SYSTEM WORKS WELL….. This week, a concerned member
of the public saw three dogs struggling to stay afloat in a water
tank near San Miguel. He called 112, who contacted the Local
Police, and together with an animal loving member of the
Ayuntamiento they worked really hard to get the dogs out. Sadly the
elder one could not be saved, but two far younger dogs were brought
out alive. Live Arico were called in to assist, and yes, the dogs
were microchipped. Not only that, but their owner had reported to
the police that they had escaped his property, so all details were
on file, and we were able to return the two dogs home safely.
Please, take advantage of our micro-chipping offer for the next 4
weeks. Micro chipping, and rabies vaccinations are legal
requirements yet far too many people ignore this. Let Live Arico
P.A.W.S help you get things up to date. Once again, in
collaboration with Hospivet Sur Las Chafiras we are offering micro
chipping and rabies vaccinations for just €25!!! That is less than
half the normal price of €54. As we are subsidising this campaign,
it is for a limited period only, until [...]
The annual inflation rate in the Canary Islands fell by half
in April to stand at 0.9 per cent, the lowest in Spain. However,
according to the latest data from the National Statistics
Institute, (INE), the Consumer price Index rose in April by 0.2 per
cent, compared to March, driven by higher prices for clothing and
footwear, (up 9.2 per cent) and a slight increase in the cost of
prescription medicine. However, despite April’s increase, the
underlying inflation rate for this year as a whole remains 0.5 per
cent lower overall.
The sale of homes in the Canary Islands fell by 18.9 per cent
in March, to 1,207, compared to the same month last year, according
to the latest data from the National Office of Statistics. The
disappointing figures lag well behind those for the country as a
whole, which saw sales fall by 12.6 per cent to a little over
22,000 over the same period, following three months of consecutive
gains.
More and more Spanish students see their future outside of
the country. According to a new survey, more than 25 per cent of
students say they intend to seek work in other EU countries,
including Germany, Belgium and England. According to the latest
data, they believe opportunities are better than at home where
rampant unemployment has hit the younger generation worse than any
other sector of the population. For many, the prospect of not being
able to follow their chosen career path after finishing their
studies is the main driving force leading them to look elsewhere
for job opportunities.
A 29-year-old man has died in Fuerteventura after being
struck by a car while crossing the FV-1 in Puerto Lajas. The
victim, believed to be a foreigner, was struck on an unlit stretch
of the road and, despite the best efforts of medics, was declared
dead at the scene. Police have yet to release the victim’s
identity.
4)
However even now - if you go back to the UK to visit and driving with
a UK plastic license where the photo date has expired you will be liable
to a fine there for non compliance with UK regs.
5) If you still have a pink or even green paper licence
this is NOT valid to drive here as it is NOT a European license.
6) A previously inscripted UK license can be exchanged
on the spot for a Spanish license - you will require the medical if
the inscription renewal date is up (see the small A5 paper you have
been given)
7) If you are inscripting or exchanging a UK licence
for the first time you DO NOT need the medical - although you MAY already
have one if you have been complying with the point 2 above prior to
your decision to exchange.
In my personal opinion it makes sense to Canje (Exchange)
your UK license for a Spanish one to avoid the hassle of
Worry about the photo expiry date,
Worry about replacement in the event of theft or loss
(much easier if you have a Spanish one)
or if you have a paper style license -
and remember nothing is irreversible - if you were
to return to the UK for good you would simply contact DVLA and trade
in your Spanish one for a UK one again. If you are resident here and
using your Spanish plastic license to drive there - contrary to folk
law there is NO problem hiring a car (I have personally done it many
times!)
Empadronamientos required to obtain Residents Travel Discounts
From the 1 Sep 2012 In order to obtain a residents
travel discount on airplanes or ferries (in Spanish territories) you
will be required to produce a certificate of Empadronamiento available
from your local Town Hall at the point of picking up your boarding
pass. more
___________________________
Important Changes to Social Security Number Applications (July 2012)
Workers must now provide a job offer letter
in Spanish to obtain a social security number.
Self employed as always must provide their Hacienda
documentation.
EU Pensioners must provide their S1 health entitlement
documentation
Important changes to Applications for Residence registration
for EU citizens current as of May 2013
In order to remain in Spain legally for longer than 90 days EU Citizens
must now provide proof that they are either studying and have cover
from the UK, are working or self employed in Spain and are paying into
the Spanish social security or have an S1 and European Health card which
provides cover funded by the UK or have a private health scheme to cover
them and their families. -source:
http://www.interior.gob.es/extranjeria-28/ciudadanos-de-la-union-europea-718/estancia-y-residencia-722
NOTE:
The temporary freeze on the issuing of any new or renewal of expired
(issued over 5 years ago) European Residence Documents was lifted (12/7/2012)
Officials at the Comisaria in Adeje have issued an information
sheet to explain current requirements. Important points
to note are
The tasa (government fee) has increased to 10 euros 40 cents
For those who are working - you must provide the original and copy
of your current work contract or a certificate to show that you are
currently making soical security contributions
For those who are self employed you must provide the original and
copies of your self employment documentation or a certificate to show
that you are currently making social security contributions
For the retired, early retired or those living on own means you
must provide the original and copies of private health care to cover
you for the period of your residence in Spain, or for EU pensioners
a copy of your S1 document and European Health Card showing entitlement
to health care in Spain funded by the UK. You must also provide proof
of income sufficient to support you and your family. All documents
not in the Spanish language must be legally translated and apostilled.
With regard to economic means, a fixed amount
can not be set, but the personal situation of each national of a Member
State of the European Union or another State party to the Agreement
on the European Economic Europe should be taken into account. In no
case, shall this amount be less than the level of resources below
which social assistance is granted to a Spanish National or the amount
of a Spanish Social Security pension.>>
ie turning up with a contract to work 10 hours a week and earn 200
euros a month may not wash because if that is the only income it is
not enough to support the person and /or their family.
Expiry date
of Green Resident Certificate A4 and wallet sized formats? - May 2013
If you still have a plastic residence card with your
picture and finger print on, or worse still an old burgundy red folded
document, I am very much afraid your ship has sailed, you will be treated
as a new applicant (see above).
For those that have A4 sized green paper certificates
and the most recent style, wallet sized green lightweight card-board
residence certificate, the date of issue is in words at the bottom of
the document, just above the signature (use Google translate if you
don't know your Spanish numbers), according to officers in the Tenerife
Southern Police station (as at 16/5/2013) your certificate will need
to be renewed 5 years from that date CONTRARY to what was told to applicants
at the time of issue. However according to the English press in Tenerife
this information has been refuted by the central authorities in Madrid
in a letter which states there is no obligation to renew at all. My
personal opinion is while there may be no obligation it may well be
convenient to do so.
You should check with the Comisaría
yourself as to whether they consider you as a new applicant or not and
the current status of a requirement to renew or not.
All applicants renewing a European citizen in-date
residence certificate will need to provide an original up to date empadronamiento
document from your town hall proving where you currently live in Tenerife,
a photograph, your passport and photocopy, an EX18 application form
and a modelo 790 paid paying in slip for the fee, currently 10 euros
40 cents.
You will surrender your current green coloured certificate
and will be issued a credit card sized certificate, also green, printed
on lightweight card. Currently we are being advised by theSsouthern
Police Station this also will be valid for 5 years even though the edict
from Madrid days there is no obligation to renew.
In any case holders of certificates of residencia will
be required to confirm their continued residence status to the Ayuntamientos
at regular intervals:
Declaración de continuidad periódica
de residencia al Padrón de Habitantes
Procedimiento en virtud del cual los ciudadanos de los Estados
miembros de la Unión Europea y de los Estados que forman parte
del Acuerdo sobre el Espacio Económico Europeo, así como
de aquellos que, sin pertenecer a estos paises, tienen Tarjeta de Residencia
de Régimen Comunitario (por ser familiares de comunitarios) tienen
que declarar la continuidad periódica de residencia.
You will normally receive a letter to your registered address when
your twon hall requres you to reconfirm your situation (usually every
5 years)
So what about new applicants for (green) Certificates of residence?
If you are a new applicant as well as the standard requirements detailed
above, you either have to be:
• Currently working legally in Spain, or be self employed and
so have a Spanish income,
Or you have to prove your income is sufficient to support you and your
family, this is done either;
• by having a lump sum in a Spanish bank or regular income over
a period of time from a Spanish source paid into a Spanish bank
• a letter authenticating your pension entitlement (or other source
of income) which has to be apostilled and legally translated if it originates
outside of Spain.
An amount over the minimum wage here or lump sum of 5,100 euros per
person or more has been acceptable to date, but again this is not set
in stone and may be amended in conjunction with other income sources
or number of persons in the family as the legislation states each case
is judged on it’s merits.
You also have to show health care entitlement for you and your family,
with either:
• Health care funded by Spain if you are employed or self employed
and are paying contributions here.
• Health care funded by Spain if you are the legally registered
dependant of an employed or self employed person as above.
• Health care funded by Spain because you retired from working
here and used to pay contributions here before retirement.
• Health care funded by the UK because prior to current regulation
changes you already processed an E121 or S1 document with the Spanish
health authorities.
• A current EHIC card, in date, issued by the UK together with
an S1 document, if you are entitled to one, which will be subsequently
processed by the Spanish Social security to enable you to have state
health care in Spain funded by the UK
• Or alternatively proof of an in date private health care insurance
for you and your family.
You may not like the requirements but they sound straight forward enough
don’t they?
Well here are some of the pitfalls you might come across during your
application process.
Q: I am already employed or self employed here and have health care
but I don’t know how to prove it to the Extranjeria.
A: You need to register at the Social Security to enable you to receive
SMS notifications to your Spanish mobile, you do this at the INSS in
Los Cristianos, you do not need an appointment, but you do need your
passport and you need to know your NIE number or Spanish Social Security
number.
Once you are registered in the SMS system you can go to the Spanish
Social Security website at http://www.segocial.es and arrange to download
at any time an “Informe de Situación actual del trabajador”
– an up to date report on your actual health care entitlement
in Spain.
Q: I am a Pensioner or unemployed but I do have health entitlement
in Spain, I have a Spanish health card, why won’t the Extranjeria
accept that as proof?
A: if you are a Pensioner (without entitlement to a UK EHIC card) you
will have to make an appointment at the CAISS Granadilla office and
get an up dated stamped report of your current situation from there.
You can make an appointment to obtain this via the Social security website;
there is normally a week to ten day delay so allow time for this if
necessary.
If you are legally registered as unemployed you should ask at your INEM
office for proof of your situation, your case will be individually assessed.
Q: Why won’t the Extranjeria accept my UK issued pension letter
or P60 certificate?
A: Because all documentation issued from outside Spain has to be Apostilled
and legally translated into Spanish.
Apostilles are dealt with by the UK - for more information see this
website:
https://www.gov.uk/get-document-legalised
You may need to apply for a specifically authenticated letter from your
bank in the UK or Pension provider rather than a general bank statement,
check with the FCO what they will and won’t authenticate.
There are any number of sworn translators who can officially translate
your documents once they are apostilled, look in Paginas Amarillas or
contact the British consulate for information on your nearest one.
Q: Why won’t the Extranjeria accept my new DKV private health
card as proof of Private health care?
A: The card may not have an expiry date on it and so would need to be
accompanied by a copy of your latest contract or a letter proving current
entitlement (in Spanish)
Q: I have a Spanish company why won’t the Extranjeria accept
this as proof?
A: It is possible to be a shareholder or outright owner of a Spanish
company but not to be paying Spanish social security contributions.
If you are non-working director for example you may need to make arrangements
for private health care cover.
Q: I have thousands in the bank here; I showed them a statement why
won’t the Extranjeria accept this as proof that I can support
myself?
A: Original passbooks (together with a photocopy) are acceptable, but
a statement for a current or other type of account is only acceptable
if your bank issues an official stamped letter detailing your holdings
with them. The banks are used to this request and will do this for you
within a couple of days; they may charge you for the privilege.
Q: I’m new here and I want to be self employed but I can’t
sort it out because they won’t let me have a residencia?
A: The process is like a row of dominoes; first you get a non residents
white NIE paper, you only need your passport and copy, application form
and fee paid to do this. Once you have your white A4 NIE paper which
lasts 90 days, you register to start your self employment and then return
to the Extranjeria with a tax office Modelo 36 and a Social Security
actual situation document as described above.
Q: I’m new here and I’ve been offered a real job but I
can’t get a residencia so I can’t work, what can I do?
A: Again you need to do things in the right order, get your non residents
NIE A4 white paper which will last 90 days, and a job offer in writing
in Spanish, go and get a Spanish Social Security number, go back to
your new employer and let them have copies of both numbers.
Once you have your contract and your employment has started you can
go back to the Extranjeria to get your residence certificate.
The above Q & A are based on actual cases and reasons for applications
being denied this year, but the list is not exhaustive, make sure you
find out what applies to you and what doesn’t.
Change
to the format of the European Citizen Residence Registration Document
05-May-2011 - Tenerife November 2011
New size certificates of registration for citizens
of the European Union in Spain
The new models started to be issued by the National
Police in the Autonomous Community of Castilla y León from 13
April 2011 and will be gradually implemented throughout Spain.
Immigration and National Border Police have started
issuing a new size certificate of registration as a citizen of the European
Union in Spain . At 86mm x 54 mm the new certificate is much smaller
than the present A4 size.
Although more convenient for users and easier to avoid
damaging as with the present size document, the certificate is still
produced on paper and DOES NOT accredit the identity of the bearer as
there is no picture included.
