What are the pros and cons of Spain’s non-lucrative visa?

Spain’s non-lucrative visa is one of the most well-known options for residency for non-EU citizens who want to be legally able to live in Spain, but there are numerous factors to consider prior to deciding if it’s right to you. From taxes, to perks to the amount you’ll need and how NLV’s requirements are compared to other visas.

The non-lucrative visa or NVL which is commonly referred to, is an authorisation which permits non-EU nationals to reside in Spain without working or carrying their professional duties through proving they have enough financial resources for themselves and, in the event that they are eligible the family members of their.

In Spanish it’s called a “visado of residencia without profit which is commonly referred to as a retirement visa, since it’s the most appropriate alternative for people who retire from countries outside the EU who wish to live their old age in Spain.

So what are the advantages and disadvantages of this visa when compared with other visas available for the right to live in Spain?

Pros

You may apply for a family or joint NLV

One of the major benefits that this visa has is that it allows you to include your spouse and others in your family on your visa application, meaning that they will be able to reside in Spain with you and won’t have to apply for an individual visa. It is important to note that for each family member included in the application, you will need to be able to prove that you’ve earned an additional EUR6,948 in the year.

It is possible to invest

Although the non lucrative visa Spain does not permit you to earn a living, it does allow you to invest while you’re resident in Spain. You can invest in stocks as well as funds to earn extra income or you can purchase an investment property as a rental. However, unlike the golden visa, you don’t need to spend more than EUR500,000 to purchase a home in Spain or more for investments in shares or bonds.

You get to enjoy free mobility within the Schengen Zone

While your NLV visa is issued for residence in Spain holders can travel without restriction within in the Schengen Area, without applying for other visas from other countries in the bloc. That means that if you wish to travel on the continent while you’re living in Spain It’s simple for you to do so.

It’s the only valid alternative for non-EU citizens to get a residence permit in Spain

Sometimes the NLV may be the only visa you can get in case you wish to reside in Spain as someone from non-EU countries. Work visas can be quite difficult to obtain (unless you are planning to work as an Au Pair or seasonal worker) in that you’ll need to be highly skilled and find the job on Spain’s ‘Shortage Occupation list. Employers will have to prove that there aren’t any other qualified candidates across the entire of the EU with those skills.

Golden visas require you to have at least EUR500,000 spare to buy real property in Spain as well as entrepreneurs visas require that you submit the business’s plan of action to relevant authorities , and then go through many complicated steps in order to be accepted.

You can exchange it to another visa

The positive aspect is that after a year of living in Spain under an NLV the process will become easier for you to apply for a new visa – one that can permit workers to be employed. It will be possible to obtain a work permit or to make yourself self-employed (autonomo) by undergoing a procedure known as residence modification.

It can open the way towards Spanish citizenship.

There are a couple of ways to earn Spanish citizenship in order to remain in Spain forever after you begin your journey with the NLV.

You can do so by renewing your NLV for another two years, if you have an extra 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 enough funds).

After the end of this period it will be the time to been living in Spain for the equivalent of five years, meaning that you can then apply for long-term permanent residency that lasts for a period of ten years.

Spain’s permanent residency can also be renewed. Alternatively, you may apply for Spanish citizenship after 10 years in the country. You can also obtain citizenship for a long time by going through the residence modification procedure as explained above – renewing your visas every two years until the point where you’re qualified to obtain the extended-term, permanent residence after 5 years.

Cons

You will need an amount of money

One of the most important requirements for the NVL is to be able to support yourself financially. Currently, for 2022 this means that you have to show that you have a net worth of an annual income of EUR 27,792. For every family member included in the application, you will need an additional sum of EUR6,948 annually. This amounts to about EUR2,895 per month from things such as investments and pensions, savings accounts, savings or other assets.

On top of this there is the need to pay for private health insurance typically, a plan that does not require copayments.

