EB-5: PERMANENT RESIDENCE PERMIT IN THE USA

What is the EB-5 Green Card in the USA?

It is a special processing modality of Green Card (permanent residence permit in the USA) for those foreign applicants whose intention is to invest in «a new company»

Who can apply for this type of permanent residence in the USA. And what are the requirements to meet?

In order to apply for a Green Card under EB-5 processing, the following subjective and objective requirements should be taken into account:

  • As for the profile of the applicants, it will be that of a foreign investor and their dependents. Including in this sense spouses and unmarried children under 21 years of age. It is important to highlight that it is not an essential requirement that the applicant has previously obtained a visa in the USA.
  • As essential objective requirements to be able to apply for the Green Card EB-5, are:
    • Make an investment in a commercial “new company” in the USA. The amounts for investments today are:
      • Private company at USD 1,050,000
      • Areas considered highly complex and rural areas USD 800,000

Investments by foreign applicants made in bank funds or for the acquisition of real estate will not be taken into account.

  • Plan to create or retain a minimum of 10 permanent, full-time jobs for qualified American workers. Thus accrediting the creation of employment, directly or indirectly, depending on the type of «new company» and the corresponding investment.

 

How can we help you from Feliu N&I?

At Feliu N&I we offer advice and support: full legal, tax and labor throughout the process of processing and obtaining the EB-5 permanent residence permit in the USA, hand in hand with our local collaborators.

Our professionals will help you plan your strategy and analysis of investment possibilities and different applications of the «new company» concept in the USA. All this, within the legal framework and criteria of the competent US authority.

Also, after obtaining your permission, if you need our advice later, Feliu N&I has Relocation services and international tax advice at your disposal, to make both your business and personal project come true in the U.S.A.

If you have any questions, contact us and we will contact you as soon as possible.

CAN YOU CLAIM UNEMPLOYMENT BENEFITS IF YOU WORK IN THE UNITED KINGDOM AND WANT TO RETURN TO SPAIN?

One of the measures that Spain has adopted to facilitate the return of nationals living abroad is the possibility that they can access the same benefits recognized to nationals living in Spain, within a framework of equal rights, recognizing the right to compute in Spain the years contributed in another country.

In order to be able to access the different benefits provided by the Law, such as retirement, disability or unemployment. As regards the latter, it will be sufficient to accredit, together with other requirements, the return to Spain from another country, since this situation in itself is part of the legal causes of unemployment required by the Law.

REQUIREMENTS:

In particular, the Spanish citizen once returned to Spain from the United Kingdom and in the case of not finding an employment activity, may apply for unemployment benefits, provided that he/she meets certain requirements required by Law:

  • To have Spanish nationality;
  • Be in a legal situation of unemployment (for example: dismissal, termination of contract, cessation or simply return from abroad);
  • Be registered as a job seeker, remain registered while receiving the benefit, be available to actively seek employment, comply with the activity commitment;
  • Have paid contributions in Spain for a minimum period of 360 days within the six years prior to the date of emigration, and that these contributions have not been taken into account to access a previous benefit.
  • Not to be receiving another similar benefit in another country;
  • Not to have reached the ordinary age required in each case to access the retirement benefit, unless it is not possible to access it because the required contribution period has not been reached
DURATION AND AMOUNT:

The duration depends on the contributions made within the 6 years prior to the date of emigration, provided that they were not taken into account for a previous benefit.

Table

The daily amount of the unemployment benefit during the first six months is 70% of the regulatory base (calculated according to the occupational contingency bases of the last 180 days of contributions, except for overtime), and 50% from day 181 until the end of the benefit.

WHEN AND WHERE TO PROCESS IT:

It is important to take into account that the registration as a job seeker in the corresponding employment office by domicile, within fifteen working days following the date of return from abroad (it is advisable to provide the return ticket or other document that justifies it).

WHAT CAN WE DO FOR YOU?

If you have any doubts about this, you can contact us and our team specialized in internationalization will advise you and give you more information about applying for unemployment benefits if you have worked in the UK and want to return to Spain..

NEW REQUIREMENTS AND CONDITIONS FOR ENTERING SPAIN DUE TO COVID-19

On Saturday, May 21, 2022, Order INT/452/2022, of May 20, 2022, was published in the BOE, amending Order INT/657/2020, of July 17, 2022.

