British Expats

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-   -   Non lucrative visa (https://britishexpats.com/forum/spain-75/non-lucrative-visa-939609/)

bettybug Jul 18th 2021 12:21 pm

Non lucrative visa
 
Hi, can anyone please explain to me what the requirements are for the non lucrative visa. There is so much disinformation out there. I have been on the Spanish and British portals????.
Please can someone respond with accurate easy to understand instructions.
Pplease british citizen that has done the process this year
Thanks Mike

stevesainty Jul 18th 2021 3:19 pm

Re: Non lucrative visa
 
I have not done the process, as I am a Spanish resident already.

Here are the main points

You must apply in UK, not in Spain
Once granted, it lasts for 90 days, during which you are expected to have applied for a TIE in Spain.
With a NLV you apply, in Spain, for temporary residency, TIE, for 1 Year.
The income required for main applicant, for 2021, is either 2,259.60€ per month or savings of 27,115.20€ for the main applicant and an extra 564.90€ per month or savings of 6,778.80€ for each extra person. This is for the first year only.
You need to have private medical insurance with no co-payments.
The renewal of your TIE is for 2 years, so you need to prove either the monthly income, or double the savings for the 1st year.
The second renewal of your TIE is also for 2 years and you need to meet the same income requirement
You are not allowed to work, not even remotely, with the NLV, but rental or investment income is allowed.
When you have had your TIE for 5 years you are classed as permanent residents.

After the first year of NLV you are at liberty, whilst living in Spain, to apply for a different type of visa that may allow you to work.

tebo53 Jul 18th 2021 3:25 pm

Re: Non lucrative visa
 

Originally Posted by bettybug (Post 13030609)
Hi, can anyone please explain to me what the requirements are for the non lucrative visa. There is so much disinformation out there. I have been on the Spanish and British portals????.
Please can someone respond with accurate easy to understand instructions.
Pplease british citizen that has done the process this year
Thanks Mike

Hi Mike,
Firstly you have to apply for the NLV at the Spanish embassy while you are still living in the UK. London or Manchester.

You will need to meet the income and healthcare requirements. Income requirements are €27,115.20 per annum for the first person and an extra income of €6,778.80 for each additional person.

The healthcare requirements are that you have private healthcare in place and paid for for a full year.

There may be other documents that will be required including a Police background check. Check with the embassy what other information they require.

Hope that helps.

Steve

Barriej Jul 18th 2021 4:36 pm

Re: Non lucrative visa
 

Originally Posted by bettybug (Post 13030609)
Hi, can anyone please explain to me what the requirements are for the non lucrative visa. There is so much disinformation out there. I have been on the Spanish and British portals????.
Please can someone respond with accurate easy to understand instructions.
Pplease british citizen that has done the process this year
Thanks Mike

Link to Spanish consulate in Edinburgh (London will have the same)

Visa and Entry Requirements

This has the forms and the info required,
You can contact them direct and they should be of help.

The actual requirements.
http://www.exteriores.gob.es/Consula...IVE%20VISA.pdf

This shows financial and other requirements.

The NLV does not allow you to work, it is only for retirees etc.
The healthcare must cover everything including existing conditions (this can be a stumbling block) for someone with no issues expect to pay €600 to €1000 for the year. Im 59 and paid €760 last year when we moved over
Financial requirements in Spain in form of €2,259.60 per month (Approx. £1750 at the time of printing) for the main applicant. Each additional family member will need €564.90 per month (Approx. £ 440 at the time of printing).

They have changed the allowed time to apply for the TIE after arriving in Spain, it was three months, you now have a month to sort the TIE after getting here.

Finally ignore the UK gov site, its got mistakes. It still says you can exchange your Uk driving licence.
This is wrong, you have six months from when you arrive to use the Uk one and then you must take a Spanish driving test (although they say they are talking to Spain)

Notdunroamin Jul 18th 2021 6:48 pm

Re: Non lucrative visa
 

Originally Posted by Barriej (Post 13030671)
They have changed the allowed time to apply for the TIE after arriving in Spain, it was three months, you now have a month to sort the TIE after getting here.

Source please?

Barriej Jul 19th 2021 5:56 am

Re: Non lucrative visa
 

Originally Posted by Notdunroamin (Post 13030711)
Source please?

​​​​
http://www.exteriores.gob.es/Consula...IVE%20VISA.pdf

Its in this pdf.
​​​​​​

frigilianafreddy Jul 25th 2021 5:41 pm

Re: Non lucrative visa
 
And you have to become tax resident. If you have decent final salary pensions and lots of investments tax in spain is punitive. insane. Not so bad for the lower paid, though.

Barriej Jul 25th 2021 6:56 pm

Re: Non lucrative visa
 

Originally Posted by frigilianafreddy (Post 13033275)
And you have to become tax resident. If you have decent final salary pensions and lots of investments tax in spain is punitive. insane. Not so bad for the lower paid, though.


Its not that bad see here.
https://www.uktaxcalculators.co.uk/w...nited-kingdom/

On £75000 income you will pay about 34% here in Spain against 30% in the Uk so about three grand.

