The non-lucrative visa for Spain is among the most popular options for non-EU citizens to be able to live in Spain however there are many factors to think about before making a decision about whether it is the right option for you, from taxes, to perks to the amount you’ll need, and how the NLV’s requirements differ from other visas.

The non-lucrative visa or NVL which is commonly described is an authorization that permits non-EU citizens to live in Spain indefinitely without carrying their professional duties, by demonstrating that they have sufficient financial means for themselves and, if applicable, their family.

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 those who are retired from non-EU countries that want to enjoy their golden years in Spain.

So what are the pros and cons of this visa when compared with other visas that you could get for the right to live in Spain?

Pros

You may apply for a joint or family NLV

One of the primary benefits to this visa that you are able to include your spouse and other family members on the visa application, which means they are able to live in Spain along with you and will not have to obtain another visa. But be aware that for every family member you include in your application, you have to show proof that you’ve got an extra EUR6,948 per year.

It is possible to invest

While the NVL does not permit you for work but it will allow investors to invest while living in Spain. You can invest in stocks as well as funds to get extra income or you can purchase an investment property for rental purposes. But , unlike the golden Visa it is not necessary to spend more than EUR500,000 for a property in Spain or more when it’s an investment made in shares or bonds.

You are entitled to free moving within Schengen Zone

Even though the NLV visa is issued for residence in Spain holders can move freely within that Schengen Area, without applying for any other visas from the other countries that are part of the block. This means that if want to travel within Europe while you’re in Spain, it’s easy to travel within the Schengen Area.

It’s the only viable option for people who are not EU citizens to gain residency in Spain

Sometimes the NLV could be the sole visa available to you if you want to live in Spain as a non-EU country. Work visas are quite complicated to get (unless you intend to be an Au Pair or seasonal worker) because you’ll need to be highly skilled and you will have to locate an occupation that is listed in Spain’s “Shortage Occupation list. Employers will have to prove that there are no suitable candidates within the entirety of the EU who have the same skills.

Golden visas require a spare EUR500,000 in order to purchase real estate in Spain, while entrepreneurs visas require that you be able to present the business’s plan of action to the appropriate authorities and follow various complicated steps to be accepted.

You can exchange it for another visa

The positive side is that after a year of living in Spain on an NLV, it will be simpler to apply for a second visa that will allow for you to get a job. It is possible to apply for work permits or become self-employed (autonomo) by undergoing a procedure known as residence modification.

It could pave the way to Spanish citizenship

There are a few ways you can earn Spanish citizenship, allowing you to remain in Spain forever after you begin your journey using the NLV.

It is possible to do this by renewing your NLV for two more years, if you have an extra EUR55,584 to do this. Once these two years are over, you are able to apply to renew your two-year NVL in a second time (once again proving you have enough funds).

At the end of this time it will be the time to have been in Spain for a total of five years and can later apply for long-term permanent residency, which is valid for 10 years.

Permanent residency in Spain can be renewed or instead you can apply for Spanish citizenship after 10 years of living in the country. It is also possible to obtain long-term residency or citizenship by undergoing the residence modification procedure as explained above – renewing your visas every two years until you are capable of obtaining the long-term permanent residency after five years.

Cons

You’ll need an amount of money

One of the primary requirements for the NVL is that you need to be able to support yourself financially. For 2022, that means you must prove that you have EUR27,792 for the year. Each family member you include as part of the process, you will need an additional EUR6,948 for the year. It’s equivalent to 28955 euros per month from sources like investments, pensions, savings as well as other types of assets.

Additionally there is the need to pay for health insurance that is private typically, a plan that doesn’t require any co-payments.

You need to renew it often and prove that you have more cash

The NVL is valid only for one year, but if you decide that you’d like to remain in Spain beyond that time and want to renew it then you’ll need to prove that you have more money than the first time. You can extend the validity of the visa for a further two years, however it means you’ll be required to prove that you have EUR55,584 available to live on for the next two years, and EUR13,896 for each family member who lives with you living in Spain.

This doesn’t permit you to obtain a job or be self-employed in Spain

It is as the name suggests that the NLV is intended for people who are not working in Spain which means it will not permit you to get a job in Spain or become self-employed and do your own work. As a result, it can be difficult to renew it and show you’ve earned more – particularly because you haven’t been working. As mentioned previously it is possible to modify your visa within one year in order to be able to swap it out with a self-employed, or working residency permit.

You have to pay taxes

The non lucrative visa Spain is a residency visa which means that you have to stay more than 183 consecutive days in the country for it to remain valid. This means that you will legally be considered to be to be a tax-payer in the country.

So, you must pay tax on income earned from your global income. You should determine whether there are double tax agreements between your country and Spain.

Even though you won’t be working, you may still have money coming from investments, from property rentals, from dividends or pensions paid by businesses, and these could be taxed.

It’s impossible to spend the same amount of time outside of Spain without NLV expiring

One of the great things that I mentioned previously is that the NLV permits unlimited movement within Schengen Zone. However, if the intention is to explore the EU as much as you are able to and possibly travel for a few months while you’re here, then you must be aware that you’ll need to spend more than 183 days in Spain in order to have your visa be valid, particularly when you plan to renew after the first year.

It’s true that you could technically apply for this visa to spend more than 90 consecutive days, however, you must be less than 183 days which means you won’t be considered a tax resident, but this isn’t an option which will work for you over the long term. If you’re looking to spend over 90 continuous days Spain without becoming a tax-resident the Spanish Golden Visa may be a alternative for you.

