Last Updated on October 28, 2024 by Laila Oliveira
Slowly but gradually, Spain has topped the list as one of the best countries in Europe to live around the golden sun. Renowned for its rich history and high quality of life, Spain is an enticing choice for expats from around the world. How does one live in Spain without working? Other countries often call the “Retirement Visa” the Spain Non-Lucrative Visa, which allows you to live in Spain with passive income!
This Visa is ideal for retirees and other individuals with sufficient financial means to support themselves and their families. If it is your first time relocating to a new country, it is common to have questions about the journey and the Visa. Will this Visa suit my needs? Will I meet the eligibility requirements? Can I obtain a work permit with this Visa?
If you’re seeking answers to these questions, this post is tailored for you. It aims to address all sorts of queries expats ask. Tag along to find out more!
What is the Spanish Non-Lucrative Visa?
The Spanish Non-Lucrative Visa is intended for non-EU residents who wish to reside in Spain without pursuing professional activities for financial gain.
This Visa permits individuals to reside in Spain initially for one year, with the option to renew annually. This type of Visa is often called the visado de residencia no lucrativa or retirement visa because it is quite common among retirees.
The main thing that makes the non-lucrative Visa different from the others is that you cannot work when on this Visa. Because of this requirement, you must show enough means of subsistence to qualify for this Visa.
A key benefit of this Visa is that you can stay legally in Spain and travel within the Schengen zone. Compared to the other alternative, the Golden Visa, the Spain non-lucrative visa is an easier option since you don’t have to invest.
Remember that after living in Spain for five years, you can apply for permanent residence, which is valid for 5 years. As a permanent resident, you can enjoy the State’s healthcare system, travel discounts, and other benefits available to Spanish citizens.
Eligibility Criteria
The Spain Non-Lucrative Visa is available to non-EU/EEA/Swiss citizens wishing to reside in Spain without engaging in professional activity. The main requirement for this visa is to have sufficient funds to live in the country.
If you meet this requirement and are still determining if this Visa would be perfect for you, here is how you would know:
- If you want to retire permanently to Spain;
- If you wish to initially stay in Spain to explore its cities and then switch to a different residence permit. For example, a work permit upon finding a job;
- If you wish to reside in Spain for 6 months to 1 year and have sufficient savings to support yourself without seeking employment.
Applying for this Visa is rather straightforward. All you need to do is prove that you can care for yourself and anyone you intend to tag along. That said, let’s delve deeper into the specific requirements as far as documentation is concerned.
Documents Required
Similar to when applying for any other visa in Spain, you must submit a few documents when applying for this one. Here’s a quick rundown.
- Correctly filled national visa application form: The information on your application form must be accurate, as even minor errors can result in your application being rejected. You can obtain the visa application form from the Spanish embassy website. Alternatively, pay a visit to the nearest visa application center.
- A Passport: You must submit a valid passport (valid for one year).
- Two passport-size photos were taken according to the Schengen requirements.
- Proof of sufficient means of subsistence: You can show proof of sufficient financial income by producing the following:
- Bank statements for the past three months.
- Proof of investments.
- Evidence of passive income earning, for instance, rental investments.
- Medical certificate indicating that you are of sound health.
- Private health insurance: A certified copy of the document proving you have public or private health insurance from an authorized insurance provider in Spain is required. The insurance policy must cover all the risks in Spain’s public health system.
- Criminal record check certificate: You must produce an original and a copy of a criminal record certificate from your home country. This certificate should be from the last five years. Note that this is only applicable to adults.
- NIE number: Every foreigner intending to stay in Spain for over six months is assigned a unique personal identification number. Obtaining this number before applying for a visa at the consulate is recommended.
- Proof of relation if you are applying for a dependant. This could be your spouse or children.
Spain Non-Lucrative Visa Process
First and foremost, the application has to start from your country of residence. This means you must physically present yourself to the nearest Spanish consulate. If you hold a student visa and wish to transition to the Spain non-lucrative visa, you must return to your home country to initiate the process.
Here is what the visa application process looks like:
- Apply for the Visa at least five weeks before your travel date;
- Schedule an appointment at the nearest consulate;
- Submit all the necessary documents;
- Attend the visa interview appointment with all the original documents;
- Pay the visa fee;
- Collect your Visa.
Upon arrival in Spain, register at the town hall for your certificado y volante de empadronamiento and apply for your Foreigner Identity Card at the police station.
Taxes for Spain Non-Lucrative Visa Holders
Navigating the tax system in a new country is often easier said than done. This is largely because of the different rules that apply to the various visas available in the country.
You must be present in the country for at least 183 days to renew your Spain Non-Lucrative Visa. This automatically qualifies you as a tax resident according to Spanish laws.
While you might not engage in employment in the country, you will be taxed on your global income. This includes income from employment, self-employment, and capital gains.
However, income earned outside of Spain may be subject to tax in your home country, depending on tax treaties and regulations. While this is true, the good news is that Spain has laws and treaties that prevent double taxation.
Income tax rates in Spain range from 9.5% to 22.5%, depending on the autonomous community where you reside. If you plan to invest or buy property in Spain, you should be ready for possible taxes associated with these transactions.
