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How to register in Spain and which are the fiscal consequences

All people who reside in Spain have the obligation to register in the municipality where they live.
Here is how to do it, what benefits it has, and what it means for tax purposes for a foreigner to register on Spain.

What is the registration of residency and what is for.

The municipal census is the administrative register that collects all inhabitants that reside in that municipality. Registration means getting an accreditation to confirm that you live there.
This is a process necessary to carry out various procedures, some as important as the following:

  • Request regulation or residence and work permissions.
  • Request health care card.
  • To exchange the driving license.
  • Register the children to school.
  • Access to social benefits.
  • Get the final papers.

Requirements and documentation needed to register in Spain

You must go to the office of the City Council (Ayuntamiento) that corresponds to you to register. The required documentation is the following, so better be prepared to avoid giving more trips than necessary:

  • Individual or collective registration filling.
  • Original passport and photocopy.
  • Signed rental agreement and photocopy or signed authorization of the owner of the apartment.
  • If you have children: passports, family book and its photocopies.

If you are undocumented, that is, you are not in Spain in a regular situation, there is no problem. The city council does not review the legality of persons residing in Spanish territory, only register them in the census.

What tax effects does it means to be registered in Spain?

Registration means that, for civil effects, the person becomes a resident in Spain since it has here its effective residence. In this way, he declares before the Spanish Administration that his habitual residence becomes to be in the Spanish Territory, a fact that carries tax effects.
Personal Income Tax (IRPF) is the personal, progressive and direct tax that taxes the income earned during a natural year by individuals resident in Spain. In particular, it taxes all of its global income, profits and losses and income imputations. However, remember that there are certain exceptions that allow you to be exempt from the obligation of making the Personal Income Tax filling.
If, in your case, you are not resident in Spain but for different reasons you have decided to register, you must take into account the effects of such registration. It is necessary to monitor when registering because, although you do not really reside in Spanish territory, your registration can be used as an evidence by the Spanish Tax Administration to justify and demonstrate that you have to tax in Spain as resident, because the fact to be registered here supposes that you have your effective residence in Spanish territory.
If you need advice for any type of tax procedure, as well as help in managing the tax return, contact GM Tax. We take care of solving any type of doubt or problem, always with total professionalism and proximity.

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