Spain Individual Tax Guide

Worldwide Personal Tax and Immigration Guide 2021–22

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Spain ey.com/globaltaxguides

Madrid

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EY Torre Azca. 9th Floor C/ Raimundo Fernández Villaverde, 65.

28003 Madrid Spain Executive contacts Gerardo de Felipe

Bárbara Pardo de Santayana

Judith Sans

(resident in Barcelona)

Juan Pablo Riesgo

Gonzalo Fernández Lorenzo

Ivan Saez Fuertes

Sergi Cebrian Burguete

+34 915-727-410 Fax: +34 915-727-711 Email: gerardo.de.felipe@es.ey.com +34 915-727-410 Fax: +34 915-727-711 Email: barbara.pardosantayana @es.ey.com +34 933-663-756 Fax: +34 934-397-891 Email: judith.sansoto@es.ey.com +34 915-678-597 Fax: +34 915-727-711 Email: juan.pablo.riesgo@es.ey.com +34 917-493-689 Fax: +34 915-727-711 Email: gonzalo.fernandez@es.ey.com +34 915-727-410 Fax: +34 915-727-711 Email: ivan.saezfuertes@es.ey.com +34 915-725-826 Fax: +34 915-727-711 Email: sergi.cebrianbruguete@es.ey.com

Immigration contacts Laura Perez Ema

Josefina Botero Escobar David López Rodriguez (resident in Barcelona)

+34 915-675-350 Fax: +34 915-727-711 Email: laura.perezema@es.ey.com +34 917-496-882 Email: josefina.botero.escobar@es.ey.com +34 933-663-700 Email: david.lopez.rodriguez@es.ey.com

Social security contact Abraham Díaz Garcia

+34 915-727-863 Fax: +34 915-727-711 Email: abraham.diazgarcia@es.ey.com

A. Income tax Who is liable. Individuals performing activities in Spain are sub-

ject to tax based on residence and source of income. Resi­dents are taxed on worldwide income. Nonresidents are taxed on Spanish-source income and on capital gains realized in Spain only.

Several tax exemptions may apply to expatriates.

Individuals are considered residents for tax purposes if they spend more than 183 days in a calendar year in Spain or if the center of their vital interests is located in Spain. A presumption of residence arises if an individual’s family lives in Spain.

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Residence is determined on a full-year basis; Spain recognizes no change of residence during a fiscal year. A Spanish national who gives up Spanish tax residence is nonetheless considered a Spanish tax resident for the year of departure and the next four tax years if the new tax residence is in a tax haven.

Special expatriate tax regime. Under the Spanish regulation, an employee assigned to Spain who meets the criteria for being considered a Spanish tax resident may elect to be subject to tax under the nonresident taxpayer rules.

This election is subject to certain conditions, the most important of which are the following: • The individual must not have been a Spanish tax resident in the 10 years preceding the tax year of his or her arrival in Spain.

• The assignment in Spain must be based on one of the following circumstances: — The assignment is under a labor contract (local contract or assignment letter) with the exception of a contract for a professional athlete.

— The individual is a representative person of a company (without a participation in such company or with a participation in an unrelated entity).

• The individual cannot receive compensation that is deemed obtained by a permanent establishment in Spain.

Under this special tax regime, employment income up to EUR600,000 is taxed at a rate of 24%, and employment income exceeding this amount is taxed at a rate of 47%.

If the above election is made, the individual is subject to tax on employment income at a flat rate of 24%, instead of at the progressive resident tax rates of up to 47%, which depend on the autonomous community in which the taxpayer resides (other rates may apply to different types of income). The election is effective for the first year of residence and the following five consecutive years. For the purpose of calculating the tax base, the Spanish tax law states that any income derived from the date of arrival in Spain until the communication of the departure is considered employment income obtained in Spain (unless it can be proved that the income is for work performed before the arrival date in Spain).

Income subject to tax. The taxation of various types of income is

described below.

Employment income. Taxable employment income includes all com­pensation received for personal services, including salaries and wages, payments for certain business-related expenses, pensions, housing allowances and other allowances paid in cash or in kind.

Spanish residents with overseas duties may apply a foreign earned income exemption of up to EUR60,100 if certain conditions are met.

Irregular employment income (earned over a period that is longer than two years) may be eligible for a limited 30% reduction if certain conditions are met.