You must renew it regularly and demonstrate that you have even more money

The NVL is only valid for one year, but if you decide that you’d like to stay in Spain beyond that time and want to renew it then you’ll need to prove how much money than you did the first time. You can renew the visa for an additional two years, but this means that you will have to prove that you have EUR55,584 available to reside on for the next two years, and EUR13,896 for each family member that you have within Spain.

It isn’t a way to find a job or work for yourself in Spain

As the name suggests – the NLV is for people who aren’t employed in Spain, this means that it does not allow you to work in Spain or to become self-employed and do your own work. Because of this, it may be difficult to renew your visa and prove that you’ve made more money in the event that you haven’t been working. As mentioned previously, it is possible to change your visa after one year to be able to exchange it in exchange for a self-employed or working residency permit.

Taxes must be paid

The non-lucrative visa in Spain is a residency visa therefore you must spend more than 183 days in the country in order for it to be valid. This means that you’ll legally be considered to be a tax resident here.

Thus, you will have to pay tax on your worldwide income and you should check if there are double tax agreements between your country and Spain.

Even though you won’t be working, you may still be receiving money from investments, from property rentals, from dividends or pensions received from companies, which could be taxed.

You’re not able to enjoy as much time in Spain without NLV expiring

One of the benefits, as mentioned above, is the fact that NLV allows you to have no restrictions on movement within the Schengen Zone. However, if the intention is to utilize the visa to travel the EU as much as you possibly can and maybe go on a trip for a couple of months in the meantime, you should be aware that you have to spend more than 183 days in Spain in order for the visa to remain valid, particularly if you want to renew after the first year.

It’s true that you could technically use this visa to stay for more than 90 consecutive days however you’ll need to be under 183 and therefore not be considered a tax resident, but this isn’t an option that will always work for your long-term benefit. If you want to spend longer than 90 days continuously in Spain without becoming a tax resident the Spanish Golden Visa may be a alternative for you.

It’s a little time to make things work

When your Visa application has been successful, then you will only get three months to get into Spain once it’s granted, within which time you’ll be required apply for a non-EU identity card for foreigners called the TIE. This could prove complicated when there are a lot of things to organise prior to departure to Spain, including renting out or selling your home and arranging a place to stay when you arrive and filling in any other paperwork you’ll require. There are also times when delays occur, particularly when dealing with formal processes in Spain and the spanish government, which means that the three months may not provide a lot of time.

GREY AREA: Can I work remotely with an NVL?

This is a question that lots of people are asking and it’s an area of confusion. According to the title of the visa implies it’s not allowed to work while you’re in Spain using the NLV in any capacity, whether for a Spanish employer or a Spanish company, however there is no law that speaks specifically regarding working for clients or companies in other countries.

Lawyers differ regarding the subject. Some say you can, while others that you can’t, and as often happens, sometimes it’s up to interpretation.

Be aware , however, that certain consulates will not grant you your visa if they are concerned that you will be working remotely. The positive news is that the Spanish government has announced plans for a brand new digital nomad visa, which allows the possibility of working remotely in Spain all the time for a year.

How much do Britons need to make from the UK to Spain by 2023?

It’s not easy for UK citizens to move to Spain post-Brexit. Here’s how much money you’ll need to bring in 2023 in order to obtain the visa that is non-lucrative (an amount higher than in previous years).

Since Brexit entered into force at the beginning of January 2021. UK citizens who want to relocate to Spain or even spend a portion of the year here have a much harder task ahead as they did previously.

It’s harder to secure an opportunity or set oneself on the path to self-employment in Spain as a non-EU citizen, and the requirements for residency are more stringent than those for Britons who have registered as resident prior to 2021 and are covered by the Withdrawal Agreement.

Another major issue facing Britons who live in Spain is that without residency or an entry visa, they are allowed to only spend 90 of 180 total days spent in Spain (and in the Schengen Zone).

In the end, showing that you have the financial means to provide for you and your family is among the most effective ways to solve this that can be achieved through Spain’s non-lucrative visa.

What is Spain’s non-lucrative resident permit?

Non-lucrative Visas are an authorization that allows non-EU nationals to remain in Spain for longer than 90 days without work or carrying out professional activities in Spain in the event that they prove they have the financial capacity for themselves , and, if necessary, their family.

