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Update – End Of The Golden Visa For Property Purchases in Spain

by Buying PropertyImmigrationLatestLegalVisas

UPDATE

In November Congress approved a bill that included text to scrap the ‘Golden Visa’ and end this residency scheme as soon as January 2025. On December 2nd, the Senate vetoed the bill sending it back to Congress delaying the ending of the Golden Visa for property purchases in Spain for several months.  It is now expected that the earliest legislation could get pushed through is April 2025.

Aside from political reasons, (Congress is controlled by the Prime Minister Pedro Sanchez and his coalition government of the centre-left Spanish Socialist Workers’ Party – PSOE and radical left-wing Unidas Podemos, while the Senate is controlled by the centre-right party, the Partido Popular), there was concern over the way that the Spanish government had tried to bring in the changes.  Basically the text annulling the Golden Visa, was inserted in a completely unrelated bill, the Judicial Efficiency Bill which is all about rules for expedited trials for cases of illegal squatting.

According to the Official Gazette of the Spanish Parliament dated 2 December, the Partido Popular’s rationale for the veto revolved around the government’s failure to employ “proper legislative drafting techniques”. It argued that the simultaneous processing of two legislative projects affecting the same laws would create confusion, calling the bill “a hodgepodge of uncoordinated legislative amendments”.

Whatever the case, as Congress retains the power to override the veto the Senate’s opposition will only delay the process, and it is just a matter of time before we’ll see the end of Spain’s Golden Visa.

Background to the End of the Spain’s Golden Visa

Just over one year after Portugal announced that its ‘Golden Visa’ for property investors would be coming to an end, Spain has signaled the end of the ‘Golden Visa‘ for property purchases in Spain.

On Monday 8th April 2024, President Pedro Sanchez announced, “We are going to start the procedure to eliminate the granting of the so-called golden visa , which allows access to the residence regime when more than half a million euros are invested in real estate. We are going to take the necessary measures to guarantee that housing is a right and not a mere speculative business,”

The residency by property investment scheme, offers a 3 year residency permit to foreigners from third countries who purchase a property for €500,000 or more.

The scheme, introduced in 2013 in the fallout of the housing market crash and financial crisis, was seen as a way to invigorate the real estate sector by attracting investment from foreigners, but has not been without criticism.  Not least for the lightweight background checks, and being viewed by other EU nations as a back door into the EU for individuals who would otherwise not gain access.

At home, the scrutiny is more political, with those averse claiming that it distorts, and has negative socio-economic affects.  It is this which Sanchez seems to indicate as the main driver, as he stated that nearly all approved ‘Golden Visas’ and residency permits for property investments were located in regional capitals such as Barcelona, Madrid, Malaga and Valencia, ‘cities where the housing market is stressed’.

He added “We do not want a speculative investment model with housing”, further commenting on the aim of his main policy to ‘guarantee access to affordable housing . . . and assure that no citizen has to spend more than 30% of their income towards having a suitable, quality home’.

In 2023, foreign buyers bought 15% of all homes sold in Spain with British buyers continuing to top the board as the nationality with the largest numbers buyers.

When Ireland, Portugal and Greece got rid of their ‘Golden Visa’ schemes, lack of affordable rental housing stock in its major cities was also cited as a main reason.

Others, including real estate experts have a different view and warn that ending the scheme could be harmful to the Spanish economy as the country will lose foreign investment into the property sector.

Whatever view taken, one thing now seems certain, the countdown has started and it is just a matter of time before Spain’s ‘Golden Visa’ for property investment comes to an end.

Until then, it remains an option for those who have €500k to invest in a property, and anyone looking to do so, needs to act now before it’s too late.

This article references information published by El Pais

Image credit: Sala del Consejo de Ministros, Edificio del Consejo de Ministros Photographs by Borja Puig de la Bellacasa via Wikimedia Commons

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Tax in Spain for Residents and Non-Residents

by FinancialPersonal Tax ReturnsTax

Understanding tax in Spain is essential, not just if you live here, but also if you own a property in Spain.

The Spanish tax year runs from 1st of January to 31st December.  Residents have to complete their income tax return, declaracion de la renta, by 30th of June the following year, and non-residents have until 31st December.

Spain has a double taxation treaty with the UK, which means you can avoid getting taxed twice on the same income.

Resident or Non-Resident for Tax in Spain?