As of May 21, 2022, all foreigners will be able to enter Spain, regardless of the reason for their trip, if they are in possession of one of the following three certificates:

 1. Under 12 years of age, they do not need anything.

     2. Over 12 years of age, they will need:

  • VACCINATION CERTIFICATE. Certificates issued by the competent authorities of the country of origin will be accepted from 14 days after the date of administration of the last dose of the complete vaccination regimen, provided that no more than 270 days have elapsed since the date of administration of the last dose of the complete vaccination regimen. The certificate of vaccination with the complete vaccination schedule for minors under 18 years of age does not have an expiration date.

 

  • CERTIFICATE OF DIAGNOSIS. Those with negative results will be accepted, whose sample collection has been obtained within 72 hours prior to departure to Spain in the case of nucleic acid amplification tests or within 24 hours prior to departure to Spain in the case of rapid antigen tests.

 

  • CERTIFICATE OF RECOVERY. Recovery certificates issued by the competent authority or by a medical service at least 11 days after the first positive NAAT or rapid test will be accepted as valid. The certificate shall be valid for 180 days after the date of the first positive result.

 

In addition to any of the aforementioned certificates, those travelers who do not have a European Union COVID Digital Certificate or equivalent must complete a health control form prior to departure.

 

If you have any doubts about this, you can contact us and our team specialized in internationalization will advise you and give you more information about the entry restrictions to Spain.

 

 

DUAL NATIONALITY: SPANISH AND FRENCH NATIONALS MAY ACQUIRE DUAL NATIONALITY

On March 29, 2022, the Nationality Agreement between the Kingdom of Spain and the French Republic was published in the Official State Gazette (BOE). It entered into force on April 1, 2022, and will be fully effective in both legal systems.

  1.To whom does the present Nationality Agreement between the Kingdom of Spain and the French Republic apply?

Spanish citizens residing in France and French citizens residing in Spain may acquire the nationality of the country in question without renouncing their citizenship of origin. It should be borne in mind that Art.3 of the aforementioned Agreement reflects its retroactive effects, stipulating that those citizens who have had to renounce their nationality of origin automatically -before the validity of the present Agreement- may avail themselves of their right to recover their nationality of origin from the moment they request it.

 

   2.Will the Hispanic authorities demand requirements different from those ordinarily contemplated for the acquisition of Spanish nationality by residence?

In spite of the exceptionality and great progress of the Kingdom of Spain, with the present Agreement of nationality with the French Republic, it does not mean that the procedure of acquisition of the Spanish nationality is modified or made more flexible as far as its requirements are concerned.

In relation to the above, French citizens residing in Spain must prove a legal, continuous and immediate residence, prior to the application, for a period of not less than 10 years in Spanish territory; among other additional requirements. Likewise, the good civic conduct of the applicant and his or her degree of integration in Spanish society must be justified, as indicated in the Spanish Civil Code.

 

  3.What type of recovery procedure should Spanish citizens residing in France who have had to renounce their nationality of origin follow?

By virtue of the Instruction of March 31, 2022, of the General Directorate of Legal Security and Public Faith, by which the criteria for the application of the nationality agreement between the Kingdom of Spain and the French Republic are agreed upon (hereinafter, Instruction of 31/03/2022); Spaniards whose nationality of origin they have had to renounce due to acquiring French nationality must take into account the following:

  • The temporary requirement of residence in Spanish territory will not be mandatory.
  • A Declaration of the applicant must be carried out, before the Civil Registrar or before a Notary, in which it is put of relieving its will to recover the Spanish nationality.
  • Documentary proof of his previous condition as a Spanish national and of his current status as a French national.
  • Depending on the mechanism used to obtain the certificate of manifestations of the interested party, proof of the domicile of the latter in one or the other place.

 

As regards the authorities and/or bodies competent for the processing of the recovery of Spanish nationality, in accordance with the Instruction of 31/03/2022, it is worth bearing in mind the Instruction of 16 September 2021, of the Directorate General for Legal Security and Public Faith relating to the DICIREG computer application in the various Civil Registries, on the occasion of the present coexistence of application management procedures present in the competent offices.

 

   4.What do we offer you from Feliu N&I?

At Feliu N&I our immigration consultants will provide you with the necessary advice and support in your immigration procedures, under the confidentiality and agility restrictions that these procedures require.

If you need more information or advice on the subject in question, do not hesitate to contact us and our team specialized in internationalization will advise you and give you more information about the new law of dual nationality between Spain and France.

