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(1) What are my legal responsibilities once
I buy a property in Spain?
Basically once youve purchased your property and paid all
the relevant fees associated with the actual purchase transaction
i.e. notary, registrar, solicitor etc, then as a non resident its
fairly simple.
The first thing you need to apply for is a N.I.E. number (if youve
not already done so prior to completion).
This is a fiscal identification number and is required when you
pay taxes or have any dealings with the Hacienda, the Spanish Inland
Revenue.
In a way, its unique like our passport number or national
insurance number that we have in the United Kingdom.
If you decide to become a resident in Spain, you still need a N.I.E.
(2) What else is there apart from the N.I.E.
application?
As a non resident property owner there are several very simple returns
that you have to make on an annual basis relating to your assets
in Spain.
If you are resident and depending upon your personal circumstances
(working, pensioner) returns have to be made and vary from person
to person. Working people submit returns dependant upon their circumstances
whether employed, self-employed etc. We recommend you use professional
services of a lawyer ~ in order to give you complete peace of mind
irrespective of whether you are resident or non-resident.
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(3) What is the medical cover like in Spain?
Excellent in simple terms.
As a non resident you will visit your property maybe several times
a year and normally you have some form of travel insurance or bring
with you an E1 11 form from the DHSS in the U.K. which covers you
for emergency medical treatment during your temporary visit.
Over the years people have tended to use E1 11s as almost
a health insurance whilst actually living here
a loophole
which the authorities are quickly eliminating as more and more pressure
and workload is put onto the medical authorities from illegal
claimants/patients. The rule is if you live and work here then you
must pay social insurance in order to qualify you for legal medical
treatment for you and your family.
As a resident paying social insurance you can enroll in the state
system which covers you for routine health visits and emergency
treatment. The local health clinics and hospitals are very modern
and helpful.
(4) What are the capital gains tax liabilities
upon sale of my property?
As in the U.K. you pay capital gains tax which is a flat 35%
for non residents and 20% for residents. Likewise there are exemptions
and allowances and they are treated on an individual basis.
(5) What about inheritance tax?
This is subject to more than one law as in the case of the U.K.
However there are options available whereby future liabilities can
be efficiently minimised using professional advice
provided
to our clients free of charge.
(6) Do we have to make a Spanish will?
Although it is not compulsory, we recommend that anybody owning
property in Spain should make a Spanish will specifically related
to their Spanish assets. This is a relatively simple matter
to do which any solicitor can advise you on.
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