The new system is now available in Tenerife as at the
29 November 2012
The inability to
speak the local language is one of the biggest barriers to settling into an
overseas community. If you don't Speak Spanish and you Need Help in Tenerife?-
with any sort of paper work, Translations,
NIE, Certificate of Residence Registration applications and renewals, Tax
returns - La Renta etc, Voting rights - Padron, Car Transfers, Boat transfers,
Change or renewal of Driving Licence, Making your Spanish Will, Assistance
following a bereavement including and all paperwork following a death, Registering
at the Doctors, using a European Health Card, visits to Hospital, Denuncias
at the Police station or Guardia Civil, Dealing with the town
hall or utility companies, etc etc. etc.. To email Click
Here help@diana-mcglone.com or ring mobile number
0034 647 057 599 or ring land line 0034 922 86 74 78
and leave your contact details. Now also on Facebook
We
will accompany you every step of the way!
LATEST ISSUES
Special Tax Declaration (DTE)
What is it and who has to declare the DTE
1.It is a one-off declaration used to declare assets and rights that the
taxpayer holds when such property and rights were acquired with income where
both the following conditions concur:
They were obtained lawfully.
They were aquired before 31/12/2010.
They should be declared within the Income tax, or Income Tax for Non Residents,
or Company Tax systems depending on whether an individual resident or non
resident, or a resident company or non-resident, company.
These assets are not declared for for the purposes of taxation.
2.Who must submit a DTE
The DTE must always be declared by the person who actually obtained the income
used to aquire the assets and also, as a rule, they will be the legal owner
of the property concerned.
There is, however, one exception: if the person who obtained the income (the
beneficial owner) was not listed as legal owner of the property and rights,
then they are only allowed to submit the DTE if the legal owner is non-resident
and he that earned the income (beneficial owner) becomes listed as the legal
owner before 31/12/2013.
3.Conclusiones
Therefore, if the DTE is presented by someone who actually did not obtain
the income (natural or legal) presentation of the DTE does not absolve the
actual income earner from any responsibility.
The presentation of a DTE by a company or society has no effect on managers
or members thereof for any undeclared income they may have obtained.
The DTE only affects those persons who present it, provided of course that
it also meets all other requirements
There are 11 bank holidays for the Canaries together with the extra day which
each island is entitled to which, for Tenerife, is 2 February for the island’s
patron saint, the Virgen de la Candelaria.
In addition, each municipality has two days for local fiestas of it's own
Important Changes to
IGIC Regulations in the Canaries
Small Traders No Longer Exempt From Charging IGIC
LAW 4/2012, de 25 de junio, de medidas administrativas y fiscales has made
several changes to the Canarian Sales Tax IGIC (like VAT).
Previously "autonomos" sole traders (not including "minoristas"
- retailers) whose anual turnover did not exceed certain anual levels were
exempt from charging IGIC. This exemption has now been abolished.
If 2012 is your first trading year or your turnover for 2011 was below 29,015
euros you will continue to be exempt from charging IGIC (VAT) until the 31
December 2012.
From the 1 Jan 2013 (unless the Canarian Government makes a further change
before then) you will be required to charge the sales tax. For service based
activities the amount is 7%.
The rate of IGIC charged has now been increased across the board apart from
the highest bracket and zero rated goods.
zero% unchanged
2% > 3%
5%> 7%
9%>9,5%
13% > 13,5%
20% unchanged
Special Measures published 30 December 2011 applicable from 1 Jan 2012
Change to the rate of Non-Residence tax payable on both deemed and actual
income from 24% to 24.75% applicable for tax years 2012 and 2013.
Tax on;
Dividends and other income from share participation in
an entity
Capital gains.
raised from 19 to 21%
Retention payable on rental of business premises from 19% to 21%
The UK government published a consultation paper in June 2011 outlining its
proposals to introduce a statutory definition of tax residence from 6th April
2012. It is based on the principle that where someone is resident is more
than just a question of where they spend their time.
It is possible to fulfil both the UK and Spanish residence criteria simultaneously,
in which case the UK/Spain tax treaty has “tie breaker” rules
which override both the UK and Spanish domestic residence position. You need
to review the terms of the treaty to establish where you are tax resident
– there are many cases where a British expatriate could be found to
be UK rather than Spanish resident more
here
Restoration of the Wealth Tax
At a meeting of the Spanish Cabinet on Friday 16 September 2011 the move
to restore the Patrimonio (wealth) tax was ratified.
The tax had effectively been suspended after the then Socialist government
reduced the amount of the tax levied to zero, whilst still leaving the law
enabling it on the statutes.
However there is still some confusion over how many people will have to pay
it, and what regional governments will get out of it.
Ministers have been accused of causing confusion and muddying the waters
over the various Spanish autonomous regions' entitlements, after government
spokesman José Blanco said 90,000 wealthy individuals would have to
contribute more to the ailing economy, The Economy Minister, Elena Salgado
estimated on Thursday that 160,000 people with assets of over 700,000 euros
(excluding that of their primary residence) would be liable.
Primary residences with a value of up to 300,000 euros are exempt.
Blanco added further to the confusion on Friday when he said "no region
will charge twice," a reference to the compensation that autonomous regions
have been getting from Madrid since 2008 to compensate for lost income due
to the reduction of the tax to zero. Salgado, however, had contradicted him
and had said the regions would continue to receive this money, plus whatever
they could collect through the reinstated tax.
The tax which will remain in place for just 2 years, this year and in 2012,
is expected to bring in over 1 billion euros MORE HERE
Permiso de Circulación
Since October 2010 in Tenerife the registered address of the owner of the
vehicle no longer appears on the "Permiso de Circulación"
document, it is therefore advisable to make sure for vehicles registered after
that date that the vendor provides you with proof of his actual address for
use in completing the Compra Venta and transfer documents. Alternatively request
a vehicle check from Trafico before buying to prove ownership of a second
hand vehicle .......more
Driving Age For Mopeds Increased to 15
The legal age to drive a moped, up to 50cc, increases from 1/9/2010 from
14 to 15 years old.
The new rules are part of a general reform of Spain's driving laws, which
took effect on December 8 last year. More...
However, the rules concerning mopeds were set back until today to give the
sector time to adapt.
Under the new rules, a licence to drive a moped is available at age 15 but
the rider will not be allowed to carry a pillion passenger until aged 18.
Riders will also have to pass both a written and practical test, which will
involve driving around an enclosed area.
However, some in the industry argue that the increase in the legal age to
15 will mean that many youngsters will hold off an extra year until they are
16 when they can legally drive a much more powerful motorcycle up to 125cc.
Some in the industry say that, apart from the increased risk of accidents,
the move could spell the end of the moped manufacturing industry, with the
loss of thousands of jobs.
From November 1 2010 the self-employed can apply to receive unemployment
benefits for up to 12 months. This is the first step in obtaining parity with
conditions for employed workers.
The law, just published in the Official State Bulletin (BOE) and will enter
into force within three months.
This protection will ONLY apply to those self employed people who pay the
additional monthly tariff over and above the basic social security payment
to cover accidents at work and industrial injury or illness. The self-employed
should apply to their own company that deals with this - called a "Mutua
de Accidentes de Trabajo y Enfermedades Profesionales de la Seguridad Social"
to make sure they are covered in the event of having to close their business.
The duration of the benefit will depend on the amount of contributions made
within the 48 months prior to the closure and which, must include at least
12 continuous motnhs immediately preceding the closure.
For example benefit payments will last between 8 months for someone who has
a contribution period of between 43 and 47 months to 12 months for those who
have contributed more than 48 months.
There are VERY specific conditions for allowing the legally recognised cessation
of the activity and documentary eveidence has to be provided.
Do not baja your business indescriminately thinking you will be covered ....
you may well not be! Do your home work first.
Declaración de la renta - Annual Income Tax Return
The Spanish tax man doled out more than 12.28 billion euros in tax rebates
last year, to 15.7 million taxpayers, according to the head of the Hacienda,
Luis Pedroche.
The money is part of the 2011 income tax pot and averages out at around 782
euros each, for the lucky recipients.
They can tell you this because they already have your money.
Unlike in the UK, where the tax man sets allowances against income in advance,
in Spain, most people have a straight percentage of their gross pay deducted
from their pay packet or they pay tax quarterly on business income. Then,
when the tax declarations go in the following year, allowances, similar to
those in the UK, (such as married man's allowance and tax relief on pension
contributions), are added to the equation.
It means most people, (this year 80 per cent of taxpayers), get a rebate.
The campaign to present and collate personal income tax returns, begins in
early May and concludes at the end of June.
Rates of income tax for for fiscal residents of the
Canary Islands after personal and family allowances
Taxable base in Euros
Rate of Tax %
0
-
17,707.20
24.75
17,707.20
-
33,007.20
30.00
33,007.20
-
53,407.20
40.00
53,407.20
-
120,00.20
48.08
120,00.20
-
175,000.20
50.08
175,000.20
-
300,000.20
52.08
300,000.20
-
Over
53,08
Disclaimer: Spanish Tax law is complicated and whilst every
effort has been made to offer information that is current, correct and clearly
explained. This article is intended to be a general overview and certain details
have been deliberately omitted. We are not responsible for the result of any
action taken on the basis of information contained on this website, nor for
any errors or omissions. This information is not intended to offer specific
legal, accounting or tax advice. You are strongly advised to seek professional
advice concerning your specific situation.
Changes
to Non Residents Income Tax (Property Let Out)
In the Official Gazette (BOE
in Spanish) dated 2.03.2010, the Law 2/2010 has introduced a change
in the Income Tax Law for Non Residents changing the way they pay Income
Tax on properties let in Spain. Up to now, non residents tax payers
paid 24% of the gross income on properties let in Spain,they were not
allowed to deduct any expenses at all, there were examples when the
tax paid could exceed 60% of the actual profit.
The European Union has pressed Spain to change this situation, and
with the new Law, you can now deduct all expenses directly connected
with the letting of the property: electricity, water, community fees,
rubbish collection or local rates, maintenance, cleaning services, interest
on mortgage (if applicable), professional fees, exactly in the same
way as residents do.
However, it is not always straightforward. If you were letting your
property 365 days per year, you could deduct all the expenses, but if
you rent only a fraction of a year the expenses have to be pro-rata.
Changes to European Health Card Regulations
From
the 1st May 2010 regulations regarding European Health Cards issued to British
Pensioners WHO HAVE USED AN S1 or E121 TO REGISTER IN THE SPANISH NATIONAL
HEALTH SYSTEM have changed. They will no longer obtain their European health
cards (Tarjeta Sanitaria Europea) from Granadilla. Instead they will be required
to apply to the UK. At the moment application forms are being sent by post
to those who qualify for signature and return by post. The new cards will
begin to be issued in April.
Remember as residents in Spain you would need the card when
visiting the UK, France, Germany etc, but remain with your blue Spanish Tarjeta
Sanitaria (or paper equivalent) for use in Tenerife.
Click on the small picture of the letter being sent out (left) to see the
full size version.
Effective January 1, 2010, the general withholding and prepayment rate is
increased from 18% to 19%. This is called "Retención" It
is applied, for example on the payment businesses who rent locals make on
Modelo 115
There are similar amendments to nonresident income tax, consisting of increasing
the tax (and withholding) rate established for dividends, interest and capital
gains. The tax rate applicable to such income is increased from the current
18% to 19%.
En materia de retenciones, se leva al 19 por 100 el tipo
de retención para los rendimientos de capital mobiliario, para las
ganancias patrimoniales derivadas de las transmisiones o reembolsos de acciones
y participaciones de instituciones de inversión colectiva, para los
premios, para los arrendamientos y subarrendamientos de bienes inmuebles urbanos
y para los rendimientos precedentes de la propiedad intelectual, industrial,
de la prestación de asistencia técnica, del arrendamiento de
bienes muebles, negocios o minas y del subarrendamiento sobre los bienes anteriores.
The 400 euros per year income tax rebate across the board has now been withdrawn
for 2010, but is replaced for those with an annual income of less than 12,000
euros as follows:
Annual income equal or less than 8,000 euros deduction 400 euros per annum
Annual income between 8,000.01 and 12,000 euros deduction of 400 euros LESS
0.1 x the differance between the annual earnings and 8,000 euros
Art. 80 bis.1 de la Ley 35/2006, de 28 de noviembre, del
Impuesto sobre la Renta de las Personas
Físicas, modificado por el art. 70 de la LPGE 2010, con efectos desde
1 de enero de 2010:
Paying Traffic Fines by Credit Card on the
Internet
If you are unlucky enough to be fined for a traffic offence (speeding
etc) and you have been sanctioned by the Guardia Civil, you can pay
the fine online with your credit card and if you do it within 28 days
of the fine being issued you save 50%
If you can't or don't want to pay on the internet you can still;
* Pay at any Banco Santander
* Any Correos (Post Office)
(not as yet valid for fines issued by the Local Police for illegal
parking etc - these still have to be paid locally at the Ayuntamiento
or Police Station in question)
2013 Tasas
Everytime you transact something with a Spanish government department ie
driving licences and cars at Trafico (like the DVLA) or your Residence paperwork
at the Extranjeria (foreigners dep of the National Police), there is a processing
fee to pay. This is called a Tasa and the amounts are fixed in January every
year - this is usually over and above, or independant of, any taxation due
for the particular transaction if applicable.
Certificado de registro de residente comunitario / Tarjeta de residencia
de familiar de ciudadano de la Unión Europea 10.40 €
Número de Identidad de Extranjero (NIE) 9.37 €
Driving licence renewal 22,90€
European driving licence inscription 8,10€
Exchange European Driving licence 27,10€
Substitution of an in-date European Driving Licence for reason of theft,
loss or damage 31,00€
Change of Ownership of car 53€
Residents and Fiscal Residency
Residents who do not work, are self employed or do their annual Declaración
de la Renta tax return must make sure that the Hacienda is aware of their
Residencia Fiscal - where they live for tax purposes. Make sure you have updated
your information via a modelo 30 form more
info
The Spanish National Healthcare Service is considered to be one of the best
in Europe. Most statistics show the Spanish service to be better and certainly
the equal of the UK NHS. Access to this service is freely available to EU
citizens as long as you have taken the necessary steps to prove your entitlement
to the Spanish authorities, which in the case of S1
or E121 and S1 or E106 will include applying for a registration certificate.
