spanish residencia?

Question

I'm 32 and live in spain. What are the pros of getting your residencia? Are taxes lower in Spain?

Answer 1

It's a common misconception that getting your residencia affects your tax status. It doesn't. If you have lived in Spain for more than 26 weeks in any tax year then for tax purposes you are resident that year regardless of whether you have residencia or not. The tax man really doesn't care. If your gestor has told you that you can continue to pay non residents tax just because you haven't applied for it that isn't true. You have to declare your worldwide earnings to the spanish tax authorities whether you have paid tax on them in another country or not but they should not tax them again if the tax is paid abroad.

It isn't a legal requirement anymore that you get a residencia especially if you are working on a contract over here, but in my experience it does make life easier if you have one so I would at least apply for one. It takes ages for it to come through anyway. If you do work on contract here for only one employer and are earning less than a certain amount you don't have to make a declaration to the tax office but I'm not sure of the amount so you'd best check that with your gestor.

Answer 2

with your residencia you get lower taxes, it entitles you to 90% of your wages (nomina) if you lose your job, cheaper travel on spanish ferries. cheaper/better medical treatment etc. My BF was in majorca & Gran canaria for a long time so thats how I know. Hope this helps