 

For more information on this new agreement, please click here from the BOE.

HOW TO APPLY FOR NON-PROFIT RESIDENCE IN SPAIN?

NON-PROFIT RESIDENCE: VISA FOR FOREIGNERS WISHING TO LIVE IN SPAIN WITHOUT PERFORMING ANY ECONOMIC ACTIVITY

For those non-community foreigners who have enough funds and are not going to engage in any economic activity in Spain, visa for non-profit residence is a great choice.

What is a non-profit residence visa?

The non-profit residence visa is a type of residence in Spain that non-European people can apply with the purpose of not carrying out any economic activity, but it does give permission to reside in the country.

This type of residence visa gives the applicant the opportunity to stay in Spain for 1 year since the first day of entry into Spanish territory, as it is considered an initial residence authorization.

Later, such residence authorization give the chance of sucessive renewal from 2 years periods, until reach the permanent or long-term residence.

Now that you know a bit more about non-profit residence, in this blog entry we will focus on explaining its main characteristics and the requierements for its application and how about obtaining it.

Who is the non-profit residency visa intended for?

As mentioned before, one of the most significant aspects about non-profit residence is that it does not allow you to work, sicne its nature is not-for-profit.

What benefits does non-profit residence provide?

Here we explain the main advantages of non-profit residency:

  • It is available for the whole family: all family members can obtain a non-profit residence visa with a join application

  • Allows to obtain long-term residence or citizenship, if the applicant wishes in a long term

  • Cannot work in the country, but you can invest in

  • Opens the door to the chance of studying and doing paid internships as long as it is for training purposes

  • Allows travelling around Schengen, considering that they must be non-profit and for a period of time not exceeding 90 days

What are the requirements for the application?

There are many requirements that must be in order to obtain non-profit residence to live in Spain.

Let’s review one by one:

  • Demonstrate that sufficient funds are available, since this residence permit does not allow the holder to work in Spain. It is enough to demonstrate that you can guarantee the payment of the stay and the return to the country of origin
    The amount is calculated as it is shown below:
    >Monthly support corresponding to 400% of the IPREM
    >For the support of each of dependent family members, 100% additional IPREM

  • Having full medical insurance coverage in Spain

  • Lack of criminal record, both in Spain and in the country of origin

  • Not to be in an irregular situation in the country of origin

  • Not being within the period of commitment not to return to Spain

  • Not being banned to entry in Schengen territory

Application procedure, documentation and waiting period

First of all, it must be taken into account that the application for a non-profit residence visa must be made from the country of origin or country from where the applicant is residing at the time of the application.

Afterwards, should prepare the necessary documents required by our immigration consultants for the application of your non-profit residence.

At last, keep in mind that the resolution period is 3 months.

If you would like more information on how to obtain a non-profit residence visa, our advisors specialised in internationalisation will be happy to analyse your situation in a personalised way so that you can finally travel without restrictions.

Do you want more information? CONTACT US via the application form

NEW STARTUPS LAW: SPAIN WILL OPEN ITS DOORS TO DIGITAL NOMADISM

SPAIN WILL OPEN ITS DOORS TO THE PROMOTION OF THE STARTUPS ECOSYSTEM

In order to attract talent and foreign investment to our country, to the new startups law, a set of immigration measures are incorporated to facilitate entry and residence.

The expansion of teleworking has given rise to a new way of working and lifestyle, known as digital nomadism. These people perform their work remotely with the possibility of changing their residence on a regular basis.

Spain will reflect this new lifestyle in the Stratups Law, which is expected to reflect the migration packages in the next law: Law 14/2013, of September 27, 2013, to facilitate immigration of economic interest to Spain.

In the next blog entry, we are going to focus on putting you in context and explaining the measures that this law will incorporate and the advantages it will have for Spain and for Digital Nomads.

Incorporation of a new visa: Digital Nomad Visa.

Until today, foreigners had a visa problem with regard to the remote work system, understood as teleworking.

It is true that, in most cases, foreigners do not come to our country to develop lucrative activities, but wish to continue working for the foreign company while enjoying a nomadic lifestyle.

Until now, the application for a non-profit residence permit was the most suitable option, but it has a drawback: the requested permit did not allow the person who obtained it to carry out any non-profit activity, even if it was for a foreign company.

