Leaving Spain and Moving On
Information on what to do when moving from Spain; including notifying schools and residency officials, closing bank accounts, ending contracts for utilities and insurance, exporting cars and moving pets...
When
leaving Spain and moving on, there are a number of tasks to be completed before
departure.
Anyone
who registered with their Embassy on arrival now should advise them that they
are leaving.
Local Authorities
All
foreigner residents in Spain need to have a foreigner's tax identification
number, an NIE (Numero de
Identificatión de Extranjero), regardless of whether or not they
are also obliged to have a residency card.
The
NIE number is used extensively in Spain when dealing with the authorities as
well as many businesses, including utility companies. Anyone intending to be in
Spain for more than 3 months should have registered at the Foreigner's Offices
(Oficinas de Extranjería).
Prior
to departure, contact the nearest police station that has a foreigner's department,
or the offices of the local regional government and notify them of departure.
If a
residency permit has been issued then the issuing office should also be
contacted.
Education
Give
schools a reasonable amount of notice of a child's departure. There may be
outstanding bills for school fees, transport or meals to be settled.
On
registration at a new school in the new country, a parent may be asked for a
certificate stating the latest grade passed by the child. Request this from the
school when giving notice of departure. Schools will normally be happy to
provide a summary of a child's progress and up-to-date test results.
Leave
a forwarding address for any correspondence.
Housing Issues
Rental contract
In
Spain, it
is normal to give one to three-months' notice of intention to vacate. The exact
period will depend on the rental contract. The notice letter should be sent by
registered post (certificado).
Consult
the rental contract for any other clauses relating to termination of the
rental/tenancy. Most commonly this may include an inventory of the property
before a landlord will agree to return a deposit.
Short-term
tenants have fewer rights and are often required to vacate a property at the
end of the rental period. Typically, this type of contract is used for holiday
rentals, however they can be used for up to one year.
Beyond
one year, a contract is considered to be a long-term contract. If there is no
stated duration on the rental contract then it is assumed to be one year.
Tenants
pay a deposit at the start of the rental period (usually equivalent to one
month's rent) and this should be returned at the end of the rental. Any damage
or repair costs are deducted from this deposit. The owner has a month to return
the deposit in-full or in-part as appropriate.
Charges
associated with the property such as community fees or real estate tax (IBI)
are usually paid by the owner. However if the tenant has been paying these,
notice should be given to the authorities and possible tax refunds arranged.
Property sales
Estate
agents in Spain handle most property sales although it is possible to sell a
property privately, for example via the Internet. This may be of interest to
those who have been living in tourist areas and have property to sell which is
likely to appeal to other would-be expatriates.
Properties
purchased with a mortgage will have had life insurance in place which may not
be cancelled until the sale is completed.
Signing
of the final deed of sale (escritura)
is considered the legal completion of a sale. Anyone who cannot attend the
event in person (for example because they have already left Spain) may give
power of attorney (a poder)
to a third party to sign on their behalf.
Insurance
House
insurance can be cancelled once a sale is completed and in some circumstances a
partial refund may be due. It is best to cancel all insurance in writing and by
recorded delivery.
Utility bills
As
with any house move, there are utility bills to be settled and meters to be
read. If meters are not outside the property, access will be required. Utility
bills in Spain are commonly paid by direct debit so these will need to be
cancelled once final payment has been made.
Leave
a forwarding address with all the companies involved.
Electricity
and Gas: The Spanish electricity market was deregulated in 2003. As a
result, most homes in urban areas have a choice of electricity suppliers,
though in rural areas it is unlikely there is more than one supplier.
Cancellation
of an existing contract should be done in writing. Send a letter to the
supplier attaching a copy of the account holder's passport or Spanish NIE
number.
A
similar situation exists for gas supply. Mains gas is usually only available in
larger cities. If this is the case, contact the supplier and ask for a final
bill to be prepared.
If
there is no mains gas then it is likely that supply has been by butane bottled
gas (bombonas).
Most people will have had a contract in place for supply and delivery which
should be cancelled. The bottles should be returned for the deposit refund.
Water: Contact
the local supplier and ask for a final bill to be prepared. This should be done
in writing with an attached copy of the account holder's passport or
Spanish NIE number.
Telephone
and Internet: Spain has several companies providing telephone and
Internet services, though Movistar is
the national supplier for landline services. Therefore most people will need to
contact them to cancel their contract.
In
any correspondence be ready to quote the customer reference numbers (which can
be found on bills) and the NIE and passport number of the account holder. They
often also ask for bank account details.
Health Care and Social Security
Any
private health insurance cover which has been in force may need changing or
cancelling. Ensure that health insurance remains valid until arrival in the new
country of residence or continues as appropriate.
Anyone
who has received medical treatment while in Spain should have their records
forwarded to their new practitioner or ask for a copy.
