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SPAIN EXPLAINED

15 terms you need to know to understand Spanish bureaucracy

Spanish bureaucracy can be as complicated as it is overwhelming. Whether or not you speak the language, getting your head around the terminology can be difficult. The Local has broken down the top 15 terms you should know when braving Spanish bureaucracy.

15 terms you need to know to understand Spanish bureaucracy
A civil servant explains the bureaucratic process in Madrid in March 2000. Photo: Christophe Simon/AFP

Almost all foreigners living abroad love to complain about the bureaucracy in their adopted homelands. This is particularly true in Spain, where processes are known to take weeks or even months and the civil servants are infamous for their unpredictability.

READ MORE: What you need to know – The Local’s A to Z guide to bureaucracy in Spain

Arriving in a new country can be tough as it is, let alone in a different language, so see our guide to the key terminology you’ll need to navigate Spanish bureaucracy below:

Ayuntamiento – The town hall. Get used to this word and building because it’s a place you’ll no doubt spend a lot of time in when doing any official bureaucratic processes or paperwork.

Empadronamiento – One of the first things you must do when you arrive in Spain (to live) is register at the ayuntamiento on the Padrón to prove you are living in Spain. Normally to get the certificate (el certificado de empadronamiento) you’ll need to provide a rental contract or recent bill.

Padrón – The Register of Spanish Inhabitants at the town hall.

Cita Previa – Literally, prior or previous appointment, a lot of bureaucracy requires you to make an appointment online beforehand. This is particularly true in big cities, but often the online booking systems aren’t the most reliable so hanging around until someone sees you works occasionally in smaller towns.

NIE – Your número de Identificación de Extranjeros, or foreigner’s identification number, allocated to you by the police and is essential to be legally resident, pay taxes, buy and sell property, and open a bank account in Spain. Be warned, the process can be quite laborious and involves going back and forth between the police station and bank to pay various small taxes and have papers stamped.

Cuenta Bancaria – bank account. Although you can technically open a bank account without the NIE, without it you’ll only be able to open a bank account for non-residents which includes extra fees.

Gestor – many foreigners in Spain pay for a ‘gestor’ (like an agent) to handle all their administrative and bureaucratic processes, act as a middleman and help with translating.

Tarjeta Sanitaria – health card.

Seguridad social – social security. You’ll be given a number by your employer, if you have one, or you can get one at your nearest INSS office.

IRPFImpuesto sobre la Renta de Personas Físicas is the equivalent of Spanish income tax.

Agencia Tributaria – The tax office.

Autónomos – self-employed. Be aware, the tax rates freelancers and the self-employed pay in Spain is a source of controversy and a fluid situation. The government recently proposed changes to the system.

Declaración de la Renta – annual tax declaration.

Homologación – the word for getting your foreign qualifications validatedin Spanish. This might be necessary when applying for certain jobs.

Funcionario – public worker. It is said that Spanish bureaucracy is personalised – the problem is that it isn’t personalised for you but whichever public official or civil servant you see that day. Funcionarios aren’t known to be the most helpful of people, and won’t take kindly to English speakers.

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MONEY

Blackrock and Blackstone: The ‘unknown’ multinationals controlling Spain

Two American multinational investment companies with similarly forgettable names are tightening their grip on Spain's housing market, banks and industry, even though most Spaniards have never heard of them.

Blackrock and Blackstone: The 'unknown' multinationals controlling Spain

Blackrock is the world’s biggest financial investor. It’s so big in fact that it has upwards of 9 trillion in assets spread across the globe, roughly equivalent to the GDP of Germany, France and Italy combined. For context, that would take the Spanish economy around six years to produce.

The company’s footprint in Spain is no smaller, however, and it’s growing. Blackrock has interests all over the Spanish economy, whether it be in energy companies, stakes in its major banks, or the properties it owns. Critics fear this level (and breadth) of influence has an impact on decision making that can indirectly affect Spaniards in all walks of life.