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Self-employment and business income. Taxable self-employment and business income includes income from all industrial, commercial, professional and artistic activities carried on by a taxpayer.

Residents are subject to tax on self-employment and business income at the rates described in Rates. Nonresidents are subject to a flat 24% (19% for residents of other European Union [EU] member states and European Economic Area [EEA] member states) tax on gross self-employment and business income. Only those individuals whose tax residence abroad is located in an EU or EEA state are allowed to claim a tax deduction for certain expenses related to the business and the activity performed, such as salaries paid, materials purchased and miscellaneous expenses.

Directors’ fees. Directors’ fees are considered ordinary income and are taxable to residents at the rates described in Rates and to nonresidents at a flat rate of 24% (19% for residents of other EU member states).

Investment income. Resident individuals are subject to tax on rental income and other consideration derived from the lease of rural or urban real estate at the rates described in Rates. Nonresident individuals are subject to tax on such income at a flat rate of 24% (19% for residents of other EU member states and EEA member states).

For tax residents of Spain, net income from the rental of property may be reduced by 60% if the net income result is positive and if the property is destined for living (regardless of the age or amount of income of the tenant).

For urban real estate used by the owner as a permanent residence, deemed income does not apply. However, for urban real estate used as a nonpermanent residence or not leased, the law presumes an income of 2% of the cadastral value (1.1% if the cadastral value of the real estate was reviewed in the last 10 years). If the cadastral value is not determined, the presumed income is calculated by applying 1.1% to half of the value assessed in accordance with the principles of valuation for purposes of the net worth tax (see Section B).

Income from movable property includes dividends, interest, profits from copyrights and industrial property, and the return in cash or in kind on capitalization transactions and life insurance policies.

In determining net income from personal property, limited administration expenses are deductible.

Spanish tax residents and nonresidents are subject to tax on dividends, interest and capital gains (regardless of the holding period) at the following rates: • The first EUR6,000 at a rate of 19% • Amount from EUR6,000.01 up to EUR50,000 at a rate of 21% • Amount from EUR50,000.01 up to EUR200,000 at a rate of 23% • Amount above EUR200,000.01 at a rate of 26% Income from public debt or nonresident bank accounts and income derived from the sale of shares or reimbursement of participations in investment funds in official Spanish markets are not taxable if Spain and the country of the taxpayer’s residence have

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entered into a double tax treaty that includes an exchange-ofinformation clause.

Interest income and capital gains derived from bonds and securities issued by resident entities or individuals are not taxable if the taxpayer is a resident of an EU member state.

If members of a family unit elect to file separate tax returns, the income derived from property must be attributed to the members who own the property. For spouses under the community prop­ erty regime, 50% of the income must be attributed to each spouse (see Section H).

Taxation of employer-provided stock options. Employer-provided

stock options are taxed at the date of exercise on the difference between the exercise price and the fair market value of the stock at the date of exercise. This income is also subject to social security contributions (see Section C).

Income derived from employer-provided share options up to an annual limit of EUR12,000 may be exempt from tax if all of the following requirements are met: • The offer or delivery is made to all of the active employees of the company, group or subgroup under the same conditions.

This requirement is met if the offer or delivery is made based on the employee’s seniority or if the offer is made available to all employees who are regarded as Spanish tax residents.

• The employee (individually or jointly with the spouse and other family members) cannot own more than 5% of the company.

• The employee holds the shares for at least three years.

If the entire share award benefit is made under the same conditions for all employees of the company, group or subgroup, and if the employee fulfills the three conditions above but exceeds the limit of EUR12,000, only the excess is considered to be taxable income. If the employee disposes of the shares within three years after receiving the share award, he or she must file an amended tax return.

If the stock option income is generated over a period exceeding two years and if it is attributable to only one fiscal year, it may be possible to apply the 30% reduction for irregular employment income (see Employment income). However, the 30% reduction can only be applied every five years, except in some cases.

Any capital gains derived from the subsequent sale of the stock are subject to the capital gains tax rules described in Capital gains and losses.

Capital gains and losses. Capital gains are calculated as the differ-

ence between the transfer price of an asset and its acquisition price.

