Can someone list the Pros and Cons

[celticlass]

of taking residency in Spain, please.

We have had a home in Spain for some years and freely admit to spending more than 183 days sometimes, but have never applied for residency. Simply because I have known people who when they had to leave Spain and return to the Uk had a whole load of problems getting Bank accounts / registered with doctors etc.
Fortunately I only spend less than 6 months of the year in Spain these days so it's immaterial for the moment.


However, my daughter has just bought a thriving business which also has a finca and guest house attached, and will be leaving the Uk Next month for her new life in Spain, and hopefully continued success with the business.

Can someone please explain how residencia works...[B]and/or[B] the disadvantages with regards to her situation, and also does anyone know where to find more information on the problems associated with being an employer in Spain. (she has inherited several staff)

She's keen to do everything within the law.

Incidentally this is for me to understand, she's already believes due to a very good lawyer that she has everything under control.

Having seen many an expat go in to business as green as grass (thinking they know what they're doing) and come out even greener and more skint, I'd just like to know what pitfalls she could be setting herself up for.

Thanks everyone,

[Stravinsky]

Originally Posted by celticlass

of taking residency in Spain, please.

We have had a home in Spain for some years and freely admit to spending more than 183 days sometimes, but have never applied for residency. Simply because I have known people who when they had to leave Spain and return to the Uk had a whole load of problems getting Bank accounts / registered with doctors etc.
Fortunately I only spend less than 6 months of the year in Spain these days so it's immaterial for the moment.


However, my daughter has just bought a thriving business which also has a finca and guest house attached, and will be leaving the Uk Next month for her new life in Spain, and hopefully continued success with the business.

Can someone please explain how residencia works...[B]and/or[B] the disadvantages with regards to her situation, and also does anyone know where to find more information on the problems associated with being an employer in Spain. (she has inherited several staff)

She's keen to do everything within the law.

Incidentally this is for me to understand, she's already believes due to a very good lawyer that she has everything under control.

Having seen many an expat go in to business as green as grass (thinking they know what they're doing) and come out even greener and more skint, I'd just like to know what pitfalls she could be setting herself up for.

Thanks everyone,

Just on the subject of residencia (as you call it), there are no pro's and con's as such if you live in Spain. You are required by law to sign on the list of foreigners .. you have no choice if you permanently reside here. This is what is now called residencia.

It makes no difference to what will happen to you in the UK should you go back. You will experience similar problems if you sign or if you don't. The problem is generally that you have no recent credit history when you go back, or utility bills etc etc. Thats why I kept bank accounts and credit cards running in the UK .. just in case

When you get your cert nowadays its on the same document as your NIE number (green A4 sheet). Its becoming a requirement for more and more things these days.

Presumably your daughter will have to register as autonomo and pay the NI charges every month, which I assume with the help of her lawyer she has already sorted out

[celticlass]

Originally Posted by Stravinsky

Just on the subject of residencia (as you call it), there are no pro's and con's as such if you live in Spain. You are required by law to sign on the list of foreigners .. you have no choice if you permanently reside here. This is what is now called residencia.

It makes no difference to what will happen to you in the UK should you go back. You will experience similar problems if you sign or if you don't. The problem is generally that you have no recent credit history when you go back, or utility bills etc etc. Thats why I kept bank accounts and credit cards running in the UK .. just in case

When you get your cert nowadays its on the same document as your NIE number (green A4 sheet). Its becoming a requirement for more and more things these days.

Presumably your daughter will have to register as autonomo and pay the NI charges every month, which I assume with the help of her lawyer she has already sorted out

Thanks *S* yes she has already sorted all of that, she is married into a Spanish family who have provided their own lawyers for her use.

but really it was for me because I have never taken Spanish residence even though I lived there for many years on a permanent basis just commuting back to the uk a couple of times a year, so I'm a bit out of touch. Furthermore I've never owned a business in Spain so all that side of it new to me.

I still live on the CB 1/2 the year and have no intention of taking out residencia even now, because I need to use my NHS doctor & dentist on a regular basis..so my NIE and padron have been more than useful enough for me.

Please feel free to explain things more clearly to me, I'm a bit slow when it comes to official type stuff...I won't be offended, as long as no-one swears at me


Good thing my daughter is a lot more intelligent than her mother!

[gus-lopez]

There aren't any pros & cons it's a legal requirement .

Any EU citizen intending to stay in Spain for more than three months is obliged to register to be added to the Central Register of Foreign Nationals (Registro Central de Extranjeros) at a Foreigners Office (Oficina de Extranjero) or local police station (Policia Nacional) if there is no foreigner's office in the area in which they intend to reside.

A Registration Certificate as an EU Resident (Certificado de registro como residente comunitario) is issued. This document certifies residence in Spain and includes the holders name, address, nationality, and foreigners tax identification number (Número de Identificación de Extranjero - NIE) along with the date of registration.

