# Foreign Sources of Income as Proof of Financial Requirement - Residencia



## NGLEN (Jun 29, 2020)

Hi Guys, 

Just wondering if anyone has used a foreign income as proof of finances for Residencia. 

I have a fairly well paid full time job in the UK which is remote that I will be continuing when we relocate. My salary is paid into a UK account but I will be sending it over to Spain. 

Wondering if it is worth providing Payslips / P60s / Employment Contract etc. as part of Residencia application. 

I believe I would probably meet the financial requirement without doing this as the general consensus seems to be showing 7-8000 Euros + in a Spanish bank account for 3 months and/or 800+ euros a month going in. 

I was thinking as a minimum, I will transfer 8 - 10,000 Euros into a Spanish bank account once I manage to get one open. I will then transfer about £1500 a month off my salary to the Spanish account so they can see steady amounts going in. 

Would this be enough or would I be better placed showing them the UK payslips and accounts as it would show significantly more coming is as I am in London so lots coming out currently for rent & bills every month. 

Of course if I did provide these, I'm assuming I would need to get them translated by a traductor jurado. Would I also need to get them certified by apostille too?


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## Joppa (Sep 7, 2009)

The thing is, what is acceptable varies widely between different foreigner's offices, so you need to contact the one you will be submitting your request at about what they will accept. Or contact a local gestor.


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## NGLEN (Jun 29, 2020)

Right... Will be in Malaga Province. Will contact the office there ASAP.


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## Joppa (Sep 7, 2009)

There is a foreigner's office in Malaga, but you can also apply (at the moment) at local offices in Estepona, Ronda, Marbella, Fuengirola, Torremolinos, Antequera and Torre del Mar. Rules will differ among different offices within the same province.


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## Barriej (Jul 23, 2012)

Joppa said:


> There is a foreigner's office in Malaga, but you can also apply (at the moment) at local offices in Estepona, Ronda, Marbella, Fuengirola, Torremolinos, Antequera and Torre del Mar. Rules will differ among different offices within the same province.


Can you apply to the local offices? 
In Alicante all the local offices are not processing UK citizens residency applications. They all have to go to Alicante city...(Cant apply in Benidorm anymore.)


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## Joppa (Sep 7, 2009)

At the moment you can in Malaga Province, but it may all change with the introduction of TIE for Britons.


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## Barriej (Jul 23, 2012)

Joppa said:


> At the moment you can in Malaga Province, but it may all change with the introduction of TIE for Britons.


Thats the fun thing about Spain. Things that should be the same all over the country, never are. Almost makes me want to find the office that gives out residency just by turning up with a small cake for the officer in charge. 

You have not been able to make an appointment in Benidorm since the end of Jan..


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## xabiaxica (Jun 23, 2009)

I understand that no office is giving appointments next week to UK citizens, & that from the following week the new TIEs will be issued to new applicants. 

That won't affect the OP though.


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## NickZ (Jun 26, 2009)

Not to rain on any parades but won't the OP need a work visa?


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## Joppa (Sep 7, 2009)

NickZ said:


> Not to rain on any parades but won't the OP need a work visa?


No, assuming the OP is a British citizen and is intending to move to Spain this year.


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## kaipa (Aug 3, 2013)

Is the OP allowed to work for a uk company and reside in Spain without having to become automino?


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## NGLEN (Jun 29, 2020)

kaipa said:


> Is the OP allowed to work for a uk company and reside in Spain without having to become automino?


How would that work as an autónomo as I’m a permanent employee? I can register as one if needed but I’m not invoicing a company, I’m on PAYE so already being taxed etc in UK which is covered under double taxation agreement. If i was an autónomo wouldn’t I have zero income for that business?


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## NGLEN (Jun 29, 2020)

Joppa said:


> NickZ said:
> 
> 
> > Not to rain on any parades but won't the OP need a work visa?
> ...


Yes to both of these. UK citizen. Intending to move this year


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## MataMata (Nov 30, 2008)

Joppa said:


> No, assuming the OP is a British citizen and is intending to move to Spain this year.


He won't need a work visa but he will have to set himself up as Autonomo or some other Spanish business entity.

You CANNOT just come to Spain and work remotely from your kitchen table and say nothing, it's called 'working on the black' and there can be very severe penalties when caught - and don't think they won't, as a UK PAYE employee you'll be very low hanging fruit.


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## NickZ (Jun 26, 2009)

If you're working in Spain you will normally need to pay Spanish income tax on the employment income. That's the easy bit.


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## MataMata (Nov 30, 2008)

The principal is you pay tax where your bum is when you perform the work.


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## Overandout (Nov 10, 2012)

The tax issue is not that complicated if the OP has an employer who is prepared to help. The OP can even apply for total tax exemption on his UK pay if he permanently lives abroad and hence receive gross pay.

But as stated, the tax will be payable in Spain and it will not be deductible at source so will have to be carefully declared.

Most employers are wary of this because having employees in other countries often creates a legal presence (a permanent establishment) which can have significant costs and some corporate tax burdens.


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## NGLEN (Jun 29, 2020)

MataMata said:


> He won't need a work visa but he will have to set himself up as Autonomo or some other Spanish business entity.
> 
> You CANNOT just come to Spain and work remotely from your kitchen table and say nothing, it's called 'working on the black' and there can be very severe penalties when caught - and don't think they won't, as a UK PAYE employee you'll be very low hanging fruit.