Capital gains are taxed at a rate of 19% on the first EUR6,000, at a rate of 21% on the amount from EUR6,000.01 to EUR50,000, at a rate of 23% on the amount from EUR50,000.01 to EUR200,000, and at a rate of 26% on the amount above EUR200,000.

For Spanish tax residents only, capital losses incurred on sales of assets may be offset against capital gains. Any excess losses may be carried forward four years.

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For filers of individual returns, capital gains and losses must be allocated to the individual owner of the property. If the spouses are under the community property regime (see Section H), capital gains and losses are imputed 50% to each spouse.

Deductions and allowances

Deductible expenses. Social security contributions may be deducted in computing taxable employment income for tax residents.

In addition, the following reductions are allowed: • A standard reduction of EUR5,565 if a taxpayer’s annual net employment income does not exceed EUR13,115 • A reduction of EUR5,565 less the result of multiplying 1.5 by the difference between the net employment income exceeding EUR13,115 for net income between EUR13,115 and EUR16,825 • A standard deduction of EUR2,000 if net employment income exceeds EUR16,825 These amounts may be increased for disabled taxpayers.

Contributions to a regulated pension plan shall reduce the tax base. The annual reduction is limited to the lesser of EUR1,500 or 30% of net employment income or business income. This limit will be increased by EUR8,500, provided that such increase comes from employer/business contributions, or from contributions of the employee to the same social welfare scheme for an amount equal to or less than the respective employer/business contribution. In addition, individuals whose spouses receive net earned income and income from business activities below EUR8,000 can choose to make contributions up to EUR1,000 annually to pension plans in which the spouse is the beneficiary, and these contributions can be claimed as a reduction from the tax base of the taxpayer making the contribution. Contributions made in the fiscal year that cannot reduce the taxpayer’s tax base may generally be carried forward five years.

Interest expenses that do not exceed gross income, expenses necessary to produce income and charges for depreciation are deductible from rental income.

Nonresidents are generally not entitled to deduct any expenses, except for taxpayers who qualify as tax resident in other EU member states and EEA member states.

Personal allowances. The allowances listed below reduce an indi­ vidual’s tax liability by an amount resulting from the application of the progressive tax rates to the total allowances. They do not reduce the tax base. The following are the allowances.

Allowance

Personal allowance Allowance for taxpayers over 65 years of age Allowance for taxpayers over 75 years of age Allowance for handicapped taxpayer for whom the grade of disability equals or exceeds 65%

Amount (EUR)

5,550 6,700 6,950 9,000

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Allowance for handicapped taxpayer for whom the grade of disability is less than 65% Allowance for handicapped taxpayer needing help with mobility Each ascendant living with taxpayer whose annual income is less than EUR8,000 Over 65 years of age Over 75 years of age Each disabled dependent child or ascendant living with the taxpayer whose annual income is less than EUR8,000 Individuals for whom the grade of disability exceeds 65% Other disabled individuals Each disabled individual needing mobility help Each dependent child under 25 years of age living with taxpayer whose annual income is less than EUR8,000 First child Second child Third child Fourth child and subsequent children Allowance for children under three years old

Amount (EUR)

3,000 3,000 (additional)

1,150 1,400

9,000 (additional) 3,000 (additional) 3,000 (additional)

2,400 2,700 4,000 4,500 2,800 (additional)

Local governments may allow additional personal allowances and deductions.

Business deductions. Deductions are permitted for all expenses necessary to obtain business income and for the depreciation of assets related to business activities.

Rates. Total tax liability consists of the tax liability computed

under the general rates plus the tax liability computed under the autonomous community rates. Consequently, the final maximum marginal rate depends on the marginal tax rate of the autonomous community where the taxpayer resides. For example, the maximum marginal tax rate is 45% for an individual resident in Madrid and 50% for a resident in Cataluña (for income above EUR300,000).

Income derived by nonresidents is generally subject to a final tax of 24% (or 19% for residents of other EU member states and EEA countries). However, other rates may apply depending on the type of income. Dividends and other income derived from holding a participation in a company, interest and other income obtained from assigning capital to third parties are subject to tax rates of 19%, 21%, 23% and 26% (see Investment income).

See Special expatriate tax regime for details regarding the special tax regime for expatriates.

Credits. Tax credits are allowed in only a few specified circum-

stances, such as for gifts to specified entities and for certain double tax relief.

