Residence in Majorca : Information provided by DN-Law, Costa de la Luz, specialized in Spanish property law. Visit their website for further articles or contact them by email.

We will focus on Foreign European citizens, because aside from being the majority of the foreign population in Spain, they are the ones who are most confused by the term “European Union”. Even though in many instances one can refer to the unity within Europe, it does not influence the entire Spanish Legal System. There is still a difference between Nationals and Foreigners, especially regarding their rights and obligations and the manner in which these are exercised.
In this order we come across the terms: NIE, “Empadronamiento”, “Residencia Legal”, “Residencia Habitual”, “Residencia Fiscal”, etc, that we never quite get to understand as each one is granted as the result of another.
With this article, we will try to somewhat clarify the basic concept of these terms and other elementary legal outcomes.


NIE
( Foreigner Identification Number) This document is simply for identification purposes and can in no way be considered proof of residence, nor even be used as a presumption of residence..
It is the first requirement for any act of business in Spain.

Empadronamiento
Registration of Foreigners with the local municipality. Even though this does not constitute proof of legal residence in Spain, the date in which it is registered can accelerate the start of the process of 183 days required to attain fiscal or standard residence, or at least have the Spanish administration commence this process.

As from this date the Traffic Agents can, during this sixth-month period, begin to account for the standard residence, considering the exchange or registration of a driving licence issued in a European member state.

In the same way, 30 days are required for the registration of a foreign vehicle used by someone who is a resident in Spain. On the other hand, proof of non residence is required to keep the same number-plate.


Fiscal Residence
This is given when a person has spent 183 days of the year on Spanish territory or if he/she uses Spain as the main nucleus or foundation for peronal activities or economical interests, be it directly or indirectly. It will also be assumed, unless proven otherwise, that the tax-payer has his usual residence on Spanish land when, in agreement with previous criteria, his/her partner (not legally separated) also lives in Spain as well as his/her underage children who depend on him/her.

Immediate effects of the lack of a fiscal residence is the obligation of the buyer to both retain and deposit 5% of the selling price to the Spanish state of the overall value of the sale, excluding taxation (either VAT or ITP). In this particular instance the fiscal residence is not a pre-requisite, although it is up to the individual to show it in order to receive a certificate as accreditation to exempt him/her from this responsibility.

Legal Residence
Requesting this is obligatory for EU citizens who have been in Spain for more than 6 months. It keeps both the foreigners and Spanish citizens on their toes regarding their rights and legal obligations.

In conclusion, it is safe to say that regarding residence it is not so much a change in rights, but a positive change in exercising our obligations. In the same way, we should remember that the time-spans in which we are to register within the different bodies are constantly more controlled. It is therefore always harder and more detrimental to try to stay in Spain in an ambiguous Nomad style.

Initially, foreigners who may or may not be part of the European Union, come to Spain on vacation and some decide to prolong their stay indefinitely, or at least most of the year. They do not however consider the consequences that this implies.