School Registration
INHERITANCE & Local Taxes

EARLY RETIREES

Changed rules from July 1 2014
From July 1 2014 you will no longer be able to apply for a residual S1 (formerly residual E106) under which you could currently be entitled to up to 30 months of UK-funded healthcare if you retire early to another EEA country.

If you are moving abroad on a permanent basis, you will no longer be entitled to medical treatment in the UK under normal NHS rules. This is because the NHS is a residence-based healthcare system. Most people will also not be entitled to use a UK-issued EHIC card to access healthcare abroad.

What if I already have a residual S1?
If you already have a residual S1 this will not affect you – it will continue to be valid until its original expiry date.

What about state pensioners?
If you are a UK state pensioner this will not affect you – S1 forms will still be issued to state pensioners.

Where can I get advice?
For further advice, contact the Overseas Healthcare Team (DWP):
Overseas Healthcare Team
Room MO601, Durham House
Washington
Tyne & Wear
NE38 7SF
Phone 0191 218 1999 (Monday to Friday 8am–5pm).

Recreational Fishing Permits

These can be applied for via the local town hall but they take quite a few days, so you may not get it before your holiday ends!.. if you go to Santa Cruz (weekdays before 1pm) the licence will be issued on the spot. Appliation form here . Form to pay the fee here, address of the office: Avda. de Anaga, 35, Edf. Usos Múltiples I, 11ª planta 38001, Santa Cruz de Tenerife - Tfno. 922.47.50.00 - Fax 922.24.68.43

 

Google
 

New PIN 24 hours

28 Nov 2013. The main use of ‘ PIN 24 hours‘ will be for presenting Spanish Tax Office informative returns that CAN ONLY be presented via the internet, previously by use of a digital certificate or via an accountant.

The new scheme will apply for 2013 returns to present in January 2014, including the annual summaries of withholding tax and the modelo 720 statement of assets and rights abroad.

The system is simple, since it is not necessary to remember a password permanently, a new ‘PIN’ code is used for each day in which the user wants to complete transactions with the Agencia Tributaria electronically.

How it works.
The system requires two steps, an initial visit to identify and authenticate the user and then once registered in the system, the user can then access the Electronic Office of AEAT (www.agenciatributaria.es ) and request a ‘ PIN 24 hours‘ the pin code is then sent to the user’s mobile and can be used to submit returns etc for 24 hours.

There is already a similar system in place with the Social Security Authorities for obtaining Vida Laboral information.

Debt Check on Second Hand Vehicle On Line

If you have a digital certificate installed on your computer you can now obtain a report from Trafico, on a second hand vehicle that you are considering buying on-line. click here

On-line mailbox for reporting work related fraud anonymously

The department of Employment have created an online mailbox for reporting work related fraud anonymously.
Previously, illegal workers were nervous of reporting an irregularity because they had to give their details, even though the information was know to the work inspectors, but was never communicated to the employer.

Now the process is totally anonymous.

The move is clearly aimed at detecting those companies that hire under the table workers, or issue part time contracts and then force their workers to work eight hours or more , and also those people who are collecting unemployment benefits and working on the black .

There is a danger of baseless allegations fueled by quarrels between neighbors, competitors or by disgruntled employees, but on balance the authorities feel this measure should highlight firms that try to obtain cheap labor in exploitative work conditions. To access the complaint form see here:

http://www.empleo.gob.es/buzonfraude/

IGIC: Some Help For Small Traders
June 11, 2013

The Minister of Economy, Finance and Security of the Canary Islands, Javier González Ortiz, has confirmed that the self-employed and small and medium sized businesses (SMEs) will not have to ante up the IGIC (like VAT) to be collected for the tax man until their invoices have actually been paid.

Up to now the tax was payable in the quarter a business person raised their invoice, regardless of whether it had been paid or not.

In the case of IVA (VAT), applicable to mainland Spain, the matter has already been included in the Draft Law on Entrepreneurs.

Gonzalez Ortiz said that the IGIC measure will come into force in the Canary Islands at the same time as the new state regulation; during 2014.

