WORK PERMITS & US CITIZENS
I am an American, and I have a job offer from a
Spanish Co, what do I have to do to obtain a work
permit? If there is any advantage by having
studied the last 2 years in spain.?
You have to contact one of the following entities, (depending where you are
in Spain, but whatever the case, they are in the province's capital city):
-Dirección provincial de Trabajo, Seguridad social y de Asuntos sociales.
-Oficina de Extranjeros.
There you will be informed about the papers needed for your particular
situation.
Regarding your two years of stay in Spain, my opinion is that it may work
in your favor. Nevertheless the law refers to a term of five years of
previous stay, when it talks about preferencial factors for obtaining a
work permit.
Finally, you have to bear in mind that the legal system considers that to
have a paid job and at the same time being a student is an exceptional
situation. This means that one has to prove that the job is incidental, not
necessary for one's living and that it doesn't take time away from
attending the classes and studying.
BANKRUPTCY & SPANISH RESIDENCY
I am a US citizen who will be filing bankruptcy next month. I would
like to relocate to Spain within a year. My question is, will the
Spanish government allow me to live and to work in Spain even though I
have filed bankruptcy in the United States? I would like to live in
Spain for 2-5 years. Would the Spanish government be more likely to
approve my request if I became a Spanish citizen or should I retain my
US citizenship?
With regards to your question of bankruptcy and your relocation to Spain,
the only thing I can say is that this would not be a reason in itself for
the authorities not to grant you Spanish residency. However, there are
some requirements that determine their final decision and which may or may
not limit your possibilities of residency (and one could not obtain a
Spanish citizenship without prior legal residency). Some of these
requirements are:
- Proof of means of support for the period of time you wish to stay
in Spain (such as work contract, bank account, etc.).
- Clean criminal record.
- Residency Visa (obtained at the Spanish consulate or embassy in the
U.S.)
PROPERTY JOINT OWNERSHIP
Myself and my business partner are in the process of purchasing
property in Spain and would appreciate your comments on the legal
implications of ownership under Spanish Law.
The property is to be purchased in joint names and will be used by
ourselves and our respective partners and families.
As business partners all our joint assets are willed to each other
in the event of the death of either partner so as to prevent the business
being possibly dismembered by either family side. Other provisions have been
made to provide for remaining relatives.
Although this purchase is not to be classed as a business asset, because the
purchase is by a 50/50 cost basis we wish the asset in the forseeable future
to remain intact and operative as status quo even after the death of either
party.
1) Is it possible to have joint ownership of non related partners?
2) If so and both parties are named in the primary contract and the
escritura are there any further measures that require attention such as a
will made in Spain etc. or is it sufficient for the existing will made in UK
which dispurses named assets to have full effect?
3) If this is not the case can you suggest any way that our wishes
can be safeguarded whereby on the death of either party the property remains
vested safely and wholly in the other partner.
4) My business partner has a common law wife. In England this
situation is accepted in law for all transactions except inheritace tax, can
you enlighten us with the Spanish law on common law wives with respect of
inheritance of property , particularly if at a later date our current
intentions change or/and if, on the demise of the last surviving partner
this property may be required to be left to her if their marital status
remains unchanged.
1) Yes, there is the possibility of having joint ownership in cases of non
related parties.
2), 3), 4) The English last will and testament would be contemplated here
and its dispositions would be the ones that apply. Generally speaking
though, it is advisable to make additional wills in Spain, regarding
Spanish assets, since that would normally expedite matters and avoid some
complications, due to the otherwise need for translations, legalisations,
interpretations, etc..
According to Spanish Legislation, the law to be applied in an inheritance
situation is the Law of the country of the deceased person, at the time of
his or her death, regardless of the nature of the assets and the country
where they may be located. The Spanish Law would only apply in what refers
to formal matters. This means also that a will, made in front of a Spanish
Notary, may include whatever clauses the Law of the country of the grantor
of such will allows, even when the Spanish inheritance Law may differ.
