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Benefits of Tourist Status:
With Spain’s full entry into the European Union, most advantages of remaining on tourist status have disappeared.
Formerly, only a non-resident could hold bank accounts in freely convertible pesetas or other currencies. With the introduction of the euro, currency exchange restrictions no longer exist, for Spaniards or residents.
Formerly, only a non-resident could own an automobile on tax-free tourist plates. Now, as European Union citizens, no EU person can do this, as he is not a “tourist” in the EU. Non-EU citizens, however, continue to enjoy the right to the tourist registration, without paying Spanish taxes.
So there aren’t really many advantages to remaining on tourist status when you really are a resident.
People sometimes think that a person on tourist status does not become liable for Spanish income tax and that he will not need a Spanish driving license. It is simply not true.
A person who lives in Spain more than 183 days in one calendar year, whether or not he holds a residence permit, becomes legally liable to pay Spanish income tax.
European Union citizens can continue to use their EU national driving license after they take out a Spanish residence permit, so even that is not a problem. However, they must have their license stamped by the Spanish traffic department.
You as a Resident:
On balance, if you really reside in Spain, it seems wiser to take out a formal residence permit. If you are an EU citizen, we should not call it a “permit”. It is a residence card.
If you intend to earn money in Spain, you will need a work permit. Many residents do not have work permits, their papers being stamped “not valid for working in Spain”.
It is illegal to work in Spain without a work permit, or an EU registration card, tarjeta cornunitaria if you are a working EU citizen. The normal residence permit is renewed once every five years.
Renewal is usually a simple matter. The EU card is issued for one year, and five years on renewal.
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