For UK residents who spend more than 3 months in Spain at a time you need
either an S1 (E121) or S1 (E106). The S1 (E121) is designed for people of
retirement age who are receiving a UK State Pension and it entitles them to
permanent and continuing access to the Spanish National Healthcare Service.
The S1 (formerly E106) is based on up to date UK NI contributions. A European
Health Card will entitle you to cover for holiday stays of up to 90 days at
a time only.
Once you have obtained all the necessary permits, you then
have to register with your local GP to finalize the process., Most National
health GPs in Tenerife DO NOT speak English and will require
you to bring an interpreter. I can translate at this initial meeting and accompany
you to any subsequent doctors or specialist appointments. You would be wise
to bring any records of previous medical history with you.
Who is entitled to Spanish National Health
cover and how can I apply?
Eu citizens who are working or self employed and are
making up to date Spanish national insurance contibutions, plus their legal
dependants, Retired EU citizens who were working legally in Spain and have
now retired, or EU citizens who have retired and are entitled to health cover
from their own member state via an S1 (formerly E121), job seekers who have
anS1 formerly E106).
What
type of "residencia" residence document should I have?
This information correct as at March 2013
Here are the basic requirements for adult EU citizens in Tenerife
Spain:
1)White
NIE certificate valid for up to 3 months - then superceded
by either 2 or 3 depending on your status · copy and original of application
form Ex15 and Modelo 790 for a 9,37 euro payment in the bank, copy and original
of your passport when you attend the National Police Station /Extranjeria.
Certificate issued on the day. If you already have an NIE number this stays
with you for life and you can then jump to point 2 or 3 depending on your
circumstances.
2) Green Certificate of registro -from November 2011 this
is in a credit card sized format but still made of paper, for indefinite or
fixed length stays of over 3 months · 1 copy of application form Ex18,
Modelo 790 for a 10,40 euro payment, 1 passport type photo, photocopy and
original of Passport and photocopy and original of an in date Empadronamiento
plus new requirements from July 2012
For those who are working - you must provide the original
and copy of your current work contract or a certificate to show that you
are currently making social security contributions
For those who are self employed you must provide the
original and copies of your self employment documentation or a certificate
to show you are still registered as self employed and a certificate to show
that you are currently making social security contributions.
For the retired, early retired or those living on own means
you must provide the original and copies of private health care to cover
you for the period of your residence in Spain, or for EU pensioners a copy
of your S1 document showing entitlement to health care in Spain funded by
the UK AND a valid European health card isued from the UK. You must also
provide proof of income sufficient to support you and your family (normally
circa 5,200 per person in a Spanish Bank Account or Proof of Guaranteed
Income equating to more than that amount per anum (officially translated
into Spanish)
With regard to economic means, a fixed amount can not be set, but the personal
situation of each national of a Member State of the European Union or another
State party to the Agreement on the European Economic Europe should be taken
into account. In no case, shall this amount be less than the level of resources
below which social assistance is granted to a Spanish National or the amount
of a Spanish Social Security pension. Documents not in the Spanish
language must be apostilled and legally translated.
For those who have already completed 5 LEGALLY registered years
of residence and providing their renewal application follows on with out
a gap - these people will only be required to provide the basic
documentation as shown in point 2 above
when you attend the National Police station/Extranjeria the document will
be issued on the spot. Please Note Temporary Freeze on issuing residencias
is now lifted see here http://www.diana-mcglone.com/#NewRegsResidencia
http://www.boe.es/boe/dias/2012/07/10/pdfs/BOE-A-2012-9218.pdf
3) Certificate of NON residence for Spanish Bank - stays
in TOTAL of under 6 months in any one year · Original & copy of
application form Ex15, Modelo 790 for a 10,40 euro payment, photocopy and
original of Passport when you attend the National Police station/Extranjeria·
Issued 3 to 4 working days later. Most Banks will see to this on your behalf
if you have a non-residents bank account with them, but they do make a charge
for the service.
So lets look at these and other different types of document
in more detail:
Firstly EU citizen’s registration Certificate
This was issued as a green coloured A4 watermarked paper but from November
2011 this is in a credit card sized format but still made of paper…..
For people living in the south, its issued at the National Police Station
in Las Americas
Obtaining a green certificate cardboard card is an immigration requirement
for anyone who stays here in Tenerife for periods of longer than 3 months
at a time, it will show your NIE which is a foreigners identity number, but
if you don’t already have an NIE number you cant apply for one first
see above and you should already be on your local authority's
Padron.
You should also go back to the National Police Station and revoke this certificate
if you return to the UK for good.
In other words the European powers-that-be have decided that 3 months holiday
at a time is long enough for anyone!
Incidentally if you don’t go back and you stay here in Tenerife for
5 years continuously and intend to stay for an indefinite period after
that, then you should obtain the permanent resident’s version - which
is still a green paper but has a slightly different wording on it.
UPDATE as
of 29 November 2011
The format of the European Citizens Certificate of Residence in Spain has
changed again with effect from (in Tenerife) 29 November 2011.
The certificate is now being issued in credit card size although
still printed on green paper.
Certificates issued in the A4 format (see below) are still valid.
On to number 2
The 2nd type of residency document is a Certificate of Spanish FISCAL residency.
This shouldn't be confused with the immigration requirements dealt with above.
You can get a Spanish Fiscal residency certificate from the Spanish Tax office
called the “Hacienda” and this is basically a confirmation that
you paid your income taxes, on earned or unearned income in Spain, in a particular
year, or are registering to do so from now on.
Taxation is a very complicated subject, but as a rule of thumb if you spend
183 days or more in Spanish territory during any one calendar year .. a Spanish
Tax year runs from January to December by the way…. Then you will be
fiscally resident in Spain.
Now lets talk about number 3
Residency document Number 3 will be completely
phased out by April 2012 but for the moment there may still be some
of you with an old small plastic Residencia card with your photograph on,
if there are, you probably already know that when this expired you were required
by law to get a green coloured card sized certificate to replace it.
The fourth document is an NIE
certificate – this is a white A4 paper which is now issued only
to Non residents to show that they have an NIE number,
The NIE number stays with you for life, but these days the white coloured
certificate itself is only valid for 3 months from the date of issue, I know
this was different for some people under previous regulations but that’s
what happens for new applications now.
The 5th type of document is for Non Residents
who have a bank account here in Spain and they need a Spanish
Certificate of NON Residency,
This is also a white A4 document and also carries your NIE number it can be
issued by the Police Station in Las Américas if you want to go there
and apply for it yourself, but more usually the bank where you have your Non
resident’s account applies for it on your behalf (for which privilege
they charge you by the way) This certificate is usually renewed every 2 years.
On to document number
6.. this is used by both Non fiscal residents and fiscal residents
alike if they have a permanent base here in Tenerife. That can be owned or
rented long term.
This is called a certificate of Empadronamiento:
The certificate which is valid for 6 months, proves that you have been registered
on the Municpal census (Padron) as living at your current address in Spain.
Initially you will be registered under your passport number(s) and then you
return to confirm your residence status when you have your certificate of
residencia.
To register you will need a current passport and copy and either your deeds
and a copy OR a valid rental agreement in Spanish and a copy.
You should advise the Town Hall of any changes of address, but in any case
if you have not had any dealings at all with your town hall during a five
year period you are required by law to re-register.You would use this certificate
to prove your address for things like a car purchase for example.
And finally number 7 which is a new requirement
for 2011
If you are Non Fiscally Resident – remember that means you don’t
pay your income taxes here, but do own property here in Tenerife and you also
let that property out to long or short term tenants, from January this year
you will be required to obtain a UK bi-lingual certificate proving fiscal
residency in the UK.
This is a dual language document and is issued by your local UK tax office
and is valid for 1 year.
THIS IS ONLY IF YOU LET YOUR SPANISH PROPERTY OUT FOR GAIN If you do not
get rental income in Spain you continue to do Non-Resident’s deemed
annual income tax returns… see
here for more information
If you are coming here to live and work or retire here we can attend the
National Police Station /Extranjeria with you and make sure you get the right
paperwork issued. If you are a non resident or visitor we can either attend
with you or arrange for a notary to draw up a limited power of attorney to
enable us to get the douments on your behalf. Ring mobile number
0034 647 057 599 or ring land line 0034 922 86 74 78
for more information.
Plastic
Residencias with Photograph replaced by Certificate of registration - Changes
to regulations Information Initially updated Sept. 2007 IMPORTANT NOTE: This
information is superceded by a further
change of format in November 2011
As of the 28 March 2007 the regulations for European Union
Citizens changed: As
from Monday (2 April 2007) new Certificado de Registro applications processed
at the National Police Stationwill be issued with a paper certificate which
look like the one below right between 2007 and November 2011, Application
subsequent to November 2011 will be in the smaller format below left - both
types are valid. The old style plastic residencia card carrying a picture
will be completely phased out by early 2012.
Application forms are available at the information desk. There is a processing
fee, which has to be paid in the bank and forms for that are again available
at the Police Station. Although the new certificates do not reproduce your
photograph, you still have to provide one at some police stations for them
to keep with your records. EVERYONE regardless of age who is an EU citizen and has stayed
or intends to stay in Spain / Tenerife for a period of longer than 3 months
is obliged to get themselves entered on to the foreigners' register - even
those people who used to be exempt from having residencias under the previous
legislation. If you already have a residencia you can wait until that expires.
The old style plastic residencia cards for Europeans will expire by April
2012.
This affects a lot of people who are working or living here and under the
old scheme did not have to do anything except have a contract or work for
themselves - including children! -now all must go in person to the National
Police Station.
Non
EU citizens who are married/dependants of EU citizens have to follow
a different procedure which involves a trip to the Extranjeria in Santa Cruz.
There is a help desk at the Police Station - but if you don't have at
least some Spanish you may struggle.
If you are not a Spanish speaker and need help with this please contact me
on 647057599 or 922867478.
DO NOT attend the Police Station unless you have previously
collected ALL the required documents, information and bank
receipted tax payment form - you will simply be turned away! On the bright
side the certificate is issued straight away and you will not have to return
to renew in 5 years (under present legislation anyway!) Dependant
children not born in Spain will have to have their birth certificates officially
translated and will have to provide a certificate of convivencia as well as
the other documentation.
Source information posted on the ministry of
the interior's website (28/03/07) quote: click
here
Consumers:
Consumer complaints - what to do if it all turns sour!
Whilst there are a great many honest and reliable businesses providing quality
merchandise and services in Tenerife, we have all heard tales of woe regarding
purchases of cameras, electrical goods, bad service etc.
Common sense tells us if it sounds too good to be true it probably is! However
the following rights apply everywhere in the EU including Tenerife:
• If the item you bought does not look or function as it was advertised,
or if it is not satisfactory, you have the right to have the item replaced
at no extra cost or to get your money back if the replacement is not completed
in a reasonable time.
• If you buy goods that turn out to be faulty, manufacturers must compensate
you for any personal injury or damage caused to property.
• Whether you buy goods or services by post, telephone, fax, or through
the Internet from a professional trader, you have the same rights in relation
to guarantees as if you had bought them in a shop.
But the question is what can you do about it if you think you have a claim?
If you are still on the island your first point of call should be to the
trader themselves to try and resolve the matter amicably – if this doesn’t
work you should ask for a complaint sheet “Hoja de Reclamaciones.”
There is a legal requirement for all establishments to have these available
and they are not allowed to make you go to another branch or office to get
one. “Hoja de Reclamaciones” are carbonised forms made up of a
white copy (for the authorities), a pink copy (for the establishment) and
a green copy (for the person making the complaint). The establishment must
fill in their identification details. If “Hojas de Reclamaciones”
are not available, are not fully completed by the trader or are refused, customers
can present a complaint to the authorities. They should include in their complaint
the fact that an “Hoja de Reclamaciones” was not available etc.
This is best done in Spanish if you possibly can.
Customers should state their name, address, and ID number or passport number,
and fill in all relevant boxes on the form, stating clearly the reasons for
their complaint, and the date on which the complaint is made.
Once the form is completed, it should be signed by a representative of the
establishment, who can add any comments they consider appropriate. You should
then retain the green copy for your records, hand over the pink copy to the
establishment. The original white copy has to be sent to the local Consumer
Authorities (see contact information below) within one month, together with
any appropriate proof or documents, especially receipts if the complaint concerns
prices, which should be attached to the form (remember to keep photocopies
for yourself).
The Local Consumer Authority should acknowledge receipt of the “Hoja
de Reclamaciones” within 15 working days of receipt. They will then
notify the establishment about the complaint, and allow them 10 working days
to reply.
Proceedings will be initiated, if and as appropriate, and the Consumer Authority
will advise the plaintiff of its decision.
Completing this form does not prejudice your rights to also make a complaint
in person to the appropriate consumer authorities and if you need to do that
or you were not given an “Hoja de Reclamaciones” by the trader
you should look for an “Oficina Municipal de Información al Consumidor”
(OMIC) In the south and west coast these are located at:
Edificio Hacienda Municipal del Ayuntamiento de Adeje,
C/Tinerfe el Grande nº 32.
Teléfono: 922 711 484 Ext. 1010 y 1009.
macuqc@adeje.es
GRAL. FRANCO, S/N
CENTRO CULTURAL LOS CRISTIANOS
38650 - ARONA
Tel: 922/75 71 37 FAX: 922/75 24 92
consumo@arona.org
AVDA. MARITIMA, EDIFICIO SEGURO
38683 - SANTIAGO DEL TEIDE
Tel: 922/86 03 48 FAX: 922/86 03 48
santiagodelteide@yahoo.es
You can also make use of the European Consumer Centres Network (ECC-Net)
of unattended computer terminals, or “Virtual Offices”, which
are placed in strategic locations in major tourist areas.
The terminals have touch screens so that users can access information on the
services provided by the European Consumer Centre in Spain through its website.
You can also fill in a complaint form on line and send it to the ECC in Spain,
whose consumer advisers will process the forms and contact the customer direct.
