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MOVING TO SPAIN

What you need to know: The Local’s A to Z Guide to bureaucracy in Spain

Got your NIEs and NIFs all in a muddle? Not sure if you are paying IVA or IRPF? In this handy guide, The Local spells out some of the key terms you'll need while living in Spain.

What you need to know: The Local's A to Z Guide to bureaucracy in Spain
Photo: Billiondigital/Depositphotos

Starting up in a new country is difficult, and Spain is no different.

In this article, The Local looks at some of the most common terms bureaucratic terms to give you a head start.

A is for autónomos: Spain’s ‘autónomos’ are the country’s self-employed workers. These workers pay typically pay high social security payments and have to submit their tax returns five times a year.

Click here to read: Freelancing in Madrid: A survivor’s guide


Finding a great place to rent isn’t always easy. Photo: AFP

A is also for alquilar: Alquilar is Spanish for ‘to rent’.

B is bank accounts: To open a bank account (cuenta bancaria) as a foreign resident working or studying in Spain you need to be over 18 and have photo identification. If you’re working, you may also need to provide proof or your occupation or employment status, including employment contracts or pay slips. For students, this could be a student card.

Banks will also ask for your foreign identification number (NIE, see below) and recent proof of your address.

C is for cita previa: Many of Spain’s government departments ask you to make a ‘cita previa‘ or appointment before you come into the office. Even when this isn’t necessary it can be a good idea as it saves time queuing. These appointments can often be made online, by telephone or in person in the relevant office.

D is for declaración de la renta: This is the yearly tax declaration. If you are a resident in Spain for tax purposes – usually someone who lives in the country for at least 183 days a year, and who earns more than €22,000 a year – you will need to complete a tax declaration. Even if you don’t earn €22,000, you may wish to lodge a tax return to claim deductions (desgravaciones).


Photo: halfpoint/Depositphotos

E is for empadronamiento: This is the process of officially registering that you live in a district, town or city with your local town hall. The empadronamiento is important for proving your address so that you can receive your government health card (tarjeta sanitaria, see below), enrol your children in local schools, buy or sell a car, or even get married.

READ MORE El Padrón: Your need-to-know guide about registering with the town hall 

F is for funcionario: These are Spain’s civil service workers. This group has a terrible reputation for being unhelpful, but bring along the correct documents and have a positive attitude and you may well be pleasantly surprised. Don’t expect Spanish government workers to speak fluent English though.

G is for gestor: Gestors are Spain’s middlemen. They provide business, tax and legal advice and run around between government departments, for a fee of course. A well-priced gestor that you trust could make all the difference in Spain.

READ ALSO: What does a ‘gestor’ do in Spain and why you’ll need one

H is for Hacienda: For all tax matters, you will need to deal with Hacienda, Spain’s tax office.

H is also for homologación: This is the process of getting your foreign qualifications and results officially recognized in Spain.   

READ ALSO – ‘Homologación’: How Spain is ruining the careers of thousands of qualified foreigners 

I is for IRPF: This is the Spanish personal income tax. IRPF (Impuesto sobre la Renta de las Personas Físicas) is a progressive tax. In other words, the more you earn, the more you pay.

L is for Libro de Famila: This ‘family book’ is a family history and includes details of births, marriages and divorces. While you may find that some people still use them, the Spanish government announced that it would scrap these books in 2021 and create an online libro instead. 

N is for NIE: The NIE is your foreign identification number. You will need this document for everything from opening bank accounts to obtaining a mobile phone account to getting your salary.

You can apply for a NIE at a police station with a foreigners’ department (Oficina de Extranjería) of a national Spanish police station (comisaría).

N is also for notary: Notaries are an essential part of Spain’s administrative setup. These public officials can draft, witness and certify the signing of all sorts of contracts in Spain. They ensure that both parties understand the terms of a contract and that the contract is legally valid. Among the documents that can be witnessed by a notary in Spain are marital status documents, inheritance declarations, and contracts for property sales. 

P is for padrón: This is the register of inhabitants in a Spanish municipality.

R is for RETA: RETA is the scheme under which Spain’s freelance workers, or autónomos (see above), are registered.  

