RESIDENCIAS

To my knowledge, the Costa Blanca is the only region of Spain that
still requires European citizens who live here to hold a Residencia
card.  Contrary to recent rumours, these have not been abolished,
although the process for application has been made easier.  There are
three routes through which a Residencia may be applied for; on a
private income, as a working individual with a contract of employment
and as a self employed individual.  Today I shall be discussing
Residencias in general and the necessary requirements to apply for one
on a private income.  For people working in Spain, some of the
information - such as that for personal tax  and documentary
requirements - are different, and I shall be looking at this in a
future article.

The current law for the Valencian Community states that any foreigner
who intends to live in Spain for more than six months of the year must
apply for a Residencia.  These cards have recently changed in format,
and I believe will now look like the new UK style driving licences, i.e.
of credit card size bearing the name, address, NIE and Residencia
number, date of birth, signature and fingerprint of the individual.  In
addition, the card will also display a hologram style photograph.  I
have yet to see a new style card, so please forgive me if any of these
details are incorrect.

Residencia cards issued to EC citizens last for five years, and are
currently taking just over a year to be processed.  The purpose of the
card is to register your details with the Government as having
transferred your main place of residence from your country of origin to
the Costa Blanca.  This will have a significance on the following
points:

1.	Personal Tax.	 If you are non-resident, you should pay an
annual Patrimonio & Renta (Wealth & Own Use Income ) Tax to the
Government.  Once you become resident (i.e. when your card has been
issued) you will need to make an Income Tax Declaration in the
following year for your worldwide taxable assets.  I shall discuss
Income Tax in more detail in the weeks to come, but suffice to say if
you are below the threshold for making a Tax Declaration, or receive a
Pension for having worked in the Government sector (i.e. Teacher, Armed
Forces, Civil Service etc), you will not need to make a Declaration.  

2.Capital Gains Tax.  As a non-resident,  CGT stands at 35% of the
profit made on any property you sell, regardless of whether you are
re-investing the proceeds in another property.  You must lodge a 5%
deposit of the declared sales price with the Tax Office, with the
balance to follow thereafter (if appropriate).  Once you become
resident (again, on issue of your card), you declare the sale details
in your subsequent year´s Income Tax Declaration.  A number of costs
can be offset, including re-investing any sale proceeds to buy a new
Spanish property. If any CGT due it will currently be a tax of 20%
instead of the non-residents 35%. 

3.National Health Service Provision.  If you are non resident, you will
not be entitled to public health care unless you need urgent medical
attention and you produce an E111 (temporary “holiday” cover by way of
a European form obtained from the DHSS in the UK).  If you become
resident, and you are of pensionable age, or receive state benefit for
incapacity to work, you may apply to the DHSS in the UK for an E121,
which entitles you to receive national heath treatment here once you
have made a residencia application.  Alternatively, if you have been
making UK tax contributions for the last 3 tax years, you can apply for
the E106 form from the DHSS.  This will also be accepted for you to
apply for residencia and receive medical treatment on the Spanish
system, but only for the term specified on the E106 – thereafter you
must make private arrangements for health cover.

4.Driving Licences/Vehicles. Once you become resident, you will be
required to either present or exchange your current UK licence.  Both
involve a trip to Trafico in Alicante: in the first instance, the
licence will be inspected and stamped, or if you exchange your licence
you will receive a new Spanish version.  If you own a British or
non-Spanish registered vehicle, you have six months in which to “import
and re-register the vehicle with Spanish numberplates.

So – once you have decided to apply for a Residencia, you will need the
following paperwork:	 A completed application form plus 3
photocopies Three passport style photographs Your original passport
plus 1 photocopy A Certificate from your Spanish bank stating you have
a regular (monthly) income of not less than 420 Euros per person coming
into your bank account. Health cover details, i.e. a E121, E106 or
private health cover (in the last instance, a bank statement or receipt
showing the insurance is fully paid up is also necessary)

These items can either be presented at Denia or Benidorm Comiserias, or
direct in Alicante Comiseria, and you will receive one of the copy
application forms stamped by the Comiseria as proof you have applied. 
It is Alicante who process the Residencias, and in due course they will
write to you to request you personally attend their office to
fingerprint and sign the document (unless you have presented the
application to Alicante direct and already done so).  You, or a
designated representative, will then need to return to Alicante once
more to collect the finalised Residencia.

Should you wish to renounce your Residencia (for example if you return
to live in the UK), you can just let it lapse, or you can present the
original with a letter to the Comiseria, requesting a Certificado de
Baja (Certificate of Cancellation).

As usual, this subject has proved to more lengthy than I envisaged, so
I shall sign off now and discuss how to renew and replace expired or
stolen Residencias and other documents in a future article.