Hi David, we finished our Camino Norte last Tuesday and then picked up our residency cards 4 days ago. It has been a long process to organise these cards and certainly not something that can be done at the drop of a hat. Contact the Spanish Embassy that covers WA ( contact details on Internet ) by email only as they don't take phone calls. They will email necessary forms and information sheet that has to be followed correctly. You will need your birth certificates apostilled by DFAT at the passport office, a Federal Police check each (takes a minimum of 1 month to process after full fingerprints are taken at your local police station and they are mailed to them with forms), medical certificates saying you are safe to live in Spain, current bank statement with amount required to be accepted for non lucrative residency card, Spanish translations done by official translator plus various forms completed and money order for fees included. Not cheap but worthwhile for us. When you decide your place of residence be careful as you must submit your paperwork for your residency card no later than 30 days from entry into Spain. This means that you will need to enter Spain, submit paperwork in the appropriate provincial office for the city you choose and pay your form 790 tax obligation at any bank there (€15 approx.) and your card will be waiting at that office no sooner than 35 days afterwards for pick up. We flew into Bilbao, bused and trained to start the Norte in Hendaye, reached San Sebastián and tried to submit paperwork there, had to hire a car and drive (via Burgos and Leon as not to see any of the Norte route) to get our paperwork in in time as our address was in A Coruna at a tourist apartment complex then drive back the same way and re start our Camino in Irun....phewww! When we picked up our cards they now allow us to stay in Spain for 1 year.... 6 months more than we asked for!! Rick brings up some very important points that we have found very hard to verify but we think he might be right on using planes to travel between EU borders and using passports for ID. Ok for bus, train and car travel as there are not the same checks. But, as we have Spainish ID cards now they can be used as ID instead of passports.
Go for it, plan your entry into EU for Spain, get your paperwork done before you walk, train or bus to your Camino start point and relax and enjoy your walk. If we can help with any more info we'd be happy to. Good Luck