The non-lucrative Spanish visa is one of the most well-known options for residency for non-EU citizens permitted to reside in Spain, but there are a lot of aspects to think about before deciding if it’s right to you. From taxes to perks, how much you’ll need, and how the NLV’s requirements compare to other visas.
The non lucrative visa Spain, or NVL in the way it is commonly described is an authorization that allows non-EU residents to reside in Spain indefinitely without carrying any professional activity through proving they have enough financial resources for their own needs and, if necessary and their families.
In Spanish it’s referred to as a ‘visado of residencia without profit’ and is often referred to as a retirement visa because it’s the best alternative for people who retire from non-EU countries that want to enjoy their retirement years in Spain.
So what are the advantages and disadvantages of this visa in comparison to other visas you can obtain in order to reside in Spain?
Pros
You may apply for a family or joint NLV
One of the biggest advantages to this visa the ability to include your spouse as well as other members of your family on your visa application. This means that they can live in Spain together and not have to apply for an individual visa. Be aware though, that for each family member included in the application, you must demonstrate that you’ve an additional $6,000 per year.
It is possible to invest
Although the NVL doesn’t allow you for work but it will allow the possibility of investing while being in Spain. You could invest in stocks and funds to earn extra money or you can purchase an apartment to use for rental purposes. But unlike the golden visa which is a requirement, you do not have to invest a minimum amount of EUR500,000 to buy a home in Spain or even more when it’s an investment in shares or bonds.
You get to enjoy free circulation within Schengen Zone
While your NLV visa is given for residence in Spain, holders can travel without restriction within that Schengen Area, without applying for visas from other countries in the bloc. This means that if you wish to travel on the continent while you’re living in Spain It’s simple to travel within the Schengen Area.
It’s the sole option for those who aren’t EU citizens to obtain residency in Spain
Sometimes, the NLV may be the only visa available to you if you want to live in Spain as a non-EU country. Work visas can be quite difficult to obtain (unless you want to be the Au Pair or seasonal worker) because you’ll require an extremely skilled background and will need to find a job that is included on Spain’s “Shortage Occupation list. The potential employer will be required to prove that there aren’t any other suitable candidates in the whole of the EU with those skills.
Golden visas require a spare EUR500,000 in order to purchase real property in Spain as well as entrepreneur visas require you to be able to present an application for a business license to the relevant authorities and go through numerous steps to get it accepted.
It is possible to exchange it for another visa
The good news is that after a year of living in Spain on an NLV it will be simpler to apply for another visa to permit the worker to operate. It is possible for you to get work permits or make yourself self-employed (autonomo) by undergoing a procedure called residence modification.
It could open the door to Spanish citizenship.
There are a couple of methods to gain Spanish citizenship, allowing you to live in Spain permanently when you first begin using the NLV.
You can do that when you renew your NLV for two more years, provided you have the additional EUR55,584 to do it. When these two years have come completed, you may apply to renew your two-year NVL in a second time (once again , proving you have sufficient funds).
Following the expiration of this time at the end of this time, you’ll have been in Spain for 5 years in total, meaning that you can then apply for long-term or permanent residency, which can be valid for ten years.
The permanent residency of Spain can be renewed or instead you can apply for Spanish nationality after ten years in the country. You may also be able to get long-term citizenship or residency through the residence modification process as described in the previous paragraphs. The process involves renewing your visa every two years until you are eligible for lengthy-term residence status after the period of five years.
Cons
You will need some money
One of the principal requirements for the NVL is to be able support yourself financially. Currently, for 2022 this means you must be able to prove that you’ve got at least EUR27,792 in the year. Each family member you include within the applications, you must have an additional EUR6,948 for the year. This amounts to about EUR2,895 per month from investment funds pensions, savings, or other assets.
In addition it is also necessary to pay for health insurance that is private – typically a plan which doesn’t require any co-payments.