You are considered to be tax resident in Spain if any of the following apply:

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Overseas Assets Declaration

by LegalPersonal Tax Returns

Spain has legal requirement for its residents to make an overseas assets declaration, notifying the tax authorities of worldwide assets that they own or control.

Until relatively recently, failure to make an overseas assets declaration, or submission of an inaccurate one, could result in extremely costly penalties.  Unreported overseas assets that were later discovered by the authorities, would be treated as undeclared income on which tax should have been paid.

The legislation, (LEY 7/2012, de 29 octubre, de prevención y lucha contra el fraude fiscal), was passed in Spain in 2012.  It was aimed at deliberate high level tax evaders, and the fines and penalties could add up to more than 150% of the undeclared or incorrectly declared asset value.

In January 2022, the European Court of Justice passed it’s ruling agreeing with the European Commission, that the penalties for failing to properly disclose overseas assets are excessive and contrary to EU statutes and principles.

The three judges ruled that the excessive sanctions for incorrect or late compliance are disproportionate and discriminatory.  Adding that the penalties may deter businesses and individuals from investing or moving across borders in the EU single market, thus interfering in key founding principles of the EU, the four freedoms.

As the ruling was binding, Spain had to take steps to comply.   Where previously the late filing penalty was the greater of a minimum of €10,000, or €5,000 per undeclared asset, this is now a fee of €150 or €20 per asset.   The fine for incorrect or missing information, is a minimum of €300 and will vary depending on the deemed infraction.

The tax office can now only review or investigate overseas assets declarations going back 4 years, and if you had assets abroad, and you can show that they originated in years outside this, you cannot be taxed or penalized for undeclared income.

The EU agree with the principle of the law, so putting aside the EU ruling regarding penalties and sanctions, the declaration of overseas assets continues to be mandatory, for all residents in Spain.

Making an Overseas Assets Declaration

Modelo 720

An overseas assets declaration is made by completing a form known as ‘Modelo 720‘. The deadline for submitting the form is the 31st of March, and generally speaking the declaration only needs to be made once, as subsequent declarations are only necessary if assets have been acquired, or disposed of, or if existing declared assets have increased in value above a given amount.

Modelo 721

In 2023 new regulations were passed to require the declaration of crypto currencies held on overseas exchanges.  The Royal Decree 249/2023, de 4 april, and Orden HFP/886/2023, de 26 Julio, which approved the “Informative declaration on virtual currencies located abroad”.

The declaration is done by completing the form Modelo 721.  The declaration requirement began in 2024 in reference to the year 2023.

Whilst this overseas assets reporting requirement might seem intrusive, it is in reality only the result of what was a small move by the authorities, in their steps to counter the country’s rampant tax evasion.

Planning for Tax in Spain

Changing from UK to Spanish Residency and Understanding Tax in Spain

by BrexitLatestPersonal Tax ReturnsTax

Needless to say when taking up Spanish residency, understanding tax in Spain and planning for fiscal residency is important.  Tax in Spain is very different to the UK, so for anyone making the move, planning this part of the transition to full-time Spanish residency is should be firmly on the agenda.

Here we provide an overview of the tax related requirements and key points that most need to consider when moving  in Spain.

Tax related requirements once you’ve taken up residency in Spain

There are lots of things to consider when taking up residency in Spain, and where tax is concerned, the starting point is understanding all the differences Spanish resident status brings with it.

You are generally liable to pay taxes in the country in which you reside.  This means that once you have taken up residency in Spain, you will be subject to Spanish taxation.  The obligation to pay taxes in Spain arises when you meet the residency measure based on the 183 day rule.  This responsibility applies regardless of whether you have registered as a resident or not.

As a resident in Spain you are liable to pay tax on:

  • General income
  • Interest on savings and investments
  • Capital gains on sale of assets
  • Wealth (if your total wealth is €700k or more – €1m including allowance for family home)*
  • Gifts and inheritance

*Allowances are lower in some regions – in Madrid and Andalucia wealth tax is currently waived. 

Large fortune tax is a new national tax on wealth that kicks in on net wealth above €3m.  (Regionally paid wealth tax is applied as a tax credit)

Spanish residents must also declare assets they own outside of Spain such as:

  • Property
  • Investments
  • Savings
  • Pensions
  • Insurance

When do you become resident for tax purposes in Spain?

