More and more British entrepreneurs and investors are wondering how to move to Spain without a Golden Visa. Although there is the possibility of doing so with another type of residence permit known as the Spain Non-Lucrative Visa, in this article Golden Partners explains what both residence permits in Spain entail and why you should consider the Golden Visa if you have the funds for the investment required to obtain and maintain it.
More about the Spain Non-Lucrative Visa
The Non-Lucrative Visa (NLV), also known as the Non-Lucrative Residence Visa or Retirement Visa, is for those who want to live in Spain without working. This visa is ideal for non-EU citizens who wish to stay in Spain long-term. To qualify, applicants must demonstrate that they have enough passive income or savings to support themselves without working. The main goal of the Non-Lucrative Visa is to allow individuals to reside in Spain while ensuring they have sufficient financial resources to avoid relying on the country’s social welfare system.
Who can apply for the Spain Non-Lucrative Visa?
If you’re considering applying for a Non-Lucrative Visa to reside in Spain, there are specific eligibility criteria you need to meet:
- No employment or business activities: Applicants must not engage in any form of employment or business activities while living in Spain. This visa is designed for those who wish to live in Spain without working.
- Financial stability: You must prove that you have sufficient financial means to support yourself during your stay in Spain without needing to work. This is calculated using the IPREM (from Spanish, ‘Indicador Público de Renta de Efectos Múltiples’), a benchmark for financial aid and subsidies in Spain. For 2024, your income should exceed 400% of the monthly IPREM, amounting to roughly €2,400 (£2,047) for a single applicant. If you have family members accompanying you, you will need an additional 100% of the IPREM per person, which is about €600 (£511.74) per month per additional family member.
- Source of funds: Your financial resources can come from various forms of passive income, including pensions, rental properties, investments, annuities, or other non-active income sources.
This type of visa remains popular, especially among British citizens after Brexit, as it does not require a minimum investment like the Golden Visa but does require demonstrating sufficient financial resources to live in Spain.
What is the Golden Visa in Spain
For its part, Spain has granted a total of 11,464 individual authorizations under the Golden Visa program since its introduction in 2013.
The Golden Visa Spain offers an incredible opportunity for residency and work, granting a two-year permit without the need to reside in Spain permanently. This visa program not only provides a gateway to living in a vibrant European country but also opens doors to seamless travel across the Schengen area.
In 2024, acquiring a Golden Visa means enjoying unrestricted movement throughout Europe without the need for lengthy stays in Spain or proving tax residency. It is a perfect choice for investors seeking flexibility and a strategic European foothold.
How to get a Golden Visa in Spain
If you are an entrepreneur or investor interested in Real Estate in Spain, the Golden Visa offers several investment opportunities. To qualify, you must meet one of the following investment criteria:
- Invest in Real Estate:Make a minimum investment of €500,000 in real estate, including apartments, premises, or land. This investment can be for personal use or rental income. Note that the Spanish government is considering eliminating this option to curb real estate speculation, but it remains available for now.
- Investment in commercial activities:Invest at least €1 million in commercial enterprises or shares in Spanish companies. This investment must be linked to genuine commercial activities.
- Investment in investment funds: Make an investment of at least €1 million in investment funds, venture capital funds, or closed investment funds in Spain. This option is available to investors from both EU and non-EU countries.
- Bank deposits:Deposit at least €1 million in a bank located in Spain. This capital must be maintained to secure the Golden Visa.
- Investment in public debt securities:Invest a minimum of €2 million in Spanish public debt securities, such as Treasury Bills or State Bonds. Recent auctions have shown a profitability rate of 3.45% over ten years.
These investment options provide various pathways to obtain residency in Spain through the Golden Visa program.
Advantages of the Golden Visa Compared to the Non-Lucrative Visa
- Investment vs. solvency: The Golden Visa requires a significant investment in Spanish assets, while the Non-Lucrative Visa requires proof of sufficient income or savings.However, since the amount required for the Spain Non-Lucrative Visa to stay in Spain is higher than the average monthly salary in Spain, it is recommended, with greater effort, to apply for the Golden Visa. In this case, the spouse and children can also benefit from the advantages of the Golden Visa, and after a number of years depending on the country of origin (only 2 if they share historical ties with Spain, or 10 years in other cases), they can obtain Spanish citizenship.
- Work permit: The Golden Visa allows employment, whereas the Non-Lucrative Visa does not.
- Effective residency: The Golden Visa does not require continuous residence in Spain, while the Non-Lucrative Visa requires continuous residence for renewal and eligibility for permanent residency.
- Cost: Obtaining the Golden Visa is usually more expensive due to the minimum investment required, while the Non-Lucrative Visa’s costs are primarily associated with demonstrating financial solvency and health insurance. Net benefits are always greater for the Golden Visa, as it can grant access to a special tax regime for expatriates known as the Beckham Law, allowing taxation at almost half the rate of Spanish tax residents.