TEMPORARY ABSENCE AND INCOME TAX
My question is...Assuming I am a resident of Spain i.e. Canary Islands
If one leaves Spain before the 183 day limit (say in 5 months or 150
days) and spends a few days in a non ECC country.
a.) Can a person return to Spain for another 150 days and
repeat the process?
b.) Would I be subject to any tax as a resident?
The Spanish taxation law states that even if there is a *temporary* absence
from Spanish territory, unless you are able to prove that you are a
permanent resident of another Country for a period longer than 183 days per
year, your absense from Spanish territory would still be reputed as time of
permancence in Spain.
For temporary absence one should understand incidental departures such as
the one you refer to.
Therefore, you would be subject to tax in what refers to any income you may
obtain in any part of the world, with the exception of cases where possible
double taxation Treaties apply.
US STUDENT WORKING/STUDYING IN SPAIN
I have been told that my US school would assist me in getting a Spanish work
permit but I have also been told that you need an written offer of
work. Also, how easy is it to find work? And does the American
consulate grant long term visas for study purposes? How difficult is
it to just want to stay and live in spain?
The Permission and all paperwork to enable you to stay in Spain as a
student is substantially different from the one that enables you to stay
as a worker.
If your aim is to initially reside here for study purposes, as it seems
from your message, the first advice is to get in touch with the nearest
Spanish Embassy or Consulate in your Country to obtain the corresponding
visa. Once you are in Spain you will have to obtain the Student Card from
the Interior and Justice central Department (in Madrid, or through one of
its regional delegations), that will enable you to stay for a given period
for the purposes of studying. When you ask for that card, basically you
will have to provide documental evidence that you have been accepted as
student (or in its case, as an investigator) by a Spanish academic center,
and that you have sources of income enough to live in this Country.
Finally, if you are a minor (in Spain, legal age is 18), you would also
need a written authorization from your parents.
Nevertheless, I have heard that there are certain U.S. universities that
have programs in Spain. Should this be a possibility for your
particular case, it would be wise to check with such universities, since they
may be able to get the required paperwork for you.
Now, being a Student and at the same time having a paid job (with a work
permit), is a situation considered exceptional, and to obtain such a
permit you have to prove that your activities will be compatible with your
studies and that the income received from that work is not fundamentally
necessary for your own living and permanence in Spain. The work contract
(of which the authorities would normally ask you for an advance copy) would have to be
for part time work only, or if it is full time, then its expiration time
would have to be for less than 3 months and for a period not coinciding with
your academic course.
Finally, I am afraid I am not able to respond to your question of how
difficult is it to find work in Spain, since it would depend on many
factors the analysis of which exceeds the purposes of this section.
t o p
TAXING PENSIONERS
I plan to retire in Spain. What is the tax situation for concerning pensioners?
The tax rate for pensioners who reside in Spain in the normal rate of any
other resident. Of course there are International agreements with most of
the Countries to prevent double taxation, if that is the case. This are the
rates that applied to last year's individual Income tax declaration:
Tax Base Tax Rate band Rate applied to next band
415.000 000.000 620.000 20
1.035.000 124.000 590.000 22
1.625.000 253.800 590.000 24.5
2.215.000 398.350 590.000 27
2.805.000 557.650 590.000 30
3.395.000 734.650 590.000 32
3.985.000 923.450 590.000 34
4.575.000 1.124.050 590.000 36
5.165.000 1.335.450 590.000 38
5.755.000 1.560.650 590.000 40
6.345.000 1.796.650 590.000 42.5
6.935.000 2.047.400 590.000 45
7.525.000 2.312.900 590.000 47
8.115.000 2.590.200 590.000 49
8.705.000 2.879.300 590.000 51
9.295.000 3.180.200 590.000 53.5
9.885.000 3.495.850 Excess 56
US CITIZENS PROPERTY PURCHASE
As a "retirement" plan, my wife and I are considering two alternatives
and would appreciate your advice on the legal implications of each:
1. Purchase water-front/water-view residence and reside in Spain for
up to half the year. Questions are:
a. As Americans, what restrictions apply on ownership of land
generally; of waterfront land in particular? (Barcelona area)
b. Are there residency restrictions?
c. If we will live on investment income, what will be tax
rate on income if we live there more than 183 days?
d. Is there a tax treaty with US to offset our spanish taxes?