Tax obligations arise for the fiscal year in which you become resident in Spain, not from the date you got your residency.  New residents in Spain need to be mindful that the Spanish tax authorities apply the default assumption that an individual who has obtained residency, (formally registered as a resident), in Spain, has done so because they are switching their habitual residence from the country that they were living in, to Spain.

Depending on your circumstances, this means that you could be deemed to be fiscally resident in Spain despite not having lived in Spain for 183 days of the year.  For example if in August last year you sold your home in the UK, bought a home in Spain, moved over and obtained residency, under the habitual residence rule you will be deemed to be Spanish tax resident in last year.  This is because Spain do not split the tax year, so the fact that you now only have a home in Spain overrides the 183 day rule, i.e. you cannot claim habitual residence in the UK if you no longer have a permanent home there.

On the other hand, if you moved to Spain and obtained residency, however have kept a permanent home in the UK, you could claim that your habitual residence did not change in last year applying the 183 day rule, as you spent more time in your home in the UK than you did your home in Spain.  This year as you will spend more than 183 days at your home in Spain, then you will be resident for tax purposes this year.

What do you need to do after becoming a Spanish resident?

Individual circumstances are of course all different.  It’s therefore important to know the key things that apply and need to be done in your own personal situation.

Generally speaking, when you change residence from one country to another, in most cases there is, or should be an element of financial and tax planning.

Basic planning begins with knowing the taxes that will apply, the returns that need to be done, and when.   Then it’s a case of getting a clear picture of how these will apply in your situation, and the implications so you can plan accordingly.

The following is a summary of the Spanish key tax dates and when they apply according to when you became resident.

Spanish Tax Return Deadlines

Non resident property tax Modelo 210 – 31st December following year (e.g. 2023 must be submitted by end of 2024)

Overseas assets declaration Modelo 720 – 31st March the year after becoming tax resident

Income tax return Modelo 100 – 30th June the year after becoming resident

Tax Return and Declarations Guide for Change of Residency

New Residents Last Year

If you took up residency and became resident for tax purposes in Spain last year, assuming that you were in receipt of income, your personal tax return is due in June this year.  If you owned assets outside of Spain, of value €50k or more, you should also have submitted an overseas assets declaration (Modelo 720) in March this year.

Anyone who took up residency in the second half of last year who can claim that their habitual residence did not change, assuming they spent less than 183 days in Spain in the year, then this year is their first fiscal year in Spain.  If they were an owner of a property owner in Spain the previous year, they will complete their last non resident property tax return this year and in June next year their first resident income tax return will be due.

New Residents This Year

Anyone who moved to Spain in the first half of this year, will generally be deemed tax resident in Spain this year.  If applicable, the Overseas Assets declaration, Modelo 720, is due in  March next year and income tax returns by end of June next year.

If you take up residency in the second half of this year, and are able to show that your habitual residence didn’t change, then next year will be your first fiscal year in Spain.  The Overseas Assets Declaration and income tax returns will not be due until the year after next.

What are the differences between UK taxation and tax in Spain?

Tax in Spain has a general reputation of being excessive compared to the UK.  This is not surprising if for example you compare income tax.  The basic income tax allowance in Spain is €5,550 (low income €14,000), vs £12,500 in the UK, and the tax rate rises to 30% as soon as your taxable income reaches €20,200.  These are clearly negative differences.

There are however also many positive differences.  For example, in a family with 4 children, the parents get an addition €19,100 tax allowance between them  Rental income from a residential property also has a substantial 60% reduction applied before it is taxed, and the top rate of tax on dividends in Spain is 26% versus 38.1% in the UK.

In some circumstances pensions may also attract less tax in Spain than in the UK.  Read more about Taxation of UK Pensions in Spain.

We aren’t going to list every difference in this article, and the above examples illustrate that the differences aren’t necessarily all negative.  How it works out for each individual taking up residency in Spain, depends on their situation and how they plan and prepare for their transition to being a Spanish tax payer.

Planning for tax in Spain before taking up residency

Contrary to perception Spanish taxation is often not as bad as many thought, or were lead to believe that it would be.  The reality is that if you become resident in Spain, you are liable to pay tax in Spain.

For most it is certainly not a matter to be avoided.  Anyone who has recently take up residency in Spain or who is planning to, should be considering the fiscal aspects of their move, the possible tax implication what they need to do to be ready for Spanish taxation.

By taking time to plan, it is possible to minimise potential Spanish tax exposure, limit it, or at very least fully understand it.