For example, Blackrock has a 5 percent share (or more) in Santander, BBVA and Caixabank, Spain’s three major banks. This means that any loans or mortgages there could, in theory, be impacted by Blackrock – a foreign company with no connection to Spain besides investing there.

Blackrock also has a significant share (of up to 20 percent) in Naturgy, the Spanish energy company.

It also has shares in 19 of the IBEX 35 companies (Spain’s equivalent of the FTSE index). What’s slightly different about the Naturgy move is that Blackrock will be on the company’s board, something that hasn’t happened yet in many of its other Spanish investments, and would likely signal a change in its approach to investments in Spain.

All in all, it is estimated that Blackrock has invested as much as €60 billion in the Spanish economy. But at what cost? Investment firms, let alone one of the world’s biggest like Blackrock, don’t part with money without expecting anything in return.

So, how is it controlling Spain?

Controlling Spain

Some feel that Blackrock, as well as other shadowy investment firms such as Blackstone (more on them below) leverage their investment for their interest — often to the cost of Spaniards.

In an article for El Salto, Carlos Martín Urriza, Economy and Finance spokesman for Sumar, posed the following questions:

“Is the fact that Spanish banks have not increased the remuneration of household savings with the rise in interest rates – as has happened in Europe – but have increased the cost of their mortgages, and nothing effective has been done to correct this, related to the fact that Blackrock has a 5 percent or more stake in Santander, BBVA and Caixabank?”

He goes on: “Is the fact that the profits of Spanish electricity and energy companies far exceed those of their European counterparts connected to Blackrock’s holdings of more than 5 percent in Enagás, Iberdrola and Repsol?”

Urriza’s argument is essentially that owing to the profit-motive driving Blackrock and other big funds, as well as the pressure applied by them, their influence makes gas and electricity bills, as well as things like mortgages, loans, house prices and rents more expensive. When these companies are so big and have their fingers in so many pies, it’s hard to see how to stop them.

However, the Spanish government has flexed its muscles in recent weeks with regards to takeovers, largely through the SEPI (Sociedad Estatal de Participaciones Industriales) as it did with the recent proposed Telefónica takeover.

READ ALSO: Spain takes stake in Telefonica after Saudi deal concerns

Members of the anti-eviction entity Platform of People Affected by Mortgage (PAH) protest against mortgage debt in front of The Hesperia Ramblas hotel, owned by US private equity group Blackstone, on July 30, 2019 in Barcelona. (Photo by Josep LAGO / AFP)

The biggest private landlords in Spain?

Housing has become a big issue in Spain in recent years. With rents rocketing in the post-pandemic period and an influx of foreign remote workers further pricing out locals, affordable housing and price speculation have become a hot political issue.

There’s another American investment giant called Blackstone (often confused with Blackrock) which secretly dominate the property market in Spain. In fact, Blackstone is the second biggest landlord in the entire country after Caixa Bank.

Blackstone, through 27 subsidiary companies, has 19,600 homes for rent, of which 13,000 are in the Madrid region alone, where it is “the largest private landlord” in the city, according to Civio.

Some argue its Spain’s biggest property owner, having carried out more than 146,000 property purchases over the past decade.

With calls for deep and meaningful housing reform in Spain (not that the government hasn’t tried) will any government or bank be able to realistically do anything when financial investment firms worth more than entire countries can pull the strings? 

Over the past few years, tenants renting Blackstone flats in Madrid have faced rent hikes of up to 60 percent and evictions for those who can’t afford it.

Blackstone general director in Spain Fernando Bautista has denied that his company is a vulture fund, recently declaring “at the end of the day, we have been investing in the country for 10 years, both in real estate and infrastructure or other sectors within the business we do. We are not a speculative fund as we have been here for more than ten years, we are an investment fund”.

Now Blackrock is also preparing to enter the residential market in Spain. This was made clear by Adolfo Favieres, Managing Director of real estate at Blackrock, at an event in January.

The executive stated that the investment fund has its eyes set on the “living” and “flex-living” market. “It is the one we like the most, both flex living (co-living) and student residences,” he said.

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