From now on, anyone who wants to enjoy the spanish lifestyle and continue working for their foreign company will be able to do so by applying for the new «Digital Nomad» visa established

under the new Startups Law, which will allow those who are granted it to regularize their situation in Spain.

What are the benefits of the new residence/visa permit?

The purpose of establishing a new residence permit for Digital Nomads is based on achieving legal residence in Spain in a simpler and easier way.

This is a visa that will allow the person who obtains it to work remotely from Spain for 2 years, with the possibility of renewing it for 2 more years (and so on) as long as the applicant continues to meet the requirements established for obtaining it.

What are the requirements to apply for the new Digital Nomad visa?

Although the Startups law is still in the process of being published and the exact requirements that will come into force are still unknown, we can get an idea of what will be part of them:

  • Be a highly qualified professional with a university graduate or postgraduate degree, with professional training or business schools or with at least 3 years of professional experience
  • Prove that you are an international teleworker posted to Spain
  • Proof of employment and continuous activity for 1 year with a foreign company or group of companies
  • Proof that the work can be performed 100% remotely
  • Prove that the company allows teleworking without any problem
  • That the majority of the remuneration comes from foreign companies with a limit of 30% of proportional revenues from Spain
  • In case the worker is registered as «self-employed», i.e. self-employed, it is possible that he/she may be asked for which foreign company he/she works for by means of a commercial contract with a minimum of 3 years of seniority

Other benefits that the Startaps Act will bring us:

The new Startups Law also focuses a lot on the investment of the companies, but this, we will see in our next blog post!

If you would like more information on how to obtain your Digital Nomad visa, our advisors specialized in foreigners will be happy to analyze your situation in a personalized way in order to finally obtain the requested visa.

Do you want more information? CONTACT US through the application form

Expatriation and Impatriation Area
Author: Sheila Artigas, lawyer at Expatfeliu

RESIDENCE AUTHORIZATION FOR RESEARCHERS

THE RESIDENCE AUTHORIZATION FOR RESEARCHERS IS A PERMIT THAT CAN BE APPLIED FOR BY PRIVATE OR PUBLIC COMPANIES WISHING TO HIRE FOREIGNERS FROM OUTSIDE THE EUROPEAN UNION TO CARRY OUT TRAINING OR R&D&I ACTIVITIES IN SPAIN.

At the time of application, the foreigner may be abroad or in Spain legally. If the foreigner is abroad, once the company has obtained the residence authorization, he/she must apply for the corresponding visa at the Spanish Consulate.

Therefore, a foreign researcher whose only or main purpose in Spain is to carry out research projects, within the framework of a hosting agreement signed with a research organization, will be considered to have temporary residence and work for research purposes.

A research organization shall be understood to be any natural or legal person, public or private, with a main or secondary establishment in Spain, which carries out research and technological development activities and has been authorized to sign hosting agreements.

This type of temporary residence and work authorization enables foreigners residing outside Spain who have obtained the corresponding research visa to carry out a research project within the framework of a hosting agreement signed with a research organization that has been authorized for this purpose.

It will not be necessary to obtain a research visa in cases of exercise of the right to mobility by a foreign researcher after having commenced research in another Member State of the European Union. Therefore, any foreign researcher who has been admitted as such in a Member State of the European Union may continue, in Spain, the development of the initial research project there, for a period of up to three months.

What are the advantages of the residence permit for researchers?

The advantages of the residence permit for researchers are as follows:

  • Single authorisation to reside and work valid for the whole national territory, including family members if they meet the age foreseen in the labour regulations.
  • The National Employment Situation does not apply.
  • Freedom of movement within the Schengen states.
  • Fast processing: visas resolved and notified in 10 working days and residence authorisations resolved in 20 days, possibility of carrying out the procedures through a representative.
  • Joint processing for family members.
  • The application for the residence permit will extend the validity of the foreigner’s residence or stay in Spain until the procedure is resolved.
  • Procedure for residence authorisation centralised in the Large Companies and Strategic Groups Unit.

What are the requirements for the residence permit for researchers?