We recommend anyone moving to Spain to follow these 5 steps:

Simple Steps to Successfully becoming a Spanish Tax Resident

  • Learn about the tax system – what needs to be done and when
  • Understand how the Spanish tax regime differs in your situation and what tax you will have to pay
  • Find out what tax treatment applies to assets you own and tax breaks that you currently enjoy
  • Make changes in your financial set up to minimise, limit or avoid Spanish tax
  • Get professional advice on financial or tax matters in both the UK and Spain

Spanish Residency Financial & Tax Consultation

If you are not sure about your tax position, have questions about tax in Spain, or would like assistance with any of the steps above, we can provide you with an initial review of your situation.  We’ll highlight key tax points relating to tax, your situation and answer your general questions.

You may need further help understanding how tax in Spain affects you, or planning to limit how much it does.  In which case our team of financial and tax consultants specialised in change of residency planning between UK and Spain, are here to help.

Spanish Residency Financial & Tax Consultation

Read more about Tax in Spain

Read more about Overseas Assets Declaration in Spain

This information is provided for informational purposes only and we do not warrant it’s accuracy or completeness.  It is not intended to provide advice, and should not be relied on for, tax, legal or accounting advice. You should consult your own suitably qualified tax, legal or accounting advisors before making financial or tax related decisions. 

Supreme Court Ruling Temporary Residency Spain

Supreme Court Ruling on Termination of Temporary Residence Due to Absence From Spain

by ImmigrationVisas

Earlier this year, the Spanish Supreme Court declared null, the article of law that allowed temporary residence permits to be terminated when there had been absences from Spain for more than 6 months in the year.  The Supreme Court ruling on termination of temporary residence due to absence from Spain, dismisses article 162 – 2.e) of Real Decreto 557/2011 stating that this should be regulated in the higher ranking immigration law, the ‘Ley Orgánica 4/2000’ and not in a regulation written in law of lower rank.  It therefore considers that the article limits the fundamental right of free movement of foreign citizens who have temporary residence in Spain as established in the Spanish Constitution.

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Spanish Tax Moving from UK to Spain

by Uncategorised

Planning for Spanish tax in Spain before taking up residency

Contrary to popular perception Spanish taxation is often not as bad as many think, or are led to believe it is.  The reality is of course that if you take up Spanish residency, you become liable to pay tax in Spain.

Rather than avoid the matter as many do or have done, anyone who’s just moved over and recently taken up residency or is planning to, should be considering the fiscal aspects of their transition and getting ready for Spanish taxation.

By taking time to plan, it is often possible to minimise potential Spanish tax exposure, and limit it, or at very least fully understand it.

We recommend anyone moving to Spain from the UK to follow these 5 steps:

Simple Steps to Successfully becoming a Spanish Tax Resident

  • Learn about the tax system – what needs to be done and when
  • Understand how the Spanish tax regime differs in your situation and what tax you will have to pay
  • Find out what tax treatment applies to assets you own and tax breaks that you currently enjoy
  • Make changes in your financial set up to minimise, limit or avoid Spanish tax
  • Get professional advice on financial or tax matters in both the UK and Spain

Tax in Spain and Spanish Residency

Without a doubt the Spanish tax system is very different to the UK’s. Income tax allowances vary depending age and whether your have dependents, tax rates for earned income are higher, and there are different rates for other types or income such as that from investments or from letting residential property.

You can read more about the different types of tax in Spain here.

Spanish Tax – Things For You To Consider When Moving from the UK to Spain

Savings

These have to be declared to the tax office if all your cash amounts to the equivalent of €50,000 or more. You don’t pay tax on savings, only on interest, however if your savings along with your other assets including your home amount to more than €1m,  Wealth Tax applies on the amount above the €1m allowance. (€700 overall wealth plus additional €300k main home allowance).

Investments

If you have investment ISA’s, these lose their tax free status once you become resident in Spain. You would become liable to pay Capital Gains Tax on any growth or interest. Gains on other investments also attract Capital Gains Tax. If you don’t have proof of how much of the ISA or investment is capital that you put in, and how much is gain, everything drawn out will treated as investment income and taxed as a Capital Gain. The tax rate starts at 19% and goes up to 26%.

Pensions

Work pensions are taxed as regular income in Spain, however due to the UK leaving the EU, personal pensions such SIPP’s are treated as general investments. This can be beneficial, as with correct planning, tax paid on drawdown from these can be significantly reduced, often to less than you would pay as a UK resident.