The Minister warned, however, that although this will be a positive move for the self employed and SMEs, “it will have an initial impact on public funds and that needs to be addressed as it could affect all important deficit calculation”, as according to the Minister, this fact has not been taken into account by the State Government.

Alotca – First Illegal Tourist Lettings Appeals Reach Court - 20 May 2013

Property owners who have fallen foul of touristic property letting laws in Tenerife may now see previously imposed fines of 18,000 euros reduced to around 5,000 euros thanks to local pressure group Alotca.

Alotca is an association formed to lobby the Government in connection with tourism legislation, and to help those affected by it. The initials stand for Asociación de afectados por la ley de ordenación de turismo de Canarias (Association of those affected by the Canarian tourism regulation law). The association lobbies to create an atmosphere in which the fines as imposed are seen as monstrous which it is hoped will affect both Government policy and legal judgements when fines come to Court. 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.

300 million in loans for SMEs
González Ortiz, also announced a scheme in combination with various financial institutions to make available around 300 million euros in loans to entrepreneurs and small and medium enterprises in the Islands.

Ortiz said access to credit is the main difficulty in initiating new projects, “so that this government is focusing its efforts on overcoming this handicap.”

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.>>

http://www.boe.es/boe/dias/2009/06/08/pdfs/BOE-A-2009-9481.pdf

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 exchange (canje) your UK plastic licence provided your driving entitlement is still in force (ie up until age 70) But for UK licence holders whose licences are not renewed periodically, they will be required to renew the licence after a period of two years from the date of registration as a Spanish Resident has passed and at regular intervals thereafter. In this instance "renew" means to prove your medical fitness to drive.

2) If you arealready resident here then you should 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.

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 -

Worry about the looming change in regulations,

plus the convenience of having Spanish photo ID

BUT CURRENTLY IT IS NOT OBLIGATORY (when the 2015 deadline for the new European regs http://eur-lex.europa.eu/LexUriServ/...6L0126:EN:HTML approaches the system for enforcing it will be put in place by that time)

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!)

For other Driving Licence and Vehicle information see also: http://www.diana-mcglone.com/#Spanishdrivinglicence

_________________________

 

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 (Pre-contrato) to obtain a social security number.

Self employed as always must provide their Hacienda documentation.

EU Pensioners must provide their S1 health entitlement documentation

Currently (Aug 2013) in the South of Tenerife none of these services are avaible without first making an appointment with the correct social security office.

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 these documents show an expiry date and you will be treated as a new applicant (see above).

After very specific questioning officers in the Tenerife Southern Police station were telling applicants in April and May of this year (2013) that their certificate of residence wouldl need to be renewed 5 years from the issue date CONTRARY to what was told to applicants at the time of issue and CONTRARY to information provided to the English press in Tenerife by the central authorities in Madrid, in a letter which states there is no obligation to renew at all as the green documents do not have an expiry date.

In an about turn, those same officers are now (29 May 2013) saying there IS NO obligation to renew the European citizen certificate of residence "hasta nuevo aviso" - "until further notice".

For those that have A4 sized green paper certificates they may wish to change to the most recent style, wallet sized green lightweight card-board residence certificate, the date of issue is in words at the bottom of both documents, just above the signature (use Google translate if you don't know your Spanish numbers).

My personal opinion is while it has now been confirmed there may be no obligation to renew, it may well be very 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 an existing European citizen 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 A4 certificate and will be issued a credit card sized certificate, also green, printed on lightweight card.

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 paperwork, 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)

31 March 2014 is the deadline for presenting modelo 720 for the year 2013.

Those who are newly arrived and fiscally resident in Spain for 2013 must present, but are taxpayers who presented the modelo 720 expected to submit in 2014 and indeed insuccessive years?

The law states that even if you have presented modelo 720 before, you must resubmit again in the following cases :

When any assets and rights that the taxpayer holds exceeding € 50,000 per category were never declared previously either in error or omission.

When there has been an increase in on items already declared of € 20,000 euros or more (on each category)

Generally speaking, in the case of sale or loss of ownership or devaluation of the property ( stocks, shares ) held in previous years, and for each category of asset. In some cases it may be necessary to report account balances with negative values.

