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The dream of living on the Costa Blanca is within reach for many emigrants - but the bureaucratic hurdles are often higher than expected. Residencia, taxes, health insurance, self-employment or vehicle registration - if you want to settle in Spain long-term, there are numerous formalities to take care of.
Stephan Richter, an expert in tax, legal and financial advice at Richter Consultants in Dénia, knows the most common pitfalls and gives practical tips for newcomers.
Residencia & NIE - Where are the biggest obstacles lurking?
Applying for an NIE number is actually a simple process - but currently the biggest challenge is getting an appointment with the relevant authority. Alternatively, a local resident with a notarised power of attorney can take care of the application or it can be made at the Spanish consulate in the home country.
Additional requirements apply to the Residencia. Pensioners must prove their financial independence, while employees or the self-employed must register with social security and the tax office. The EU principle of equal rights and freedom of movement makes registration easier - but mistakes can delay the process.
Taxes - the often underestimated topic
Many new residents overlook the fact that they have to pay tax on their worldwide income in Spain - regardless of whether it is savings, shares or property abroad. Although double taxation agreements ensure that you are not taxed twice, you should check your tax obligations at an early stage to avoid unexpected additional payments or penalties.
Healthcare - Seguridad Social or private insurance?
While the state health insurance Seguridad Social covers basic services, there are gaps in coverage - particularly for dental treatment, prostheses and specialised treatment. Private health insurance usually offers better protection, but often with excesses and maximum limits. A decisive advantage of private policies is the significantly shorter waiting time for operations: While you often wait six to nine months for an appointment with Seguridad Social, private providers usually allocate them much more quickly.
Self-employment - what licences do you need?
If you want to work as a freelancer, you need to find out at an early stage whether your profession requires recognition by the Spanish authorities.
This process can take up to two years, especially for doctors, tax consultants or lawyers. It is generally advisable to seek comprehensive advice before registering as an autónomo in order to avoid problems later on.
Car registration - bureaucratic complex, but feasible
There are several steps involved in re-registering a vehicle from abroad:
1. Deregistration in GermanyThe vehicle must first be deregistered in Germany.
2. New registration in SpainVehicle documents, proof of identity, registration certificate, Spanish proof of insurance and a technical inspection (ITV) for vehicles older than four years are required.
3. Tax obligationsTransport tax and VAT, if applicable, must be paid.
4. New licence platesAfter successful registration, the vehicle receives Spanish licence plates.
Special cases and exceptions
- EU citizens can benefit from simplifications under certain conditions.
- Classic cars enjoy tax advantages.
- Under certain circumstances, temporary stays allow temporary authorisation without complete re-registration.
You should obtain detailed information before re-registering, as the regulations may change. A specialist can save you time and unnecessary costs.
Good preparation saves trouble
Moving to the Costa Blanca is more than just sun, sand and sea - if you want to live here long-term, you should take care of residency, taxes, health insurance and bureaucratic formalities in good time. Many problems can be avoided with expert advice. Richter Consultants offers comprehensive support in the areas of law, taxes and insurance - to ensure a successful new start on the Costa Blanca.
For more information please contact
Stehan Richer
German lawyer,
Financial and economic expert
www.richterconsultants.com