You need to renew it regularly and prove that you have more money
The NVL is only valid for a year, however in the event that you decide that you want to stay in Spain for longer than that and you want to renew it you’ll need proof the proof that you’ve got more cash than you did at the time of the initial. You can extend the validity of the visa for another two years, but this means you’ll be required to prove that have EUR55,584 in your account to live on for the next two years and also the same amount for every member of your family who lives with you living in Spain.
It does not permit you to obtain a job or become self-employed in Spain
Like the name implies, the NLV is only for those who are not working in Spain This means that it does not allow you to find a job in Spain or become self-employed and work for yourself. Due to this, it can be difficult for you to renew your visa and prove that you’ve made more money even if you’ve not been employed. However, as mentioned above, it is possible to modify your visa after one year in order to allow you to exchange it in exchange for a self-employed or working residence permit.
Taxes are due
The non-lucrative Spanish visa is a residence visa, therefore you must spend more than 183 total days in the country in order for it to remain valid. This means you’ll officially be considered to be a tax-payer in the country.
Therefore, you have to pay tax on income earned from your income worldwide and must determine if there are double taxation agreements that you have with your country and Spain.
While you’re not working, you could still receive money from investments, from the rental of properties, dividends or pensions paid by businesses, and these could be taxed.
It’s impossible to spend the same amount of time out of Spain without NLV expiring.
One of the great things of the NLV, as previously mentioned, is that NLV allows for unlimited movement within Schengen Zone. However, if your plan is to make use of the visa to travel around the EU as far as you are able to and possibly take a few months of travel during your stay, you must be aware that you have to spend more than 183 days in Spain in order to have your visa be valid, particularly when you plan to renew after the initial year.
There is a possibility that you can technically use this visa for more than 90 consecutive days, however you’ll need to be under 183 which means you won’t be considered tax residents, but this isn’t an option that is guaranteed to work for your long-term benefit. If you want to spend at least 90 uninterrupted days Spain without becoming a tax resident the Spanish Golden Visa may be a better choice for you.
It’s a little time to make things work
If your visa application is successful it will be granted three months for entry into Spain once it’s granted, during which time you’ll have to apply for a non-EU identification card for foreigners, known as the TIE. This may be complicated when there are a lot of things to organize before you go for a trip, like renting out or selling your home or arranging for a place to stay when you arrive and filling out any extra documentation you’ll need. There are many delays, particularly when dealing with formal processes in Spain and the spanish government, which means that the three months could not allow for a great deal of time.
GREY AREA: Can I work remotely on an NVL?
This is a common question many people have and is an area of confusion. As the name of the visa implies it’s not allowed to work while you’re in Spain with the NLV whether for an Spanish employer or for a Spanish firm, but the law doesn’t say anything specifically about working for clients or for companies in other countries.
Lawyers differ regarding this issue – some claim you can, others believe you shouldn’t and as often happens the final decision is often left to interpretation.
Take note that some consulates won’t grant you a visa if they think you’ll be working remotely. The positive news is that the Spanish government has revealed plans to introduce a digital nomad visa. This permits the possibility of working remotely throughout Spain until one year.
How much do Britons have to spend to move from the UK to Spain by 2023?
It’s more challenging for UK citizens who want to relocate to Spain post-Brexit. Here’s what you’ll need to bring by 2023 in order to qualify for the non-lucrative visa (an amount that is higher than previous years).
Since Brexit became effective on January 1, 2021. UK nationals wanting to move to Spain or to spend a part of the year in Spain have an even more difficult task than they did in the past.
It’s harder to secure a job or set oneself working for oneself in Spain for non-EU citizens as the requirements for residency are more stringent than for Britons who are registered as residents prior to 2021 and are covered under the Withdrawal Agreement.
Another major issue facing Britons who live in Spain is that, without residency or visas, they are able to only spend 90 of 180 total days spent in Spain (and it is part of the Schengen Zone).
However, showing you have the resources to provide for your family and yourself is among the most effective solutions and can be accomplished through Spain’s non-lucrative residency visa.
What is Spain’s non-lucrative residency permit?
