Obtain for Spain: new ID required

Published 12th Sep 2008

Don't be blinded by the sun in Spain- although the country is a firm favourite with British buyers looking for that second home in the sun, owners of Spanish property could lose their homes if they fail to produce new identification documents proving their non-resident status.

However, since March of last year, expat Brits who use their overseas accounts to pay for their Spanish mortgages, utility bills and council taxes, have been required by Spanish banks to produce a Residencia, or a residence certificate.

The requirement is part of an EU initiative to crack down on tax dodgers, as Spanish residents are taxed at source, so to avoid paying tax there you have to prove non-residence status. Failure to produce the new documents could result in bank accounts being frozen and mortgage repayments stopped.

Despite the new rules being in force for over a year, there remain a high number of people who are unaware of the changes, and have not yet obtained the certificate, thus putting their home at risk. Some Spanish banks have failed to contact homeowners or given short notice to produce the papers.

When applying for a mortgage in Spain you need to make sure you have the following: Valid Passport, residence permit or Spanish ID card (NIE); for a new building you need the declaration deed from developer; for resale properties, you need the property deeds of current owner; your last three salary slips, your last three bank statements (account statement for last three years if you are self-employed) and a Spanish tax declaration for the last financial year (P60 form in UK) or if you are self-employed you need to provide tax slips for the last two years.

There are about 145,000 with bank accounts and properties in Spain, and they qualify for non-resident status in Spain if they spend fewer than 180 days a year in the country and are able to produce the new document, which asks for your name, address, nationality, date of registration and the Numero de Identificacion de Extranjeros, a tax number for foreigners in Spain.

Anyone who bought a property before the new rules came into effect may be asked by their Spanish bank to produce the Residencia. Those who bought property after they were introduced will have been told of the requirement.

The Spanish Tourism Office said, "If you have a Spanish property, and have not been asked to produce this document, I suggest you contact your bank directly."

Homeowners can contact the Spanish Ministry of the Interior's immigration directorate helpline for more advice on 00 34 91 363 9071.

The document costs around £5, but it can be more expensive if you go through a lawyer.

Source: ' themovechannel '

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