The requirements for obtaining the residence autorization for researchers are as follows:

  • Not to be in Spanish territory illegally.
  • Be over 18 years of age.
  • Not have a criminal record in Spain or in the countries where they have resided during the last five years, for offences under Spanish law.
  • Not to be refused entry in the territorial space of countries with which Spain has signed an agreement to this effect.
  • Have public insurance or private health insurance arranged with an insurance company authorised to operate in Spain.
  • Have sufficient financial resources for themselves and their family members during their period of residence in Spain.
  • Pay the fee for processing the authorisation or visa.
  • Private or public companies wishing to hire foreigners from outside the EU to carry out training or R&D&I activities in Spain may apply for a residence permit for researchers in the following cases:
  1. Research personnel referred to in Article 13 and the first additional provision of Law 14/2011, of 1 June, on Science, Technology and Innovation.
  2. Scientific and technical personnel carrying out scientific research, development and technological innovation work in business entities or R&D&I centres established in Spain.
  3. Researchers hosted within the framework of an agreement by public or private research bodies, under the conditions established by regulations.
  4. Lecturers hired by universities, higher education and research bodies or centres, or business schools established in Spain, in accordance with the criteria established by regulations.

 

Can the authorization be renewed?

Yes, for annual periods if the requirements for the initial concession are accredited, except for the visa requirement. The application period shall be 60 calendar days prior to expiry (and may also be accepted in the 90 days following expiry, without prejudice to the imposition of the corresponding fine).

Who must apply?

The university, business entity, R&D&I centre or research organisation or a duly accredited representative of such entities, such as Feliu N&I.

If you would like more information on how to obtain a residence permit for researchers, our advisors specialised in internationalisation will be happy to analyse your situation in a personalised way so that you can finally travel without restrictions.

Do you want more information? CONTACT US via the application form

Expatriation and Impatriation Area
Author: Sheila Artigas, lawyer at Expatfeliu

NEW DIRECTIVE IN SPAIN ON THE POSTED WORKERS IN THE FRAMEWORK OF THE PROVISION OF TRANSNATIONAL SERVICES

LAST APRIL, THE EUROPEAN PARLIAMENT AND THE COUNCIL, CARRIED OUT AMENDMENTS TO DIRECTIVE (EU) 2018/957 OF 28 JUNE 2018 ON POSTED WORKERS IN THE FRAMEWORK OF THE PROVISION OF TRANSNATIONAL SERVICES.

Royal Decree-Law 7/2021, of April 27 (published in the Official State Gazette on April 28, 2021), contains the amendments derived from the transposition of the aforementioned Directive on posted workers in the framework of the provision of transnational services.

In this blog post, we will outline the amendments contained in Royal Decree-Law 7/2021 of 27 April 2021 on posted workers in the framework of the provision of transnational services.

Royal Decree Law 7/2021 of 27 April 2021

Royal Decree 7/2021 of 27 April contains amendments resulting from the transposition of Directive (EU) 2018/957 of the Parliament and of the Council of 28 June 2018. This Royal Decree modify the Directive 96/71/CE on posting of workers carried out in the framework of a transnational provision of services.

The Directive (UE) 2018/675 modify some aspects to the Directive 96/71/CE, with the objective of guaranties the rights of posted workers in the context of the freedom to provide services established by the founding principals of the European Union.

The explanatory memorandum states that, in Spain, this Directive has been partially transposed by Law 45/1999 of 29 November 1999, in terms of to the application to posted workers off all constructive elements of the compulsory remuneration and the basic workers conditions laid down in the sectoral collective agreements.

What amendments does the Royal Decree-Law introduce?

In order to complete the aforementioned transposition, this new Royal Decree-Law introduces the following new features:

Application of the concept of posted workers

In this sense, the concept of «posted worker» explicitly includes the worker of a temporary employment agency placed at the disposal of a user company established or carrying out its activity in the same or a different state than the temporary employment agency, and sent to Spain, when:

  • The user company has signed a provision of services contract with a Spanish company
  • In the case of a company belonging to the user company’s group or the user company’s place of business in Spain
Application of minimum conditions
  • Application of the minimums established in Spanish legislation regarding accommodation conditions, when provided by the employer.
  • Subsistence allowance or reimbursement to cover travel, accommodation and subsistence expenses, when during the period of posting in Spain they have to travel to another place outside their usual place of residence in Spain
Duration of the journey
  • Postings longer than 12 months: application of Spanish law, except for labour procedures, formalities and conditions for the conclusion and termination of the employment contract, including non-competition clauses and supplementary pension schemes.
  • Substitution of posted workers doing the same work at the same place: the cumulative duration of their postings will count towards the 12 months indicated.
Minimum amount of salary: travel allowance

With regard to the travel allowance, the nature of the travel allowance must be expressly stated in the respective travel letter.