S is for Seguridad Social, or social security: When you start working in Spain you will need a social security number.  Your employer may organise this for you, or you may need to attend an INSS office in person. You will also need this social security number to demonstrate you are entitled to Spanish health care (see tarjeta sanitaria below) and in your dealings with Spain’s tax office, or Hacienda (see above).

T is for tarjeta sanitaria: The tarjeta sanitaria, or health care card, allows you to access Spain’s health care system. To find out more about how you should access Spain’s health system visit the Healthcare in Spain website.

READ ALSO: How to apply for a public health card in Spain

T is also for traductor jurado: A traductor jurado is an official document translator. If you are asked to translate a document for the Spanish authorities, this needs to be done by one of these translators.

X/Y/Z: All Spanish foreign identification numbers (NIE, see above) start with X or Y, and, in future, Z. NIEs with the X prefix were issued before 2008. The Z series will be introduced when there are no more numbers in the Y series. 

This glossary is intended as a guide only and should not be used as a substitute for professional advice.

READ ALSO: These are the 17 absolute worst things about living in Spain

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RENTING

Do I have to pay the estate agent a commission if I rent in Spain?

Who has to pay the real estate agent commission (usually equivalent to one month's rent) in Spain: the landlord or the new tenant? And are there exceptions to the rules or underhand tricks agents use to get tenants to cough up more money?

Do I have to pay the estate agent a commission if I rent in Spain?

Up until 2023, the general rule in Spain was that both the landlord and the tenant would both have to pay estate agency fees when a rental contract was processed through them, although in some cases it was just the arrendatario (tenant) rather than the arrendador (landlord) who had to foot most of this commission.

Tenants often had the sense they weren’t getting much in return out of it, as it was common to find apartments hadn’t been cleaned, filled with broken furniture and other appliances that weren’t working.

On top of a commission to the agency equal to one month of rent, tenants had to pay one to two month’s deposit and a month’s rent, meaning they had to pay a total of three to four months’ worth of fees upfront, which would rack up to a lot of money. 

READ ALSO: The cities in Spain where people fight most over a place to rent 

Thankfully, Spain’s housing law, brought into force in May 2023, put an end to this and now it’s solely down to the landlord to pay the agency fee as they’re the ones who hired them.

The law, which modified part of the Urban Leasing Law of 1994, now states: “The expenses of real estate management and formalisation of the contract will be borne by the lessor,” that is, the owner of the property.

READ ALSO – Renting in Spain: Can my partner move in with me?

One of the main problems is that agencies have been doing this for so long that they stand to lose quite a bit of money and may continue to ask tenants to pay on the side. 

Alejandro Fuentes-Lojo, a lawyer specialised in real estate law explained to Spanish news site Newtral: “Many professionals will try to circumvent this prohibition, and in some cases they will try to make the tenant pay out of pocket, but we must warn that if they agree, they will be unprotected by the law”.

Be aware, even though tenants shouldn’t have to pay the full agency fees anymore, there are certain circumstances in which they may still have to pay something.

The Rental Negotiating Agency (ANA), states that there are a series of exceptional cases where real estate agencies can pass some of these expenses on to tenants, specifically when they are offered a series of additional services that directly benefit them.

These expenses could include house cleaning services at the end of the lease, repair services and legal advice during the duration of the contract, or other services where it can be proven that they have a direct benefit for the tenants. These expenses can only be collected after the contracts are signed.

READ ALSO – Q&A: When can you legally leave a rental property in Spain? 

The general director of ANA and a lawyer specialised in leasing, José Ramón Zurdo, states: “The new Housing Law does not regulate or limit the impact of expenses that accrue after the signing of the contracts, because the limit of expenses that can be passed on is closed after this time”.

According to the new housing law, expenses that can’t be passed on to the tenant include management expenses charged by real estate agencies for intermediating, searching for tenants and showing the homes. Tenants can also not be charged for expenses of formalising contracts or paying any lawyers or notaries involved.

There are also four exceptional cases where agencies can still charge fees to tenants, when they are not habitual residence leases and, therefore, are not regulated by the Urban Leases Law.

These include:

  • Tourist accommodation
  • Rental of commercial or office space
  • Seasonal rentals
  • Luxury housing leases – Properties whose surface area exceeds 300 m2 built, or whose rent exceeds the interprofessional minimum wage by 5.5 times.

READ ALSO: Spanish court rules buyer can purchase property directly from seller without paying agency fees

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