10 most common questions living in Spain

Last Post Update: 16/08/2018

Are you a new expat in Spain? Are you thinking of living in Spain? Are you an experienced expat living in Spain but still have some questions?

Then you cannot miss any of these important questions living in Spain!

1. Do I have to be a permanent resident?
2. Can I drive my vehicle in Spain?
3. Can I drive my current driving licence in Spain?
4. Will I still be covered by my national insurance or EU Health Insurance Card?
5. Do I have to do my income tax declaration in Spain?
6. If I work in Spain, will I loose the period I was working in my country?
7. Will I encounter any problems renting a property in Spain (as a foreigner)?
8. How much money I need to live in Spain?
9. What is Padron or Empadronamiento? Do I have to do it?
10. Is there any Non-Resident Alien Estate tax or similar in Spain?

1. Do I have to be a permanent resident?

Yes and no. This post deals with people living in Spain or thinking about staying in Spain for a long period, so we consider you are living in Spain for more than 3 months.

Why YES? The Spanish law forces EU foreigners to get Registered as an EU citizen (“Registro de ciudadano de la UE) in Spain if they are staying in Spain for more than 3 months. This registration is commonly known as “RESIDENCIA” or just “NIE” by most of expatriates.

Why NOT? Actually there is no control of this situation in Spain. In fact, we have not known any case that an expatriate has been fined by the police because they did not get registered on time (as an EU citizen). If you do, please leave a comment below!

You can read our post about how become a permanent resident in Spain.

2. Can I drive my vehicle in Spain?

Once again, yes and no. But please, notice: many expats has been fined with 300€ driving a foreign car because they were residents but did not change their driving licence. Currently, police is stopping vechicles with foreign registration plates to check if owners are already residents (and yes, they will even know that just checking your passport number).

YES, once you have got registered as an EU resident in Spain (you got your green NIE). And seek to change your plates as soon as possible once you have got your residencia, you will avoid some taxes!

NO, if you did not get registered as an EU citizen living in Spain or you just got a temporary NIE (white NIE document).

You can read our post named You are forced to change the car plate in Spain.

3. Can I drive my current driving licence in Spain?

Apologies but… yes and no!

YES, for the 2 following cases:

A) You are a non-EU citizen.

B) Your driving licence is expired or will be expired soon.

C) You got a permanent driving licence (without any expiration date). Then the Spanish law forced you to exchange your driving licence.

If that is your case, we highly recommend you to read our post called exchange your driving licence in Spain.

NO, the rest of cases.

4. Will I still be covered by my national insurance or European Health Insurance Card?

NO, you will not. That is why the European Health Insurance Card is valid for some months, because it is just for temporary stays abroad. Once you have becomed a permanent resident abroad, that card is not useful anymore.

In fact, in order to become a resident (EU registration / NIE), you need to be covered by a health insurance in Spain, so you have 3 options:

A) Private and full health insurance (without any kind of copays “copagos”)

B) Seguridad Social (you, your partner or your parents are working in Spain)

C) You are a pensionist and your country covers you living abroad (most of EU countries do it)

5. Do I have to do my income tax declaration in Spain?

NO, you don’t. This is up to you. You can choose where you would like to do your income tax declaration: rather in your country or in Spain. At any event, you will not pay the same tax twice.

6. If I work in Spain, will I loose the period I was working in my country?

NO, you will not. Most of EU countries have an agreement with Spain to share pensions. Therefore, if you have been working in Denmark for 30 years, and you have been working in Spain for the last 20 years, the Spanish Seguridad Social will provide you a pension of 50 years, in collaboration with Denmark.

7. Will I encounter any problems renting a property in Spain (as a foreigner)?

Unfortunately YES you will, especially if you are a self-employed or just have a commercial agreement with a third company (this is a very typical situation between young Scandinavian expatriates living in Spain, for instance).

And the reason is simple: the Spanish law, which is so unfair for landlords they are afraid of renting their properties. So they need enough guarantees to avoid any unfair situation with tenants. In fact, if you do not pay the rent as a tenant, they may spend up to one year to though you out if they do not have neither a Spanish payroll nor a Spanish pension to seize from you.

Therefore, you may need some savings to use them as a guarantee of payment (upfront or endorsement). Actually Spanish self-employed people have the same issue, not only expatriates.

You can read our post about Top 10 unfair terms on rental in Spain.

8. How much money I need to live in Spain?

This is a VIQ (Very Important Question) or a very Frecquent Asked Question as well as a very difficult one. However, we must distinguish between two different aspects:

A) Legally: in order to become a permanent resident in Spain, the SMI (minimum inter-professional salary) plays an important role here. Currently, the SMI is 735,90€ per month (16/08/2018), so you are supposed to have enough montly incomes to fulfill 367.95€ per month or 4415€ in a bank account. Besides, you will need to add 367.95€ (16/08/2018) for each person under your maintenance.

B) Reality: it is difficult to find an long-term rental in Spain under 500€ nowadays in addition with the requirements listed above. Besides, it is also difficult to get a permanent work contract in Spain now. Nevertheless, we can establish an approximation as follows:

For 1 person: 700€ / month

For 2 people: 900€ / month

For 3 people: 1100€ / month

For 4 people: 1300€ / month

For 5 people: 1500€ / month

9. What is Padron or Empadronamiento? Do I have to do it?

From the 28th March 2007, Royal Decree 240/07 requires that all EU citizens planning to reside in Spain for more than 3 months should register in person at the Oficina de Extranjeros in their province of residence or at the designated Police stations. You will be issued an A4 printed Residence Certificate stating your name, address, nationality, NIE number (Número de Identificación Extranjeros) and date of registration.

So the answer once again is yes and no. However, we highly recommend you to do it due to several benefits you will get.

WHY YES, because it will help you to achieve many deals. Here are some cases:

• You want to become a permanent resident.
• You need to prove you have been living in Spain for some years (because you want to get a resident permit, for instance) the Padron will help you.
• You want to pay less taxes and fees. In fact, the higher number of people registered in a house, the lower water fees you pay. This is something many people don’t know.
• You would like to vote.
• You need to receive important notifications on your current location.

WHY NOT, because it is supposed to be mandatory, but it is not.

By the way, did you know that even illegal immigrants can be registered in Padron? And they do it, in order to get the Spanish citizenship after many years.

You can read our post about the Registration in Spain or Empadronamiento.

10. Is there any Non-Resident Alien Estate tax or similar in Spain?

NO, there is not. Many expatriates think that some wealth and property taxes are actually a foreign tax or something similar. Nevertheless, nothing could be more untrue.

This kind of taxes are just the only one way the Spanish government has to charge you when you own a real estate in Spain. So rather than foreign taxes, they are property or wealth taxes.

I hope it helps! Please do not forget to share this post if you liked it or comment below if you have any questions / suggestions

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