2. Tax Residence in Spain
Since you will be establishing permanent residency in Spain, it’s crucial to fulfill your tax obligations as a Spanish tax resident, a requirement for obtaining your TIE (Tarjeta de Identidad de Extranjero). According to Article 9 of the Personal Income Tax Law, if an individual resides in Spanish territory for more than 183 days or has their primary financial interests located in Spain, they must become a tax resident in Spain. To achieve this, you must ensure compliance with the following tax obligations:
Personal Income Tax (IRPF) – Model 100: Your worldwide income will be subject to taxation in Spain (capital gains, rental incomes, dividens, etc.). To avoid double taxation, it’s essential to establish a double taxation agreement between Spain and your country of origin.
Declaration of Assets – Form 720: Every individual and legal entity is required to complete Form 720 to declare overseas assets exceeding €50,000 outside of Spain. This step is crucial to prevent any accusations of tax evasion.
Wealth Tax – A tax that levies on worldwide net assets exceeding 3,700,000 euros.
Make sure to stay informed and up-to-date with these obligations to fully enjoy your residency in Spain.
3. Spanish Medical Care
The Spanish healthcare system is recognized as one of the best, and it’s free for those who are affiliated and contribute to Social Security.
If you’re Canadian and in the process of obtaining a visa for Spain, you should be aware that for most types of visas, you will be required to have private health insurance.
However, if you already live in Spain and are a tax resident, you have the option to access the healthcare system at no cost as long as you are employed, either self-employed or as an employee, and regularly contribute to Social Security.
4. Driving License
If you’re a Canadian citizen and decide to establish residency in Spain, becoming a tax resident, it’s essential to know the following regarding your driver’s license:
During the first 6 months of your stay in Spain, you can drive using your Canadian driver’s license. Alternatively, you can apply for an international driving permit, which will be valid for 1 year.