2. Purchase a waterfront villa of 10-15 bedrooms and convert it into a
tourist residence. Questions are:
a. Is there any prohibition of non-citizens running such a
business?
-- b. How is income taxed?
1.a) If your investment is not going to be in any specially restricted military
area (normally far away from tourist areas), there are no restrictions in force
for a non resident to purchase real estate properties, in general or related to
waterfront land.
1.b) There are no residency restrictions, and you can get your residency as any
non EEC resident. Basically the paperwork involves proof that you have no
criminal records or antecedents in your Country, and that your income is/will be
high enough to live here.
1.c) Living in Spain for more than 183 days per year makes you a resident in
what refers to taxes. Therefore you would be subject to the Spanish tax system,
involving any income you may obtain in any Country of the world. The tax rate
is not a fixed one, and it works on different scales depending on the level of
income. To give you an idea, for 1997 and for individuals, it starts at 17%
for a tax base of up to 442.000 pts/year, and ends on a 47,60% for an income of
10.488.000 pts/year or higher.
1.d) Yes, there is such a double taxation Treaty between US and Spain, dated
February 22, 1990.
2.a) There are no prohibitions for non-citizens in what refers to running a
tourist residence business.
2.b) The income from that business will be taxed in Spain, but you obviously
will also benefit from the general tax base calculation system in what refers to
deduction of expenses, etc. The fixed tax rate for non residents with a
permanent establishment is 25%.
t o p
OFFSHORE BANKING
I wonder if you could help me on a question I have regarding Offshore
Banking.
I have just bought a property in Spain which I have paid for. I now need to
transfer money from a bank account in the U.K. to Spain for which I will
live on and eventually purchase a Cafe Bar.
People are telling me to transfer the money into an Offshore Account in
Gibraltor.
I have a couple of questions.
1. If I do this will my money be stored in English pounds or be transferred
to Ptas?
2. Everytime I withdraw money from the Gibraltor account am I charged for
conversion to Ptas?
3. Why is it best to go for an offshore account rather than a normal
Spanish account i.e. SOLBANK?
Am I better off transfering my money to an offshore account and if so will
this cause me any problems.
1. If you deposit your money in a Gibraltar Bank, the currency is normally kept
in Pounds. Nevertheless it may happen that they also give you a Pesetas account.
My
advice here is to directly negotiate with the local bank.
2. Whenever you may want to pay pesetas (on the other side of the border) you
would obviously have to change the necessary Pounds for it, and commissions
would be applicable.
3. The answer to that question exceeds this section's limits, because there are
many factors that may affect your decision. That being told, in general cases,
there is the possibility to have a non-resident account (Pounds, pesetas) on a
Spanish Bank which is non taxable in Spain. Obviously, should the owner of that
account operate in Spain (business, etc.), the funds will certainly be affected
to possible liabilities in a more direct way.
Additionally, it may help you to know that any amount of cash (or non-nominative
cheks) exceeding 1.000.000 pts. per person, has to be declared prior its
introduction/removal in/from Spain.
t o p
The Spanish Property Legal Forum is hosted by Alberto Mondine and Emilio Pino of Alberto Mondine Abogados, Marbella, Spain. If you would like a question answered by our legal experts on property purchase in Spain please email tuSPAIN.COM, all questions will be published anonymously. We regret that tuSPAIN is unable to reply to letters personally. Please note that this forum is not a substitute for individual professional advice, we suggest you contact Alberto Mondine Abogados for personal counsel. tuSPAIN cannot accept any responsibility for any loss or damage suffered by readers.
