The Non-Lucrative Visa for Spain is perfectly suited for individuals who fall into specific categories. If you are a non-EU or EEA citizen aspiring to make Spain your home, this visa is an excellent option. It is particularly advantageous for those looking to retire in Spain, especially if you have a steady income from a pension, annuity, or investments. This visa allows you to reside in Spain without the need to engage in any employment, as long as you can financially support yourself during your stay. It's important to note that citizens from the EU or EEA do not require a visa to live in Spain; instead, they must complete a residency registration process.
For the Spain Non-Lucrative Visa in 2024, applicants are required to demonstrate adequate financial resources, either through a stable global income or sufficient savings that do not derive from employment. The primary applicant must present an annual income of at least €28,800, which is calculated as 400% of the Public Indicator of Multiple Effects Income (IPREM). Additionally, for each dependent included in the application, an annual income of €7,200 is necessary, corresponding to 100% of the IPREM.
The Spanish government utilizes a benchmark known as the IPREM to establish financial requirements for various applications. For the year 2024, the annual IPREM is set at €7,200, translating to €600 per month. Notably, this figure has remained unchanged from 2023 due to the parliament's failure to approve a new amount, although an increase is anticipated once the government finalizes a new budget.
When applying for a Non-Lucrative Visa (NLV) in Spain, the Immigration Department recognizes passive income as a valid source of financial support, which refers to earnings derived from investments or properties rather than active employment. The Consulate seeks consistent, reliable, and verifiable income that surpasses the established financial thresholds. Typical forms of acceptable income include rental income, which is generated from leasing properties you own, whether domestically or internationally, as long as you are not involved in the daily management of these properties. For instance, you might provide income statements from a property management firm overseeing your rentals in the United States. Additionally, investment income, such as dividends from stocks or interest from bonds, is also considered, provided you are not actively managing these investments; evidence could include dividend payment statements from a diversified stock portfolio. Pension income, which consists of regular disbursements from retirement accounts or pension plans, qualifies as passive income since it is based on prior employment rather than current work; you would need to submit monthly statements from your 401(k) or IRA accounts. Lastly, Social Security payments, including retirement benefits or disability income from the government, are acceptable as well, and you can use your US Social Security benefit statements to support your application.
When applying for a Non-Lucrative Visa (NLV), certain types of income will not be accepted. Employment income, which includes any earnings from working for a company—whether in-person or remotely—as well as income from self-employment, is disqualified since the NLV is designed for those who do not intend to engage in work activities while residing in Spain. Additionally, business income derived from managing a business or self-employment, even if conducted from outside Spain, is also not permissible. Furthermore, any temporary or irregular income, such as proceeds from asset sales, gambling winnings, or sporadic freelance work, will not meet the requirements for this visa.
If you find yourself without a regular income, you may still qualify for the NLV by utilizing your savings. According to our partner, a Spanish immigration lawyer, you must demonstrate that you have at least double the standard income requirement, which translates to a minimum of €60,000 held in an account under your name. While it is not mandatory for this account to be based in Spain, having a local bank account is generally preferred.
The ownership of a property in Spain does not inherently enhance an applicant's chances for the NLV, as per the established regulations. However, interpretations can vary among different consulates. Some may consider that owning a home in Spain implies a reduced financial requirement for living expenses, thus potentially allowing for a lower income threshold due to the generally lower cost of living in the country.
The Non-Lucrative Visa is initially valid for one year, after which you can apply for two subsequent renewals, each lasting two years, culminating in a total of five years of residency. After this period, you may apply for permanent residency in Spain, which grants you the right to work. It is important to note the distinction between a visa and a residence permit; once your visa is granted, you have 90 days to enter Spain, and upon arrival, your residence permit will be valid for one year. You will also need to apply for your TIE card and NIE while residing in Spain.
In addition to the financial requirements, there are other essential criteria for the NLV, including the necessity for qualifying private health insurance. This insurance must meet three specific criteria to ensure that you have adequate medical coverage while living in Spain.
The recent ruling by the High Court in 2024 has significantly altered the landscape for those holding a Non-Lucrative Visa in Spain, declaring the previous residency requirement unlawful due to its explicit legislative nature. This pivotal decision allows visa holders to maintain their residency permits without the obligation of residing in Spain for 183 days each year, effectively liberating them from the six-month rule that previously dictated their tax residency status.
However, it is crucial to remain vigilant, as the Spanish government retains the right to appeal this ruling or introduce new legislation that could reinstate the residency requirement at any moment. This uncertainty means that if such changes occur, there is no guarantee that your visa will be renewed if you have spent more than 183 days outside of Spain. Prior to this landmark decision, the requirement to live in Spain for at least 183 days annually was a significant factor, as exceeding this duration would classify you as a Spanish tax resident, subjecting you to IRPF, the personal income tax in Spain.
For those aspiring to achieve permanent residency (PR), it is essential to note that the criteria remain unchanged; you must reside in Spain for ten months each year over a span of five years. This requirement underscores the importance of planning your time in Spain carefully, especially in light of the recent legal developments that have reshaped the residency landscape for Non-Lucrative Visa holders.