Little time to sort things out

If your visa application is successful and you are granted the visa, you’ll have three months for entry into Spain once it’s granted, in which you’ll need to apply for a non-EU ID card for foreigners, called the TIE. This could prove complicated in the event that there are a lot of things to do before your trip in the next three months, such as renting or selling your property or arranging for a place to stay when you arrive and filling out any additional documents you may require. There are often delays, especially when dealing with formal processes in Spain and the spanish government, which means that the three months might not be enough of time.

GREY AREA: Can I work remotely on an NVL?

This is a common question numerous people ask, and it’s an area of confusion. As the name of the visa suggests that you are not able to work while you’re in Spain on the NLV whether for a Spanish employer or a Spanish company, however the law doesn’t mention anything specifically regarding working for companies or clients that are located abroad.

Lawyers have different opinions about this subject – some say you can, while others believe you shouldn’t and, as it often happens in some cases, it’s down to interpretation.

Be aware , however, that certain consulates will not grant you your visa if they believe that you’ll be working remotely. The positive news is that the Spanish government has made plans for a brand new digital nomad visa, which allows remote workers to work within Spain all the time for a year.

How much money will Britons need to make from the UK to Spain to 2023?

It’s not easy for UK citizens who want to relocate to Spain after Brexit. Here’s how much you’ll need to bring by 2023 in order to qualify for the non-lucrative visa (an amount higher than in previous years).

Since Brexit was implemented at the beginning of January 2021. UK nationals wanting to move to Spain or even spend a portion of the year in Spain have an extremely difficult time than they did in the past.

It’s more difficult to find work or set up to work for yourself in Spain for non-EU citizens as the requirements for residency are more stringent than those for Britons who are registered as residents before 2021 and are protected under the Withdrawal Agreement.

Another major issue facing Britons who reside in Spain is that, without residency or the visa required, they can only spend 90 out of 180 days in Spain (and it is part of the Schengen Zone).

However, showing you have the funds to take care of you and your family is one of the best solutions and can be accomplished by obtaining a non-lucrative residence visa in Spain.

What is Spain’s non-lucrative residency permit?

Non-lucrative Visas are an authorization that permits non-EU citizens to reside in Spain for a period of more than 90 days, without having to work or carrying out any professional activity in Spain and proving that they have adequate financial resources for themselves , and, if necessary and their families.

In Spanish it’s referred to as a visado of residencia no lucrativa, and it’s commonly referred to as a retirement Visa, because it’s the most suitable alternative for those who are retired from non-EU nations who wish to relocate to Spain.

It is nevertheless available to third country nationals of all ages who prove that they are financially able and it is a good alternative for UK citizens who wish to visit Spain for the first time, and to get to know Spain more thoroughly for a year before considering working there.

To prove you have sufficient economic means you’ll need to provide official documents, including bank account statements, evidence of pension, assets and other investments. You’ll also need to obtain comprehensive private healthcarecoverage, have no criminal history, and meet other conditions.

Like the name implies, you are technically not able to employ this visa and must instead rely on passive income, so should you decide that this isn’t suitable for your needs, Spain’s latest digital nomad visa could work well for you. If you’ve got enough cash to purchase the home of your dreams, Spain’s golden visa could be right for you.

The non-lucrative residence permit issued by Spain is a temporary residence visa that lasts for a year from the start. Britons are required to apply for a TIE residency card once they receive their ‘NLV’ (non-lucrative visa).

When they are granted their non-lucrative visa and temporary residency authorization, Britons will also be allowed to travel around the Schengen Area without having the same limitations of 90 days like Britons who reside in the UK.

Second and first renewals last two years each, after which five years of residency will have been obtained and thus the chance to apply for long-term residency, which is for ten years, and doesn’t have the similar financial requirements.

After ten consecutive years of living for ten years in Spain, British citizens can obtain Spanish citizenship, although they will technically have to surrender their British nationality during the process.

How much money do UK citizens have to provide in order to obtain Spain’s non-lucrative tourist visa?

There are a few variations regarding what constitutes “sufficient financial means” among Spain’s regions provinces, provinces and even Spanish consulates all over the world that foreigners can apply for the visa (For UK-based applicants, you need to apply at one of the main Spanish consulates in London, Manchester or Edinburgh and not from Spain).

In general terms Spain’s Royal Decree states that sufficient financial resources “will not exceed the level of social assistance is granted to Spaniards or what is the value of the basic Social Security pension”.

It is believed that the Spanish government is talking about the IPREM, which is an indicator that will increase in 2023 to EUR600 (PS532 at currently quoted exchange rates of EUR1 – PS0.89) per month, approximately EUR21 more a month than in 2022 , and EUR42 more than 2021. It might not seem like a significant increase however, it is a significant increase.

The most common financial requirement for non-lucrative visas includes 400 per cent of the IPREM, which is EUR2,400 (PS2,126) per month.

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

For every family member included in the application for residency, it’s an additional 100 percent of the IPREM you’ll need to prove you have: EUR7,200 (PS6,379) per year.

If the application is made by a British couple has applied to apply, the amount is 36,000 euros (PS31,895) for the entire year in savings, or a monthly income from pensions, investments, or different assets. Or EUR3000 (PS2,657) per month.

For an average UK 3-person family, it’s an amount of €43200 (PS38,275) of earnings available in a year. For a family of four it’s EUR50,400 (PS44,655) and the list goes on. Add EUR7,200 (PS6,379) per family member.

If you’re renewing your visa for non-lucrative purposes for the first or second time, keep in mind that you’ll need to show that you’ve got 800 percent of the IPREM since the renewal of your residence permit has a validity of two years.

For an individual, that is EUR 57,600 (PS51,038) that they could prove they’ll have available for two years. It’s EUR14,400 (PS12,759) for each family member living with you in Spain.

Be aware that these numbers serve as a guideline, therefore, if you own additional assets, funds or investments to strengthen your case, show them.

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