If you are a resident of a EU-country you are free to live and work in Spain.  You must apply for a N.I.E. number, which is a unique personal identification number, Consequently it needs to be registered with the tax authorities. A NIE-number can be obtained at the police or at the Spanish embassy in the country where you reside. An appointment is required so check the webpage of the Spanish embassy in your country. A NIE is required for any official document, which can be a rental contract, a working contract as well as any document that needs to be signed before a notary.

You can buy a property in Spain if you are in the possession of a N.I.E. number.  There are more requirements, one of which is that proof of the origin of the money that you will be using to purchase the property. These are strict rules in order to avoid money laundering.

Spain has a private and public system for medical insurance. Anybody that has a working contract is registered with the ‘Seguridad Social’ and has the right to medical coverage.  If you are an independent worker, you pay a monthly quote to have the same medical coverage. You can also get private insurance, compared to other countries this is not very expensive. Private medical insurance is much more speedy, the waiting times for an operation through the public health service are several months. Sanitas, Adeslas, Axa etc….

Yes, you do!  Every year you have to make a tax declaration for your home in Spain. The rule is that you have to declare in the country where ‘the stones are’. We can arrange this declaration for your at a small cost.

The Spanish labor law was changed in February 2012 to ease the hiring of personnel.  The number of days of dismissal pay was reduced from 45 to 33 days per year. There are exceptions in case the company has financial or organisational problems. In this case a dismissal pay of 20 days per year may be applicable.  The dismissal pay usually is a tax free, nett payment even if you are employed under the so-called ‘Beckham law’ which allows for reduced income tax during a number of years.

We often come across rental agreements that are NOT in line with the current law.  It is important to have a rental agreement checked by a lawyer, before you sign anything. It is all common that the rental office requires a ‘reservation amount’ to reserve the property for you. Make sure you read the small print before you sign or pay anything. It has become practice lately that you pay the fee for the agent as well as a caution of 2 months rent. The caution money should be deposited by the owner at ‘Incasol’.

Even though Spain is one country, the autonomous regions have different  tax rates. For example inheritance tax may be tax free in one region, whereas another region charges a % inheritance tax.
The same applies to the value of your property that city hall decides and recalculates every X-years. The ‘IBI’ (impuesto bienes inmuebles) is the value of your property multiplied by a factor. This factor can be adjusted by downhill and differs across the whole of Spain. The amount that is exempt on inheritances also varies widely.

Just like the question numer 7, you must declare any rental income on a Spanish home. The standard tax rate for non-residents is 19%.  If you rent during the year, the tax declaration has to be made every quarter. Any cost incurred for the rental may be deducted from the rental income, however make sure you have bills with your NIE number and the Spanish address on it.