RESIDENCIAS & PROCEDURES FOR INDIVIDUALS INTENDING TO WORK IN SPAIN This week I am looking at the procedures for anyone who plans to work in either a self employed or contracted capacity. It is a legal requirement on the Costa Blanca that any foreigner (including EEC citizens) who is working here has to have a Residencia. Obviously, many people are not able to apply for this document until they find work as they cannot meet the monthly income requirements without a job. So, it is accepted practice to firstly find work and then apply for the Residencia as soon as possible thereafter. Applying for a Residencia as an Employee If you have been offered a contract of work, your employer has an obligation to pay your social security and tax obligations, which will vary according to how many hours a week you work. These are deducted from your income at source, and shown on your weekly/monthly payslip. Contracts are usually issued for six or twelve months, on a renewable basis as appropriate. After two years` continuous employment, however, you are entitled to receive a fixed contract which ensures increased job security, pension provision and entitlement to unemployment benefit should your company close down or be unable to offer you continuing employment. You should have already applied for a NIF number but if this is not the case, you can do this at the same time as you make your residencia application. The papers you will need to apply for a Residencia with a work contract are as follows: Original passport & 1 copy and 3 passport style photos Completed application form & 3 copies Original work contract & 1 copy TC1 and TC2 from your employer & 1 copy Registration card from your employer (showing NIF/CIF number) & 1 copy Applying for Residencia in a Self Employed Capacity When you decide to become self employed, you need to decide which area of work activity you are going to be pursuing, e.g. plumber, general builder etc. You may apply to work in more than one category, but you will then need to pay an annual Tax Licence charge for each one. In addition, if you have chosen a profession where qualifications are required (such as hairdresser, electrician), you must provide evidence that you have these qualifications, e.g. City & Guilds. The original Certificates must be sent to the Ministry of Education & Science in Madrid with an accompanying translation by a licensed Spanish translator to be homologated (converted into the Spanish equivalent of the level reached). You will also need to specify whether you will be working locally or provincially, as your Tax Licence will be issued in either capacity (a local Licence is cheaper than a provincial one). This can be obtained from your local SUMA Office, or Ayuntamiento (Town Hall) if you live in Javea. Once you have registered as self employed you will be incorporated into the Spanish Social Security system, and will immediately start paying a fixed monthly sum (currently approximately 200 Euros) to cover your social security provisions, regardless of how much business you conduct. You will therefore need to register at the Seguridad Social (Social Security) office. You must decide how you are going to pay your tax obligations – you can make a quarterly VAT and Income Tax Declaration, in which case you will need to set up and present a fully comprehensive double entry book-keeping system. Or you can opt for paying on a modular system, which will be a quarterly amount set by the Tax Office. This figure does not vary and will remain the same whether you do very well or no business at all over the following months. The advantage of this system, which is only available for certain activities, is that no book-keeping records need to be maintained. The disadvantage is that the fixed amount is normally fairly high, especially for a new business just starting up. Finally, if you are opening a business where the public will be entering your premises, you should apply to your local Ayuntamiento (Town Hall) for an Opening Licence. To make the residencia application in a self employed capacity, you will need the following documents: Original passport & one copy and 3 passport photos Completed application form & 3 copies Homologated Professional Certificates & 1 copy (if applicable) Tax Licence Application & 1 copy Registration document from Seguridad Social (Social Security) & 1 copy VAT Declaration (Form 037) & 1 copy Opening Licence (if applicable) The system is then the same as discussed last week, i.e. the papers are presented at Denia Comiseria (or the Foreigner´s Office at Alicante direct) for processing, which takes the same amount of time as applications for Residencia on a private income. Renewing/Replacing Residencias If you are renewing or replacing a Residencia, you personally take the relevant documents to the Foreigners Office in C/Pintor Casenova Lorenz in Alicante. There you will immediately fingerprint and sign your new Residencia card and be issued with a ticket requesting you to return after a certain time (usually one month) to collect the new Residencia. You may authorise someone to collect this on your behalf (but obviously you must personally attend in the first instance to legalise the Residencia card). The papers you will require are as follows: 1.Original passport & 1 copy and 3 passport photos 2.Original Residencia & 1 copy (for renewals) 3.Completed application form & 3 copies 4.A copy of the old Residencia if possible (for replacements) If you have lost your Residencia through theft you must additionally provide a Denuncia (Police Report) & 1 copy stating how and when the Residencia was stolen.