Bank Account and Proof of Address for Residency

Good luck with proof of finances if you end up applying for residency after the end of the Brexit transition period!

Be aware that you need private health insurance.

I can't help with your first question, but re the second you would have to, with your parents' permission, register on the padrón.

If you've sold your house in 2020, make sure you don't move here before July this year, or else you'll be liable for capital gains tax in Spain.

Why is it impossible to get residency before the end of the year? You can apply as soon as you are resident here.

The following is in serious need of revision, but all the theory is still valid:

https://www.costablancaforum.com/area/almorad%C3%AD-spain-11/residency-in-almorad%C3%AD-padron-residencia-passport-advice-23/jims-guide-the-residency-certificate-43535/

Hi Jim

Many thanks for your reply.

I will bear that in mind about not moving before July and thanks for the reminder about the pardon - I had forgot about that!

The reason I think we may have trouble getting residency before the end of the year is more to do with bank accounts. I have read somewhere that you need to show three months worth of Spanish bank statements - either savings or a regular income from say a pension. We haven't opened a Spanish bank account yet so will need to do that when we first arrive in Spain, and then get three months' worth of statements.

Again, many thanks for the advice.

Stay safe

Leigh Ann

Hi Leigh Ann

Banco Sabadell are part of the TSB group. When I opened my account at Sabadell I was able to take some paperwork that was needed, into my local TSB and they authenticated it and forwarded the information onto Sabadell. This was a couple of years ago but if you contact your nearest TSB, they may be able to assist.

Hope this helps

Neil

Hi There,

We will be in this situation as we are waiting for the Spanish ferries to start again so we can move

to our house in Murcia.

This remark below, is there any official documentation for this rule?

"If you've sold your house in 2020, make sure you don't move here before July this year, or else you'll be liable for capital gains tax in Spain."

How do they check this?

Any info appreciated!

Regards,

Elmer.

If you want official documentation, read the Double Taxation Treaty:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/507409/spain-dtc_-_in_force.pdf

They can if they wish check your personal data on the HMRC website, and also your banking data, which is included in the exchange of financial information between different countries.

You may get away with not declaring, but you'd be looking over your shoulder for four or five years before knowing that you were free of enforcement action.

Hi Jim,

The sale fell under the limit here for CGT, it being below 300K. So we were not liable in the UK. As we can't get double taxed

this should be good enough right?

We definitely want to stay on the right side of the tax man but don't want to pay twice...

Is there anything that I can take from the HMRC that proves to the Spanish tax man that we paid the taxes?

 Cheerio, Elmer.

Thanks for the doc...

I don't fully understand what you're saying, but if you sold the UK property in 2020, and become resident here before July, then you will be a fiscal resident in Spain for all of 2020.

Spain are entitled to CGT on a property sale, irrespective of where that property is located. There are some exemptions on the sale of a property in Spain, but these generally don't apply if the property is in the UK.

One exemption that might be applicable is if you sell a UK property and move to Spain in the first half of the year, using all the proceeds of the UK sale to buy a property here. That means that you will be fiscally resident in Spain for the year of sale and purchase, but what is called the 'main home exemption' means that the transaction is free from CGT in Spain. This exemption is only available until the end of the Brexit transition period.

It is also possible that if you are 65 or older, and have lived in the UK property for at least three years then, even if you don't buy a property here, you may qualify for exemption from CGT in Spain.

It's a complicated subject, and I suggest that anyone concerned about whether or not Spanish CGT will be applicable to them should consult a specialist adviser here.

Unlike the UK, which has specific tax rates for CGT, CGT in Spain is treated as savings related income, and taxed at the applicable rates for that.

Hello Leigh Ann,

About your first question, do you have an NIE number?

If you have it, ING is online baking they have good account options.  https://ingwb.es/en/home

About the proof of address, you can register in the Padron using your parent house. They just need to sign you an authorization, and you can be registered. 

You must do it as soon as you come to Spain.

If you have more questions about the residency porcess, please let me know.