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In addition, an investment tax credit is available for amounts paid for the acquisition, maintenance, repair, restoration or exhibition of assets deemed to be of cultural interest. The credit is granted at a rate of 15% on a maximum expenditure of 10% of the taxpayer’s tax base.

The Spanish government removed the tax credit on the purchase of the taxpayer’s primary residence acquired in or after January 2013. However, a grandfathering provision has been introduced for acquisitions or investments made before 1 January 2013.

Under this transitional measure, the tax deduction amounts to the equivalent of 15% of the acquisition cost (base of the deduction) up to a maximum base of EUR9,040. As a result, the tax credit cannot exceed the amount of EUR1,356. If the acquisition of the primary residence is financed with debt, the amount of the debt repaid plus the interest paid in the fiscal year represents the base of the deduction; the annual limit is EUR9,040.

If spouses file separate returns, the tax credit is applied to each spouse according to the percentage of ownership.

A tax credit is available for working mothers with a child up to three years old (up to a maximum of EUR1,200 per year per child), as well as for large families (three children or more). An additional amount up to EUR1,000 can be applied for childcare expenses.

For large families (three or more children), a tax credit of EUR1,200 per family applies. Families with four or more children can increase the amount of this tax credit by EUR600 per each child who exceeds the minimum number of children required.

Relief for losses. Relief for losses may be available, subject to the limits and conditions established by law.

B. Estate and gift tax An individual resident in Spain for fiscal purposes is taxed on assets and rights acquired by inheritance or gift, regardless of where the assets or rights are located. If the recipient is not resident in Spain, estate and gift tax applies only to assets located in Spain or to rights that may be executed in Spain.

Estate tax must be paid by the legal heir, and gift tax must be paid by the donee. The taxable amount for estate tax purposes is determined by deducting certain amounts based on the beneficiary’s age and on the relationship between the deceased and beneficiary. Tax payable is calculated by applying factors based on the taxpayer’s net worth, age, relationship with the deceased or ­beneficiary and type of asset.

Estate and gift tax rates vary depending on the autonomous region.

C. Social security Contributions. Under Spanish domestic law, an individual must

join the Spanish social insurance system if work and residence permits are received. Under Spanish domestic law, an individual must join the Spanish social insurance system if work and

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residence permits are received. The rate of social insurance contributions is 6.35% of salary for employees, and the rate for employer contributions is generally 29.9% of salary. For 2021, the maximum base for employee contributions is EUR48,841.20.

For 2020, the maximum annual contribution is EUR3,101.42 for employees and EUR14,603.52 per employee for employers.

Totalization agreements. To provide relief from double social

security taxes and to assure benefit coverage, Spain has entered into totalization agreements, which usually apply for a period of five or six years, with the following jurisdictions.

Andorra Argentina Australia Brazil Canada Cape Verde Chile China Mainland Colombia

Dominican Republic Ecuador Japan Korea (South) Mexico Morocco Paraguay Peru

Philippines Russian Federation Tunisia Ukraine United States Uruguay Venezuela

D. Tax filing and payment procedures The Spanish tax system operates through self-assessment. The tax year is the calendar year. Regardless of marital status, a taxpayer may file an individual return. Alternatively, family members may file one tax return that includes the income of the entire family.

On a family tax return, the family members are jointly and severally liable for the payment of tax. If one spouse has a tax ­liability and the other spouse has a refund, the spouses may offset each other’s amounts. Nonresidents with taxable income must file tax returns, unless they are subject to withholding tax for the entire amount due. However, individuals who have elected taxation under the special expatriate regime (see Section A) must file their returns during the period of 4 April through 30 June following the end of the calendar year.

Returns are usually filed from 4 April to 30 June following the end of the calendar year. Nonresidents must file an income tax return for each type of income, and the deadlines vary depending on the type of income and the accrual of the income. In some cases, the tax returns for nonresidents must be filed quarterly, and in other cases annually.

For tax returns filed by residents, any tax due is payable with the return, and interest accrues on any unpaid balance. However, 60% of the tax may be paid in June, and the remaining 40% paid by 5 November, without interest accruing. The tax due is the balance remaining after subtracting amounts withheld during the year. If excess tax is withheld, the excess is refunded to the taxpayer.

Compulsory declaration of assets and rights located abroad.

