How to move to Spain without a Golden Visa is a question that foreign investors who want to reside in Spain without making an investment ask themselves. However, entrepreneurs and investors from countries like the UK, Netherlands, China, and the United States are exploring other alternatives such as the Spain Non-Lucrative Visa instead the Golden Visa. Golden Partners outlines in this post the distinctions between these two residence permits and explains why, if you have the necessary funds, the Golden Visa might be always the more advantageous option.
and travel freely throughout the European Union.
Understanding the Spain Non-Lucrative Visa
The Non-Lucrative Visa (NLV), also known as the Non-Lucrative Residence Visa or Retirement Visa, caters to those wishing to reside in Spain without engaging in employment.
What is more, following the Spanish Minstery of Foreign Afairs, this visa does not constitute a work permit. This visa is particularly suitable for non-EU nationals who intend to make Spain their long-term home. Applicants must demonstrate sufficient passive income or savings to sustain themselves without the need to work.
As of 2024, Spain has issued approximately 3,000 Non-Lucrative Visas and around 3,273 Golden Visas, with the latter primarily linked to real estate investments
The primary purpose of the Non-Lucrative Visa is to allow individuals to live in Spain while ensuring they possess the financial means to avoid dependency on the Spanish social welfare system.
Eligibility Criteria for the Spain Non-Lucrative Visa
If you are considering applying for a Non-Lucrative Visa to live in Spain, you must meet certain eligibility requirements:
No work or business activities
Applicants are not permitted to undertake any form of employment or business activities while residing in Spain. This visa is tailored for those who prefer to live in Spain without the need to work.
Financial requirements
Applicants must prove they have adequate financial resources to support themselves during their stay in Spain without needing to work. This is assessed using the IPREM (Indicador Público de Renta de Efectos Múltiples), a reference index for financial assistance in Spain. In 2024, the required income level is set at 400% of the monthly IPREM, roughly €2,400 (£2,047; ¥18.720) for a single applicant. For those with dependents, an additional 100% of the IPREM is required per person, which equates to approximately €600 (£511.74; ¥4.680) per month for each additional family member.
Sources of income
Financial resources can be derived from various forms of passive income, including pensions, rental properties, investments, annuities, or other non-active income streams.
The Non-Lucrative visa remains a popular choice, particularly among British nationals post-Brexit, as it does not necessitate a minimum investment like the Golden Visa but requires proof of sufficient financial means to reside in Spain.
What is the Golden Visa in Spain
Since its inception in 2013, Spain has issued a total of 11,464 individual authorizations under the Golden Visa program. The Golden Visa Spain presents an outstanding opportunity for residency and work, offering a two-year permit without the obligation of permanent residence in Spain. This visa not only facilitates living in a vibrant European country but also grants seamless travel across the Schengen area.
In 2024, securing a Golden Visa enables unrestricted movement throughout Europe without the need for prolonged stays in Spain or the requirement to establish tax residency. This makes it an ideal choice for investors seeking flexibility and a strategic base in Europe.
How to obtain a Golden Visa in Spain
If you are an entrepreneur or investor interested in Real Estate in Spain, the Golden Visa offers several avenues for investment. To qualify, you must meet one of the following investment criteria:
Invest in Real Estate: A minimum investment of €500,000 in real estate, including apartments, commercial properties, or land. This investment can serve personal use or generate rental income. Although the Spanish government is considering removing this option to curb real estate speculation, it is currently still available.
Investment in commercial enterprises: Invest at least €1 million in commercial enterprises or shares in Spanish companies. This investment must be tied to legitimate business activities. Investment in investment funds: Invest a minimum of €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.
Investment in public debt securities: A minimum investment 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 opportunities offer various paths to obtaining residency in Spain through the Golden Visa program.
- Bank deposits: Deposit at least one million Euros (£860,000; ¥7,900,000) in a Spanish bank. This capital must be maintained to secure the Golden Visa.
Advantages of the Golden Visa compared to the Non-Lucrative Visa
There are four advantages of the Golden Visa in Spain compared to the Non-Lucrative Visa:
Investment vs. financial stability
The Golden Visa requires a substantial investment in Spanish assets, whereas the Non-Lucrative Visa requires proof of adequate income or savings. However, since the amount needed for the Spain Non-Lucrative Visa is higher than the average monthly salary in Spain, it is advisable, with a bit more effort, to apply for the Golden Visa. In this case, your spouse and children can also benefit from the Golden Visa’s advantages, and after a number of years depending on your country of origin (only 2 years for those with historical ties to Spain, or 10 years otherwise), they can obtain Spanish citizenship.
Advantages of the Golden Visa compared to the Non-Lucrative Visa
The Golden Visa requires a substantial investment in Spanish assets, whereas the Non-Lucrative Visa requires proof of adequate income or savings. However, since the amount needed for the Spain Non-Lucrative Visa is higher than the average monthly salary in Spain, it is advisable, with a bit more effort, to apply for the Golden Visa. In this case, your spouse and children can also benefit from the Golden Visa’s advantages, and after a number of years depending on your country of origin (only 2 years for those with historical ties to Spain, or 10 years otherwise), they can obtain Spanish citizenship.
Work permit
The Golden Visa permits employment, unlike the Non-Lucrative Visa.
Residency requirements
The Golden Visa does not require continuous residence in Spain, while the Non-Lucrative Visa necessitates continuous residence for renewal and eligibility for permanent residency.
Cost considerations
While the Golden Visa typically incurs higher costs due to the minimum investment required, the Non-Lucrative Visa’s expenses are mainly related to proving financial stability and obtaining health insurance. The Golden Visa offers greater net benefits, as it may grant access to a special tax regime for expatriates, known as the Beckham Law, which allows taxation at nearly half the rate applicable to Spanish tax residents.
At Golden Partners, we specialize in guiding you through the process of obtaining your residence permit in Spain, whether you are interested in the Golden Visa or the Non-Lucrative Visa. Our expert team is equipped to assist you in making the right investment choices and managing the necessary legal procedures.
We offer tailored services to meet your needs, from acquiring real estate to investing in commercial ventures. With our support, you can secure your residency in Spain and take full advantage of the opportunities this beautiful country has to offer.
If you wonder how to move to Spain without a Golden Visa but still consider it, don’t hesitate and contact us now through our contact form.
