Lynn R

As I said, Spain does not tax capital unless you are over the wealth tax threshold (can't give you a figure as regions have very different allowances so if you want to know you will have to Google it). Income from savings or investments is taxed. It doesn't matter if the money is needed for an NLV or not, that's immaterial. If someone is using income from pensions or other sources to demonstrate that the meet the requirements for an NLV, that would be taxed in Spain (apart from Crown pensions which are only taxable in the UK but have to be declared in Spain and can increase the marginal rate of tax paid on other income) because it is income not capital.

If the OP's mother has a property in the UK to sell and would be living with her (as her original post implies) then meeting the financial criteria for an NLV would most likely not be a problem. However, private health insurance for at least the first year for an 86 year old almost certainly would be - even if there are no pre-existing conditions which is unlikely, that would I think be over the upper age limit companies impose for new policies. I think the OP should contact the Spanish Consulate in the UK and ask if an S1 would be sufficient - there seem to be conflicting stories with some people saying they have been accepted and others saying that's not possible, so checking with the official source would be by far the best thing to do.

Lou71

Admittedly Portugal, for example, would be easier because the minimum income threshold is lower and they offer free health care to all residents but the OP probably doesn't want to up sticks and move there. Can you name any other places that are easier?

You are complaining that Brexit has made moving to Spain more difficult for UK nationals but that's what you (British) voted for isn't it?

Notdunroamin

Income for an NLV needs to be from regular and ongoing sources such as pensions etc., not money in the bank, such income will be taxable in Spain.

Ronnyone

It can be a deposited amount apparently and it is only taxable in respect to interest generated.

missile

Not doubting you, but can you supply a link to support that statement?

Ronnyone

I dont have a link but there have been plenty of people getting NLV saying that they just show appropriate amounts in accounts and as far as I know I haven't heard of anyone not getting it because it can only be a monthly income.

Notdunroamin

Here you go.

https://www.boe.es/buscar/pdf/2011/B...onsolidado.pdf

Notdunroamin

I said nothing about it being monthly.

Exactly how many people are you personally acquainted with who have not only arrived on an NLV but also intimately discussed their financial situation with you?

If the answer is not 'plenty' then it's worthless 'bar' gossip.

Stingychips

So you need to obtain your funds as a passive income which the Spanish government can tax you with. Wonder how much they tax you. Knowing Spain Post Brexit I imagine it would be a fair amount.

Lynn R

The only changes to tax I am aware of in Spain post Brexit have been reductions. In 2018 the low income allowance was increased from €3,700 to €5565. The amount at which lottery winnings become taxable has been increased twice. Some autonomous regions have slightly lowered their IRPF rates (half of Spanish income tax is at National rates and half at regional ones). Andalucia introduced much more generous inheritance tax rules for close relatives.

The amount of tax anybody coming to Spain on an NLV would pay would be exactly the same as a Spanish person or anybody else already living here would pay. The amount of tax would depend on individual circumstances (age, whether or not they have dependants, what the source of their income is - Crown pensions are only taxable in the UK and annuities are taxed more favourably).

marcbernard

Lynn
You say that Annuities are taxed to a lesser degree. A friend told me yesterday that his annuity, previously benefiting from the reduction in previous years, had this year suffered tax on the full amount. Do you have any news on this (based in Valencia province)?

Lynn R

I don't, sorry. Fred James may know more if he sees this.