In Tenerife these are located at the Los Cristianos Cultural centre in the
Plaza del Pescador and at the Troya Tourist Office in Calle Rafael Puig Lluvina,
Playa de las Américas.
But what to do if you have returned to the UK
before you find out your purchase is faulty?
The Spanish European Consumer Centre (CEC) is a public service organisation
for consumers who require information or assistance in connection with the
acquisition of goods or the use of services in a country other than their
own and you can deal with them in English.
They are part of the European wide ECC-Net, of organisations and institutions
which operate in a similar way, have similar powers and objectives, and are
located in each of the Member States of the European Union.
The European Consumer Centre can help you if you are a citizen of a Community
state who purchases goods or uses services in any part of Spanish territory
and you can submit your enquiry via their website here: http://cec.consumo-inc.es/cec/Secciones/Contacta/Contacta_en.asp
Most honest traders do cooperate with the various national and European consumer
associations but although in some cases these may instigate sanctions against
a trader if they are in breach of current regulations, it does not necessarily
mean that the consumer will be recompensed.
You may ultimately decide to go to the arbitration courts. If you are in
Spain you should do that through the OMICs there is a standard form here:
http://www.consumo-inc.es/Arbitraje/solArbitraje.htm
or through the CEC if you are outside Spain, both can contact suppliers and
mediate between them and customers, until a satisfactory solution has been
reached. If this is not possible, they will assist and advise you with regard
to any alternative means of resolution prior to the commencement of legal
proceedings, which in Tenerife can be a lengthy and possibly expensive procedure.
Mindful of the differences in member state’s legal systems, on the
11 July 2007 the European Parliament adopted a regulation establishing a European
Small Claims Procedure. The regulation is intended to simplify and speed up
litigation concerning small claims in cross-border cases, and to reduce costs.
It applies to civil and commercial matters where the value of a claim does
not exceed 2,000euros. The procedure came into effect on January 1 this year.
More information can be found on this website: http://ec.europa.eu/justice_home/judicialatlascivil/html/sc_information_en.htm
However litigation should never be a “do it yourself” affair and
should always be thought of as a last result if all else fails.
Remember, if you do not speak Spanish, and need to deal with a shop or tradesperson
regarding a query or complaint The One Stop Problem Shop can assist you with
the initial contact so that there are no language difficulties to exacerbate
a possibly already inflamed situation!
Contact us for help with consumer problems, along with the many other forms
of bureaucracy you may encounter in your daily life in Tenerife.
Call us on 922 86 74 78 or email help@diana-mcglone.com
Residents
discounts
From the 1 Sep 2012 In order to obtain Canary Islands residents' travel
discount on airplanes or ferries (in Spanish territories) you will be
required to produce a certificate of Empadronamiento available from your
local Town Hall at the point of picking up your
boarding pass.
The Empadronamiento must be within date and show your address of residency
entitling the holder to the discount, this must be accompanied by a Current
National Identity Document or Passport if you are Non resident and your
home member state of the European Union does not issue identity cards.
IMPORTANT : Customers who are unable to show any documentation
proving residency will not be accepted on the journey and their ticket
will be returned to them. They will be required to purchase another ticket
without the resident discount and check in again within the established
time limit.
Its also important to note that this discount is only available to European
nationals who are resident in the Canary Islands.
Non Spanish Europeans will not be able to take advantage of the on-line
systems available from the various Local Authroities unless they have
previously obtained and installed a digital identy ertificate on their
computers
I also sent an enquiry
to Loro Parque about what to bring to get discounted entrance fees and
they replied:
Thanks for your mail. Concerning your question the best would be if you
bring together with your British passport or Spanish drivers licence a
copy of your “Certificado de empadronamiento” from the Town hall of Puerto
de Santiago, ( Obviously this is for Stgo residents - others substitute
your own town hall ) so you won't have any problems at the entrance.
I hope I could help you and wish you a nice time in LORO PARQUE.
Best regards
Katja Hahn
LORO PARQUE, S.A.
Dirección de Relaciones Externas
Inge Feier - Directora
Katja Hahn - Departamento de Medios
Avda. Loro Parque s/n
E-38400 Puerto de la Cruz
Teléfono: +34-922-37-38-41 ext. 204
Fax: +34-922-37-50-21
you may want to print this to take with you in case there are any queries
at the ticket office
Dealing with your local town hall
You will almost certainly have to deal with the local town hall at some point.
They vary slightly in the way they do things from place to place, but the
underlying procedures are the same. You may go to the town hall itself or
you can often transact business at sub offices nearer to where you live, particularly
for the costal regions.
They will deal with the census (padron) information, and will issue Certificados
de empadronamiento and Certificados de convivencia, opening licences for local
traders, planning permissions, small works licences, "Vado permanente",
etc etc., In a seperate but often nearby office are The "Consorcio"
who actually collect monies on behalf of the councils, will deal with payments
for Local taxes, Vehicle road tax, Local property tax ( Impuesto
Sobre Bienes Inmuebles), Rubbish collection rates, Sewage rates, and in
some cases Water rates, although many Ayuntamientos have a private company
dealing with water supply, in which case they will be located elsewhere.
It is YOUR responsibility to make sure that the information supplied to the
local authority is correct. Estate agents will often offer change of name
of ownership with the local authority as a service, but do not assume that
they have done this. In the same way DO NOT assume that when you move your
name and indeed direct debit for these services will be stopped! As a rule
of thumb the person who was in occupation as at January of the year in question
is resposible for payments of local property tax. Make sure you are clear
than your name and bank account have been removed from the local records if
appropriate.
Emigrating
to Tenerife What Can I prepare before I leave the UK?
If you are NOT thinking of buying a freehold business property, then in general
what you are "buying" is what is called here a "Traspaso".
This is a private transfer type of arrangement and what you are paying for
is goodwill, stock, fixtures and fittings in the premises (if they are not
the property of the premises owner) and also getting the existing business
holder to give up the right to what ever is left on their premises rental
contract. A much better format is to negotiate a proper lease "cesíon"
- but this is not so readily accepted by Tenerife landlords!
Do the math! Look at the potential earnings and see if the return justifies
the outlay. Why are the existing owners giving up the business? There are
genuine reasons - family, retirement, moving up to a bigger better location
etc - but if there is no obvious reason, are they leaving because they couldn't
make it? If they couldn't what could you do differently? - perhaps you have
more experience in the field, better work ethic, etc etc. but be honest with
yourselves could you make it work if they can't.
I would always investigate whether I could set my business up from scratch
in an empty unit - would the set up costs exceed the cost of buying an existing
business?- Goodwill and location are usually the key factors in that choice.
If you are going for an existing business, remember the concept of a lease
as we understand it in the UK does not always apply. Have a meeting with the
landlord to firm up what length of rental agreement he will give you as the
"clock" starts again at zero when a new person takes over and you
must negotiate the rent, deposit and other terms and conditions of the agreement
with the landlord yourself.
Also check with the landlord how much percent transfer fee of the transfer
price he wants - he may be entitled to as much as 10% dependant on what is
in his contract with the current business holder. Are you expected to pay
that or the outgoing tennant.
Request a full inventory of items belonging to the business owner (NOT the
landlord) to be included in the Traspaso -transfer of business.
Contact the local council to check whether the business has an opening licence
or if not would that be looked on favourably or does the business in fat need
an opening licence?. If there are problems what would have to be done?. ie
getting the premises up to code and obtaining what is called a proyecto -
which are architects plans to either confirm the premises are suitable for
the use you intend OR detail what needs to be done and then act on those improvement
requirements.
If dealing with food - check with the Sanitation department what level of
catering licence - cafe/ bar 1 fork 2 fork etc. you could have in that premises.
You may not have the set up to produce full meals for example. Also at least
one of you will have to have a food handlers certificate (in Spanish)
If the premises are located as part of a complex or community, as a courtesy
check with the "Comunidad" - community association. A friendly approach
to the president or comittee can often go a long way - this lets you know
what other owners in the complex see as problematic (if anything)
Then you have to get yourself set up as an "autonomo" - self employed
person, or you could form a company or partnership but that may be overkill
for a small business set up. Remember what ever way you work in Spain either
for your self or on contract to someone else you must have already formalised
your immigration status. If you are a European Citizen then you need to apply
for a Certificate of Registration and an NIE number
if you do not already have one. If you are non-european the process is too
complicated to explain here as there are variations from country to country.
Please contact us for further
information.
As a self employed person you can do this yourself at the "Ventanilla
Unica" (Small business unit) in Santa Cruz - inside the chamber of commerce
building - but you will need to speak Spanish or take an interpreter.
They will advise you on whether your plan is viable - set up your Tax, IGIC
(VAT) and Social Security requirements - they can also advise on licences
and permissions required, dependant on the type of activity you are thinking
of.
Or if you are not comfortable going it alone there are firms like ours who
will see you through all of this - I would personally opt for one who wasn't
also acting for the seller - but I imply nothing at all against any firm that
helps both sides.
We
specialise in assisting self employed and sole traders, being a small business
ourselves we understand that you are busy enough finding work for yourselves
without having to worry about keeping the right side of Spanish regulations.
We help you to obtain the documentation that you need to work for yourself
in Spain.
The basics of the procedure entail getting registered with:
Canarian Government (GOBIERNO DE CANARIAS)
· Alta en el Impuesto General Indirecto Canario (IGIC). Modelo 400
(equivalent to the VAT office)
· Alta en la Comunicación de Apertura del Centro de Trabajo
- Santa Cruz (Work Inspectorate)
· Hojas de reclamaciones y cartel anunciador (determinadas activ.)
- Santa Cruz (Consumer complaint forms -certain activities)
The Treasury department of the Spanish Social Security (TESORERÍA
GENERAL SEGURIDAD SOCIAL)
· Afiliación del socio o empleado a la Seguridad Social. Mod.
TA-1 . Sólo para aquellos que no tengan asignado número de afiliación.
.......( register as a self-employed person and obtain a Spanish social security
number if you do not already have one)
· Alta de Autónomo. Mod. TA-0521.
· Inscripción de la empresa en la Seguridad Social. Mod. TA-6.
Sólo para el caso que se contrate trabajadores.
· Alta del trabajador en el Régimen de la Seguridad Social.
Mod.TA-2
Local Authority (AYUNTAMIENTO)
· Licencia de apertura inocua ...... (Obtain an Opening licence if
you have a business premises Does NOT apply to Market traders)
· Licencia de apertura clasificada
· Cambio de titularidad en licencia
· Licencia de rótulos y toldos
(*) Deberá informar sobre los m2 destinados a la actividad.
Provincial Directorate of Work (DIRECCIÓN PROVINCIAL
DE TRABAJO (Santa Cruz)
· Sellado del libro de visita - el emprendedor deberá adquirirlo
en librerías y/o estancos especializados (Social security inspection
visit book. Does NOT apply to Market traders)
You must have the following documentation
- DNI o NIE ( and passport or plastic residencia if still in date)
Current Spanish Bank Account Number for Social Security Payments
Other requirements You have 30 days from registering at
the tax office to set up your Social security payments
- The Impuesto General Indirecto Canario (IGIC), Modelo 400, must be done
on the same day as the tax office
Modelo 037.
Once you have jumped through the necessary hoops to work for yourself, you
then have to think about making tax declarations and keeping your books.
Basic Obligations for a Sole Trader with no employees or premises.
Estimación directa simplificada
Traders whose turnover does NOT exceed 600.000 € per year
You must keep the following books or spreadsheets (or dedicated computer
programme)
Ventas e ingresos - Sales and Payments
Invoices raised should be numbered sequentially they MUST be in Spanish although
they can be in English or another language as well.
i e
2011-001 Mrs Bloggs Golf del Sur -Reparaciones 385, 75
2011-002 Mr Brown Adeje- Azulejos Baño 2,500,00
etc etc - if you don’t have specific client info put “contado”
Compras y gastos - Purchases and Expenses
Receipts for expenditure MUST carry your name address & NIE number (get
yourself a stamp!)
You should number each purchase sequentially (easier by month but up to you)
in your book and the date it was made.
i e
11/7/001 27/07/2011 Afortunadas pintura 36,95 (This is the amount INCLUDING
IGIC until or unless you become liable to charge IGIC yourself)
11/7/002 30/07/2011 Sagrebb azulejos 850,00
11/8/001 02/08/2011 Oficpapel Papel y Cartuches 47,00
etc etc
Bienes de inversión - Assets
New tools for example or perhaps later on a vehicle
Note the date, purchase invoice number, description and amount of the plant
purchased.
Modelo 130/131: You have to do a tax return once a quarter which must be
submitted by the 20th of the month following the quarter end (Even if a nil
return) from July 2012 you pay 21% of your takings less net expenditure (Justified
expenditure less 7%)
Once a year you must do a “Declaracion de la Renta" - Personal
tax, return this is where your personal allowances are applied and unless
you have done VERY well you are likely to get a rebate at this point. This
must be submitted by the last working day of the month of June applicable
for the Previous Tax Year January to December.
If 2012 is your first trading year or your turnover for
2011 was below 29,015 euros you will continue to be exempt from charging IGIC
(VAT) until the 31 December 2012. from the 1 Jan 2013 you will be required
to charge the sales tax. For service based activities the amount is 7%.
Modelo 420 must be presented and paid quarterly.
Libro de visitas – This is a hard back book coloured brown –
This is the Ministry of works inspection book applicable to certain activities
Hojas de Reclamaciones – Clients Complaint forms
Seguro de responsabilidad Civil - A legal requirement to get Public Liability
Insurance if you are dealing with the public
Pay your Social Security - Monthly REGARDLESS of whether you are in profit
or not.
The amount due depends on your age and what kind of activity you are undertaking
also whether or not you wish to pay extra for unemployment insurance. Rough
figure is between 250 and 350 euros for MINIMUM earnings.
Other taxation and trading methods
Depending on the type of activity you are going to be undertaking there are
other ways of complying with your tax obligations.