Spanish
residents who have been employed or self-employed will have been required to
join the social security system and will have been paying monthly social
security contributions. In return, they will have been issued a social security
card entitling them to free hospital and medical care.
Once
residency and employment in Spain ceases, these cards should be returned to the
authorities.
- The Spanish social security
website has more information in
English
Retirees
and anyone in receipt of benefits from the Instituto Nacional de la Seguridad
Social (INSS) needs to inform them of their relocation.
Those
who have made contributions to a pension fund (state and/or private), should
inquire about the possibility of transferring benefits as well as provide a
forwarding address. EU citizens can normally transfer benefits between
countries quite simply.
Business and Tax Issues
Banking
A
Spanish bank account should be kept open for a short period to settle final
bills (in Euros).
Standing
orders (domiciliación de
pagos) and direct debits (domiciliación
bancaria) are the most popular ways to pay regular bills in Spain.
Make sure that these have been cancelled once final payments have been made.
Some
banks will allow accounts to be closed in writing instead of in person. Check
with the bank for requirements.
Credit
card companies will also need to be notified of a new address for statements.
Tax
This
is an extremely complex issue and individual circumstances will dictate if
there are any outstanding liabilities upon departure from Spain.
The Spanish Taxation Agency (Agencia Tributaria) has
some helpful information in English on its website.
Be
aware that under some circumstances the proceeds of property sales will be
subject to Spanish capital gains tax. Anyone selling a property should seek
professional advice.
Income Tax
Personal
taxation in Spain is equally complex. Expatriate residents may or may not have
been treated as residents for tax purposes.
On 10
June 2005 the Spanish government approved Royal Decree 687/2005 implementing
the Personal Income Tax (hereinafter, PIT) regulations in relation to article
9.5 of the Spanish PIT Law, which is commonly known as the "Beckham
law" and regulates the procedure to apply for the Spanish tax regime for
expatriates in force since January 1st, 2004.
As a
result of this law some expatriate residents have been able to opt for
assessment under Spanish Non-Resident Income Tax rules for a period of up to
six tax years.
To
ensure that each individual understands their own obligations with regard to
tax liability on departure from Spain it would be wise to seek professional
advice.
- More
information can be found on the Spanish Government Tax Office site (in Spanish)
Correspondence
A
redirection service is offered by the Spanish post office (Correos).
This
should be arranged 72 working hours prior to departure. It will redirect mail
for one, two or six months. For information, visit the Correos website: Forwarding Postal Service
Vehicles and Driving
Foreign
cars are always initially issued with temporary registration plates. These are
valid for a six-month period in any one year and must be renewed annually. Upon
obtaining full residency status, vehicle owners will have changed to full
national plates and paid the appropriate Special Tax (Impuesto Especial) of 12
percent.
If
exporting a Spanish-registered car, contact the traffic office (Jefatura Provincial or Local de Tráfico) to
notify them of the intended move.
- Find addresses and opening hours of
traffic offices on the DGT (Dirección General de Tráfico)
website (in Spanish)
Embassies
in the new country of residence can provide information on the importation of
personal goods. Links to a number of them are given at the end of this article.
Driving licences
All
EU driving licences are recognised in Spain so it is likely that many foreign
residents will not have applied for a Spanish one unless the original licence
expired.
Drivers
with non-EU licences will have had a year grace period to drive either with a
translation of their original licence or on an international licence. At the
end of this period they should have applied for and obtained a Spanish licence.
The original licence will have been returned to the appropriate office in the
country of issue at this point.
Therefore
it may be necessary for some drivers to apply for a new licence when they
relocate. Holders of a Spanish driving licence should contact the traffic
office (Jefatura
Provincial or Local
de Tráfico) before departure.
- Find addresses and opening hours of
traffic offices on the DGT (Dirección General de Tráfico)
website (in
Spanish)
Animals
Depending
on the destination, some animals may require a period of quarantine. Their move
will almost certainly require documentation and possible additional vaccinations
or similar medical treatment.
The
EU pet passport covers dogs, cats and ferrets for movement within Europe and
the Pets Travel Scheme (PETS) allows qualifying domestic pets to travel to and
from the UK without a period of quarantine. There is a waiting period after
vaccination before a vet can carry out blood tests and issue a passport. Local
vets can provide information and documentation.
Travelling
to other EU destinations with pets with passports (cats, dogs and ferrets) is
relatively straightforward but relocating to a non-EU country will be more
complicated. It is best to contact the Embassy in the new country of residence
for up to date information.
As a
general rule, animals have to travel in approved containers and by approved
routes. Be aware that sudden outbreaks of diseases (such as avian flu) can
affect pet travel. Embassy websites are also good sources of information.
Further Information
- GOV.UK (information
for returning residents)
- British
Embassy, Spain
- United States Embassy, Spain
- Australian Embassy, Spain
- Returning
to New Zealand (from the New
Zealand government website)
- Spanish Ministry of the Interior (in Spanish)
- European Union information regarding moving pets and animals