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Can I get a work permit?
If you find yourself unable to sustain yourself financially on the non-lucrative residence permit due to unforeseen circumstances, can you apply for a work permit?
Well, the answer to this question is a yes. However, you can only apply for a work permit after you have obtained a non-lucrative visa from Spain. This means that you cannot have both at the same time. After the first year, you can request a switch from a non-lucrative visa to a different residence permit that permits employment.
However, you need to secure work before switching to the new residence permit that allows you to work. You must have an employment pre-contract and the appropriate work qualification.
Can I renew a Spain Non-Lucrative Visa?
Yes, you can renew a Spain Non-Lucrative Visa. The initial Visa is valid for one year, after which it can be renewed annually as long as you continue to meet the eligibility criteria.
Renewal requires submitting updated documentation, such as proof of sufficient financial means, valid health insurance, and a clean criminal record.
Unlike the first application, this time, you must submit all the necessary documents and make an application in Spain. It’s important to start the renewal process well before your Visa’s expiration date to avoid any gaps in your legal status.
Can I invest on a Spain Non-Lucrative Visa?
Yes, you can invest in Spain on a Non-Lucrative Visa, but there are limitations on the type of investment activities you can engage in. The Non-Lucrative Visa is primarily for individuals with sufficient financial means to support themselves without needing employment in Spain.
While on a Spain Non-Lucrative Visa, you cannot engage in certain investments that are considered gainful activities or employment. These typically include:
- Employment: You cannot take up any form of employment or work for an employer based in Spain.
- Entrepreneurial Activities: You must refrain from starting a business or engaging in entrepreneurial activities that generate income in Spain.
- Professional Activities: You cannot provide services that generate income, such as consulting, freelancing, or any other professional activity.
- Commercial Activities: You cannot engage in commercial activities for profit, such as buying and selling goods or services.
Under the Non-Lucrative Visa in Spain, you can engage in passive investments, including real estate, financial investments, or pension funds, among many others.
Can I retire on a Non-Lucrative Visa?
Yes, you can retire on a Non-Lucrative Visa in Spain. The Non-Lucrative Visa might be suitable for you only if you have sufficient financial means to support yourself without needing employment in Spain.
Retirees often choose this Visa to enjoy Spain’s high quality of life, pleasant climate, and rich culture. As mentioned earlier, you must demonstrate that you have a stable and regular income to cover your living expenses in Spain.
Spain Retirement Visa
Apart from the weather, and natural beauty, expats choose to move to Spain because of the retirement benefits. Unfortunately, Spain has no special visa, which is dubbed the ‘retirement visa’. The two most popular options for expats who want to retire in Spain are the Non-Lucrative and Golden Visa.
- Read Also: Types Of Visas For Spain: All Options For Expats.
Documents Required
The earlier part of this post already covers the documents required for the Non-Lucrative Visa. However, the Golden Visa is a different type of Visa. In addition to the standard documents required for all visa types, you must provide additional documents for the Golden Visa.
You need to remember that the Golden visa is an investment-focused residence permit. In that regard, you must provide documents that validate the investments accordingly.
Here are some types of investments that could qualify you for a golden visa.
- Real Estate Investment: Purchasing property in Spain with a minimum value of €500,000.
- Capital Investment: Investing at least €1 million in Spanish stocks, bonds, investment funds, bank deposits, or €2 million in Spanish public debt securities.
- Business Investment: Starting a business venture in Spain that creates job opportunities, contributes to scientific or technological innovation, or has a significant economic impact.
Difference between a Non-Lucrative Visa and a Spain Golden Visa
The Non-Lucrative Visa and the Golden Visa are two different types of visas that offer residency in Spain, but they have different requirements and purposes:
- Non-Lucrative Visa: As stated earlier, this Visa is for individuals who wish to reside in Spain without engaging in any work or professional activity. It is suitable for retirees and others with sufficient financial means to support themselves without needing employment in Spain. The Visa is typically valid for one year and can be renewed annually.
- Spain Golden Visa: The Golden Visa is a residency-by-investment program that allows non-EU/EEA/Swiss citizens to obtain residency in Spain by investing in real estate, business projects, or certain types of financial assets. The minimum investment required varies but is generally higher than for the Non-Lucrative Visa. The Golden Visa grants residency for two years, which can be renewed every five years as long as the investment is maintained. Another distinguishing factor between this Visa and the former is that you can work while on a Spanish Golden Visa. This is not true for the Non-Lucrative Visa.
Do you want to move to Spain?
Relocation never has to be confusing, especially if you’ve chosen Spain as your destination. You don’t want to deal with documentation and bureaucracy at this point in your life; you would rather focus on other aspects of traveling!1
Allow Viv Europe to handle all your needs and make this process simpler and faster. Contact us today and get help with everything from applying for the Spain non-lucrative visa to finding your new home.
But you don’t have to take our word for it! Be sure to check out our Facebook Group – All About Portugal For Expats, and chat with others who have successfully relocated to Portugal and Spain. We can tell you’re ready to change your life forever!