The tax authorities allow you to pay a pre-calculated fixed amount of tax
every quarter for certain types of business that they have average calcualtions
for. These include amongst other things bars and small restaurants and builders
labourers. This is called Estimación Objectiva. The requirements are
as above except that your fixed tax amount is declared on a Modelo 131 form.
The advantage of this is that you can know exactly the amount you will be
paying in tax every quarter, the disadvantage is that it is due come hell
or highwater, whether you are in profit or not, and you are tied into the
scheme for 3 years.
If you are providing professional services SOLELY to other Spanish registered
businesses then you can fulfil your tax obligations by the "retención"
method. This means that the company that you provide your goods or services
to deducts and retains the income tax due on the amount they pay you. They
pay this into the state coffers on your behalf and once a year you do your
declaración de la renta to work out if you owe any more tax (or are
due a rebate) after your personal allowances and business expenses have been
deducted.
The above is a VERY simplified summary
of basic obligations for a self employed person in Spain and does not even
touch on IGIC(VAT) obligations, employers obligations to employees, health
and safety regulations, Limited Companies or Partnerships etc. ALWAYS SEEK
EXPERT ADVICE TAILORED TO YOUR OWN CIRCUMSTANCES BEFORE STARTING OR INVESTING
IN A COMMERCIAL VENTURE.
What about Tax?
When is a tax payer considered
resident in Spain?
Non resident taxation in Spain varies considerably according to whether the
taxpayer has permanent establishment existing in Spain or not.
Definition of permanent establishment:
An individual or organisation operates through a permanent establishment
which they have in Spain:
Head office
Branch Offies
Factories
Workshops
Warehouses or shops or other establishments
Mines
Oil or Gas wells
Quarries
Farming Forestry livestock operations or any other place of exploration
or extraction of a natural resource.
Construction, installation or asembly works whose duration exeeds 6 months.
In short when a non resident has available in Spain, under any title facilities
or places of work of any type in which he usually performs all or some of
his business, or when he acts in Spain through an authorised agent with the
power to contract on behalf of the non resident person or entitiy, he is deemed
to be a non resident acting through a permanent establishment.
Individuals are deemed to be resident in Spain when they meet any of the
following Criteria:
They remain in Spain for more than 183 days during a calendar year. In order
to determinethe period of stay sporadic absences are included in the count,
except those where tax residence in another country is proved.
Their main base or centre of activities is in Spain.
Also it is presumed, except if proved otherwise, that a tax payer has his
usual place of residence in Spain when using the above criteria his spouse
(if not legally seperated) and dependant underage children are resident in
Spain.
Under UK law, a UK national is classified as a resident of that country if
they spend more than 183 days in the UK in the tax year and visit the country
more than 91 days in any tax year over four consecutive years
A person may have a residence permit or administrative residence
in a state and not be considered a resident therein for tax purposes.
This is a very important point for those who wish to claim tax benefits as
Spanish residents for tax purposes. The only proof acceptable in Inheritance
or Capital Gains tax situations is a "Certificado de Residencia Fiscal"
which is obtainable from the Hacienda IF you have made your
annual "Declaración de la renta" tax returns. It is worth
noting that you would be advised to submit nil returns if necessary to prove
fiscal residence.
As part of the tightening up of
tax rules throughout the EU, Banks are increasingly requiring new documentation
to prove that their clients are not actually resident for tax purposes in
Spain. White NIE certificates are also now only valid for three months, even
though the number itself remains the same for a persons lifetime. After three
months, one should declare oneself as eitherresident
or non-resident for immigration
purposes, and get either a Certificado de Registro
or a Certificado No Residente, which is what the banks will now require to
avoid embargoes being placed on foreigners' non-resident accounts in Spain:
the non-resident Certificates will need to be submitted every three years.
Non Resident's certificate - Certificado No Residente
The application procedure for a Certificado No Residente is very similar
to the one forNIEs. One has to apply
in person at the nearest Extranjeria or National Police station as appropriate
or by giving someone Power of Attorney to do it on your behalf. There is a
government fee to be paid .
The interest of the bank accounts and investments in Spain pays a flat tax
rate of 18%, but the non-resident accounts are free of tax and whatever interest
generated should pay tax only in the country of residency.
Up to now, to prove that the non-residents were living somewhere else, a
simple personal declaration signed by them was sufficient, but this is not
the case any more, and now it must be proved with one of the following two
options:
a) A certificate issued by the tax authorities of the country where the non-residents
live, confirming that each signer of the bank account live in that country,
much better if done in the language of the country of residency and in Spanish,
this certificate is requested by many clients of ours annually and it is rather
simple to obtain,
or
b) A certificate of non-residency issued by the Spanish National police/
Extranjeria. This proof of residency must be presented every 3 years.
If you are considered resident for tax purposes in
Spain when are you liable to do a Declaración de la Renta (anual tax
return)
The limit is set at 10,000 euros annual
gross when:
Income is derived from more than one source, provided that the amount of the
sums received on the second and remaining sources, does not exceed 1,500 euros
annual gross, or the source of the income is not required to withhold (eg
pensions from abroad).
Your annual tax return for the previous year must
be submitted by the end of June (dates vary slightly each year).
You should think about preparing these in early May.
The Spanish Income Tax system is not so very different to
that in the UK. We can make an appointment with a professional for you to
seek advice if you are a high net worth individual. However, in general it
is likely that, on a similar income, you will pay less income tax in Spain
than the UK. There are all the other usual Tax Classes such as Capital Gains,
Gift Tax, Inheritance Tax etc., as you would expect. In the case of Capital
Gains and Inheritance Tax it is recommended that you take professional advice,
as there can be extremely large savings to be made here.
But here is a brief outline of Taxation of Spanish property
owned in the Canary Islands
Local Taxes
There are two local property taxes which are both based on the property's
theoretical rental value according to the local land registry, and are adjusted
in line with inflation. The rates of tax will vary from region to region due
to the varying rates of tax imposed by the regional and local governments.
Local property tax ( Impuesto Sobre Bienes Inmuebles (IBI)
)
This is the main local property tax affecting owners of properties in Spain
payable yearly to the Town Hall. The amount of the tax is calculated by reference
to the valor catastral (official value of the property) registered in respect
of all properties in Spain . The percentage charged varies from area to area,
and is roughly 0.5% to 1%.
Local mains drainage and refuse collection tax - "basura y alcantarillado"
(Not to be confused with "agua" which in some ayuntamientos
is paid to a private water company))
This local tax payable by property owner and a related to rubbish collection
and drainage. The amount to pay varies from area to area, and should be paid
to the local Town Hall every year together with the local property tax mentioned
above.
As a non-resident
property owner in Spain , you are still liable for income tax, value added
tax wealth tax, capital gains tax and inheritance tax. Individual situations
vary considerably and it is best to seek specialist advice from a tax consultant
who has knowledge of the Spanish tax system.
National Taxes
Income Tax - Impuesto sobre la Renta de las Personas
Fisicas (IRPF)
The income derived on property in Spain should be declared in Spain . If
you sell your Spanish property within one year of purchasing it, then the
profit you make is considered an income and not a capital gain, and you would
have to pay Spanish income tax on any profit made. If you rent out your Spanish
property, then you have a "rental income" from the Spanish property and will
have to pay Spanish income tax. if you do not rent it out you will have a
"deemed
rental income" and you are still liable to pay tax.
If you are working or self employed in Spain unlike in the
UK, where the tax man sets allowances against income in advance, in Spain,
most people have a straight percentage of their gross pay deducted from their
pay packet or they pay tax quarterly on business income. Then, when the tax
declarations go in the following year, allowances, similar to those in the
UK, (such as married man's allowance and tax relief on pension contributions
etc), are added to the equation.
It means most people, ( 80 per cent of taxpayers in 2010), get a rebate.
The campaign to present and collate personal income tax returns, begins at
the beginning of May and concludes on on the nearest weekday to June 30.
Personal Allowances for Spanish income tax 2010
General allowance 5,151 euro
Age allowance (65+) 6,069 euro (75+) 6,273 euro
Disabled allowance 2,316 - 7,038 euro depending on degree of incapacity
Child allowances
First child - 1,836 euro
Second child - 2,040 euro
Third child - 3,672 euro
Each further child - 4,182 euro
Elderly relative living with family whose income is less than 8,000 euro
pa:
65+ 918 euro
75+ 1,122 euro
Maternity allowance (Reduccion por cuidado de hijos)
2,244 euro pa per child under three years old.
Earnings related Personal Allowance (for employees)
Earnings not more than 9,180: 4,080 euro
Earnings 9,180 to 13,260: 4,080 - 35% x (Earnings - 9,180)
Earnings 13,260 + : 2,652 euro
Disclaimer: Spanish Tax law is complicated and whilst every
effort has been made to offer information that is current, correct and clearly
explained. This article is intended to be a general overview and certain details
have been deliberately omitted. We are not responsible for the result of any
action taken on the basis of information contained on this website, nor for
any errors or omissions. This information is not intended to offer specific
legal, accounting or tax advice. You are strongly advised to seek professional
advice concerning your specific situation.
Capital Gains Tax
Before taking any action or relying on the information
provided please check with your own Assesor, Gestoria or Fiscal Representative.
If you don’t have one drop me an email
and I will arrange an introduction for you.
There was a time when anyone who had bought their Spanish property before
31st December 1986 was exempt from paying Capital Gains Tax. [THIS
NO LONGER APPLIES.]
This exemption was annulled as from 20th January 2006 and now long term owners
of property in Spain must pay Capital Gains Tax on the profit gained after
January 20th 2006.
CHANGES TO THE RATE
OF CAPITAL GAINS TAX
CGT is payable on profit made from the sale of assets. A gain is calculated
by deducting the acquisition cost from the disposal value.
Fom 1 January 2012 CGT for non-resident property owners in is applied at
21% across the board. This follows a previous rise in 2010 from 18% to 19%.
In 2007 the European Union put pressure on Spain to lower the CGT rate of
35% for non- residents (15% for residents) to 18% - deeming it to be an unfair
penalty on non-residents. A subsequent rise of 1% in 2010 passed relatively
unnoticed but it is now followed by a further 2% increase.
Spanish Residents are liable to pay 21% up to 6000€, 25% between 6001€
and 24,000€ and 27% on higher figures.
UK Residents are also required to submit a tax return in respect of CGT to
HMRC. The CGT rate in the UK at the time of writing is 28%. Relief against
this tax can be claimed in respect of taxes paid in Spain as long as a suitable
certificate from the Hacienda (Spanish Tax Office) can be produced.
The 3% retention retained by the buyer on sale of the property and paid the
the Spanish authroities cannot be claimed as relief from UK CGT.
For property purchased originally 20 Jan 2006 the acquisition cost may be
adjusted by application of a co-efficient from statutory tables. This adjusts
the cost for inflation purposes and may reduce the amount of tax payable.
Eg calculate the gross gain by deducting the purchase price from the selling
price then;
Calculate the part of the gain generated before the 20 Jan 2006 and on which
a reduction can be applied as a fraction of the number of days since the purchase
until the 19 Jan 2006 divided by the number of days between the purchase and
the sale. Then use the table below.
Any qualifying improvements to the property may also be taken into account.
Where the period of ownership is less than one year the “gain”
is added to income and taxed accordingly (this is not an attractive option)
For Spanish fiscal resident's property, there is up to 100% hold-over relief
on the main residence providing the gain is re-invested in the new main residence
in Spain within two years of the sale.
If only a proportion of the gain is re-invested, then only a proportion is
taxable.
If aged over 65 years and have lived in your main residence in Spain for
more than three years and you are tax-resident here, the gain is tax-free
and there is no need to buy a new property to claim roll-over.
There are additional rules for other Spanish financial investments and you
should seek specialist advice.
NON fiscally resident VENDORS should be aware that here in Tenerife if you
are non resident there is a 3% retention of the total purchase price of the
property imposed by the public treasury (ministry of economy) to be held by
them against settlement of your capital gains tax and any other outstanding
taxes.
This procedure is carried out in order to ensure that you have no public
or private debts pending within Spanish territory.
Once the Spanish tax authorities have been paid any of your outstanding tax
debts out of the 3% retention, the balance of the monies, less your tax bill
will be returned to you on application.
Vendors often do not bother to claim back any difference as more often than
not the 3% of purchase price comes very close to the actual Capital Gains
calculation.
If you are non-resident a "deemed rental income" is levied by the Spanish
tax authorities for urban real estate not rented out or used as a second residence.
Therefore, if your Spanish property is not rented out or not your primary
residence (i.e. a holiday home), you will be liable for the "deemed rental
income tax" even if you do not let out your Spanish property. The taxation
authorities will charge you according to the valor catastral (rateable value)
of the Spanish property which can be seen on your IBI receipt from your local
authority The deemed rental income is calculated as 1.1% of the catastral
value (2% if that value has not been reassessed since 2 January 1994) Tax
is then calculate at 24% of that value. Fuller information
here
Example: Catastral value as on anual IBI receipt 120,000 euros reassessed
since 1994 = Yes
120,000 euros x 1.1% = 1320 euros deemed income. 24% of that value = 316.18
euros to pay
Rented or sub-the periods in which it is rented let buildings
The earnings are calculated by taking the gross income that is received from
the tenant including all the assets transfered with the building and excluding
IGIC (IVA in mainland) witout deducting any expenses.
If the building is only rented for part of the year the earnings must be
determined as above for the rental period and for the rest of the year the
deemed income will be 1.1% of the catastral value (2% if that value has not
been reassessed since 2 January 1994) Tax is then calculate at 24% of that
value.
Restoration of Wealth Tax-
Patrimonio
16 September 2011
At a meeting of the Spanish Cabinet on the 16th September 2011 the move to
restore the Patrimonio (wealth) tax was ratified.
