Work Residency update in Spain

On July 27 2022, Royal Decree 629/2022 was published in the Official State Gazette, amending the Regulations of Organic Law 4/2000, explaining many new updates for expats who reside in Spain.

On this publication we will discuss updates of the conditions to live and work in Spain.

➢ RESIDE AND WORK IN SPAIN

The reform addresses the self-employment regime, with the reform of articles 71, 72, 105 and 109 of the Regulations of Organic Law 4/2000, of January 11. The current regulations do not facilitate entrepreneurship by foreign people; especially initially. Added to the documentary obstacles is the fact that the self-employed worker could only be linked to a large investment, avoiding the figure of the individual entrepreneur who limits himself to the minimum investment according to the characteristics of his work project and who has self-employment as the goal.

One of the most significant novelties that RD 629/2022 has introduced is the suppression of Chapter IV referring to temporary residence for a fixed-term employee, ceasing to exist this type of permit.

In what cases can the residence and employment authorization be renewed?

The residence and employment authorization will be renewed upon expiration in the following cases:

  1. a) When the continuity in the employment relationship that gave rise to the granting of the authorization whose renewal is sought is proven.
  2. b) When the worker has had a period of work activity of at least three months per year, and the worker is in any of the following circumstances:

Has signed an employment contract with a new employer in accordance with the characteristics of their authorization to work, and appears in a situation of registration or assimilated to registration at the time of requesting renewal.

MADRID BAR ASSOCIATION. LEGAL TECHNICAL UNIT. LIBRARY . A R E A EX T R AN J E R Y

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2.º Has a new contract that meets the requirements established in article 64 and with the beginning of its validity conditional on the granting of renewal.

3rd That the employment relationship that gave rise to the authorization whose renewal is intended was interrupted for reasons beyond his control, and that he has actively sought employment, by registering with the competent Public Employment Service as a job seeker .

  1. c) When the worker is in any of the situations provided for in article 38.6 b) and c) of Organic Law 4/2000, of January 11.
  2. d) In accordance with article 38.6.d) of Organic Law 4/2000, of January 11, when:

The worker proves that he has been working and registered in the corresponding Social Security regime for a minimum of nine months in a period of twelve, or eighteen months in a period of twenty-four, provided that his last employment relationship had ended. terminated through no fault of his own and has actively sought employment.

MADRID BAR ASSOCIATION. LEGAL TECHNICAL UNIT. LIBRARY . A R E A EX T R AN J E R Y

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2.º Has a new contract that meets the requirements established in article 64 and with the beginning of its validity conditional on the granting of renewal.

3rd That the employment relationship that gave rise to the authorization whose renewal is intended was interrupted for reasons beyond his control, and that he has actively sought employment, by registering with the competent Public Employment Service as a job seeker .

  1. c) When the worker is in any of the situations provided for in article 38.6 b) and c) of Organic Law 4/2000, of January 11.
  2. d) In accordance with article 38.6.d) of Organic Law 4/2000, of January 11, when:

The worker proves that he has been working and registered in the corresponding Social Security regime for a minimum of nine months in a period of twelve, or eighteen months in a period of twenty-four, provided that his last employment relationship had ended. terminated through no fault of his own and has actively sought employment.

The spouse meets the economic requirements to regroup the worker. Renewal will also be carried out when the requirement is fulfilled by the person with whom the foreigner maintains a relationship similar to the marital relationship in terms of family reunification.

In cases of termination of the employment contract or suspension of the employment relationship as a result of the worker being a victim of gender violence.

How long is the residence and work authorization for another person renewed?

The renewal of the residence and employment authorization will be for a period of four years.

What requirements must be met to obtain a residence and self-employment permit?

It will be necessary to comply, in advance, with the following conditions in terms of work:

  1. Comply with the requirements that current legislation requires of nationals for the opening and operation of the projected activity.
  2. Possess the legally required professional qualification or sufficient accredited experience in the exercise of the professional activity, as well as, where appropriate, membership when required.

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  1. c) Prove the sufficiency of the planned investment for the implementation of the project and the impact, if any, on job creation, including self-employment as such.
  2. d) Have paid the fee for self-employment authorization.
  3. What novelties do these requirements imply with respect to those established in the previous regulation?
  4. The previous regulations did not facilitate initial entrepreneurship by foreign people, considering that it could only be linked to a large investment. For this reason, the modification favours the figure of the individual entrepreneur, who is limited to the minimum investment according to the characteristics of his work project and whose purpose is self-employment.
  5. How long is the residence and self-employment authorization renewed?
  6. The renewal of the residence and self-employment authorization will be for a period of four years.

Would you like to start an application in Spain?

We will prepare the required documentation, complete the application forms, arrange the required appointments and legally advise.

Permanent residency is obtained after 5 years of Spanish Residency through Self-Empoyed Residency or Non-Lucrative Residency or Residency through Investment. This followed by 5 years as a permanent resident and means you can then obtain Spanish Citizenship with a Spanish Passport.

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