Tax free lump sums are taxed as either income or Capital Gain in Spain, depending on the type of pension they are paid from. Lump sums should therefore be taken before you take up residency in Spain.

Transfer of pensions from one provider to another may also be deemed to be a full drawdown of the fund and subject to tax.

Property

If you are planning to sell your home in the UK, you need to be aware that if you do so after becoming resident in Spain, you might have to pay Capital Gains Tax. General advice is to sell whilst you are still tax resident in the UK and not take up residency in Spain until the following tax year.

If you are not planning to, or able to sell your property before you move to Spain, there are things you can do to enable you to avoid Capital Gains Tax in Spain if you want to sell your home in the future.

Financial Advice

Now that the UK is no longer in the EU, UK Financial Advisers cannot provide services to, or advise clients who live in the EU, unless they have a branch in an EU country. Conversely, most UK financial and investment product providers will not accept instructions from EU based advisers unless they also have a branch in the UK and are registered with the UK regulator the Financial Conduct Authority.

There are very few UK Financial Advisers who can provide services or advice to clients who live in Spain, and even fewer who are sufficiently qualified or have the necessary knowledge to provide financial advice taking into account Spanish taxation.

Moving from the UK to Spain and Planning Spanish Tax Residency

Changing tax residency from the UK to Spain in our opinion, in most circumstances, is not something that should be done without financial advice and Spanish tax planning.

There are potentially very costly mistakes that can be made due to not getting advice or getting the wrong advice, as well as big advantages that can be achieved with well advised planning.

To avoid potentially life changing costly mistakes we cannot emphasize strongly enough the importance of getting the correct guidance and advice.

Spanish Residency Financial & Tax Review

If you have recently moved to Spain, or are planning to do so and are not sure about your tax position, have questions about tax in Spain, or would like assistance with Spanish tax planning, we can provide you with an initial review of your situation and at no cost.  We’ll highlight key tax points relating to tax, your situation and answer your general questions.

You may need further help understanding how tax in Spain affects you, or planning to limit how much it does.  In which case our team of financial and tax consultants specialised in change of residency planning between UK and Spain, are here to help.

Fill in our Spanish residency financial & tax questionnaire to get your free no obligation review.

Spanish Residency

Financial & Tax Review Questionnaire

The initial review of the information and feedback is free of charge.  Following the review if you would like a consultation, fees start at £249 / €295+IVA.

You can also fill in a short form (below) if you’d prefer to just send us a summary of your situation and specific questions for review.

Free No Obligation Initial Review

Golden Visa Property

Portugal Ends Golden Visa – Will Spain Follow?

by ImmigrationLatestPropertyVisas

Portugal has ended its Golden Visa residency program for property investors. This announcement came just a week after Ireland terminated of its ‘Golden Visa’ Immigrant Investor Program.

Both countries introduced Golden Visas in 2012, as did Spain, as they struggled to recover from the global financial crisis. The aim was to prevent banking collapse by bringing foreign money into their real estate markets.

According to Forbes, the scheme has brought in €6.8 billion direct investment into Portugal since its launch in 2012, with the most of the money going into real estate. The knock on effect of this has been rents and house prices have soared in a country which is among the poorest in Western Europe, where according to Reuters, more than half of workers earn less than €1,000 per month.

Because Portugal’s ‘Golden Visa’ program didn’t require any minimum time to be spent in Portugal, properties were bought and left empty, or just used for 2 or 3 weeks and rented as holiday lets for the rest of the year. This resulted in distortions in both the rental and sale sectors of the property market.

The increase in properties let short term for holidays, reduced the availability of long-term rents, pushing up prices which became unaffordable to locals. In Lisbon, short-term rentals now account for more than 60% of listed properties. Lisbon is the third costliest rental market in Europe after Milan and Paris. Rents increased by 37% in that city in the fourth quarter of 2022 alone.

The ‘golden visa’ investment entry point became the floor price for properties in many parts of Portugal. Sellers priced their properties for wealthy foreign buyers pushing asking prices way beyond what locals could afford.

Aside from upsetting the ordinary Portuguese, ‘Golden Visa’ schemes like those offered by Portugal, Ireland and Spain are seen as a back door entry for nationals of non-EU countries into the EU and also vehicles for money laundering.