The tax had effectively been suspended after the then Socialist government
reduced the amount of the tax levied to zero, whilst still leaving the law
enabling it on the statutes. The Ley 4/2008 de 23 de diciembre was passed
by the Spanish Parliament on the 23rd December 2008 and applied to tax years
starting 1st January 2008 onwards which would have been payable in 2009.
The exemption lasted for 3 years, however this new about turn will only affect
higher end taxpayers both residents (obligacion personal) and non residents
alike (obligacion real). Only those with assets of over 700,000 euros (excluding
that of their primary residence) are liable and primary residences with a
value of up to 300,000 euros are exempt.
The increase in the % of the tax is expected to remain in place for just
2 years, 2011 payable 2012 and in 2012 payable 2013 and will bring in over
1 billion euros.
Paid officially by vendors, but can be negotiated to be paid by purchasers.
If vendor is resident, then it does not accrue as a preferential charge on
the property if unpaid. If vendor is non-resident, and the bill is unpaid,
it can be charged to the property.
Plusvalía is nothing to do with the property as such, but is a tax
on the increase in value of the land on which the property is built. It is
a low tax, assessed on the combined basis of rateable value and surface area.
The tax is actually calculated every year, but only becomes payable when the
property changes hands: as such, if the property has been owned for many years,
the yearly sums can mount up and be burdensome. Similarly, if the property
comprises a considerable amount of land, then the tax can also be onerous.
Generally, though, for single apartments owned for up to, say, 5 years, it
is not a great sum to pay ... a few hundred Euros or so.
TRANSFER TAX
Paid by purchaser on the purchase of a property. This will either take the
form of 6,5 % ITP (Impuesto sobre Transmisiones Patrimoniales) for resale
properties, or 5% IGIC (Impuesto General Indirecto de Canarias, equivalent
to Value Added Tax) on new properties. For new properties only, stamp duty
at 0.5% will also be payable. There is a temporary reduction in this applicable
from 1 Sep 2011 to 2012.
Because recent (Aug 2011) measures from the Spanish government to reduce
sales tax on new house purchases were not applicable to the Canary Islands
because of the independent sales tax regime applicable here called I.G.I.G.
the Canary Islands’ Government has announced a package of fiscal measures
aimed at reviving the housing and construction sector , while helping tackle
the black economy.
The first major initiative is a reduction on I.G.I.C., (the Sales tax payable
on purchasing a new build property), which will fall from 5 per cent
to 2.75 per cent for first time buyers, providing it is their primary
residence and that the cost of purchase does not exceed 150,000 euros.
There are also tax advantages available for home improvements of up to 10
per cent, deductible from income tax on the cost of work, up to a limit of
5,000 euros.
However, for higher-priced home improvements, the deductions can be spread
over three tax return years, so the percentage may be applied to a maximum
of 15,000 euros.
The new measures will come into force on September 1 and be applicable until
December 2012.
None of these measures can be applied to purchases or improvements to business
premise, garages or sports facilities.
__________________
Inheritance Tax: IMPUESTO
SOBRE SUCESIONES Y DONACIONES
There has been a further change to the regulations in the Canary Islands
for this as of 1 July 2012.
The law of 2008 which for Fiscal Residents reduced the tax by means of a
99.9% "rebate" has been revoked however personal reduction allowances
for inheritance tax (NOT gift tax) have been increased
Residents returns are presented locally, non residents returns have to be
presented in Madrid
There are different categories of beneficiaries when calculating Inheritance
Tax:
Relationship to deceased
Reduction allowance in euros
Non fiscally resident heirs
Children under 10
138,650.00
15,956.87 plus 3,990.72
euros for every year under 21up to a maximum of 47,858.59 euros
Children under 10-14
92,150.00
Children under 15-17
57,650.00
Children under 18-20
40,400.00
Spouse
40,400.00
15,956.87 euros
Children 21*+ and Adopted children
23,125.00-
15,956.87 euros
Rest of descendants/ascendants or adoptive
parents
18,500.00
15,956.87 euros
Group III Brothers, sisters, nephews, nieces,
uncles, aunts and in-laws
9,300.00
7,993.46 euros
IV Anyone else. This includes unmarried partners
unless there is acceptable and substantial proof of a long
term cohabiting relationship.
0.00
0.00
In order to be classed
as fiscally resident the deceased has to have been resident in the Canaries
for a minimum of 5 years. This is proved by a Certificado
de Residencia Fiscal
Simply having the green A4 certificate of registration is NOT proof of residence
for tax purposes for inheritance matters or for a house sale for example.
What is required by the notary is a Certificado de Residencia Fiscal. This
can be obtained for the current year from the Hacienda IF you are currently
working legally or self employed OR if retired living on own means etc have
presented a Declaracíon de la Renta (annual tax return)
Given that many retired people are below the threshold requirement to present
an annual tax return this begs the question should they be submitting a nil
return in order to establish their residence for tax purposes status?
Non Fiscal Resident taxes are now (from 2010) SOLEY dealt with in Madrid.
As this involves submitting originals of documents such as deeds, wills and
death certificates this is something which is best undertaken by an accountant
with connections on the mainland.
Here is a VERY BASIC summary of the prodedures (Fiscal residents can present
in Tenerife Non Fisca Residents have to present in Madrid)
INHERITANCE MATTERS AND DEATH DUTIES
DOCUMENTATION REQUIRED
1)
Get a Death certificate – legalized and translated officially with the Apostille
from the UK Foreign Office in London if not issued in Spain (see
here http://www.fco.gov.uk/en/about-us/what-we-do/services-we-deliver/legal-services/Legalisation/)
The apostille can only be done in the UK but Legal translations can be done via
any translation service that offers "juridica" or you can get them done in
Tenerife
2)
Original and authenticated apostilled legalized copy of UK Probate certificate
will be required. (from this pont on
A & LT stands for Apostilled and Legally translatedand aplies to ANY documentation which is not
in the Spanish language)
3)
Get an authenticated copy of the Spanish Will or if only a UK will is available original
and A & LT
4)
Obtain confirmation of last will status in Spain from Madrid central registry
5)
Collate Assets in Spain documentation- originals of;
The Escritura (deeds to the property in Spain) plus current valuation
Proof of payment of IBI (rates) last receipt
Proof of payment of Non-Residents deemed income tax- last 4 years returns, modelo 210
Letter from the banking institution of all bank accounts in Spain stating
the balance of the account(s) as at the point of demise.
Original documentation of any vehicle or vessel registered in the Canary
Islands in the name of the deceased plus official current valuation(s)
6)
Collateinformation of Beneficiaries
under the will
NIE certificate - Foreigners fiscal identity number (if they don’t
have one it must be obtained before starting point 5)
Full names, Fiscal Addresses and copies of passports.
% split between beneficiaries
Statement of pre-existing wealth (in the Canary Islands) of each of
the benficiaries
Pre-existing wealth
Multiplier
€
Classes I and II
Class III
Class IV
Up to 402,678
n/a
1.5882
2.0000
402,678 –2,007,380
1.0500
1.6676
2.1000
2,007,380 – 4,020,770
1.1000
1.7471
2.2000
Over 4,020,770
1.2000
1.9059
2.4000
6a)
Define relationship status of beneficiaries
There
are different categories of beneficiaries when calculating Inheritance Tax:
Relationship
to deceased
Reduction
allowance in euros
Non
fiscally resident heirs
Children
under 10
138,650.00
15,956.87
plus 3,990.72 euros for every year under 21up to a maximum of 47,858.59
euros
Children
under 10-14
92,150.00
Children
under 15-17
57,650.00
Children
under 18-20
40,400.00
Spouse
40,400.00
15,956.87
euros
Children
21*+ and Adopted children
23,125.00-
15,956.87
euros
Rest
of descendants/ascendants or adoptive parents
18,500.00
15,956.87
euros
Group
III Brothers, sisters, nephews, nieces, uncles, aunts and in-laws
9,300.00
7,993.46
euros
IV
Anyone else. This includes unmarried partners unless there is acceptable
and substantial proof of a long
term cohabiting relationship.
0.00
0.00
6b)
Each beneficiary must swear a deed of acceptance of inheritance in front of
a Spanish Notary OR obtain a Spanish Power of attorney or UK POA - A <to authourise another to do this on their
behalf if not coming to Spain to sign the document
7)
Submit an inventory of assets and inheritance tax returns for each beneficiary
to the Spanish tax office in Madrid. You have to pay the inheritance tax within
six months after the date of demise otherwise a surcharge will be imposed. All
original documentation has to be enclosed.
Assets up to the value of:
Tax
rate applied:
Cumulative
tax
€
%
€
7,993.40
7.65
611.50
15,980.91
8.50
1,290.43
23,968.36
9.35
2,037.26
31,955.81
10.20
2,851.98
39,943.26
11.05
3,734.59
47,930.72
11.90
4,685.10
55,918.17
12.75
5,703.50
63,905.62
13.60
6,789.79
71,893.07
14.45
7,943.98
79,880.52
15.30
9,166.06
119,797.67
16.15
15,606.22
159,634.84
18.70
23,063.25
239,389.13
21.25
40,011.04
398,774.54
25.50
80,665.08
797,555.08
29.75
199,291.40
Excess
34.00
9)
once the inheritance tax has been paid and documents returned from Madrid, you
will be required to change over the deeds at Land registry – their charges are
approximately the same as the Notary’s and beneficiaries are also be liable
for plus valia tax on the increase in the value of the land since the time it
was purchased by the deceased.
10)
Bank accounts can now be transferred or closed
11)
If any vehicles are involved the ownership details must be changed at Trafico
in Santa Cruz
12)
Utilities etc can be changed to the beneficiaries (new owners) of the property
This
is a BASIC check list we would strongly advise that you get information on your
specific circumstances
Double-taxation treaties
Basically if you pay a particular tax in Spain, you get a credit in your
home country for that amount, so that you don't end up paying the same tax
twice, but the treaty between the UK and Spain covers specifically Income
tax, Corporation tax and Capital gains tax, but does not include Inheritance
tax, probably because under Spanish rules the beneficiary receiving
the inheritance (or gift ) whilst the UK taxes the deceased person on the
whole amount of their estate before being allocated to the benificiary(ies).
The two countries' taxpayers are different people, so the tax cannot be directly
deducted in the same way.
The UK Inheritance Taxes Act (1984) contains something called ‘Unilateral
Relief’. This means the UK Taxman will credit the amount paid overseas
against a similar "event" tax owing in the UK. The UK tax credit
is for the actual property being taxed, regardless of who actually had to
pay that tax to Spain.
HM Revenue and Customs say they will accept an application for an inheritance
tax credit in respect of any Spanish inheritance tax paid. BUT that is always
assuming the Spanish property was properly declared in the UK as part of the
"world wide assets" of the deceased and in any case the amount of
credit allowed against the Spanish payment will not be greater than the total
tax bill payable in the the UK in respect of the specific Spanish property
or other assets.
Bank Accounts?
It is relatively easy to set up a Spanish Bank account. You
need a permanent Spanish address, If you are opening a Non residents
account you have to provide proof of your address in the UK and proof that you
pay your taxes in the UK (P60), your Passport and your NIE
number as well as a certificado de Non residente. .An NIE number
is a "Numero identificacion extranjero" and is your Tax Registration ID in Spain.
You need an NIE to do a lot of things including property purchase (this includes
time shares as well as real estate) and car purchase. I can guide you through
this and can also introduce you to one of several English speaking Bank officers
who will open your account for you.
If you are opening a residents bank account and you are not
employed or self employed in Spain then you must have completed a Spanish Tax
authority Modelo 30 census form to formalise your intention to pay your taxes
in Spain..
NIE Number
Application
A
White certificate NIE number is required when you are NON resident, i.e. staying
for less than 3 months at a time, and wish to:
Buy or sell a property, Boat or Vehicle in Spain
Apply to become self employed
Apply for a social security number
Get a Contract of Employment
Apply for a mortgage or any other type of loan. In general,
this identification number will be requested from any financial entity you
want to have dealings with
Open a bank account
Pay your taxes
Inherit assets in Spain
This is NOT to be confused with the certificado de registro
- green certificate for EC citizens - which although still carries a NIE number
is what is required by residents in Spain..
What the NIE Number application involves
Filling out an application form
A tasa (government fee) of 9,47 euros must be paid to obtain a white certificate
NIE number.
The forms to pay this in the bank are available at the National Police Station
information desk and this must be done BEFORE they will let you apply for
the NIE white certificate. Your application is processed and is normally issued
there and then.
Submitting the application with the required documents to the applicable
National Police Station
I will need the following information from you
Full details (name, address, date and place of birth, marital status, passport
number and parents ' christian names)
Passport copy
Reason for application - ie buying house /car - to open bank account etc
etc.
If you are unable to attend the police station with me yourself, you will
have to grant a power of attorney which must be legalised by a notary along
with a certified copy of your passport.
the number is normlly issued in one week and you can either collect this
your self or I will do it for you.
YOU as an overseas visitor
to the UK
You should also remember if you return for visits to the UK you may not automatically be able to obtain health cover there.
Are you visiting the United Kingdom? Have you been living outside the UK for more than 3 months? Did you know that you may have to pay for hospital treatment whilst in the UK? Hospital treatment is free to people who ordinarily live in the United Kingdom . If you do not normally live here then you may be required to pay for any treatment you might need. This is regardless of whether you are a British citizen or have lived or worked in the UK in the past.
Under the current Regulations, anyone who spends more than 3 months living outside the UK is no longer automatically entitled to free NHS hospital treatment in England. This includes people in receipt of UK state retirement pensions.
You should make sure you have applied for a European Health Card from the Spanish authorities before returning to the UK as a visitor - this if free and valid for one year from the date of issue. I can help you to obtain this card if you do not know where to go or do not speak Spanish.
Retirement
Where Can I draw my Pension?
You can be paid a UK State Pension (with an extra amount if you are aged 80
or more), in any other EU country. You will get the same as you would get in
the UK. This will usually be paid straight into your bank or building society
account in the UK or your bank account in Spain or, if you wish, you can choose
to have payment orders sent straight to you by post. Whichever you choose, payment
is made every 4 or 13 weeks in arrears.