Royal Decree 1558/2012, published on 24 November 2012, establishes new requirements for tax residents of Spain to report details of their assets and rights located outside Spain.

Resident taxpayers who have assets or rights located abroad meeting certain conditions must file this information declaration by 31 March following the end of the tax year referred to in the

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tax return. Severe penalties may be imposed on noncompliant taxpayers.

Exit tax. If an individual has been tax resident in Spain for at least 10 years out of 15 consecutive tax periods, the fact of losing tax residence may generate the obligation to declare the potential capital gains on its financial assets (stocks and shares) if certain circumstances exist.

E. Double tax relief and tax treaties An individual resident in Spain may use foreign tax credits to avoid double taxation (imputation method).

Spain’s double tax treaties apply both the imputation and the exemption-with-progression methods. Spain has entered into double tax treaties with the following jurisdictions.

Albania Algeria Andorra Argentina Armenia Australia Austria Barbados Belgium Bolivia Bosnia and Herzegovina Brazil Bulgaria Canada Chile China Mainland Colombia Costa Rica Croatia Cuba Cyprus Czech Republic Dominican Republic Ecuador Egypt El Salvador Estonia Finland France

Georgia Germany Greece Hong Kong SAR Hungary Iceland India Indonesia Iran Ireland Israel Italy Jamaica Japan Kazakhstan Korea (South) Kuwait Latvia Lithuania Luxembourg Malaysia Malta Mexico Moldova Morocco Netherlands New Zealand Nigeria North Macedonia Norway Oman

Pakistan Panama Philippines Poland Portugal Qatar Romania Russian Federation Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Sweden Switzerland Thailand Trinidad and Tobago Tunisia Turkey USSR* United Arab Emirates United Kingdom United States Uruguay Uzbekistan Venezuela Vietnam

* Spain honors the USSR treaty with respect to the former Soviet republics.

F. Residence permits A foreign national who wishes to reside in Spain must obtain a valid residence permit.

For a person who does not wish to work in Spain, temporary and permanent residence permits are available.

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Temporary residence permits are issued to persons who wish to reside in Spain more than 90 days and less than 5 years. They are issued initially for one year and may be renewed for two periods of two years each.

If the temporary residence permit is issued as a result of a spouse holding work and residence permits, the validity of the residence permit is for the same duration as the spouse’s work and residence permits.

Foreigners who have resided lawfully in Spain for a period of five years can apply for a long-term residence permit. However, the residence card must be renewed every five years.

A regulation applicable to EU nationals, nationals of the EEA, which comprises Iceland, Liechtenstein and Norway, and nationals of Switzerland provides for the right of freedom of movement, residence and work in Spain for these nationals. Partners appearing in an official register have the same rights as spouses.

EU nationals, EEA nationals and Swiss nationals, who wish to reside in Spain for more than three months, must go to the police station within the first three months after their entry into Spain and register in the Central Registry for Foreigners (Registro Central de Extranjeros). The police station issues a certificate that includes the name, nationality and domicile of the foreigner, his or her identification number and the date of the registration.

This certificate replaces the identification card. To complete the registration, individuals must submit, among other documents, proof that they have sufficient economic means to live in Spain and that they have private or public medical coverage.

Relatives of EU nationals, EEA nationals and Swiss nationals with a third-country nationality must apply for a special residence card indicating that they are a relative of these nationals.

They will have the same rights as other EU nationals, EEA nationals and Swiss nationals. However, for an individual to obtain a residence card, the marriage must be registered in an EU country’s registry. An exemption is granted to nationals of Austria, Denmark, Germany, the Netherlands, the Slovak Republic and the United Kingdom. Nationals of these countries are not required to register a marriage that took place abroad.

These rights also apply to partners of EU nationals, EEA nationals and Swiss nationals with a third-country nationality who are registered as partners in an official registration. A change in the Spanish regulations that entered into force on 16 December 2015 expands the beneficiaries of this special residence card to include partners with no legal bonds (among others). Applicants need to provide the authorities with all documentation available to demonstrate at least two years of proven partnership or one year of coexistence. The immigration authorities use their discretion in analyzing this documentation.

Regarding the possibility of residing in Spain without engaging in any work or professional activity, an individual may apply for a Non-Lucrative Residence Visa. It is not available to EU citizens or to nationals of countries to whom EU law applies in terms of being beneficiaries of the rights of free movement and residence.

