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The Padron is a certificate issued by the local town hall (Ayuntamiento) to register you living in Spain on a permanent basis. The government uses this information to calculate how many people are living in the local area which in turn assists them when applying for grants to implement improvements to the local facilities.
It is obligatory for anyone staying in Spain for more than 6 months to apply for a padron; it can then be used for day-to-day activities such as registering with the local health centre (Centro de Salud).