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If i rent from mybown family, a proporty we own. Is there a certain level of income permitted before it needs to be declared by the owners?
Reasons being if i have a rental agreement i can use this in support of my residency application..
Who can draw up such a rental agreement and whats the protocol?
TIA
Reading between the lines it sounds like you have a private arrangement with your family but are worried that formalising it with a rental agreement would potentially expose them to tax liabity which they are currently avoiding if not deliberately evading.
When an owner rents out a property then whether it's to a family member or not then they must declare the income. Any tax which may fall due will depend on their circumstances.
What exactly do you mean by 'residency application'?
If you mean via an NLV then for that you are not required to show that you have property or accommodation in place therefore a rental contract will be of no value to you.
If on the other hand you're applying under the Withdrawal Agreement on the basis that you were living in Spain prior to Dec 32st 2020 then in that case yes, you will need to show either property deeds or a rental agreement and very probably also Padron.
I confess that I haven't fully kept up with that scenario so not sure that's even a valid route anymore, wasn't there a Dec 31st 2021 deadline?
Darro wrote on Wed Jan 5, 2022 9:20am:
Reading between the lines it sounds like you have a private arrangement with your family but are worried that formalising it with a rental agreement would potentially expose them to tax liabity which they are currently avoiding if not deliberately evading.
When an owner rents out a property then whether it's to a family member or not then they must declare the income. Any tax which may fall due will depend on their circumstances....
Read more...
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What exactly do you mean by 'residency application'?
If you mean via an NLV then for that you are not required to show that you have property or accommodation in place therefore a rental contract will be of no value to you.
If on the other hand you're applying under the Withdrawal Agreement on the basis that you were living in Spain prior to Dec 32st 2020 then in that case yes, you will need to show either property deeds or a rental agreement and very probably also Padron.
I confess that I haven't fully kept up with that scenario so not sure that's even a valid route anymore, wasn't there a Dec 31st 2021 deadline?
Hello and thanks.
There is no deliberate avoidance of tax.
I stated "IF"
Reasons being i plan to relocate in the future. I have NIE which was given prior to the withdrawal. I simply need a tenancy agreement etc to get on the Padron. We can easily produce a tenancy agreement for a peppercorn rent. I assume i will need that, the deeds to show they own it, utility bill in my name, passport NIE and I can get the Padron. I just don't want to create a difficult situation for them.
They dont have Spanish residency despite owning for over 10 years now. They are elderly and never likely to spend more than 90 days in Spain.
I believe obtaining listing on the Padron will be a first step for me to obtain residency of which i am yet to decide up on whether NLV entrepreneur or golden. Not even sure if i can do the Padron electronically. Benejuzar is the town where I will be.
Yes there was a dec 31st deadline. I missed all that.
Thanks again for your comments
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Mitch wrote on Wed Jan 5, 2022 10:59am:
Hello and thanks.
There is no deliberate avoidance of tax.
Read more...
I stated "IF"
Reasons being i plan to relocate in the future. I have NIE which was given prior to the withdrawal. I simply need a tenancy agreement etc to get on the Padron. We can easily produce a tenancy agreement for a peppercorn rent. I assume i will need that, the deeds to show they own it, utility bill in my name, passport NIE and I can get the Padron. I just don't want to create a difficult situation for them.
They dont have Spanish residency despite owning for over 10 years now. They are elderly and never likely to spend more than 90 days in Spain.
I believe obtaining listing on the Padron will be a first step for me to obtain residency of which i am yet to decide up on whether NLV entrepreneur or golden. Not even sure if i can do the Padron electronically. Benejuzar is the town where I will be.
Yes there was a dec 31st deadline. I missed all that.
Thanks again for your comments
If you are a UK passport holder and want to live in Spain permanently you will firstly need to apply for a visa from the Spanish consulate while you are still living in the UK.
To apply for a visa you don't need to have a rental agreement or a padron but will need to meet the income and healthcare requirements. Have a police background check and supply other documents as required.
The income requirements at present are around €28,000 per annum and you will need full private healthcare paid for a full year.
It does not make any difference to your visa application if your NIE was issued before the withdrawal agreement.
Steve
Mitch wrote on Wed Jan 5, 2022 10:59am:
Hello and thanks.
There is no deliberate avoidance of tax.
Read more...
I stated "IF"
Reasons being i plan to relocate in the future. I have NIE which was given prior to the withdrawal. I simply need a tenancy agreement etc to get on the Padron. We can easily produce a tenancy agreement for a peppercorn rent. I assume i will need that, the deeds to show they own it, utility bill in my name, passport NIE and I can get the Padron. I just don't want to create a difficult situation for them.
They dont have Spanish residency despite owning for over 10 years now. They are elderly and never likely to spend more than 90 days in Spain.
I believe obtaining listing on the Padron will be a first step for me to obtain residency of which i am yet to decide up on whether NLV entrepreneur or golden. Not even sure if i can do the Padron electronically. Benejuzar is the town where I will be.
Yes there was a dec 31st deadline. I missed all that.
Thanks again for your comments
It's a shame that you missed the December 2020 deadline, if you had a padron & healthcare dated prior to that you could probably still apply under WA terms.
As others have mentioned your only route now is via the Spanish consulate in the UK. See http://www.exteriores.gob.es/Consulados/LONDRES/en/Consulado/Pages/Visas.aspx the various visas and requirements are at the bottom of the page.
There are consulates in London, Manchester and Edinburgh, you need to apply to your nearest one.
good luck
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