The Non-Lucrative Residence Visa can be applied for up to 90 days before the desired date of entry into Spain at the Spanish

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consulate at the place of residence. The main requirements are the following: • Public or private health insurance taken out by an insurance company authorized to operate in Spain • Proof of financial means required to cover the living expenses and, where appropriate, those of their family members

G. Work permits Nationals of non-EU countries who wish to work and reside in Spain must apply for work permits.

Non-EU nationals may not work while their work permits are being processed. EU nationals are not required to apply for a work permit to undertake employment in Spain. Rules applicable to EEA nationals and to EU nationals also apply to nationals of Switzerland.

A non-EU national who performs any economic activity in Spain, either as an employee of a Spanish company or as a self-employed individual, must obtain work and residence permits. Spanish law imposes steep fines of up to EUR180,000 for companies that hire foreign workers without valid work permits.

The same rules apply to self-employed foreign nationals and to those applying to work for a specific Spanish company. However, special permits exist for foreign nationals intending to start a business or for foreign companies wishing to establish subsidiaries headed by foreign nationals in Spain.

H. Types of permits under Law 14/2013, in support of entrepreneurs and certain others Law 14/2013 entered into force on 30 September 2013. Several changes to the rules for visas and residence permits came into force on 29 July 2015. They significantly reduce the administrative and financial requirements for obtaining a Spanish visa under Law 14/2013.

The law establishes a residence visa for highly qualified employees to be assigned to a Spanish company belonging to the same group of companies (Intracompany Residence Permit [Autorización de Residencia por Traslado Intramepresarial]) and for senior professionals or managing director-type individuals (highly qualified professionals, for whom the visa is called the Residence Authorizations for Highly Qualified Personnel [Autorizaciones de Residencia para Personal Altamente Cualificado]).

Among other measures, the law provides that the Spanish government may grant residence visas to the following types of foreigners: • Entrepreneurs • Highly qualified professionals (the immigration authorities are currently very restrictive on what is considered a highly qualified position) • Researchers • Employees with intercompany transfers Foreigners who prove that they belong in one of the categories listed above and who wish to reside and work in Spain may

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request a residence visa if they fulfill all of the following conditions established in the law: • They are not illegally residing in Spain.

• They are more than 18 years old (Spanish full age).

• They do not have a criminal record.

• They are not rejectable by jurisdictions with which Spain has entered into an agreement.

• They have medical insurance with an entity authorized in Spain.

• They have enough economic resources to support themselves and their family members (if applicable).

• They pay the government fees.

Highly qualified professionals

Spanish National Classification of Occupations classification.

The Spanish National Classification of Occupations (CNO) classification refers to work positions and functions that can be assimilated to Groups 1 and 2 of the 2011 CNO (CNO-11). This is related to the profile of the position, the employment contract, the professional classification and the applicable collective agreement (the negotiated agreement between an employer and the employee’s representatives, covering rates of pay and terms and conditions of employment).

Remuneration. Minimum salary is based on the social security classification group, taking data from the National Statistical Institute. The following are the applicable amount of minimum salary.

Groups 1 and 2 of CNO-11

Directors and managers Other technicians and scientific and intellectual professionals

Average annual salary (EUR)

54,142 40,077

There is a reduction by a coefficient of 0.75 in the following cases: • Small and medium-size enterprises belonging to a sector considered strategic.

• Applications from highly qualified professionals up to 30 years old.

Bonuses and allowances are considered as a part of the annual base salary.

Benefits in kind may not be considered for more than 30% of the worker’s wages for purposes of calculating the annual average salary referred to above.

Training. Article 72 of Law 14/2013 regulates training, research, development and innovation.

Renewal. Compliance with the requirements resulting in the initial authorization must be established and verified to have been registered in order to proceed with the renewal application.

Change of employer. A change of employer must be communicated by the interested party to the Unit of Large Companies and Strategic Collectives within 30 days, requesting a new authorization.

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The issuance of the new authorization could be required in case of change of companies when both entities belong to the same group.

In cases of acquisitions or mergers of companies, the residence permit is renewed for the period of validity remaining in the initial permit.