Example: 2012: For the same person: Current account 1 in the UK balance at 31/12/2012 49,000 euros, current account 2 in the UK 18,000.

Shares in ABC company valued at 25,0000 euros as at 31/12/2012

Total declared for current acounts as at 31/12/2012 67,000 euros Total declared for shares as at 31/12/2012 zero (under 50,000)

2013: Current account 1 in the UK balance at 31/12/2013 47,000, current account 2 in the UK 42,000 (shares sold and money put in current account).

A declaration must be made for 2013 and presented by 31/3/2014

Total declared for current acounts as at 31/12/2013 89,000 euros (more than 20,000 euros different) Total declared for shares as at 31/12/2012 zero

Failure to present or late presentation of modelo 720 when eligible to do so, filing incomplete or false data is considered a very serious tax offense.

In the case of failing to report an asset or set of assets is punishable by a minimum fine of € 10,000.

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.

 

Full List of Bank Holidays in The Canaries

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

FULL LIST OF BANK HOLIDAYS HERE

 

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;

raised from 19 to 21%

Retention payable on rental of business premises from 19% to 21%

source:http://www.agenciatributaria.es/static_files/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Le_Interesa/real_decreto_ley_20_2011.pdf

 

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.

fhttp://www.dgt.es/was6/portal/contenidos/documentos/prensa_campanas/notas_prensa/notaprensa140.pdf

New Legislation 6/8/2010: Self Employed Can Now Apply For Unemployment Benefits

Sources: https://www.redtrabaja.es/es/redtrabaja/contenidos/introNoticias.do?pagina=/ampliar/cese_autonomos.html
http://www.boe.es/boe/dias/2010/08/06/pdfs/BOE-A-2010-12616.pdf

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

Every year the Spanish tax man doles out billions of euros in tax rebates. Averages rebates work out at around 780 euros each, for low to medium income tax payers.

They can do this because they have already had 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, (usually around 80 per cent of taxpayers), get a rebate.

The campaign to present and collate personal income tax returns, begins in at the end of April and concludes at the end of June. More here

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 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.

More information here http://www.direct.gov.uk/en/TravelAndTransport/TravellingAbroad/BeforeYouTravel/DG_4019496

 

 

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%

The link is here https://apls.dgt.es/WEB_Sanciones/jsp/sincertificado/identificacionPagador.jsf and you must have the paperwork for the fine to hand with the reference number.

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)

2014 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 10.50 €

Número de Identidad de Extranjero (NIE) 9.36€

Driving licence renewal 23,20€ plus medical testing centre fees as applicable

European driving licence inscription 8,10€

Exchange European Driving licence 27,40€

Substitution of an in-date European Driving Licence for reason of theft, loss or damage 31,10€

Change of Ownership of car 52,80€

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.

 

Residents and Fiscal Residency

Moving to Tenerife : Fiscal Residence and Keeping things straight

Getting a residencia certificate (a green wallet sized piece of paper) with your NIE printed on it is often confused with being fiscally resident.

Theoretically you could be staying for longer that 90 days in a Spanish tax year - and so required to comply with immigration regulations and get a residencia certificate - but then you could revoke the certificate after 170 days and go to another country outside of Spain. In that example you would not be fiscally resident in Spain.

Realistically if you have cut ties with the UK and only return infrequently (see UK statutory residence test rules) http://www.hmrc.gov.uk/international/personal.htm then you will most likely be both resident for immigration purposes and also fiscally resident.

The following is a new arrival check list - this is VERY simplified basic aid and you should check on your own individual circumstances.

