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SECOND HOMES

Reader question: Can I be a resident in Spain and the UK?

Several readers have contacted us to ask if they can apply to be residents in both the UK and Spain in order to be able to stay in Spain longer than 90 days in 180 and to avoid paying more taxes in one or the other. Here's what you need to know.

Reader question: Can I be a resident in Spain and the UK?
A terrace bar in the Costal del Sol town of Benalmadena before the pandemic. JORGE GUERRERO / AFP

Before December 31st 2020, many Brits decided to split their time between Spain and the UK and didn’t always register for residency in Spain even if they stayed for long periods, coming and going as they pleased. Brexit has changed all this, however. 

Can you be a resident in both Spain and the UK?

Unfortunately, it’s not possible to be resident in both the UK and Spain and it never has been. Even before Brexit, you still had to choose which country you were resident in. Pre-Brexit, technically you were supposed to register as a resident after three months in the country, however as the UK was still part of the EU, the amount of time spent in Spain wasn’t monitored. This meant that you were able to spend longer periods in Spain and still remain a resident of the UK. 

If you register for residency in Spain, then you are liable to pay tax in Spain and will lose certain rights back in the UK such as access to the NHS and residency status. Therefore it’s not possible to be a resident in both countries. 

Up until December 31st 2020, UK citizens could enjoy the EU’s freedom of movement act, which gave them greater flexibility and allowed them to easily move between Spain and the UK, even though they were only officially resident in one.

Unfortunately, it’s no longer possible to do this.

Registering for residency in Spain

Brits who were living in Spain before December 31st 2020 and wish to continue living here, must apply for the biometric residence card called the Tarjeta de Identidad de Extranjero (TIE) if they are applying for residency for the first time. Those who previously held a green residency card, are encouraged by the British Embassy in Spain to exchange it for a TIE. Find out here how to exchange it. 

READ ALSO: Why UK and Spain now strongly recommend exchanging green residency document for TIE

The UK government living in Spain guide states that “If you were legally resident in Spain before January 1st 2021, your rights will be protected by the Withdrawal Agreement and you should check that you are correctly registered as a resident”. 

Spanish government website expands on this by stating: “Those UK citizens that arrive from January 1st 2021, and that are not included in the scope of application of the Withdrawal Agreement will fall under the general immigration regime, since the agreement reached between the UK and the EU does not include the free movement of people”.

If I register for residency in Spain, does that mean I am also a tax resident there? 

Remember that residency in terms of immigration is not necessarily the same as being a tax resident. Residency has to be applied for, while tax residency can be automatic when certain conditions are met.

According to the Agencia Tributaria Spanish tax authorities, an individual is a tax resident in Spain when any one of the following circumstances apply:

  • “They have stayed longer than 183 days in Spanish territory over the calendar year. In order to determine the permanence in the Spanish territory, occasional absences are included, except if the taxpayer accredits their residency in another country. In the case of countries or territories labelled as tax havens, the Tax Administration can demand proof of stay in that tax haven over a period of 183 days within the calendar year.
  • They have their main base or centre of their activities or economic activities, directly or indirectly, in Spain.
  • They have a dependent not legally separated spouse and/or underage children who are usually residents in Spain. This latter situation accepts evidence to the contrary.”

How long can I stay in Spain if I’m not a resident?

Brits who live in the UK and want to spend time in Spain or own a holiday home here, now need to limit their stays to 90 days in every 180 days. This is because of the EU’s 90-day rule, which allows non-EU citizens to only spend 90-days out of every 180 in an EU or Schengen zone country, without the need for a visa. If you want to spend longer than this you will have to apply for a visa.

Applying for a Spanish residency visa in 2021 and beyond

If you’re a British citizen who is not already a resident in Spain, but wants to be, you will be treated the same as third-country nationals, such as those from the US or Australia, and will need to apply for a visa.

According to Balcells Group legal firm in Spain, there are certain visas that make the process much faster, for example:

  • Non-lucrative residence, which only requires the possession of sufficient economic means and private health insurance. Find out more about the non-lucrative visa here and how much money you need for it. 
  • The investor’s visa, if you intend to make an investment in real estate to obtain residency.
    Find out all about Spain’s golden visa residency scheme here
  • The student visa, which will allow you to change it afterwards to a temporary work permit.

READ ALSO:

Q&A: What Brits in Spain need to know about tax and residence after Brexit

Member comments

  1. If you are a S1 holder and have an NIE I understand that you are still able to use the NHS when in the UK.
    I and my wife and dependent child applied for a UK EHIC card as advised by the UK government after Brexit. We received the cards in Spain in early January and they are valid for five years. They provide cover in the EU.
    I also understand that the cost of any non-private treatment in Spain (and I assume elsewhere in the EU) is charged back to the NHS.
    Am I right?
    David Walsh
    Asturias

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For members

VISAS

EXPLAINED: When you can exchange visas in Spain

There are several different types of visas and residency permits you can get to be able to live and work in Spain, but what happens when your situation changes and you want to exchange your visa for a different one?