In Spanish it’s known as a visado of residence no lucrativa. it’s sometimes referred as a retirement Visa, since this is the best option for retired people of non-EU countries looking to relocate to Spain.

It is nevertheless available to third country nationals of all ages , provided they can prove that they have the money to pay for it as well as an excellent alternative for UK citizens looking to first travel and get to understand Spain more thoroughly for a year prior to deciding whether or not to move there.

To demonstrate your adequate economic resources, you’ll need to provide official documents, including bank account statements, proof of pension, assets and other investments. Additionally, you’ll need to obtain comprehensive private healthcareinsurance, be free of criminal history, and meet other requirements.

Like the name implies, you’re technically not allowed to be employed with this visa, and instead depend on passive income. So should you decide that this isn’t suitable for your needs, the new digital nomad visa may work more effectively for you. If you have enough cash to purchase a EUR500,000 home, Spain’s golden visa might be suitable for you.

Spain’s non-lucrative residency permit is a visa for temporary residence which lasts for one year from the start. Britons have to apply for the TIE residency card after they receive their ‘NLV’ (non-lucrative visa).

Once they’ve got their non-lucrative visa and temporary residence permit, Britons will also be permitted to travel freely within Schengen Area. Schengen Area without having the same 90-day constraints as Britons residing at home in the UK.

Second and first residency renewals run for two years each, and after the residency period of five years is granted, which opens the door to therefore the possibility of applying for long-term residence, which lasts for ten years and doesn’t come with the identical financial requirements.

After ten consecutive years of living within Spain, British citizens can get Spanish citizenship, however they will technically have to renounce their British nationality during the process.

What amount of money do UK nationals need to show in order to obtain Spain’s non-lucrative tourist visa?

There are some discrepancies in what constitutes “sufficient financial resources” between Spain’s regions provinces, provinces and even Spanish consulates throughout the world that foreigners can are able to apply for visas. (For UK residents, you need to apply at one of the main Spanish consulates located in London, Manchester or Edinburgh but not from Spain).

But , generally speaking it is true that Spain’s Royal Decree states that sufficient financial means “will not exceed the level of the resources that social benefits are provided to Spaniards , or the amount of the minimum Social Security pension”.

The Spanish government is talking about the IPREM as an indicator that will increase in 2023 to EUR600 (PS532 using today’s exchange rates of EUR1 PS0.89) PS0.89) per month, about EUR21 more a month than in 2022 , and EUR42 more than in 2021. It might not seem like a significant increase, but it adds up.

The financial standard for non-lucrative visa applicants is 400 percent of the IPREM. It is EUR2,400 (PS2,126) per month.

For a UK citizen who wants to apply for the non-lucrative residency permit in Spain initially (it is valid for one year), the amount they need to be able to prove is EUR28,800 (PS25,516) which is more than EUR1,000 more than for those who applied for it in 2022.

Each family member you include in the residency application it’s more than 100 percent of the IPREM you need to show you have EUR7,200 (PS6,379) in the calendar year.

For example, if you’re a British couple applies, it’s 36,000 euros (PS31,895) per year in savings or monthly income through pensions, investments, or any various other investments, which is EUR3000 (PS2,657) monthly.

For an average UK 3-person family,, this is USD43,200 (PS38,275) of income a year; for an entire family of four it’s EUR50,400 (PS44,655) and the list goes on. Add an additional EUR7,200 (PS6,379) for each family member.

If you’re renewing your non-lucrative visa for the second and first time, keep in mind that you’ll be required to prove that you’ve earned 800 percent of the IPREM since the renewal of your residence permit is valid for two years.

If you’re an individual, that is EUR 57,600 (PS51,038) that they can demonstrate they’ll have in their account for two years. This is in addition to the equivalent of EUR14,400 (PS12,759) for each family member with you in Spain.

Keep in mind that these figures should be used as a guideline, so if you’ve got more assets, money or investment options to help your case, then show them.