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PADRON

Should non-residents in Spain register on the padrón?

So you're a non-resident second-home owner in Spain wondering if you should register on the padrón, the census from your local town hall? This is what you should be aware of beforehand.

Published: 30 January 2024 12:40 CET
Updated: 4 February 2024 07:26 CET
Should non-residents in Spain register on the padrón?
Owning a property in Spain doesn't mean you have to register at the town hall where it's located, in other words you don't have to get onto the padrón. Photo: Miguel Ángel Sanz/Unsplash

Spain’s padrón certificate is basically proof which shows where you are living. Your town hall – or ayuntamiento – uses a type of census to find how many people are living in the area and what their ages are.

The number of people living in each area will depend on how much money your local town hall will receive from the government. They can use this money for local services such as schools, health centres, parks and police officers.

You also need your padrón certificate to be able to carry out certain procedures in Spain such as registering at your local health centre, getting a Spanish driving licence, voting in elections (if you’re eligible), getting a local library card and getting a pensioner’s card for example.

READ ALSO – Padrón: 16 things you should know about Spain’s town hall registration

Residents must apply for their padrón within three months of moving to the country, but what about non-residents who own second homes in Spain? Should they register too?

As a non-resident second-home owner in Spain, you won’t be eligible for many of the things you need your padrón for like registering with a health centre or voting in elections, but you may still want to benefit from getting a library or pensioner’s card for example.

If you are in either the Canary Islands or the Balearic Islands, then getting this certificate can also get you big discounts on transport costs such as flights and ferries.

There’s nothing to stop non-residents from registering on the padrón and in fact, local town halls are more than happy for you to register, but that doesn’t necessarily mean you should.

READ ALSO – Padrón: How to register at your town hall in Spain

Being on the padrón does not affect your residency status in Spain and has nothing to do with residency permits, visas or EU green certificates. This means that registering doesn’t automatically make you a resident. However, it is still sometimes used as residency proof and certain authorities may take your registration to mean you’re living here on a long-term basis. 

The padrón is designed for residents, meaning people who permanently live in Spain. Just like you’re not allowed to be registered for two different areas in Spain, you shouldn’t be registered as living in two different countries either.

Article 15 of Law 7/1985, on the Bases of Local Regime states that: “Every person who lives in Spain is obliged to register in the padrón of the municipality in which they habitually reside. Anyone who lives in several municipalities must register only in the one they live in for the longest time per year”.

If you don’t habitually live in Spain for the longest amount of time per year, then it stands to reason that you shouldn’t be registering here as if you do.

Although registering can bring you several benefits, if you’re a non-resident, it could bring you several headaches too.

In theory, there aren’t any tax implications to being on padrón and it doesn’t automatically make you a tax resident.

Nevertheless, the padrón can also be used as proof for people to show they live in Spain full-time, so if you are registered you may be asked to prove that you’re not a tax resident here.

READ ALSO: How to prove you’re not a tax resident in Spain

Being on the padrón can also have an impact on tax exemptions. For example, if you choose to move to Spain permanently and apply for residency at a later date, Spain’s Hacienda may not give you the one-year exemption on import duties for the first year to bring over belongings at a cheaper cost, as they’ll assume you’ve already been living here.

Most lawyers in Spain advise their non-resident clients against registering and Brexpats in Spain head Anne Hernández told The Local Spain “as a cautionary word of warning, check out what your obligations might be before registering on the padrón if you are not yet a full-time resident here”.

Registering also means you may have issues if you decide to bring your car over to Spain as the police may see you as a resident with a UK-plated vehicle. This can cause various problems, including for those who want to drive over to Gibraltar and back.

“If you are a second home owner registered on the padrón check your rights before bringing your UK-plated vehicle into Spain” Hernández cautions.

READ ALSO: Can I buy a car in Spain if I’m not a resident?

According to the Consejo de Empadronamiento from Spain’s National Statistics Office (INE), “It can be deduced that the padrón is an administrative registry where only people who live in Spain must be included, as has already been reiterated on numerous occasions by the Permanent Commission of the Registration Council”.

It goes on to say that if the City Council is aware that people who do not reside there are registered in its municipality, it should carry out the necessary actions and operations to keep its padrón updated and deregister those who shouldn’t be on there due to improper registration.

Remember that if you’re a non-resident and you do have to register for any particular reason, you should de-register soon afterwards, so that you’re not permanently on the list as living here. 

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For members

TAXES

Can you pay taxes in Spain with a foreign bank account?

Many foreigners have tax obligations in Spain but might not have a Spanish bank account to pay them from. Changes by Spain's tax authorities might just make it easier, depending on your circumstances.

Published: 3 May 2024 09:01 CEST
Can you pay taxes in Spain with a foreign bank account?

Navigating the ins and outs of the Spanish tax system can be a little daunting at times. That’s why many people choose to pay for a gestor to handle it all for them.

But for many foreigners in Spain, especially those with property in the country but who aren’t resident, figuring out when and how to pay your taxes can be extra complicated, especially if you don’t speak Spanish.

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

This was compounded by the fact that, for many years, you couldn’t pay Spanish taxes from a foreign bank account. As such, many people were forced to open a Spanish bank account for the sole purpose of paying tax.

Can you pay taxes in Spain with a foreign bank account?

Fortunately, it’s no longer like that. From February 1st 2024, the tax authorities in Spain started allowing tax payments via direct debit from any bank account within the SEPA area, removing the need for a Spanish bank account.

So, in short, yes, you can pay your Spanish taxes with a foreign bank account — depending on the country in which the account is based.

What is SEPA?

SEPA stands for Single Euro Payments Area is a basically an integrated bank transfer system. SEPA includes all the EU members states, plus those in the EFTA (Iceland, Norway, Liechtenstein and Switzerland). The UK is also still member of the SEPA area, despite Brexit.

Before the change, you could only pay your taxes in Spanish via banks approved by the tax authorities.

READ ALSO: Spanish tax returns: A handy guide for foreigners

VAT and tax experts Marosavat explain that under the previous rules, “direct debit [was] only available when the taxpayer’s bank account belongs to a bank entity cooperating with the Spanish tax authorities. This requirement impose[d] an important restriction when using direct debit as a payment method, especially for foreign taxpayers.”

But slowly, the Spanish tax authorities have eased the rules and made it easier for foreign businesses and tax payers to pay their tax from abroad. First, in March 2021, the rules were relaxed for foreign businesses with tax obligations in Spain. 

Then from July 2023 foreign accounts were approved for deferment and split applications of tax debt, and from February 2024 for regular tax payments.

Following the changes, Marosavat says, “the payments will still be processed through a cooperating bank entity, which communicates with the taxpayer’s bank entity. In consequence, all commissions and bank expenses related to the procedure will be passed on by the tax administration to the taxpayer.”

According to Spain’s Agencia Tributaria website, which you can find an English language version of here:

  • Payments are allowed for those who do not have an open account in any collaborating entity in state collection management.　

  • It is especially intended for use by those who pay their debts from abroad.　

  • It can be done by both natural persons and legal entities.　

  • The payment will have releasing effects on the date of receipt and entry of the transfer. 　

Non-resident property owners

This is particularly welcome news for second home owners in Spain, many of whom are non-resident and manage their properties from abroad for most of the year. 

According to IberianTax, by extending tax payments to the wider SEPA area, “property owners can now continue to use their home country’s bank accounts or accounts from other SEPA countries to make tax payments towards their taxes. This change simplifies the process and alleviates the burden of setting up a separate Spanish bank unnecessarily.”

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