If not expressly stated, they shall be considered as reimbursement of expenses.

Communication of the displacement

Temporary employment agencies (ETT) are obliged to submit the posting notification when it is a foreign user company that sends the worker.

The company using the services provided by the posted worker must also be specified in the notification.

Cooperation between administrations

Cooperation is extended to transnational cases of undeclared work and bogus self-employment related to the movement of persons.

When did the amendments set out above enter into force?

The entry into force took place on 29 April 2021. However, they will be applicable to workers who are posted to Spain after the entry into force of Royal Decree-Law 7/2021 of 27 April (29 April 2021).

On the other hand, for workers who were already posted in Spain at the time of its entry into force, this maximum period will apply six months after its entry into force (29 October), with the calculation of the maximum period of posting commencing on the date on which the posting took place.

If you would like more information about the new regulations applied in Spain on the posting of workers, Expatfeliu can help you to solve all your doubts!

You can leave us your contact details in our request form or, if you wish, you can send us an email to comunicación@feliu.biz and our advisors specialized in foreigners will contact you as soon as possible.

#spain #royaldecreelaw #transposition #postedworkers #feliuworldwile #expatfeliu

Expatriation and Impatriation Area

Author: Sheila Artigas, Lawer at Expatfeliu

TRANSPORTING EFFECTIVE MONEY, EVERYTHING YOU NEED TO KNOW

KNOW THE QUANTITYS OF THE EFFECTIVE MONEY THAT CAN BE INTRODUCED INTO SPANISH TERRITORY WITHOUT THE NEED FOR A DECLARATION

The world every time is most electronic and less tangile, the efective money is becoming in a metode of paymand subsidiary, forgotten to the normative at small transactions or those that are illicit or not declared.

The Law Firms specialized in foreigners and expats interested, everyday received consulting for know to the quantity of effective money can carry in your travels to enter or exit of the Spanish territory.

In the following post of the blog, are specified the keys to transported means of payment in cash to complice the specific normative.

What is considered to effective money?

When talk about to the means of payment at effective, you always thing that «effective money». We mast take in care the different problems involved:

  • Paper money and metallic currency, national or foreign
  • Negotiable instruments or bearer means of payment such as traveler’s checks, checks or promissory notes or payment orders, whether drawn to bearer, signed, but with omission of the payee, endorsed without restriction, drawn to the order of a fictitious payee or in another form by virtue of which their ownership is transmitted upon delivery and incomplete instruments.
  • Non-nominative prepaid cards that serve to store or provide access to monetary values or funds that can be used to make payments, purchase goods or services, or for obtaining cash, when such cards are not linked to a bank account.
  • Coins with a gold content of at least 90% and unminted gold, such as in the form of ingots or nuggets with a gold content of at least 99.5%

How much money can be transported in effective money?

Actually, the aswer to this questions is very simple, can be transported any quantity of the effective money, but, except for the risks which involves for the eventuality’s that can do arise before tangible goods (robberies, thefts, etc.) there may be an obligation to declare the intention to transport such monetary amount in cash.

Specifically:

  • Takes place within Spanish territory, the amount to be transported without the need to make any declaration is up to 100.000 euros.
  • If the trip is to enter or leave the country, the limit for the obligation to declare is reduced to amounts equal to or greater than 10.000 euros.

Who must make a statement?

You have the obligation to declared any fisical person (spanish or not) who pretends to enter in the national territory transporting effective money (whether in euros or en another currency) or bearer bank checks whit the same import or superiority to 10.000€.

It will be necessary to take keep in mind the currency to transporting the effective money to analyze whether or not exceeds this limit.

Also, the person tho travel for spanish territory whit a quantity the effective money the same or superiority to 10.000€, must also declared.

Where should it be declared?

In the case of the effective movements in the entrance to the country, should be declared in the Customs of the Tax Agency office in the moment to enter in Spanish territory or, failing that, in the Nacional Police competent office.

In the case of outbound movements for the Spanish state, it must be declared to the Tax Agency office, as well as the intention to move the cash within the territory. This declaration can be made telematically.

How is the declaration made?

The declaration to be completed is Form S1, an informative declaration.

What happens if we do not comply with the reporting obligation?

Fines for failure to comply with such reporting obligation vary depending on the amount of money but range from 600 euros up to the total amount of cash being transported. It should be noted that undeclared cash would be confiscated by the authorities.