The European Parliament announced in March last year (2022) that citizenship by investment programmes (i.e. Golden Visa Schemes) should be gradually removed. This proposal passed with 595 votes to 12. EU pressure has already forced Malta, Cyprus, Latvia, and Bulgaria to scrap their ‘Golden Visa’ residency initiatives, so it is not surprising that Ireland and Portugal followed suit, and maybe is only a matter of time before Spain follows.

The Spanish left-wing party political party, MásPaís this month put forward a bill proposing and end to the property option in the country’s Golden Visa residency program.

So Portugal’s shop is closed, but as things stand Spain’s ‘Golden Visa’ Property Investor Residency remains an option (for now) for those who have €500k to invest in a property.

If you’re interested in obtain a Spanish Golden Visa through property investment, the clock is ticking … the time to act is now.

Digital Nomad Visa Spain

Digital Nomad Visa for Non-EU Remote Workers in Spain

by ImmigrationVisas

The Digital Nomad Visa is now available in Spain following the passing of the new Startups Law, ‘Ley de Startups‘.  This visa which allows the holder to live in Spain and work remotely or online, can be applied directly in Spain, or via the Spanish Consulate in the country in which you currently reside.

To get a Digital Nomad Visa, applicants must have sufficient funds to support themselves, proof they can work remotely from Spain, and must already have been working in their current ‘remote worker’ employment or self-employment prior to applying.

Holders of the Digital Nomad Visa are eligible for a special income tax rate fixed at 24% for the first 5 years, offering higher earners reduced income tax compared to normal residents.
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Wealth Tax Set To Be Replaced By Large Fortune Tax

by Tax

Andalucía has become one the top 3 regions in Spain with the least taxes.  On the 21st September 2021, the regional president, Juanma Moreno, announced the scrapping of Wealth Tax in Andalucía.

The tax has accounted for just 0.6% of income for the regional government (€95m annually), and Moreno believes the change will have a very positive impact on increasing revenue by attracting investment.

A large number of the highest wealth tax payers left Andalucía in 2020, resulting in a loss of income of estimated at around €18m (€3.5 million euros in wealth tax and €14 million in personal income tax).

The president is hoping that removing Wealth Tax will encourage people with high income who spend long periods in Andalucía, but are not tax resident, to make it the region their permanent home and pay tax there.

Moreno’s estimate is that the tax reduction will attract 7,000 new residents, the result being that the 0.6% of income lost will be far exceeded, through income tax and other indirect taxes collected.

As wealth tax hasn’t been abolished, the annual tax return still has to be done according if, according to the law, ‘ . . . the value of their assets or rights, determined in accordance with the tax regulations, is greater than €2,000,000 euros.’  However 100% tax relief will be being granted to zero the liability.

New ‘Large Fortune’ Tax Proposed

The good news of Andalucía’s Wealth Tax reform, was shortly muted by news that the Spanish government plans to impose a temporary national ‘tax on large fortunes’.  The tax is yet to be approved by parliament, but is is expected to be implemented for 2023 and 2024 and will affect individuals with net wealth above €3 million.

Since wealth tax is collected by the regional Government, it was confirmed that any wealth tax paid would be offset against any ‘large fortune tax’ bill.  As Andalucía now give 100% wealth tax relief, residents in Andalucia won’t have to pay wealth tax, however if their net assets equal €3 million or more, they would have to pay the ‘large fortune tax’.

The proposed rates are as follows:

  • 0% up to €3 million of net wealth
  • 1.7% between €3 million and €5 million of net wealth
  • 2.1% between €5 million and € million of net wealth
  • 3.5% for a net wealth of over €10 million

According to the information provided by the Spanish Ministry of Finance, the tax on ‘large fortunes’ tax will affect 23,000 taxpayers and raise €1.5 billion in revenue, which will be used to finance policies to support the most vulnerable who are affected by the recent steep rises in cost of living.

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Spanish Non-Lucrative Visa for UK British Nationals

by ImmigrationLatestTIE tarjeta de identidad de extranjeroVisas

The Spanish Non-Lucrative Visa offers residency to British nationals who have the financial means to support themselves without working.  The Spanish Non-Lucrative Visa scheme is therefore ideal if you are retired or have passive income, for example from a portfolio of properties or other investments.  The Spanish Non-Lucrative Visa allows full-time residency in Spain with an expectation of a minimum of 6 months residence maintained.