Worker’s dismissal. If the highly qualified professional is dismissed, the dismissal must be communicated to the Unit of Large Companies and Strategic Collectives. If the applicant will be entitled to the unemployment benefit, the renewal shall be carried out in accordance with Article 71.

Investors. The new law considers the following investments:

• Investment of EUR2 million or more in public debt • Investment of EUR1 million or more in Spanish company shares or Spanish bank deposits • Real estate with a value of EUR500,000 or more without any mortgage on this amount • A business project to be developed in Spain that can be considered of general or public interest, taking into account the creation of jobs, the technology and scientific innovation of the project and its socioeconomic impact in Spain

The law establishes the manner for proving the investment.

The corresponding Spanish consulate grants the visa for a year.

If the foreigner wishes to reside in Spain for a longer period, a residence permit can be requested from the Spanish immigration authorities in Spain.

For these residence visas, the Spanish immigration authorities take into account the business plan, the professional profile of the foreigner and possible benefit to Spain from the economic opportunity.

Researchers. A new residence permit is available for some research, development and innovation projects for Spanish public or private institutions, subject to certain requirements.

Intracompany transfers

EU Intracompany Transfer. The EU Intracompany Transfer (ICT) applies to transfers between companies in the same group to work as a manager, specialist or training worker.

If there is a social security bilateral agreement in place, it must be applied. If the Certificate of Coverage does not include health care coverage, the applicant will need health insurance.

The assignment letter must contain the following information: • Duration of the assignment and location • Accreditation that the position will be as a manager, specialist or training worker • Activities • Remuneration • Accreditation of return to company of the same group Under EU Directive 96/71/EC concerning the posting of workers (96/71/CE), every displacement of a posted worker affected by a work contract signed between two EU companies should be

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communicated to national labor authorities before the displacement. This communication does not affect the work and residence permit, but it should be considered to avoid any sanction in the framework of labor inspections that will be intensified as a result of the effect of the COVID-19 crisis on employees’ working conditions.

ICT Nacional. The ICT Nacional applies to the following workers: • Workers posted between subsidiary companies or companies within the same group, when they have passed the period limited by the directive (one year for training and three years for the other activities).

• Workers posted between subsidiary companies or the same group who are neither a manager, nor a specialist nor a training worker, but who can be considered key personnel for the performing of a job that is particularly complex.

• Workers transferred as a result of a contract to provide services between the company that transfers the worker and the one that receives the worker, if the two companies are not part of the same company group and if the worker is part of the workforce of the company that transfers the worker.

Remuneration. The following are the rules applicable to remuneration: • The minimum salary is the salary established by the applicable Spanish collective bargaining agreement.

• The salary received in the country of origin must be indicated in both local and foreign currency.

• Bonuses and allowances may not be taken into account.

• Benefits in kind may not be more than 30% of the salary.

Other considerations. In general, this new law establishes easier processes and shorter deadlines to obtain these types of residence visas and permits than under the normal immigration rules. As a result, the immigration process will be expedited for foreign companies and individual investors making investments and engaging in professional activities in Spain. The following are some of the advantages of the new types of permits in comparison with the permits established in the immigration law: • The law provides for shorter processing times for obtaining the work or residence permit. The current processing times are 20 business days, while the regular procedure takes 30 business days.

• The law provides for shorter processing times when applying for the residence visa at a Spanish consulate overseas (should not exceed 10 business days).

• In some cases, bypassing the visa application process is possible if the work permit applicant is in Spain legally at the moment of the work permit application. This is determined on a case-by-case basis.

• Family applications can be made simultaneously with the principal application or at a later stage.

• The residence visa or permit allows work in any region within the Spanish territory.

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The following are other measures in the law: • At the time of renewal, the individual must not have stayed outside Spain for more than six months per year (except for investors).

• For the regulated professions, all academic qualifications and diplomas must be duly validated by the Spanish Ministry of Education.

• In some cases, the applicant or the dependents need to demonstrate that they have their own financial means (entrepreneur and investors).

I. Family and personal considerations Family members. Family members must obtain residence permits if they intend to accompany a foreign national to Spain. The spouse’s children, child guardians and ancestors of the spouse are considered family members.

Driver’s permits. A foreign national may drive legally in Spain with his or her home country driver’s license for six months. Require­ ments for driver’s license reciprocity in Spain vary, depending on the country of origin of the foreign national.