• Purchase or rental of permanent home in Spain – in order to do this you will need an NIE number, initially you obtain this on a NON Residents A4 white certificate (see NIE info) you will most likely also have a non residents bank account in Spain at this stage.
• Register on the local authority (Ayuntamiento) census list “Padron”
• Obtain your Residencia certificate complying with health care and income regs.
• Advise the Spanish Tax office that you will be liable to pay income tax in Spain (modelo 30) – The Spanish tax year is from January to December, so you may not necessarily do this in the first year you arrive: eg Mr Smith arrives in Tenerife and purchases a property on the 1st November, as he intends to stay for longer than 90 days he applies for a residencia certificate but as there are only 61 days left in the tax year of his arrival, he does not advise the Spanish Tax office of his obligation until the 2nd Jan of the next year.
• Advise all pension and income providers including the UK tax authorities of your new fiscal status and address.
• Advise your Spanish bank and obtain a Residents Bank Account
• You may well still be paying tax in the UK at this point until you can provide them with a certificate of fiscal residence in Spain.
• If you are employed or self employed you will be making Spanish tax contributions and can obtain your certificate of fiscal residence in Spain straight away.
• If your income is derived from Pensions or private means you will have to make a “Declaración de la Renta” – a Spanish individual’s tax return before the Spanish authorities will confirm you fiscal status. This is done between the end of April and the end of June of the year following the tax year in question. Eg: In our example above let’s say Mr Smith arrived in November 2012, his first full tax year in Spain is Jan to Dec 2013 his first Declaración de la Renta will be in 2014.
• Once you have your certificate of fiscal residence in Spain you can use form “Spain individual” to reclaim tax paid to the UK under the double impositions agreement.
• Exceptions to this are “functionary’s pensions (teachers, civil servants etc.) - these are taxed in the country of origin (please note this is changing from 2015) and income from rents of property located in the UK – you can apply for inclusion in the Non Resident Landlords (NRL) Scheme - http://www.hmrc.gov.uk/international/nr-landlords.htm
• In simplified terms from the moment you are classified as fiscally resident in Spain your world wide income is taxable in Spain.

More Updates Here

Can I get Health Care?

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.

Prescriptions are NOT free for Pensioners a small percentage contribution is payable for each item of medication http://www.nhs.uk/NHSEngland/Healthcareabroad/movingabroad/Pages/Livingabroad.aspx

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).

MORE INFORMATION ABOUT HOW TO APPLY CAN BE FOUND HERE

What type of "residencia" residence document should I have?

This information correct as at Jan 2014

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 9,36 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 10,50 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

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 10,50 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

A full list of the OMIC offices in the island is available here: http://www.consumo-inc.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

 

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?

There is some good info here http://www.direct.gov.uk/en/BritonsLivingAbroad/index.htm

and for income tax info here: HM Revenue & Customs: http://www.hmrc.gov.uk/international/index.htm

http://www.hmrc.gov.uk/pensioners/paying-abroad.htm

See also http://ukinspain.fco.gov.uk/en/help-for-british-nationals/

http://ukinspain.fco.gov.uk/en/help-for-british-nationals/living-in-spain/

Buying a Business in Tenerife

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:

Spanish Inland Revenue (HACIENDA ESTADO)
· Declaración Censal de alta. Modelo 037 (*) Sign up as a self employed person
· Emisión etiquetas identificativas (Sticky bar code labels)

Canarian Government (GOBIERNO DE CANARIAS)
· Alta en el Impuesto General Indirecto Canario (IGIC). Modelo 400 (Register for IGIC 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. (Register as self employed person)
· Inscripción de la empresa en la Seguridad Social. Mod. TA-6. Sólo para el caso que se contrate trabajadores. (only if you are employing others)
· Alta del trabajador en el Régimen de la Seguridad Social. Mod.TA-2 (sign up an employee(s))

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. (You must know the Sqm of the premises)

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 residence certificate if you already have one)
IBAN of 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.

From the 1 Jan 2013 there are no exemptions for small traders - all will be required to charge the sales tax. For service based activities the amount is 7%. HOWEVER retailers (Minoristas) operate under a different scheme. Also there is no IGIC payable on IT services provided outside of the Canary Islands, but in Europe, provided the supply of information is made electronically.

Modelo 420 must be presented and paid quarterly (or modelo 421 simplified version)

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?

The simplest indicator of your fiscal residency status is length of stay in the country in any one tax year. Spain's tax year runs January to December not April to April like the UK. so as a rule of thumb if you spend more that 183 days in a calendar year in Spain then you are fiscally resident in Spain.