Note: Prior to the introduction of the Registration Certificate in April 2007, foreigners were required to submit a separate application for an NIE. This is no longer necessary, as application for an NIE is incorporated in the residence certificate application process.

The "inherited some staff " would worry me , especially if they have full contracts . I would hope that allowance has been made for this in the asking price as if you take over a business with contracted staff you're also taking on their redundancy payments which can be up to 45 days pay for every year they've been employed !

In the 8 years I've been here I've never seen any spaniard take over a business & retain the staff. They might be working there the following week but they've had their redundancy money from the seller & are re-employed by the new owner.

[gus-lopez]

Sorry strav, posts crossed. Celticlass, you probably won't need to worry about the rest of my post then if she's married in to a spanish family .

[Stravinsky]

Originally Posted by celticlass

Thanks *S* yes she has already sorted all of that, she is married into a Spanish family who have provided their own lawyers for her use.

but really it was for me because I have never taken Spanish residence even though I lived there for many years on a permanent basis just commuting back to the uk a couple of times a year, so I'm a bit out of touch. Furthermore I've never owned a business in Spain so all that side of it new to me.

I still live on the CB 1/2 the year and have no intention of taking out residencia even now, because I need to use my NHS doctor & dentist on a regular basis..so my NIE and padron have been more than useful enough for me.

Please feel free to explain things more clearly to me, I'm a bit slow when it comes to official type stuff...I won't be offended, as long as no-one swears at me


Good thing my daughter is a lot more intelligent than her mother!

Errr well ... dont take offence then ... I'm just telling you it as it is :-)

If you are no longer a UK resident, which by your initial comment above you are not, then by using the NHS service you are actually defrauding the NHS as you are not entitled to their services any more.

By not registering on the Spanish foreigners list you are more than likely breaking Spanish law as it is a requirement that you do so. The UK authorities don't actually know you have done this, so it doesn't actually affect anything really if you eventually go home.

I'm assuming you DO spend most of the year here from the initial comment, and therefore you will most likely be a Spanish tax resident and therefore should make a tax declaration here. It will certainly apply to your daughter, and she will no longer be entitled to NHS services either

As I say though I dont know your full circumstances

[celticlass]

Originally Posted by gus-lopez

Sorry strav, posts crossed. Celticlass, you probably won't need to worry about the rest of my post then if she's married in to a spanish family .

Gus, no everything you say is relevant to me, thank you..

I'm also a little concerned about the staff situation having witnessed existing bar staff taking new owners who hadn't done their homework to the cleaners so to speak


Just to make it clear...the f'family' are in now way connected with this new business.

They are Spanish , but raised their son in England before leaving to go back to Spain...so their Spanglish for want of a better expression, but having run their own businesses on the CDS for 30 years they certainly have experience and good lawyers to hand.

My daughters' new business is on the CDS but not close to the in-laws!

[celticlass]

No offence taken *S* I fully admit to not being totally legal in Spain, but then again on the odd occasion I've needed to use it I've always paid for private medical attention.

I don't work in Spain and I'm too young for a pension, and of course I do pay all the suma on my car and on my house, so I can't see any advantage to becoming resident particularly as I spend more time in the UK these days than I do in Spain.


Anyway thankyou thus far for your help , I'll pass your comments onto my daughter, and doubtless be back to pick your brains more if I may be so bold

[Hepa]

Originally Posted by celticlass

I don't work in Spain and I'm too young for a pension, and of course I do pay all the suma on my car and on my house, so I can't see any advantage to becoming resident :

I can see an advantage, several, from opening a bank account, buying property, even this afternoon activating my Spanish bank account card. On each of these occasions, my N.I.E. number was asked for.

However in my case the main advantage that far outweighs all the others is a financial advantage, because of Canary Island residencia, I get a huge discount on Spanish internal flights and ferry fares,

Hepa

[Pesky Wesky]

Originally Posted by Hepa

I can see an advantage, several, from opening a bank account, buying property, even this afternoon activating my Spanish bank account card. On each of these occasions, my N.I.E. number was asked for.

However in my case the main advantage that far outweighs all the others is a financial advantage, because of Canary Island residencia, I get a huge discount on Spanish internal flights and ferry fares,

Hepa

The OP already has an NIE. And she/ he's on the padron. From what I can make out she/ he doesn't have the certificate.
So how did you get the NIE, and when did you get it???

OP, you don't have to take out a residenciayou have to
sign on the padron (which you say you've already done, but you may need to renew)
Get an NIE (which you say you've already done, but you need an A4 sized certificate to say that you've got it)

The idea of doing this is that the local town hall is designated funds based on how many people are officially registered in its area, so if you don't sign on you're doing yourself and others out of public services.

Please confirm/ reject this OP and forum members!