Europe Sometime?
We have been expanding our adventure planning goals to start thinking about a long term stay in a nice place in Europe. Sounds exciting, right? Based on our initial research we have added Spain to our spreadsheet and it shows up very well from a cost, weather, and health and safety perspective, and meets almost all of our priorities.
We like the idea of exploring historical places, learning a new culture, and sitting on a nice sandy beach watching the sunset over the Mediterranean Sea in the south of Spain. We also like the idea of visiting castles in Germany and sipping on beer and wine there, taking a cruise on the Rhine River, eating cheese fondue in Switzerland, or exploring viking countries that are part of our heritage. So, we thought it might be a good idea to take a look at what we might have to do to stay there for a while.
Although, we have found out that the south of Spain gets a bit cool in the winter (17 high / 8 low Celsius), and one of us might complain that it's too cold and demand a trip to the Caribbean during that time. I digress...
As it turns out, for the past 30+ years or so, there is something called the Schengen area of Europe where tourists can visit for up to 90 days during a 180 day period effective from the date of entry stamped in their passport. This means you can come and go as you please during a 180 day period but your time within the Schengen area can only add up to 90 days total. The Schengen area includes 26 countries: Austria, Belgium, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland. Bouncing between them doesn't work as the time in each country is added to your total time allotted. So, in order to avoid flying back to Canada, you could stay in Spain for 90 days then visit Britain for the next 90 days, and then go back to Spain again...
The Schengen Convention was signed in 1985 in a town called Schengen in Luxembourg and it initially "erased" internal borders between a few European countries, and has since has been expanded to include 26 countries. This allows visitors from other European countries, and non-EU nationals like us Canadians, to circulate freely within this “borderless” area, but the rules have restricted the length of stay to a maximum of 90 days. When your time is up you have to leave... unless you apply for residency.
So what do you have to do to stay for a year or longer we wondered. Well, as it turns out, lots of things. Most of the countries in Europe have similar requirements, but please do your own homework...
Staying longer than 90 days as a tourist in Spain means you intend to make it your “home” as per their definition. So how do you do that if you are a non-EU person wishing to retire there or if you want to spend more than just 90 days? We are pretty sure this is current info, and this is the gist of it...
Anyone arriving in Spain with the intention of staying longer than three months requires a Residence Visa (Visado de Residencia). This must be requested from and issued by the Spanish Embassy in Canada, before catching a flight to Spain. It allows the holder to begin the residency application process. It is prudent to allow about three months to get the approval process completed before you can head to Spain to take any other steps in the process. I suppose we could start that and then go visit Mexico during the waiting time...
So once you have the signed application for a residence visa in hand, get on the plane and enjoy the flight to your new long term location in Spain.
When you arrive you must apply for a Residency Permit/Card (Tarjeta de Residencia) within 30 days. and your Residence Visa (Visado de Residencia) that you got from Canada is used to apply. The application must be made at the Foreigner's Office (Oficina de Extranjeros) or local police station in the province of intended residence. Your residency permit registers you as living in Spain. You can usually obtain your residencia on the same day that you apply, provided you have all the necessary paperwork. What this consists of varies from one town hall to another so should always check before hand. Consult with the local Oficina de Extranjeros or police station to determine which documents are required. But it is suggested that you come prepared with the following:
Valid passport and photocopy
Three passport-size colour photographs
Completed application form and three copies
Proof of address in Spain
Receipt for payment of the administration fee, stamped by bank
And, for retirees there are a few more documents needed (even more for those wishing to work there - not included in this list):
Proof of financial resources for those not intending to work
Proof that the applicant has no prior criminal record (Certificado de Antecedentes Penales); available from a home country Embassy or local police department in the former place of residence
Medical certificate
Consular inscription (a letter from the home Consulate)
Proof that the applicant has medical insurance cover in Spain
Documents in other languages need to be translated into Spanish.
Once the application for a residence permit has been made at the Foreigner's Office, a stamped copy of the application is issued and then, if you are approved, the official Residence Card should be issued within three to four months. Resident Cards may be renewed annually for up to five years at the Foreigners Office. In the event of a change of address or a change of personal circumstance, the local Oficina de Extranjeros or police station must be notified within 30 days.
Then, as a non-EU national (coming from Canada) another document called a Foreign Identity Card (Tarjeta de identidad de extranjero - TIE) must be applied for within one month of arrival. The following documents are required in order to apply:
Valid passport and photocopy
Three passport-sized colour photographs
Completed application form EX17 and three copies (PDF in Spanish)
Proof of address
Proof of financial resources for those not intending to work
Health insurance policy
Proof of the administration fee payment
Then, after you have a temporary resident card, you can apply for health insurance. For that you need the Padrón and the SIP. In many areas you need to obtain your residencia certificate before applying for your padrón (health insurance for permanent residents) but this does vary.
The Padrón
The padrón is the certificate that enables you to apply for a SIP (health card) and other local benefits within your town such as obtaining a bus pass and using the local library. Very much like a social security number in north america. To obtain your three-monthly Padrón certificate, first you must register. You can do this at a town hall office. You will need to take with you:
Proof of where you live e.g. rental contract or Title Deed
Passport
Residencia – in the case that you apply for this first in your local area
The last water bill and electricity bill (now asked for by some town halls)
Once you are registered then the certificate you are issued with lasts for three months. After this you can return to the same office and they will print off a new one for you if you take your passport and previous padrón.
You should renew your registration on the padrón every five years in order to ensure that your name is kept on the register. Town halls may contact people who have not had their certificate reissued for years and ask them to reaffirm their presence in the area. This is a quick process and helps them to confirm who exactly is living in the town.
The SIP
With your residencia and padrón you are now able to apply for your SIP card. This is the health card which will entitle you to health treatment and discounted prescription charges as part of the national health service in Spain. In order to obtain this very important little card you need to book an appointment at your local social security office. There you will need to show:
Your NIE
Passport
S1 - if you are a pensioner
Padrón
Application form TA1
They will then give you a registration number and with this you can go to your local health clinic and obtain the SIP card itself.
Once you have your residencia, Foreign Identity Card, Padrón and SIP, you will have acquired the basic documents you need to live as a resident in Spain. The sooner you have these in your possession the sooner you can relax and enjoy the new life you’ve chosen. Just remember to renew them when needed. Of course there are fees, fees and more fees payable for each step of the way.
And then, the important part... there are taxes and it is imperative that you submit a return or face severe consequences...
Typically you would be considered a tax resident in Spain if one or more of the following apply to you:
You have spent more than 183 days in Spain within a single calendar year regardless of whether you are formally registered
Your primary professional activities are conducted in Spain – essentially if you are self or otherwise employed in Spain
Your main interests (eg: your spouse or children who are still dependent on you) live in Spain
At the most basic level, Spanish tax residents are liable to pay income tax on their worldwide income, including savings or pension amounts brought in from another country, once personal allowances have been taken into account. Tax free allowances for those over 65 years of age is about 7,000 Euros. Any amounts brought into Spain over that are taxed on a sliding scale up to 45%. You could end up paying a lot more in taxes to retire in Spain on your Canadian pension than if you just stayed in Canada. These are a simple version of the rules - get advice from a Spanish tax expert.
Bottom line - it just seems like a lot of work. We're probably not going for a long term rental anytime soon.... maybe just a short 90 day visit so we can see our new friends Bill and Rita while we are there.... still doing research.