Taxation is a complicated subject (as it is in any country) but if you are fiscally resident here then basically you have tax free personal allowances to deduct from your tax liabilty which is calculated once a year between April and June for the previous year. This is called the Declaracion de la Renta and income after allowances is currently (2013) taxed at 24.75%

However 21% is deducted at source from dividends or savings interest by the banking institutions, OR if you are self employed you will have been paying 20% on your profit quartlerly, OR if you are an employed person some tax is deducted at source. The amounts depend on your personal circumstances. These deductions are then put in the mix of your self assessment anual tax return as a pre-payment. Often for lower to medium income earners or pensioners they in fact receive a rebate from the Spanish government because of over payment.

In my experience unless you are very rich there is very little difference in what you pay between the two countries. Plus resident home owners do not have to shell out the non-residents deemed income tax on their primary property.

However none of this is a matter of choice , you vote with you feet so to speak - have a look at the Spanish Tax Authority web site (in English) http://www.agenciatributaria.es/ and also the UK Revenue and Customs site which covers a lot of info on Dual Taxation agreements and what the two countries consider your liabilties to be.

What is true is that in the first "cross-over" fiscal resident year in Spain the UK will deduct tax at source if applicable and then you have to pay Spain as well in your self assessment declaration BUT the UK then refund the dual payment under double impositions rules.

The sequence of events for new arrivals is:
Obtain your Certificate of Residencia (immigration obligation after 90 day continuous stay)
Present Modelo 030 to the Spanish Tax authorities after 183 days or earlier if declaring your inention to be fiscally resident in any one Spanish Tax year
Present self assessment Declaracion de la Renta in Apr- June of the year following the Spanish tax year (January to December) in question ... possibilty of double tax paid.
Obtain form P85 - "Spain individual" from the UK tax authority - this is a dual language form which is then authenticated by your nearest Spanish tax office and then the English copy is sent to the UK tax office to claim any rebate.
The Uk re-assesses your liability and if appropriate stops deducting tax at source there and gives you a rebate.

PLEASE NOTE this is VERY simplified and is intended just to give you a flavour of the system here. There are execptions of course one of which is for people who obtain any kind of civil service pension from the UK in this instance the rules are different, and of course we have not touched on Capital Gains tax.

PLEASE GET SPECIFIC ADVICE ON YOUR INDIVIDUAL SITUATION

For businesses Non resident taxation in Spain varies considerably according to whether the taxpayer has a permanent establishment in Spain or not.

Definition of permanent establishment:

An individual or organisation operates through a permanent establishment which they have in Spain:

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 either resident 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 for NIEs. 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)

As a rule of thumb you are not obliged to submit a Declaración de la Renta if your income is derived from a regular salary or pension FROM ONE SOURCE ORIGINATING IN SPANISH TERROTORY of up to 22,000 euros per anum for an individual contributor, you may however wish to do so in order to claim allowances on mortgage payments, pension plans etc or to prove fiscal residence (also see below)

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 payer of the income is not required to withhold Spanish Income Tax (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 at the end of April when the self asssesment campaign begins.

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 or the same income tax in Spain as 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 authorities 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.

When the building being transferred is jointly owned by a married couple where both partners are non-resident, exceptionally it will be possible to file a single tax return.

Time period: three months from the end of the period that the person acquiring the building has to deposit the withholding (this time period, in turn, is one month from the date of the sale)

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.

 

Earnings derived from Real Estate

Deemed rental income tax ( Rendimientos del capital inmobiliario )

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.

More for Non residents here

PLUSVALÍA

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 translated and 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) Collate  information 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 &LT  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:

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

I will need the following information from 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.

http://www.dh.gov.uk/en/Healthcare/Entitlementsandcharges/OverseasVisitors/Browsable/DH_074386

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 claim your basic State Pension abroad and you can be paid a UK State Pension 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. Whichever you choose, payment is made every 4 or 13 weeks in arrears.

You should be sent a claim form 4 months before you reach your State Pension age.