What does the Spanish Non-Lucrative Visa Offer UK British Nationals?

The Spanish Non-Lucrative Visa gives permission to reside in Spain for up to 5 years, providing ongoing eligibility requirements continue to be met.  The TIE, tarjeta de identidad de extranjero is the residency card that is issued.  The TIE is initially valid for 1 year, and can be renewed twice for 2 years at a time.  When 5 years of full-time residency has been completed, permanent residency can be applied for.

A Visa for Full-Time Living in Spain

The Non-Lucrative Visa is intended for people who want to live in Spain full-time.   Time spent in Spain does not count towards the Schengen limit, so travel in the rest of the Schengen area up to 3 months out of 6 months, is also still possible.

Spouse or legal partner, children under 18 years and dependent ascendants can also obtain residency in Spain under the Non-Lucrative Visa scheme.  This of course providing there are sufficient financial means to support all applicants.

Unlike the ‘Golden Visa‘, there is a minimum amount of time that must be spent in Spain to be able to renew residency, so it may be not ideal for holiday home owners who want to spend more than 3 months in one go in Spain, but typically spend less than 6 months altogether, e.g. 5 months over the winter.

How does a British UK National Apply for a Non-Lucrative Visa & Residency?

British nationals who wish to get a Non-Lucrative Visa, must apply for it at the Spanish Consulate in the UK, or if they reside in another country, through the consulate of that country.  Once the visa has been approved, it’s valid for 90 days from the date of issue.  During this time the holder must travel to Spain and apply for their residency card or TIE tarjeta de identidad de extranjero.  The application for the TIE, must be made within 30 days of arrival in Spain.

Applications for the Non-Lucrative Visa cannot be presented by a legal representative and must be applied for in person.  There is an application fee of £516.

Summary of Non-Lucrative Visa General Requirements

The Non-Lucrative visa applicant must:

● Have a valid passport with at least 1 year before expiry
● Not have entered or stayed illegally in Spanish territory
● Not have been refused entry in any of the 26 Schengen countries
● Have sufficient financial means to cover personal and family living costs (€27,000 for the applicant plus €7,000 for each dependent family member)
● Be 18 years or over, with no criminal record in Spain nor in the countries where they have resided in the previous 5 years
● Have access to public healthcare, or private health insurance with an insurer authorised to operate in Spain

You can read more about the costs and requirements in our article Understanding the Requirements and Costs for British Nationals to Get Spanish Residency

FAQS About the Non-Lucrative Visa for Spanish Residency for British Nationals

CAN INCOME FROM MY BUSINESS OR SELF-EMPLOYED REMOTE WORK BE USED

No, the non-lucrative residency visa does not allow the holder to carry on any business activity whilst in Spain

CAN SAVINGS BE USED INSTEAD OF INCOME?

Savings may be taken into account in lieu of income, or to ‘top up’ a shortfall in the minimum required amount.  Savings must be sufficient to cover the minimum income requirement for the duration of the residency.  E.g. for 5 years residency with savings only requires savings of 5 times €27,000.

WHAT ABOUT TAX RESIDENCE?

Non-lucrative residency is intended for people that want to live in Spain for 6 months or more.  If the minimum amount of time has not been spent in Spain, the residency renewal may be turned down.  The 183 day rule is the starting measure for determining tax residency.  You are deemed to be a Spanish tax resident if you spend 183 days or more in Spain during any one calendar year.  You would also be deemed to have change your country of habitual residence, and therefore fiscal residence if for example you spent 180 days in Spain, 120 in the UK and the other 65 in another, or other countries.

DOES THE NON-LUCRATIVE VISA OFFER PERMANENT RESIDENCY?

Non-lucrative residency can lead to permanent residency in Spain.  To obtain permanent residency the holder of the visa must prove effective residence (more than 183 days per year) throughout a qualifying period of 5 years.

HOW LONG DOES IT TAKE TO GET A NON-LUCRATIVE VISA AND TIE?

The Spanish Consulates in the UK give a timescale of 3 months.  Having assisted with multiple non-lucrative visa applications through all the Consulates, we have found they typically take 2 to 3 weeks from date of submission to be approved.  If applications have queries raised or additional information requested, then they will of course take longer.

If you need more information or advice about getting a Non-Lucrative Visa for residency in Spain, or would like to employ the services of a professional company that specialises in Spanish residency visas, we’ll be glad to assist.  Please get in touch.

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