Living in Spain is exciting. The weather, golf, beaches, nature and the food and the people. And since 1986 part of the EU. Spain has come a long way bureaucratically but still is not at the same level as back home in the UK.
Many have had poor advice over the years:
- Should I declare rental income?
- Can I drive a car with Spanish number plates?
- NIE / NIF / residency card?
- Do I need to change my driving license?
- What do I do as a Non – Resident?
- What about my property?
Brexit has had consequences, that we all knew. Schengen was never an issue for the UK, so surely that has not changed?…. or has it? Well, the short answer is yes it has.
Schengen is a 35 year old agreement between a number of countries. Many countries are European but not part of the EU such as Switzerland, Iceland and Norway. On the other hand, Ireland, Croatia and Romania are all part of the EU but they are not in Schengen. UK and EU with Gibraltar are currently discussing how the Rock will fit. However, back to you and your life in Spain.
Of course, some readers were already forced in 2020 to become resident in Spain and pay Spanish taxes due to COVID restrictions, not leaving Spain and ended up spending more than 183 days here. The deadline for submitting the 2020 return is June 30th but another declaration may also be required before 31st March – the Modelo 720 or declaration of overseas assets. This is required for assets held overseas by a Spanish resident if the value is more than €50k.
Imminently another deadline is looming. The 90 days Schengen rule. If you are not a Spanish resident with the relevant documentation, then you are not able to stay in the Schengen area. For British expats this rule came into force on 1st January 2021 and therefore the first deadline is 31st March 2021, which is the first 90 day period in 2021. The rule is spending maximum of 90 days within every 180 days. Spain, as a Schengen country has to abide by this rule and the consequences for non-compliance can be harsh – fines or a ban to the area completely.
If you’re confused about TIE, EX20, EX23, Visa or fines etc. contact us at Knightsbridge / Sterling Rees and we will do our best to help you to get your ducks in a row!