Contact the International Pension Centre (IPC) if you haven’t received a letter 3 months before you reach State Pension age.
International Pension Centre
tvp.internationalqueries@thepensionservice.gsi.gov.uk
Telephone: +44 (0)191 218 7777
Textphone: +44 (0)191 218 7280
Monday to Friday, 8am to 6pm
Find out about call charges

The Pension Service 11
Mail Handling Site A
Wolverhampton
WV98 1LW
United Kingdom

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?
You should be sent a EC rules claim form 4 months before you reach your State Pension age. Contact the International Pension Centre (IPC) if you haven't received a letter 3 months before you reach State Pension age. You can do this by email or phone, or fill in the international claim form.

If you are living here when you retire and have worked and paid contributions in Spain you should also make a 2nd pension claim through the Centros de Atención e Información de la Seguridad Social (CAISS) del Instituto Nacional de la Seguridad Social (INSS) here in Tenerife for the Spanish component of your pension, attaching the UK letter to the Spanish application form.

You need to make an appointment see here They will then contact the UK in order to calculate your entitlement under Spanish rules.

Spain takes in to account contributions paid in other EU member states to work out qualifying years and then pays the pension pro rata on actual qualifying years contributed in Spain.

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. Check your own retirement age here https://www.gov.uk/calculate-state-pension

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?
Currently this application is made 2 months after your 65th birthday, but in Spain as in the Uk retirement ages have been extended see here for more details. In Spain unlike the UK, you MUST have ceased employment in order to make your claim.
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, you may well be entitled to aome 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 aged 65 with a dependent spouse is around 730 euros: without a dependent spous earound 600 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.

http://www.thepensionservice.gov.uk/ipc/home.asp

www.thepensionservice.gov.uk or http://www.dwp.gov.uk/

Or you can write to The International Pension Centre, Tyneview Park, Newcastle Upon Tyne, NE98 1BA, United Kingdom.

Alternatively customers can send e-mail through the Pension Service website http://www.thepensionservice.gov.uk/contactus/contact-pod-form.asp

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

 

A Foreign Office guide , Going To Live Abroad , is available at www.fco.gov.uk/travel . An Age Concern guide on retiring abroad is at www.ageconcern.co.uk

Spanish Will

 

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

There is no SPANISH requirement to obligate a valid plastic picture European style driving licence holder to do anything to enable them to drive on Spanish roads as a visitor.

But for UK licence holders, whose licences are not renewed after periodically checking driving fitness as in other European countries, they will be required to renew the licence after a period of two years from the date of thier registration as a Spanish Resident has passed and at regular intervals thereafter.

(resident holders of paper licences should have at the very least have inscripted them with the Spanish authorities and from July 2013 the paper licence is on its own is no longer valid..

Interestingly if you live in permanently 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 you have to provide 3 years of address details in the UK. 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. https://www.gov.uk/renew-driving-licence#what-you-need-to-know

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 - Jul 2013) 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 until a period of two years from the date of your registration as a Spanish Resident has passed and at regular intervals thereafterunless, or you have lost your UK licence 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 (or if you have a white A4 non-resident's NIE which does not show the address, then you will need 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

An ITV is the Spanish equivalent of an MOT you can book an appointment on line (in English) here http://www.applusiteuve.com/esp/index_home.html

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:


GRANDE 1, 38670 - ADEJE
Tel: 922/75 62 13 FAX: 922/78 06 06
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

A full list of the OMIC offices in the island is available here: http://www.consumo-inc.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 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.

Here is the "how to" (In Spanish)

http://www.bde.es/webbde/es/seccione.../gen_como.html

and here is the complaints form

http://www.bde.es/webbde/es/seccione...eclamacion.pdf

 

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)

Telephone: +34 91 334 2194 (International/alternative number)

Emergency Travel Document

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.