The most appropriate means of requesting a State Pension Forecast depends on age. So long as an individual is not within 4 months of State Retirement Age, responsibility for providing State Pension Forecasts to customers living overseas rests with the Inland Revenue.
If a customer is within 4 months of Retirement Age he/she can request their forecast from the International Pension Centre in Newcastle-Upon-Tyne
If pensioner benefits are already in payment to an overseas customer then their entitlement is administered by the International Pension Centre in Newcastle-Upon-Tyne.
In both cases the Social Security Agency will, if approached by a customer
issue the customer with the relevant papers and provide a return address (usually
the IPC in Newcastle).
Ring 044 (0)1912254811 or 0044 (0)1912037010 for enquiries about E205 forms
.
What to do if you are living permanently in Tenerife and are retired or coming
up to retirement age.
If you have worked in Tenerife, you will find it has an effect on the way
you claim your UK pension entitlement when you come to retirement age.
How do I claim my pension?
If you have ever paid National Insurance contributions in the UK, on application,
the International Pensions Centre (IPC), in Newcastle, will send you a claim
form and explanatory letter
about four months before you reach UK State Pension age.
If you are living here when you retire and have worked and paid contributions
in Spain you should not use the UK claim form. You must make your pension claim
through the Centros de Atención e Información de la Seguridad
Social del Instituto Nacional de la Seguridad Social (INSS) here in Tenerife
attaching the UK letter to the Spanish application form. Offices that deal with
pension queries are located in Granadilla and Santa Cruz. They will then pass
details of the UK part of your claim to the IPC.
If you are living here but have never worked or paid contributions in Spain,
you claim your UK State Pension direct from the IPC. That is unless you have
worked in another EEA country since leaving the UK, in which case you should
make your claim through the Social Security institution of the last country
you worked and paid contributions in. When can I get the UK State Pension?
For men born before 6 December 1953, the current State Pension age is 65.
For women born after 5 April 1950 but before 6 December 1953, their State Pension
age is between 60 and 65.
Increase in State Pension age to 66
Under the Pensions Act 2011 women’s State Pension age will increase more
quickly to 65 between April 2016 and November 2018. From December 2018 the State
Pension age for both men and women will start to increase to reach 66 in October
2020.
These changes affect you if you're:
a woman born on or after 6 April 1953
a man born on or after 6 December 1953
The current law already provides for the State Pension age to increase to:
67 between 2034 and 2036
68 between 2044 and 2046
However, the government announced on 29 November 2011 that State Pension
age will now increase to 67 between 2026 and 2028. This change is not yet law
and will require the approval of Parliament. When can I get the Spanish state Pension?
Under current regulations both men and women can apply for their Spanish state
pension no earlier than 3 months before their 65th birthday providing they have
ceased employment. How will my claim be worked out?
Each EEA or agreement country where you have paid insurance contributions towards
a pension will look at your contributions under its own scheme and will work
out how much (if any) pension you can have under its own rules.
Any insurance contributions you have made in another EEA or agreement country
may be taken into account if it will help you to get a state pension, or a higher
state pension. Will I receive a pension from each country?
For example, when calculating your pension, the total number of qualifying
years you have in the UK and Spain will contribute to your entitlement. If you
have worked a combined total of 15 years, the minimum number of qualifying years
for a pension in Spain, which is higher than the UK minimum, you may well be
entitled to a pension from both countries. It is important to note however that
you must have paid contributions for 2 of these years in the 15 years prior
to making your claim; these 2 years can be made in either Spain or the UK.
However, each EEA country adds together your insurance contributions from all
the other EEA countries, they then see how much state pension (if any) you would
get if your insurance contributions had all been paid into that country's own
social security scheme and will award you a pro-rata amount. Remember, in Spain
the pension amount payable is related to the amount of full time equivalent
contributions made. You can apply to the Spanish INSS to be sent a “Vida
Laboral” or work history, which will show how much you have made in contributions
to the Spanish system.
A full entitlement to a minimum payment amount at the time of writing (October
2010)is: Aged 65 with a dependent spouse 725,20 euros: without a dependent spouse
587,80 euros per month.
If you have already retired and are now coming to live permanently in Tenerife:
What medical treatment am I entitled to in Tenerife?
If you are retired, have left the UK and decided to make Tenerife your permanent
home, you should apply to the Overseas Healthcare Team (Newcastle) for an S1
(formerly E121) form. Those who receive a UK state pension can obtain an S1
(or E121) by phoning 0191 218 7777 (Monday to Friday 8am - 8pm).This entitles
you to the same state provided treatment as a Spanish national, including free
prescriptions for pensioners or those with permanent disabilities. However,
you must not forget to process the S1 (formerly E121) form with the Spanish
authorities otherwise it has no validity.
In order to do so, you will need to have previously registered with the immigration
authorities, (Extranjería) and have obtained your green coloured “Certificado
de Registro”. You will also need a Spanish social security number and
to have registered your address in Tenerife with your local “Ayuntamiento”.
Your S1 (formerly E121) can then be processed at the INSS at Granadilla or Santa
Cruz. But be warned, the process could take a couple of weeks, so make sure
you have made health care provision to cover this period.
If you are a married woman who retired at between 60 and 65 and is entitled
to an S1 (formerly E121) from the UK, your spouse will also be entitled to S1
(formerly E121) cover as your dependant, even if he has not yet reached state
retirement age.
Once your S1 (formerly E121) is processed you will receive notification from
the Spanish INSS through the post. You then take the letter to your nearest
National Health GP “Centro de Salud” and register with the doctor.
Your new GP will issue you with a temporary paper “Tarjeta Sanitaria”
which will eventually be replaced with a plastic card from the Spanish authorities.
Once you have switched your main entitlement for health cover to the Spanish
system you must remember to return any European Health Cards issued in the UK,
(what used to be called an E111), to the UK authorities.
Instead you can apply for a new European Health Card (“Tarjeta Sanitaria
Europea”) from the Spanish authorities, intended for stays of up to 3
months at a time, which will cover you for any holiday visits back to the UK
or anywhere else in Europe.
If at any time you decide to return to the UK for good, all these things are
reversible. Inform the Town Hall and the Police you are leaving; and if you
have registered for healthcare, the INSS also need to know.
If you don’t de-register before you leave Spain, you may face delays when
you re-register in the UK
Pension Service Contact Details for overseas customers
The Pension Service International Pension Centre (IPC) deal with queries about
United Kingdom benefits payable to overseas customers.
You can contact the IPC on +44 191 218 7777 or fax +44 191 218 7021.
Opening hours are Monday - Friday, 8am - 8pm UK time.
If you are not retired and are working in Spain either self employed or legally employed you need to pay Social Security contributions. If you are employed the employer pays these, if self-employed there is a standard monthly rate starting at 240 euros a month as at February 2006. If you are working for yourself there are various ways of paying your taxes and you may be able to sign up for the simplified modulo system, I can give you information on this and introduce you to local assessors and accountants
If you own a house in another country, you are most strongly advised to write a Will in that country to cover the property there - In Spain this means visiting notary and having the document drawn up in Spanish.
Trying to administer an estate in Spain without the correct Will is like trying to walk in treacle!
Remember
When thinking about who should receive your assets, it is important that you consider all your possessions, not just individual items in isolation. A foreign Will is as much part of your estate planning as an English Will, and hence you should integrate your English and foreign Wills.
They should be written at the same time, designed to complement each other.
As a UK citizen, you are not obliged to follow normal Spanish succession laws. You should take great care when you draft your Spanish Will.
As in any legal document, make sure you understand the full implications of what you are signing.
In theory, the Spanish law of enforced inheritance applies equally to foreigners with property in Spain, restricting the disposal of this property as it does for Spaniards. This is simply because most countries apply the law of the land where the property is located. However, Article 9 of the Spanish Civil Code provides that when a foreign property owner dies, even if he holds an official residence permit, the disposal of any assets he has in Spain will be governed by his own national law, not Spanish law.
If your own country's law permits free disposal of the estate, this frees you from the Spanish law of compulsory heirs. Both the English and American laws provide for free disposition of assets but Scottish and German laws require some part of the estate going to the children. Whilst this is very good news for the English, it does not unfortunately free them from Spanish inheritance tax.
This freedom to dispose of assets as you wish only applies
if there is a current Spanish or foreign will. To die intestate will result
in Spanish law being applied and assets being distributed among the children.
So far so good but now the situation becomes a little more complex because a
number of countries including Great Britain have laws which say that the disposition
of real property such as land, houses and apartments will be governed by the
laws of the country where the deceased is legally domiciled at the time of his
death.
So on the one hand we have Spanish law saying that English law will apply and on the other hand English law saying that Spanish law will apply because that's where the property is located. In theory an Englishman is subject to the Spanish law which means he can freely dispose of only one third of his assets in Spain.
This is the theory but in practice things are different. Any foreigner can make a Spanish will bequeathing his Spanish property to any person of his choice as long as his own national law is ruled by the principle of free disposition of property by testament. The Spanish Registrar of Wills accepts this. Come the time, the will is executed and the inheritor takes possession of his new property. Spanish lawyers routinely make such wills. In a nutshell, this means that if you are British, you can make a Spanish will leaving your Spanish property to whoever you choose.
However, something to bear in mind is the fact that if you leave your property to your favourite daughter and cut out your black sheep son, it could be that he takes expert advice and contest the will on the grounds that Spanish law stipulates that half of the inheritance is his and win his case. This situation can be avoided by transferring the title deed of the property to your chosen heir while you are still alive. Remember, where there's a will - there's relations!
When making a will remember in Spain you do not need a lawyer
to make your will - you can do this in front of the Notary. This is all right
if your instructions are straight forward and there are no minors involved.
A dual language "Testamento Abierto" will suffice, but carrying out
your instructions is not the same thing as advising you in your best interests,
so if you have any doubts consult a lawyer (Abogado)
If you need any assistance following a bereavement including
funeral arrangements and all paperwork following a death please contact
us for further information
The living will (06-08-2007)
Legislation has been passed in the Canary Isles (Decree 13/2006
dated 8th February - B.O.C. 43, 2.3.2006) regarding living wills (testamento
vital). This law will allow all individuals in the Canary Islands to prepare
a letter which will be given to doctors and hospitals with instructions regarding
their medical treatment and care that they wish to receive in the case of illness
or injury. This document will be especially useful in situations where it is
not possible for you to express your wishes. There is now a registry of living
wills in the Canary Islands. If you decide to write a living will, you can appoint
representatives to carry out your wishes and these instructions will become
an essential guide for your doctors. The procedure is quite simple but it is
always a good idea to consult a lawyer. It is not essential to have a living
will as normally your relatives and doctors make any necessary decisions for
you, but it can be a good idea because of the language barrier and because of
legal and cultural differences which make communication difficult. All foreigners
staying in Spain should at least consider the possibility of making one
Driving
Licences and Car Matters
Residents Driving Licence requirements
UK Driving Licences and Spanish Law
Although the title of this piece is UK Driving Licences and Spanish Law, contrary
to popular belief there is no SPANISH requirement to obligate a valid UK plastic
European style driving licence holder to do anything to enable them to drive
on Spanish roads, either as a resident or visitor. (resident holders of paper
licences must at the very least inscript them)
What is true is that if you live in Tenerife or indeed any where else other
than the UK it is the DVLA’s regulations and Britain’s laws that
you will be breaking!
UK driving licence renewal forms now require the applicant to sign a declaration
that they do not live outside the UK and in the motoring section of the official
UK government web site it states:
Remember, if you permanently move to another country, you can’t register
your new address on your British driving licence. You’ll need to contact
the driving licence authority in your country of residence. http://www.direct.gov.uk
If you are living in Tenerife for longer than 6 months you would be advised
to
Either
to Inscript your UK licence ie advise the Spanish driving authorities of your
permanent address here in Tenerife. After they have checked with the DVLA in
the UK (about 6 weeks delay currently - Sep 2011) to make sure you
don't have points or a ban, then they give you a printed piece of A5 paper which
you then keep with your UK licence. OR
you exchange (canje) your UK licence for a Spanish one you still have the wait
for DVLA to confirm your driving status and then you hand in your UK licence
for a temporary Spanish one. You then receive your new plastic licence through
the post direct to your home.
You ARE required to follow medical examination rules (see
below) after you have been in Spain permanently for 6 months, but you do not
HAVE to inscript or canje (exchange) for a Spanish one unless you wish
to, or unless you have lost your UK one or it has been stolen or the picture
component of the UK licence has expired and you are unable to get a replacement
in the UK because you no longer have any ties there.
Driving fitness medical examinations
Whether you have not done anything with your UK licence or you have inscripted
your UK driving licence or are now the holder of a Spanish one, whilst you remain
resident in Spain you are subject to Spanish regulations regarding driving
fitness medical examinations which have to be taken at various intervals
dependant on age. Since 2006 these fall in line with European Regulations. Spanish
licences will be renewed, whilst holders of UK and inscripted licences will
only be required to take the medical test. From 2015 new regulations will come
into force (see above)
Driving license classes; BTP, C1, C1 + E, C, C + E, D1, D1 + E, D and D + E
have a validity of five years until their renewal falls due at age between age
sixty-five years and three years after that age. All remaining classes of driver's
license have a validity of ten years until their renewal falls due at age between
age sixty-five years and five years after that age.
The duration of the various classes of driver's license indicated in the preceding
paragraphs may be reduced if, at the time of renewal it is found that the owner
suffers from any permanent illness or deficiency which in the opinion of the
official medical testing physician would affect their driving capibility.
The term of a driver's license will also be conditional on the holder not having
completely lost their initial allocation of points.
Car matters: Buying a second hand car,
ITV's (The equivalent of an MOT) and other topics to do with motoring
Purchasing a second hand car in Tenerife can be confusing if you are not used
to the process. The main issue is that until the "pèrmiso de circulación"
document is transfered into the new owners name they do not really "own"
the car. By law you have 15 days to advise Trafico of the change of ownership.
