Non-lucrative Visa vs Golden Visa

With the Golden Visa coming to an end, being the 3rd April 2025 the last day to apply for it, many people are looking into an alternative visa to move to Spain.

The Non-Lucrative Visa seems to be the perfect replacement as if someone has 500.000€ to invest in a property (Golden Visa investment), it is reasonable to think that also counts with sufficient means of subsistence to live in the country, without the need to perform any commercial activity or making any investment.

The main difference between the Golden Visa and the No- Lucrative Visa is that while to obtain the first one you need to invest in Spain, the Non-lucrative residence allows you to reside in Spain, but does not permit any professional activity or employment. You can purchase a property later once you have the Visa, but not to obtain it.

Who is this Visa suitable for?

• People who want to spend their retirement on Spanish territory.

• All those born outside Spain with the necessary economic muscle to be able to live in the country without having to work.

• For those who plan to spend their first year in Spain without working and, after this period, want to return to work, as the non-lucrative visa allows you to change and apply for a work permit after 1 year.

• The Spanish non-lucrative visa is the best option for those who wish to live on passive income (pensions, rents, dividends…).

  • Please note that this visa does not allow any type of work, including Telework, as for this purpose exists the Telework Visa.

How does it work?

The Non-lucrative visa allows you to reside in Spain legally and obtain a one-year residency permit, which can be renewed for an additional four years as long as you meet the residency criteria.

Upon residing in Spain for a consecutive period of 5 years, you may apply for permanent residency status during your third renewal. You will be issued with a 10 year card (TIE) and you will be entitled to access the Spanish State Healthcare system, obtain travel discounts, and various benefits enjoyed by Spanish citizens and permanent residents.

What documents do I need to apply for this Visa?

1. Forms

• National Visa application form - This form is required for all national visa applications. Fees for this visa go between 80€ to 500€ depending on nationality of origin.

• EX-01 Form: This is the Non-working (Non-lucrative) residence visa application form

• Form 790 Code 052 – This is for paying the residency authorization fee

2.  A recent passport-size photograph.

3.  Valid passport or travel document.

4. Covering letter in Spanish explaining the purpose of the visa application.

5.  Criminal record document or equivalent.

6.  Documentation proving medical insurance.

7.   Medical certificate.

8.  Proof of income (documentation proving sufficient financial means). This financial requirements needs to be clarified:

• Spain follows the IPREM index, which stands for “Indicador Público de Renta de Efectos Múltiples”. This index gives the Spanish authorities an amount which is used to decide whether a person or family is eligible to receive certain benefits or subsidies.

  
  

So, what does the IPREX index estates?

As the applicant, you must prove that you receive 400% of the IPREM* into your bank account annually. For each dependent accompanying family member​ (spouses, children or ascending relative), an additional 100% of the IPREM must be added annually.

The IPREM indicator changes every year. Considering that in 2024 the IPREM equals 600€/month, the amounts required to apply for the Non-lucrative Visa are:

• (600€ x 400%) = 2.400€ a month

• (7.200€ x 400%) = 28.800€ a year

Also you will need to proof that you are no longer working providing one o the following, according to your situation:

• Your P45 if you have recently finished working for an employer.  If the P45 is not available, then you can request a letter from your employer.

• If you were self-employed: a letter from your accountant confirming that you have ceased trading and have advised HMRC. Or you can request a letter from HMRC stating that you have notified them that you have ceased trading.

• If you have taken early retirement and not been working for some time: a print out of your National Insurance record (available from the Government Gateway) showing that you have not made any National Insurance contributions.

• If you are in receipt of a State Pension:  your annual letter showing your rate of pension for the following year (we understand that they do not require this letter to be translated) or your S1 form (The S1 form allows UK State pensioners who are residents in Spain to receive UK-funded State Healthcare in Spain).

  • Please note that this documents will be required to be officially translated into Spanish

Please contact me for a free quote if you need any of the above documents.