Plaza Weyler, 8, 1º
38003 Santa Cruz de Tenerife

Tel: (+34) 922 286 863 (Mon-Fri 08.00 – 15.30)
Fax: (+34) 922 289 903
E-mail: Tenerife.Consulate@fco.gov.uk

Information on applying for a new passport can be found here https://www.gov.uk/overseas-passports and Spain specific information is here https://www.gov.uk/overseas-passports/y/spain

Passport and Courier fees as of May 2014

Renewing a red passport from Spain/ Tenerife

How long it takes

Your application will take at least 4 weeks from when your declaration form is received by Her Majesty’s Passport Office in the UK.

Applications may take longer if: HM Passport Office need to ask you for more information or documents or the photographs you send are rejected

Don’t book any travel until you have a valid passport. If you need to travel more urgently, apply for an Emergency Travel Document.

Cost

You’ll have to pay a fee for your passport and a courier fee of £19.86. The courier fee pays for your passport and supporting documents to be sent back to you securely.

Passport fee

Total to pay (including courier fee)
Adult standard 32-page passport £83.00 £102.86
Adult jumbo 48-page passport £91.00 £110.86

How to apply

You must apply and pay for your passport online.

Before you start you need:
your current passport
2 identical new photos of you (or your child, if it’s a child passport application)
any other current passports issued by other countries
a MasterCard, Visa, Visa Electron, Visa Debit or Maestro (UK Domestic) card - Maestro (International) cards aren’t accepted

Read the guidance notes to help you fill in your online application. Check which supporting documents you must send with your application. Any documents that aren’t in English (including documents showing an address) must be translated by a professional translator.

You will need to print, sign and post your declaration form at the end.

Start your application on Her Majesty’s Passport Office website

Getting your passport

Your passport and supporting documents will be delivered separately by courier.

Contact the Passport Adviceline
Telephone: +44 (0) 300 222 0000
Monday to Friday, 8am to 8pm (UK time)
Saturday, Sunday and public holidays, 9am to 5:30pm (UK time)


 
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)

To make an appointment telephone

0034 922 86 74 78 or email

The One Stop Problem Shop
In case of emergency and urgent need for an interpreter (Sudden illness: Loss or theft of passport, credit cards etc: or Accident.Telephone
C/Alonso Ferrer, Playa Arena
Tel 922 86 7478
0034 647057599

 

We will accompany you every step of the way!

Back to top of page

 USEFUL TELEPHONE NUMBERS AND LINKS

EMERGENCIES DIAL 112

Official Tenerife Tourist Board website
Trading Standards Local Offices Oficinas Municipales de Informacion (OMIC) http://www.consumo-inc.es/en/home.htm
Chamber of Commerce Santa Cruz http://www.camaratenerife.com/asesoria.cfm?idioma=eng
DUTY CHEMISTS http://www.farmaciascanarias.com/farmguardia.cfm?isla=tenerife
Hospitals

Complejo hospitalario nuestra señora de candelaria, Ctra. del rosario, s/n. 38010 Santa cruz de tenerife

Patient enquiries 922 60 21 35

Emergency department enquiries 922 60 21 32

Hospiten Sur Las Americas 922 75 00 22 general enquiries switchboard http://www.hospiten.es
British Consulate

Public Office Hours:

Winter: 9 - 14:00
Summer: 9 - 13.00 Mon/Friday

Santa Cruz de Tenerife

British Consulate
Plaza Weyler, 8, 1º
38003 Santa Cruz de Tenerife

Tel.: 922 28 68 63
Fax: 922 28 99 03

download passport application forms here

Lost or stolen passport form click here

Commercial Information - Canary Islands:
www.uktradeinvest.gov.uk/canary_islands

E-mail: tenerife.enquiries@fco.gov.uk

European Health Card and S1 (formerly E121) UK government - Advice for Travellers
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

Telephone: (0)922 759 200
Fax: (0)922 759 247

E-mail: infotfs@aena.es
Website: www.aena.es

Country code: 34
Airport code: TFS

AENA Flight Information in Real Time CLICK HERE
LOS RODEOS AIRPORT Tenerife North situated 11 kilometres from Santa Cruz Tel
922 635 999
922 635 635
Taxi Rank Los Gigantes PARADA TAXIS LOS GIGANTES 922861627 http://www.losgigantestaxis.com