Non-lucrative Visas are an authorisation that allows non-EU foreigners to stay in Spain for longer than 90 days without work or carrying out professional activities in Spain, by demonstrating that they have sufficient financial means for themselves and, if appropriate, their family.
In Spanish it’s referred to as a visado de residencia no lucrativa and it’s often referred to as a retirement visa since it’s the best option for retired people of non-EU countries looking to move to Spain.
It is nevertheless accessible to citizens of third countries aged all over who demonstrate they are financially able and it is an alternative for UK nationals looking to first travel and get to be acquainted with Spain better before they consider working in Spain.
To prove you have enough financial means, you’ll have to show official documentation including bank account statements, proof of your pension, assets, and other investments. You’ll also need to get a comprehensive plan of private health insurance, not have a criminal record and fulfil other conditions.
According to the title, you are technically not able to work with this visa and instead have to rely on passive income, so should you decide that this isn’t suitable for your purposes Spain’s new digital nomad visa may work better for you. If you’ve got enough money to buy the equivalent of a home worth EUR500,000, then Spain’s golden visa may be suitable for you.
The non-lucrative residence permit issued by Spain is a visa for temporary residence that lasts for a year in the beginning. Britons must apply for an TIE residency card when they have their ‘NLV’ (non-lucrative visa).
Once they’ve got their non-lucrative visa as well as a temporary residency permits, Britons will also be allowed to travel around all of the Schengen Area without having the same limitations of 90 days like Britons living within the UK.
First and third residency renewals run for two years each, and after which , five years of residency is granted, which opens the door to thus the chance to apply for long-term residency, which can last for ten years and doesn’t come with the same requirements for financial support.
After ten years of living for ten years in Spain, British citizens can acquire Spanish citizenship, although they’ll have to surrender their British citizenship in order to do so.
How much do UK nationals have to bring in order to be granted a non-lucrative Spanish visa?
There are some discrepancies in the definition of “sufficient financial resources” among Spain’s regions provincial areas, provinces, and even Spanish consulates across the globe where foreigners are able to apply for visas. (For UK-based applicants, apply through generally Spanish consulates in either London, Manchester or Edinburgh but however, not in Spain).
In general terms the Spanish Royal Decree states that sufficient financial resources “will not exceed the quantity of the resources that social assistance is granted to Spaniards , or in the case of the mandatory Social Security pension”.
The Spanish government is talking about the IPREM, a sign which in 2023 will climb to EUR600 (PS532 using the current exchange rate of EUR1 – PS0.89) per month. This is about EUR21 more per month than in 2022 and EUR42 more than 2021. This might not seem like a big rise however, it is a significant increase.
The standard financial requirement for visa applicants with no-lucrative status is 400 percent of IPREM: EUR2,400 (PS2,126) per month.
Thus, for a UK citizen looking to apply for the non-lucrative resident permit in Spain to the first time (it runs for one year), the amount they have to be able to prove is EUR28,800 (PS25,516) which is more than the EUR1,000 required for those who applied for it in 2022.
For every family member included in the application for residency, it’s an additional 100% of the IPREM you’ll need to prove that you’ve: EUR7,200 (PS6,379) per year.
For example, if a British couple is applying for a pension, they’ll receive EUR36,000 (PS31,895) per year in savings or a monthly income from pensions, investments or additional assets. That’s EUR3,000 (PS2,657) per month.
For a UK household of 3, this is an amount of €43200 (PS38,275) of income in a year. For a family of four the figure is EUR50,400 (PS44,655) and then on to the next, adding 7200 euros (PS6,379) for each family member.
If you’re renewing your non-lucrative visa for the first or second time, be aware that you’ll be required proof that you’ve obtained 800 percent of the IPREM to prove that the residence permit you renew has a validity of two years.
For an individual, this amounts to EUR57,600 (PS51,038) that they are able to demonstrate they’ll have in their account for two years, and 14400 euros (PS12,759) for every family member with you in Spain.
Keep in mind that these figures should be used to provide a basis for comparison, so if you have more assets, money , or investment options to help your case, show them.
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