What is the Spanish Non-Lucrative Visa?
The Spanish Non-Lucrative Visa is a means for non-EU citizens to live legally in Spain. It is aimed principally at retired people who have income arising in their home country (or elsewhere) with which they can sustain themselves while living in Spain. Buying a property in Spain does not give an automatic right to a Non-Lucrative Visa. Holders of the Non-Lucrative Visa are required to live in Spain for a minimum of 183 days per calendar year.
Benefits of the Non-Lucrative Visa
Residency in Spain: The Non-Lucrative Visa enables the holder to reside in Spain. It does not permit the holder to engage in any paid work while residing in Spain.
Travel within the Schengen Area: Non-Lucrative Visa holders can travel freely within the Schengen Area, which currently covers a further 26 European countries. Three more: Bulgaria, Romania and Cyprus are due to enter the area in the near future.
Family Inclusion: The program allows the inclusion of family members, including spouses, children, and financially dependent parents. Applicants will need proof via a certificate of marriage or civil partnership for a spouse, and proof of parental responsibility for children.
Requirements to Obtain the Non-Lucrative Visa.
Clean Criminal Record: Applicants should not have any criminal record in Spain or in previous countries of residence within the previous five years.
Medical Certificate: Signed by a qualified doctor that the applicant is not suffering from any of the diseases listed in the International Health Regulations of 2005. In common with all formal documents in Spain, such certificates have a validity of only three months.
Health Insurance: Proof of valid private health insurance for the applicant and all family members is necessary. This must be issued by a health insurer licensed to operate in Spain.
Financial Stability: Applicants must demonstrate they have sufficient financial means to support themselves and their family members.
Minimum Age: The minimum age age requirement for the main applicant is 18, and any family members must be under 18 years old or be dependent adults.
Minimum Income Level Required
This figure will change annually as it is linked to the IPREM (Indicador Público de Renta de Efectos Múltiples). This is a base used to calculate various minimum economic factors.
The principal applicant, which must be an individual, not a couple, must demonstrate a multiple of 4 x the current IPREM and each additional member of the family requires a further 1 x IPREM. Thus a married couple with two children would need to demonstrate existing income of 7 x IPREM.
The IPREM for 2023 is €600 per calendar month.
An individual applicant would therefore need to show an annual income of 4 x 12 x €600 = €28.800
An applicant with the same family mentioned above would need to demonstrate an annual income of 7 x 12 x €600 = €50.400
Alternatively, assets that guarantee the receipt of the appropriate income, will be considered, but these assets must be in the name of the person applying for the Visa.
NOTE: According to the text published by the Ministry of Foreign Affairs, this income must be available to the applicant without the need to undertake work. Some Consulates interpret this to mean that only passive income, such as pensions, dividends and rents, for example, is acceptable. Other Consulates accept earnings from whatever source. There is no option to choose a Consulate. It has to be the one which covers the area in which you live.
How To Apply
The Non-Lucrative Visa must be obtained before you enter Spain through an application to the Spanish Consulate in the country in which you are resident. If you are in Spain legally under a tourist visa, you can liaise with a lawyer to ensure you have all the documents necessary but you will have to leave Spain, submit the application to your nearest Spanish consulate and wait in your country of residence until your Visa is processed before you can return. Once the Visa is issued, the applicant must enter Spain within 3 months.
Validity Of The Non-Lucrative Visa
The Visa will be issued for a period of one year, after which it can be renewed for one or two years at a time. If opting for two years, the applicant will need to show sufficient funds to sustain themselves for that period i.e. double that stated above. There is no limit to the number of times the Visa may be renewed, always provided the holder can demonstrate compliance with the requirements. After ten years continuous residence applicants may apply for permanent residence.
Taxation
The Non-Lucrative Visa requires the holder to remain at least 183 days each year in Spain, and, consequently, become fiscally resident. This obliges the holder to make annual tax declarations to the Spanish authorities and pay tax on worldwide income. However, Spain enjoys double taxation agreements with many countries, so it is unlikely you will pay tax twice. In general, Spain taxes all income, although there are exceptions such as pensions paid following employment as a civil servant. This description would include, for example, former policemen, nurses and fire fighters as well as government employees.
This information is provided in good faith and is not intended as legal advice. Cases may vary according to personal situation and the region in which application is made. Contact a competent lawyer before submitting an application.