NLV financial side.
 

Hi, we are researching the move to Spain. The NLV would be our preferred choice. My question is, do you need to have a lump sum of the required amount (€36,000 approx per couple) in the bank, or just need to supply proof of yearly/monthly income? Thank you

Re: NLV financial side.
 

You just need to prove that you have a solid annual income meeting the income requirements. You will also need full healthcare. Healthcare could be through the S1 healthcare scheme if you are of retirement age and receiving UK pensions. There are several other documents that you will need to submit with your application.

Steve

Re: NLV financial side.
 

It is either income, savings or mixture of both. The preference is passive reoccurring income (e,g. pension, investments, rental, but not employment) equalling 400% IPREM plus 100% IPREM for each dependent which currently would be your €36000.

Note if savings or lump sum as you put it, at renewal for years 2/3 and 4/5 it doubles to 800% IPREM plus 200% per dependent so currently €72000. These values would be a minimum and should liquid and accessible e.g. not fixed bond locked away. It is reported some regions ask for this in a Spanish bank and the requirements have changed recently asking for documentation not typically provided by UK banks.

Re: NLV financial side.
 

So just to get things straight, we need to be bringing in minimum approx €36,000, net yearly for the first 2 years then €72,000, net yearly for the next 3 before we can apply for the 5 year permanent residency? This would mean we have to save €24,000 in the first 2 years from our income to sit in the bank for 3 years as a top up to our yearly income. Is that correct? Thanks

Re: NLV financial side.
 

You don't have to have €72,000 net yearly for years 2 & 3 but you have to prove rock solid income (or savings, or a mixture of both) for those 2 years and for years 4 & 5. There seems to be confusion that the actual cash (€72,000) needs to be sat in the bank at renewal date but thats not the case. Solid income has to be proven at the time of renewal.

Steve

Re: NLV financial side.
 

Let’s ignore a mix of finances for this discussion and look at two potential options for one person plus one dependent:

Passive income e.g. pensions worth €36000 per annum, would meet the requirement for initial application and renewal 2/3 and 4/5 as it is annual reoccurring income.
Savings e.g. cash in the bank, for initial application €36000, then for renewal for years 2/3 it doubles to €72000 because it covers two years and the same for renewal 4/5.

You can spend it but at each renewal you have to prove you can support yourself financially. These values can increase as IPREM can change.

As for net vs gross I assume it is gross as you will declare taxes in Spain and pay relevant tax on worldwide income subject to double tax treaty with UK e.g. some pensions, interest, premium bond winnings, dividends etc. (some government pensions are taxed in UK but still declared in Spain but that’s a different discussion)

Re: NLV financial side.
 

What is an example of “solid income” because savings isn’t income and if there’s zero passive income then €72000 in some form has to be available, and cash in bank is an obvious choice because it is accessible and liquid. Investments and property are not and you have to prove how you’re going to live.

Re: NLV financial side.
 

Solid income is obviously income that will be income from a recurring source, ie Pensions etc. (Which is within the income list you have already stated in a previous post)

Re: NLV financial side.
 

Then solid income is not an actual requirement at either initial or renewal which is why the option of providing living expenses as a multiple of IPREM is an option.

Re: NLV financial side.
 

You do need to prove that you have regular income which is enough to meet the requirements for the NLV. These income sources need to be reliable (Rock solid) for the duration of the NLV.
Savings may be acceptable in some regions but you may have to prove where the cash has originated from as some applicants have borrowed money to support their NLV application.

I have copied this below from the Internet:

How to Prove Financial MeansSource of Income:

The funds can come from various sources, including:Pensions Savings and investments Rental income Passive business income (e.g., dividends)

Documents:You'll need to provide bank statements and certificates to prove you have sufficient and regular income, along with the origin of the funds.

Steve

Re: NLV financial side.
 

Savings only without regular income are certainly acceptable in some regions for NLV application and renewal. The requirements are defined in law but open to interpretation by the officials even in the same offices/consulates.

The reason for disagreeing with the need for a regular income is that I am speaking from experience as someone who was granted an NLV and subsequent renewal. This was without a regular income source with the financial requirements met from savings (incidentally without proof of source). I wouldn’t want someone reading this thread to be discouraged because of the lack of income source.

The OP has since posted in another thread that their husband is in receipt of S1 and they will soon which implies there would be a level of regular income from state pension.

Re: NLV financial side.
 

The OP will need to decide which is the best route financially and I hope they succeed in their quest.

Steve