On £15000 the difference is much larger, so you are worse off in Spain. 16.8% against 8.4%



SanNico Jul 26th 2021 7:30 am

Re: Non lucrative visa
 
For the Mods, how about making this a sticky?

Rosemary Jul 26th 2021 8:48 am

Re: Non lucrative visa
 

Originally Posted by SanNico (Post 13033415)
For the Mods, how about making this a sticky?

If you look at the existing stickies you will see that they are mainly informative threads regarding the usage of the forum.

Rosemary

MiekeAndal Aug 2nd 2021 9:16 pm

Re: Non lucrative visa
 
Thank you

Notdunroamin Aug 3rd 2021 2:19 am

Re: Non lucrative visa
 

Originally Posted by Barriej (Post 13033291)
Its not that bad see here.
https://www.uktaxcalculators.co.uk/w...nited-kingdom/

On £75000 income you will pay about 34% here in Spain against 30% in the Uk so about three grand.

On £15000 the difference is much larger, so you are worse off in Spain. 16.8% against 8.4%

Be wary of such online calculators they are for working out the tax on salaries from employment not from pension and other retirement incomes.

Because of the way the Spanish system is structured it is impossible to make direct comparisons or arbitrarily state that tax on 'X' is "34% against 30% or 16.8% against 8.4%."

One thing which comes into play differently in Spain is income from annuities which is taxed partly as income from savings and partly as a return on capital in proportions depending on the age you began to receive income from them. In practice this means that even with identical gross incomes no two people are likely to have the same tax burden.

Practical example: an income of ~€32,000 comprised of a mix of UK state pension, annuities, and drawdown from a private pension, produces a tax bill of €5,600 (£4,790) but according to the calculator linked to it's €7,146 (£6,110) so for the given example of €32,000 rather than it being £891 MORE than in UK it's actually £429 LESS.

https://cimg0.ibsrv.net/gimg/british...1e28d18e5b.png

frigilianafreddy Aug 5th 2021 11:55 am

Re: Non lucrative visa
 
Its the (currently untaxed) dividends from 30 years of PEPs, TESSAs, ISAs that kills it for us. And the tax on National savings products. Those would also count toward the wealth tax.

Now if Spain were to adopt the same ex pat tax regime as Portugal then......

Barriej Aug 5th 2021 2:11 pm

Re: Non lucrative visa
 

Originally Posted by frigilianafreddy (Post 13037345)
Its the (currently untaxed) dividends from 30 years of PEPs, TESSAs, ISAs that kills it for us. And the tax on National savings products. Those would also count toward the wealth tax.

Now if Spain were to adopt the same ex pat tax regime as Portugal then......


I suppose thats one of the many things rich people need to weigh up when moving from a country (UK) which has some nice easy tax rules to another that has a totally different regime. Oranges and Apples as it were, and why should the country you want to move too accommodate you (It craps on all of its own citizens)
You usually find those countries with a lax tax system, get you in other more horrid ways.

Not being rich, I did however sign over some of our shares and bonds to our children (one child is still in the Uk) and as they both owe us money, I can get them to cash these in when i decide they need to repay me. (wink wink)
My private pension while not a huge amount has been growing (and shrinking) since 1982 and Im happy to pay any tax owed on it here. I made sure I took the 25% the year before we moved and liquified some other bits that would have attracted tax here as well.
We have premium bonds and again Im happy to pay tax on whatever gains if thats what it is (we are living on about 1/2 the amount that we needed in the Uk anyway)

Don't have much else, but the tax implications in the place I wanted to live are worse than here, so Im not complaining.
And you can't take it with you. And I will be dammed if it gets left to the kids or the taxman. Id rather it was all here in the bank in Spain.

But the Op was asking about the NLV which means they have to show a level of income that WILL be taxed. If it were me doing this now, I would get as much in cash as I could and move it and then just keep enough invested to cover the conditions of the Visa for the five years.

Nobody NEEDS €500,000 sat in a pension. Mine is well under half that but the expectations are it will last me 30 years at the current rate of removal/growth. I only take out enough to cover all the bills as the cash we have here was designed to cover the 'day to day'

I don't get the 'must save every penny mentality' as in most cases you never get to spend it. What a waste..
Just my 2c (or 5c with inflation) :)

Clifford1983 Aug 23rd 2021 9:17 am

Re: Non lucrative visa
 
Hey, I am about to step through this process myself! I am planning on relocating to the area surrounding Almeria, if all goes to plan!

From my understanding this is what I need:
  • Police Certificate - Translated and legalised
  • Health Insurance - Gone with BUPA, needs to be full coverage with no excess.
  • Medical Certificate - Translated and legalised, there is a template you can use on the London consulates page.
  • Proof of Income that meets or exceeds the minimum of 2,260 euros monthly or 26,000 euros in savings, mine is coming through my remote job, not savings.
  • Form 790
  • Form EX01
I am legalising my documents through the UK gov website, it costs £30 per document. The translation is being done by one of the approved translators on the consulates website.

I have attached the guidance doc from the consulate that it explains everything you need in English.

Cheers,
Rob



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