Are you sure this is the case? One of the paths to Residencia is not working in Spain but showing you have an income that you can live off. If you are paying tax on income in the UK and you file a tax return in Spain and pay tax there too then you're not really working under the table. You're declaring your global income in Spain and paying tax accordingly under the Double Taxation Agreement. 

For a bit more context I would be working on site in the UK potentially up to 3 days a week.


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## Megsmum (Sep 9, 2012)

NGLEN said:


> Are you sure this is the case? One of the paths to Residencia is not working in Spain but showing you have an income that you can live off. If you are paying tax on income in the UK and you file a tax return in Spain and pay tax there too then you're not really working under the table. You're declaring your global income in Spain and paying tax accordingly under the Double Taxation Agreement.
> 
> For a bit more context I would be working on site in the UK potentially up to 3 days a week.


I think the issue is You pay your taxes in Spain not the U.K. yes you file a tax return but if your Centre if interest is Spain then it’s Spain you pay the differences to Spain with regards to tax allowances and rates BUT I’m Not 100% sure TBH 
Blevin Franks have an excellent website with lots of information on it


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## NickZ (Jun 26, 2009)

NGLEN said:


> Are you sure this is the case? One of the paths to Residencia is not working in Spain but showing you have an income that you can live off. If you are paying tax on income in the UK and you file a tax return in Spain and pay tax there too then you're not really working under the table. You're declaring your global income in Spain and paying tax accordingly under the Double Taxation Agreement.
> 
> For a bit more context I would be working on site in the UK potentially up to 3 days a week.


The tax treaty is here

https://assets.publishing.service.g...ent_data/file/507409/spain-dtc_-_in_force.pdf

scroll down to Art 14 you'll see



> Article 14
> INCOME FROM EMPLOYMENT
> 1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other
> similar remuneration derived by a resident of a Contracting State in respect of an
> ...


Which means if you're a Spanish tax resident working in Spain you're only taxed in Spain. 

It's not a centre of life issue. Employment income is very straight forward.

Those three days in the UK could be taxed by the UK. Maybe.


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## NGLEN (Jun 29, 2020)

_Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other
similar remuneration derived by a resident of a Contracting State in respect of an
employment shall be taxable only in that State unless the employment is exercised in
the other Contracting State_

So, by working in the UK - You are being taxed in the contracting state. 

_If the employment is so exercised, such remuneration as is
derived therefrom may be taxed in that other State_

and by declaring your global income to Spain and being taxed on it there you are also being taxed in the other state...


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## Megsmum (Sep 9, 2012)

NGLEN said:


> _Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other
> similar remuneration derived by a resident of a Contracting State in respect of an
> employment shall be taxable only in that State unless the employment is exercised in
> the other Contracting State_
> ...


I think as you are conflicted with others on here, which I totally understand, you need to speak to a tax specialist in Spain. Getting on the wrong side of the system here in Spain is not recommended


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## NGLEN (Jun 29, 2020)

Megsmum said:


> I think as you are conflicted with others on here, which I totally understand, you need to speak to a tax specialist in Spain. Getting on the wrong side of the system here in Spain is not recommended


Thanks. I will do. I'm really curious on this as I know people who do exactly this (which doesn't necessarily mean they are doing this correctly). 

I believe I'm right in thinking that the Tax Residency obligation is after 183 days which I will not hit this year, so this would be more a tax solution to work through for next year? 

Want to focus on my Residencia this year before Brexit. So plan is really to get Bank Account (to show financial requirement can be met), Private Health Insurance, NIE, Rental Agreement, Residencia & Padron done before Dec 31st (plus a Family Residencia for my wife who is from New Zealand, so hopefully the EX19 is still relevant with the new TIE for UK this year). 

Does that all make sense?


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## kaipa (Aug 3, 2013)

MataMata said:


> The principal is you pay tax where your bum is when you perform the work.


No. You pay tax dependent on your place of prime residency


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## kaipa (Aug 3, 2013)

This idea of choosing your tax residency is total anachronistic. The idea that you can have residency in spain but work more than 6 months in uk and therefore take advantage of uk tax rules is wrong. If your residence is spain then irrespective of days spent in other countries you will need to declare all incomes to the spanish tax authorities. To get residency here in spain you will either need autonomo or your company will need to set up a payment for your SS in spain. Other than that you are effective being clandestine about your status. For example, private health care followed by convenio is strict for those not in employment. If you work and receive an income you will be required to say that on the modelo 100.


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## NickZ (Jun 26, 2009)

kaipa said:


> No. You pay tax dependent on your place of prime residency


Depends on the type of income.


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## kaipa (Aug 3, 2013)

Admittedly from uk rent, inheritance etc is taxed first in uk but it still needs to be declared in spain. But the suggestion that tax is ONLY paid in the place you work is not true


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## NickZ (Jun 26, 2009)

If the OP is living and working in Spain then Spain is the only one that can tax the OP.


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## kaipa (Aug 3, 2013)

I think that the OP wishes to retain his work in uk as PAYE etc but has spanish residency
I dont think it is as easy as that. First, as has been pointed out Spain would be his principle tax authority. Therefore PAYE would not be available. For his company to pay him he would need to be either self employed or his company could set up a system where his national security is paid in Spain. This tends not to be of any advantage to a uk company so probably not worth them doing. The OP cannot just take a gross earnings from uk and declare it in Spain
If you could there would be no need for autominos. I can not work online for anyone , pay convenio for free healthcare and make voluntary SS payments in uk and just declare my income in spain at end of year income each year
Wish I could.


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