219,225 EU Citizens May Have Left Spain in 2013.

Figures recently published state that this is the total of those who were no longer listed on the census register (padron) in 2013.

The national department of statistics INE, are trying to damp down fears amongst local governments and state that these figures are not accurate but are due to the fact that various town halls are removing names of the register of those who have not contacted them. This reasoning cannot be taken as factual information. It is only in the last six or seven months that the town halls had begun the drive to encourage more citizens to register. There would not have been sufficient time to remove so many names of the register. The last thing that the local governments want. The need for revenue from the central and regional governments would be a factor for them to consider. Figures vary but in some municipal areas such as Calpe, just 5000 lesser names on the register would mean a drop in revenue to the town halls of 2.000.000 euros. With the losses and with the May 2015 elections almost on the horizon, it would have not been wise to remove citizens of the local registers..

According to the figures published by EL Pais, Britons make up the third-largest foreign community in Spain, after Romanians and Moroccans. There are 297,299 of them on the local population registers, representing a 22.8-percent drop from a year earlier. The German community fell by 23.6 percent and the French by 12.7 percent.

The reasons for this large exodus is being blamed on the tax authorities drive to collect taxes from the expatriate community. The push with sanctions with figures of around 10.000 euro for those not conforming with the completion of the modelo 720, enforcing the declaration on worldwide assets is partly to blame for the exodus. Some residents are still thought to be here but may not now be on the register in the hope that they can stay undercover. Others have sold and are now renting again as an avoidance measure.

You do have to consider the effect a few years on of the EU crisis which has culminated in an increase in indirect taxes and hike in the services offered by the State and the utilities and the perceptible increase in the cost of living. Unemployment has also greatly affected citizens from other EU countries as well as the Spanish population.

Let us hope that with the drive from many town halls to encourage registrations, they will offer attractive incentives. Now is the time for the Spanish Juntas and central government to realise that they are driving away investors with the ever increasing complications in the bureaucratic system. Removing the obstacles to register or renew residency would be a good starting point.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.