If you would like more information on how to transport cash within the Spanish territory, you can leave us your details in our request form or, you can send us an email to comunicación@feliu.biz

Legal Area

Published by Cristina Gómez, Lawer in ExpatFeliu

NON-RESIDENTS FOR TAX PURPOSES IN SPAIN: NEWS JULY 2021

NEWS FOR NON-RESIDENT INDIVIDUALS FOR TAX PURPOSES IN SPAIN: TRANSPOSITION OF THE EUROPEAN REGULATIONS BY LAW 11/2021, SPECIAL AFFECTATION TO THE NON-RESIDENT INCOME TAX, WEALTH TAX AND INHERITANCE AND GIFT TAX.

Within the framework of the existing regulations in Spain for non-resident individuals, we update our blog with the novelties in some of the main applicable taxes, approved through Law 11/2021, of July 9, on measures to prevent and combat tax fraud, also known as "Anti-Fraud Law".

Previously, in this blog, aspects of the so-called «Anti-Fraud Law» have been developed. The link is provided below:

What is the antifraud law?

It is the law that regulates measures to prevent and fight against tax fraud, establishing rules against tax avoidance practices that directly affect the functioning of the internal market, in addition to modifying various tax rules, including those applicable to non-resident taxpayers in Spain.

Its purpose is twofold: on the one hand, it aims to incorporate European Union law into the domestic legislation in the field of tax avoidance practices and, on the other hand, to introduce changes in the regulation aimed at establishing parameters of tax justice and facilitating actions aimed at preventing and fighting fraud by reinforcing tax control in Spanish territory.

It was approved on July 9, 2021 and published in the BOE on July 10, 2021.

What are the main changes in the taxes applicable to non-resident taxpayers in Spain?

The following is an analysis of the main regulatory changes, distinguishing between the different taxes affected:

Non-resident income tax (nirr)

Changes in the obligation to appoint a representative

Under the current regulations, taxpayers were obliged to appoint a representative resident in Spain when they had a Permanent Establishment (PE) in Spain, regardless of their habitual residence status.

With the new modification, it will be necessary to appoint a representative when:

  • IRNR (Non-Resident Income Tax) taxpayers are not resident in another EU member state. Representatives will also not be required for EEA member states with which there is an information exchange agreement.
  • Those taxpayers who have a property in the Spanish territory, in those cases that the tax administration requires it.

Changes in the determination of the taxable base of the assets assigned to a PE.

It is specified that the difference between the market value and the book value of the elements assigned to a PE (Public Establishment) in Spain that transfers its activity abroad must be included in the taxable base, when up to now the rule only required the inclusion of capital gains.

This change in criteria will make it compulsory for a greater number of taxpayers to pay tax when they intend to change the tax residence of a PE located in Spanish territory.

In addition, there will be an impact on the computation of the tax period and accrual when there is a change in the tax residence of a PE.

In the previous case in which a PE resident in Spanish territory changes its tax residence, the tax period will end at the time of the transfer abroad, taking into account that date for the computation of the accrual of the applicable taxes (we are thinking of the IS «Corporate Income Tax», which is accrued 25 days after 6 months from the end of the tax period).

IP and ISD: Wealth tax and inheritance and gift tax.

Equalization of tax residents in the EU and in third countries.

The main modification made by the regulation with respect to the international scope is the equal treatment of EU citizens and third country nationals in the application of certain taxes, specifically in the area of IP and also ISD.

Until the approval of this regulation, initially all non-resident taxpayers in Spain had to apply the state regulations, without taking into account the specific regional regulations that could be applicable to them in the case of Spanish tax residents.

Well, by means of Law 26/2014 the rule that contravened European Community law as regards the free movement of capital was modified, allowing citizens resident in the EU and in the EEA (European Economic Area) to apply the autonomous regulation of the place where the highest value of the assets and rights of which they were holders are based. This led to the elimination of discrimination against EU and EEA citizens, but discrimination against third country nationals was maintained.

The present amendment aims to eradicate this difference and to equalize the rights of tax resident citizens in Spain and non-residents.

The elimination of such discrimination could lead to a review by the foreign investor to plan new business or acquire assets in Spanish territory.

If after reading our blog post on «What’s new for non-tax residents in Spain» you have any doubts, you can contact us through the request form or by calling us at 93 875 46 60 and our team will be happy to help you!

Legal Area

Published by: Cristina Gómez, Lawer in ExpatFeliu