EXPLAINED: When you can exchange visas in Spain

There are many different reasons you may want to exchange the type of visa or residency permit you have. Perhaps you’re on a student visa and have completed your studies, but still want to be able to stay in Spain. Or maybe you’ve been on a one-year non-lucrative visa, but can no longer afford not to work and want to exchange it for one where you’re allowed to work. 

Read on to find out which visas are possible to exchange and which are not. 

Student Visa to Digital Nomad Visa 

The simple answer is yes, it is possible to exchange your student visa for the new Digital Nomad Visa (DNV) that first became available last year. This will, however, depend on your individual circumstances and what job you plan on doing.

Firstly, in order to apply for DNV you must either have a degree from the field you want to work remotely in or have three years’ work experience in that industry. If you’ve just finished your studies this could be possible, but if you were studying something different, it could prove difficult.

If you are an older student, you could definitely have three years’ work experience in the industry you want to work in or you may have gained the experience working part-time in Spain while on your student visa.

Secondly, you must make sure you have worked for the company that hired you for a remote role for a minimum of three months before you apply for the DNV. The main caveat is that the company has to be registered outside of Spain as you are not eligible for the DNV if more than 20 percent of your income comes from inside Spain. This means that you will have to secure a remote job in another country while still on your student visa, making sure that you stick to the 30 hours a week you’re allowed to work.

Non-Lucrative Visa to Work Permit or Self-Employed

Being in Spain on the Non-Lucrative Visa or NLV can prove to be expensive because you’re not allowed to work, but have to prove you have a significant amount of savings or passive income. If you want to stay in Spain, beyond the initial year, you may be considering a different residency permit. Luckily, you can exchange it for a work permit or self-employed permit in a process called residence modification.

During your last few months on the non-lucrative visa, you are able to apply for jobs in Spain, which may give you the possibility of being granted a work permit. There are many prerequisites, including having lived in Spain for a year and being offered a pre-employment contract.

You could also decide to become self-employed at set up your own business. In order to do this you will need to meet the requirements that current legislation requires for opening and operating your chosen business. You will also need to sign up to the autónomo system, pay your own social security fees and submit your taxes five times a year.

READ ALSO: Should I change my non-lucrative visa for another residency permit in Spain?

Student Visa to Work Permit or Self-Employed

If you’re living in Spain on a student visa, then it’s relatively straightforward to exchange it for a work permit or become self-employed, if you want to be able to stay longer. The main requirement is that you have to have lived in Spain for three consecutive years, before you exchange it. This means, it’s really only possible for those who are doing a long-term course, such as a degree at a Spanish university. If you’re simply here for a year doing a language course, then it won’t be possible.

If you have been here for three years on a student visa, you have two options – the first is to find a job and become an employee by getting a work permit and the second is to become self-employed. If you opt for the first, the easiest way is to get a job offer and apply for the permit that way. Because you’ve already had a student visa and been here three years, it will be easier for companies to hire you as they won’t have to prove that there isn’t anyone from Spain or the EU that can do it first or that they have a shortage of professionals who can carry it out.

If you want to exchange it for a self-employment permit, you will have to present a business plan in order to get approval and prove you have the correct qualifications and experience to carry it out. If approved, then you will typically sign up to the autónomo system.

Student Visa to Entrepreneur Visa

Student visas are the easiest visas to modify in Spain, meaning you have many different options to exchange them if you want to stay longer. The Entrepreneur VisaVisado de Emprendedor is another option that will allow you to stay for a period of three years (with the option of exchanging or extending). It is, however, slightly more complicated to exchange to than simply getting a work permit or becoming self-employed.

The Entrepreneur Visa is especially for those who want to set up a business considered to be innovative with a special economic interest for Spain. Unlike becoming just an autónomo, you must agree to be able to create employment opportunities for locals in the future. You could also in theory exchange your NLV for an entrepreneur visa too, provided you can prove that you haven’t done any work while you’ve been living in Spain for the year on your NLV.

Non-Lucrative Visa to Digital Nomad Visa

It may sound confusing, but you can now actually exchange your NLV for a DNV too. Even though you are not allowed to work while on the NLV, you can actually decide to change it for a DNV, so that you will be allowed to work remotely either for a company or for yourself via clients. The Unidad de Grandes Empresas (UGE), the body that deals directly with DNV applications, has confirmed this is possible and The Local has heard of people who have successfully done this too. The only thing to remember is that no more than 20 percent of your income can come from inside Spain once you change over. 

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