Understanding the rights and limitations of non-residents in Spain

If you are a non-resident in Spain, there are specific services and rights available to you, as well as limitations. This article explores the intricacies of non-residency, helping you navigate the decision of whether to remain a non-resident or transition to residency.

Being a non-resident in Spain typically refers to individuals who own property or have made investments within the country. Non-residents do not possess residency rights that allow for an extended stay beyond the tourist visa restrictions—90 days within a 180-day period for non-EU nationals. Even EU citizens must register as residents after a three-month stay.

Additionally, spending less than 183 days in Spain annually confirms your non-residency status from a tax perspective, indicating that your primary economic interests lie outside the country.

What can a non-resident in Spain do?

Get an NIE

The Foreigner Identity Number (NIE) is essential for non-residents intending to engage in significant financial transactions, such as property purchases. While obtaining an NIE is necessary for these transactions, it does not confer any rights for longer stays.

Buy a property

Non-residents are allowed to purchase property in Spain, whether for personal use as a holiday home or as an investment for rental purposes. However, permanent residency in the property is not permitted. EU citizens can stay indefinitely, but Spanish law requires them to register as residents after three months.

Recent discussions have emerged regarding potential taxes on property purchases by non-residents, particularly in regions like the Canary Islands and the Balearics, although these proposals have yet to be enacted.

Rent a property

If you visit Spain and wish to stay for up to three months, renting is an option. You can sign a leasing agreement using your passport, even without an NIE. However, there are specific conditions that apply, which should be reviewed carefully.

Buy a car

Non-residents can purchase vehicles in Spain, whether for temporary use or for their holiday homes. This flexibility facilitates mobility during your stays.

Open a Spanish bank account

While a Spanish bank account is not mandatory for property purchases, it can simplify transactions and be cost-effective. Some banks may require an NIE, but others allow account openings using just a passport.

Pay taxes

Non-residents must be aware of their tax obligations, including a tax rate of 19-24 percent on rental income and capital gains. EU and EEA nationals face a 19 percent tax rate, while non-EU nationals are subject to 24 percent.

What can I not do as a non-resident in Spain?

Stay longer than 90 days

Non-residents from non-EU countries are restricted to a maximum stay of 90 days at a time. EU citizens can remain longer but must register as residents after three months.

Work in Spain

Non-residents from outside the EU do not have the right to work in Spain. EU citizens may seek employment but must transition to residency to maintain legal working status.

Vote in municipal elections

Only EU citizens residing in Spain have voting rights in local elections. Non-EU citizens’ voting rights depend on existing bilateral agreements, which Spain has with specific countries.

Register on the padrón

While it is possible for non-residents to register on the local census, it is generally advised against. Registration can lead to complications regarding tax status and vehicle importation.

Access healthcare

Non-residents are not entitled to public healthcare, except in emergencies. EU nationals can utilize the European Health Insurance Card (EHIC) for emergency coverage, while UK citizens can apply for the UK Global Health Insurance Card (GHIC). It is crucial to have travel insurance as a supplement.

Understanding these rights and limitations is essential for non-residents in Spain, ensuring informed decisions regarding living, investing, and managing property in the country.