Friday, 9 November 2012

NOTARY'S RESPONSE TO A RESIDENCY CERTIFICATE


My clients, who are residents, purchased a property in Andalucía. When drawing up the purchase contract (escritura de compraventa) in a notary, the clerk was at first not willing to inscribe in the document that they were residents in Spain. As far as he was concerned he had no proof of resident status. He made the point that the A4 size green document which has replaced the previous resident card, (and even though accompanied by passports) was not proof enough.

He did have a point. If they had been selling a property they would have been considered as nonresidents. This would result in the rule of ‘nonresident tax’ being applied.
Consequently; three percent of the total sale price would be legally withheld at source. The dues would then be forwarded to the tax authority.
The new document states, “La persona que a continuación se indica, ha solicitado y obtenido su inscripción en el Regisgtro Central de Extranjeros de la Dirección de la Policía y de la Guardia Civil, como residente comunitario en España” (The person indicated below, has sought and obtained registration in the Central Registry of Foreigners, of the address of the Police and of the Civil Guard; as a community resident in Spain) Translate and take this statement as you will, but there is no doubt, that there is conflicting and controversial recognition of resident status at present. For this reason it is important to take further action to authenticate your resident status.

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