If you are purchasing from a private individual it is also advisable to get
a check done on the vehicle to make sure it is not the subject of a finance
agreement or is being held as collatoral against outstanding fines or debts.
In any of these cases the car can not/ should not be transferred into the new
owners name even though it may be in their possession as they possibly are unable
to trace the previous owner.
The following documentation is essential:
Seller
Since October 2010 in Tenerife the registered address of the owner of the vehicle
no longer appears on the "Permiso de Circulación" document,
it is therefore advisable to make sure for vehicles registered after that date
that the vendor provides you with proof of his actual address for use in completing
the Compra Venta and transfer documents. Alternatively request a vehicle check
from Trafico before buying to double check ownership of second hand vehicles.
Copies of:
NIF
Or if non Spanish: White NIE in date plus Passport OR certificado de registro
plus passport
Original Ficha Technica (car log Book) SHOULD have a current ITV stamp with
at least 1 month’s life left. (otherwise you will not get a new Permiso
de Cirulación until it passes the ITV)
Original Permiso de Circulación matching the name of the documents above
Original paid receipt of current rodaje (road tax) (helpful but not essential)
Details of Current Address
Buyer
ORIGINALS of:
NIF
Or if non Spanish: White NIE in date plus Passport OR certificado de registro
plus passport.
If the address on your documentation is not your actual address then a CURRENT
certificate of empadronamiento.
Both parties must sign a Compraventa (Bill of Sale) DO NOT enter a price –
we will telephone to get the official book price confirmed.
Both parties sign the application to transfer and sign the authority documents
to act on buyer and seller’s behalf
Modelo 620, Be ready to pay the transfer tax of 5.5 % of the book value of
the car which is submitted to the Administración Tributaria Canaria,
plus 52, euros for Trafico fees, plus The One Stop Problem Shop or other gestor's
fees
What happens if my car documents are lost or stolen?
Firstly report the loss or theft by denuncia (formal statement) to your local
Police or Guardia if easier.
The obtain a certificado de antecedentes from Trafico (this shows the
history of ownership of the vehicle etc), take that with the vehicle to your
nearest ITV testing station and request a duplicado de la ficha tecnica
(log book) (also have the vehicle ITV'd if it is not already done or is about
to run out) be warned the new ficha tecnica can take weeks to come back! - however
if you have got the Police Denuncia and the vehicle has passed ITV then you
are fine to drive while sorting everything out.
Once the new ficha tecnica arrives (and the ITV sticker for your windscreen
if you had to do the test at the same time) then its back up to Trafico to obtain
a new Permiso de circulación.
Replacing Car Documents is a costly and time-consuming process so whilst you
are obliged to have all original documents in the car with you when you are
driving, some people prefer to take them with them when they leave the vehicle
anattended. At the very least you should have photocopies kept in a different
place to the originals as this will help when making your report to the Police.
Contact us at help@diana-mcglone.com
or telephone 0034 922867478 or 0034 647 057 599 if you need help with any car
or driving document ralated matters
Whats this I've heard about crime?
The UK press occasionally reports a very untypical incident. People in glass
houses shouldnt throw stones! Fact is that crime is only 17% of UK levels. You
can walk the streets in Spain without meeting mindless thugs. You decide where
you're safest! But in the unfortunate event of you suffering a break-in or having
possessions stolen, I can take you through the procedures to make a claim on
your insurance company, stop any stolen credit cards and translate at the Police
station for you to make a denuncia (official complaint)
Consumer complaints - what
to do if it all turns sour!
Whilst there are a great many honest and reliable businesses providing quality
merchandise and services in Tenerife, we have all heard tales of woe regarding
purchases of cameras, electrical goods, bad service etc.
Common sense tells us if it sounds too good to be true it probably is! However
the following rights apply everywhere in the EU including Tenerife:
• If the item you bought does not look or function as it was advertised,
or if it is not satisfactory, you have the right to have the item replaced at
no extra cost or to get your money back if the replacement was not completed
in a reasonable time.
• If you buy goods that turn out to be faulty, manufacturers must compensate
you for any personal injury or damage caused to property.
• When you buy goods or services by post, telephone, fax or through the
Internet from a professional trader, you have the same rights in relation to
guarantees as if you had bought them in a shop.
But the question is what can you do about it if you
think you have a claim?
If you are still on the island your first point of call should be to the trader
themselves to try and resolve the matter amicably – if this doesn’t
work you should ask for a complaint sheet “Hoja de Reclamaciones”
There is a legal requirement for all establishments to have these available
and they are not allowed to make you go to another branch or office to get one.
They are carbonised forms made up of a white copy (for the authorities), a pink
copy (for the establishment) and a green copy (for the person making the complaint).
The establishment must fill in their identification details. If “Hojas
de Reclamaciones” are not available, are not fully completed by the trader
or are refused, customers can then present a complaint to the authorities, and
should include in their complaint the fact that an “Hoja de Reclamaciones”
was not available etc. This is best done in Spanish if you possibly can.
Customers should state their name, address, and ID number or passport number,
and fill in all relevant boxes on the form, stating clearly the reasons for
their complaint, and the date on which the complaint is made.
Once the form is completed, it should be signed by the establishment, which
can also add any comments it considers appropriate. You should then retain the
green copy for your records, hand over the pink copy to the establishment to
keep, and send the original white copy to the local Consumer Authorities (see
contact information below) within one month, together with any appropriate proof
or documents, especially receipts if the complaint concerns prices, which should
be attached to the form (remember to keep photocopies for yourself).
The Local Consumer Authority should acknowledge receipt of the “Hoja de
Reclamaciones” within 15 working days of receipt. They will then notify
the establishment about the complaint, and allow them 10 working days to reply.
Proceedings will be initiated, if and as appropriate, and the Consumer Authority
will advise the plaintiff of its decision.
Completing this form does not prejudice your rights to also make a complaint
in person to the appropriate consumer authorities and if you need to do that
or you were not given an “Hoja de Reclamaciones” by the trader you
should look for an “Oficina Municipal de Información al Consumidor”
(OMIC) In the south and west coast these are located at:
You can also
make use of the European Consumer Centres Network (ECC-Net) of unattended computer
terminals, or “Virtual Offices”, which are placed in strategic locations
with heavy tourist traffic.
The terminals have touch screens so that users can access information on the
services provided by the European Consumer Centre in Spain through its website.
You can also fill in a complaint form on line and send it to the ECC in Spain,
whose consumer advisers will process the forms and contact the customer direct.
In Tenerife these are located at the Los Cristianos Cultural centre in the Plaza
del Pescador and the Troya Tourist Office in Calle Rafael Puig Lluvina, Playa
de las Américas.
But what to do if you have returned to the UK before
you find out your purchase is faulty?
The Spanish European Consumer Centre (CEC) is a public service organisation
for consumers who require information or assistance in connection with the acquisition
of goods or the use of services in a country other than their own and you can
deal with them in English.
They are part of the European wide ECC-Net, of organisations and institutions
which operate in a similar way, have similar powers and objectives, and are
located in each of the Member States of the European Union.
The European Consumer Centre can help you if you are a citizen of a Community
state who purchases goods or uses services in any part of Spanish territory
and you can submit your enquiry via their website here: http://cec.consumo-inc.es/cec/Secciones/Contacta/Contacta_en.asp
Most honest traders do cooperate with the various national and European consumer
associations but although in some cases these may instigate sanctions against
a trader if they are in breach of current regulations, that does not necessarily
mean that the consumer will be recompensed.
You may ultimately decide to go to the arbitration courts. If you are in Spain
you should do that through the OMICs there is a standard form here: http://www.consumo-inc.es/Arbitraje/solArbitraje.htm
or through the CEC if you are outside Spain, both can contact suppliers and
mediate between them and customers, until a satisfactory solution has been reached,
or if this is not possible, they will assist and advise you with regard to any
alternative means of resolution prior to the commencement of legal proceedings,
which in Tenerife can be a lengthy and possibly expensive procedure.
Mindful of the differences in member state legal systems on the 11 July 2007,
the European Parliament adopted a regulation establishing a European Small Claims
Procedure intended to simplify and speed up litigation concerning small claims
in cross-border cases, and to reduce costs. It applies to civil and commercial
matters where the value of a claim does not exceed 2,000euros. The procedure
came into effect from the 1 January 2009. More information can be found on this
website: http://ec.europa.eu/justice_home/judicialatlascivil/html/sc_information_en.htm
However litigation should never be a “do-it-yourself” affair and
should always be thought of as a last result if all else fails.
Remember, if you do not speak Spanish, and need to deal with a shop or tradesperson
regarding a query or complaint The One Stop Problem Shop can assist you with
the initial contact so that there are no language difficulties to exacerbate
a possibly already inflamed situation!
Call us on 922 86 74 78 or email help@diana-mcglone.com
What about complaints against Financial Institutions
You should always approach the complaints department of your own bank first
but if you are not satisfied then your next option is the complaints department
of the Bank of Spain see here http://www.bde.es/webbde/es/seccione...a/reclama.html
They take up the claim on the behalf of the client.
Britsh Consulate and Renewing your British
Passport
Consular help
Out-of-hours emergency assistance
British nationals who need emergency assistance outside normal office hours
should call +34 902 109 356 where they will be given details on how to proceed
and how to contact a duty officer if needed.
General enquiries
Consulates deal with a large number of urgent cases each year. Before contacting
a Consulate with non-urgent enquiries, please read our detailed guide for British
nationals living in Spain to see if the information you need is there. If you
still cannot find the information you need, you can call on the following numbers:
Telephone: 902 109 356 (if calling from within Spain)
Apply in person at your nearest British embassy, high commission
or consulate.
You must bring with you:
2 identical recent photographs of yourself - make sure they meet the rules
for passport photos or your application will be delayed
details of your intended travel plans - where and when you intend to travel
(including countries you will travel through)
a completed application
form
a police report if your passport has been lost or stolen
To enquire about an Emergency Travel Document appointment, please contact the
consulate either by phone on 902 109 354
Please make sure you include your contact details, specifically a contact telephone
number, so they can get back to you as soon as possible.
They accept payment by Visa/Visa Electron & Mastercard. This is our preferred
method of payment. They can also take credit cards remotely (a friend or relative
with a card in UK). If you pay by cash (Euros only) they would expect you to
produce the exact amount.
The consulate advises where possible try ringing 922 286863 to discuss the
nature of the problem.
But for lost or stolen passports, the first step is a special police line on
902 102112, which will be answered in English.
It is possible to travel abroad using a police report of passport loss but the
consulate warns that there can be no guarantee because it is subject individual
airlines’ policies.
Renewing a British passport takes at least 4 weeks.
Passport fees in Spain are:
Adult standard 32-page passport 155 Euros including courier fee 179 Euros
Adult jumbo 48-page passport 187 Euros including courier fee 211 Euros
You must pay using a Visa or Mastercard. Please print a credit card authorisation
slip and fill in your card details. Please do not send your actual credit card.
You should ensure you have sufficient funds available to pay using your debit/credit
card or your application may be returned.
Passport fees are non-refundable. The fee is charged for administering an application
rather than issuing a passport
More than 20 years living
and working on the island, I am not a qualified solicitor nor do I pretend to
be one!, but I can help you with any day to day transactions with public bodies,
including the Hacienda (tax office) the Police or Guardia Civil, Trafico, Extranjeria,
Utility companies, the local councils and registering at the doctors for a sensible
fee please email for a current scale
of charges, and more importantly I know where to obtain trusted, professional
advice and can translate for you, should that become necessary. -- Di
McGlone
The One
Stop Problem Shop
Don't like
signing things you don't understand?
Don't have
the right paperwork?
Don't speak Spanish?
Don't know where to turn?
Don't worry! Let us take care of your problems.
Driving licence, NIE, Certificate of Residence, Car and Boat transfers, Certificate
of empadronamiento, Non Residents Tax Returns, Medical visits or any other problems
you may have. We take care of you every step of the way.
Phone Diana McGlone on: (0034) 922867478 or Mobile: (0034) 647057599 or email
help@diana-mcglone.com
West
Tenerife
(Main Office)
South
Tenerife, Puerto de la Cruz and Santa Cruz (by appointment)
Church of the Holy Spirit (Espirito Santo) Village Square - Los Gigantes
Part of: Tenerife Sur (Tenerife South)
HCb 1800; HCb 1030 (Thursdays)
Father Keith Gordon, Anglican priest for
TENERIFE SUR (TENERIFE SOUTH):
St Eugenio
WEB SITE: www.tenerifechurch.com
Priest-in-Charge: The Reverend Keith Gordon
Reidencial Sonia #17
Calle El Mojon
Callao Salvaje
38678 Adeje
Tenerife
email: kagordon40@hotmail.com
REINA SOFIA AIRPORT
Reina Sofia Airport - Tenerife South,
38610 Granadilla de Abona,
Tenerife,
Spain
Location: The airport is located in the south of the island, 60km (37.5 miles) from the capital, Santa Cruz de Tenerife, in the north
The format of the European Citizens Certificate of Residence in Spain has
changed again with effect from (in Tenerife) 29 November 2011.
As
from Monday (2 April 2007) new Certificado de Registro applications processed
at the National Police Stationwill be issued with a paper certificate which
look like the one below right between 2007 and November 2011, Application
subsequent to November 2011 will be in the smaller format below left - both
types are valid. The old style plastic residencia card carrying a picture
will be completely phased out by early 2012.
Application forms are available at the information desk. There is a processing
fee, which has to be paid in the bank and forms for that are again available
at the Police Station. Although the new certificates do not reproduce your
photograph, you still have to provide one at some police stations for them
to keep with your records. 
letter
about four months before you reach UK State Pension age.
You can also
make use of the European Consumer Centres Network (ECC-Net) of unattended computer
terminals, or “Virtual Offices”, which are placed in strategic locations
with heavy tourist traffic. 
