The main advantage of this special residency Non-Lucrative Visa (NLV) is for non-EU nationals to get around the restriction of having to exit the country every 90 days. It is not allowed to perform any activity related to income, which includes studying in an educational establishment. Instead, it is intended to be used by those who have the financial means to take care of themselves, their families, including any health costs. It has therefore become very popular with retirees from outside the EU, which now includes British citizens.
What are the potential pitfalls?
Note that the NLV is a residency visa, so you will be considered a resident of Spain for tax purposes, and will have to remain in the country for more than 183 days per year in order for it to remain valid. An important detail is that Spain taxes an individual's worldwide assets and income, which is intended to be competitive compared to North American countries for example, however you need to make sure it is beneficial for your specific circumstances. Theoretically, it would be possible to get the NLV, stay in Spain for more than 90 days but less than 183, which would make you a non-tax resident, and then re-apply for it from start, perpetually. In practice, the government will not allow this and will oblige you to follow the normal renewal schedule with more than 183 days in the country. The NLV can be renewed after the first year, then after 2 more years twice over, then after the 5 years have passed you can apply for a long-term residency visa.
What about buying property?
Yes, you can invest and purchase property, including renting it out. This of course will be subject to tax. If your investment is more than 500,000 euros, it is worth considering an alternative visa, the Golden Visa, which has the added benefit of tax-free status with the residency. See our detailed article on the Golden Visa.
Can I work remotely?
When the NLV was first introduced, the law didn’t mention anything specifically about working for clients and companies abroad. However, since the introduction of the Spanish Digital Nomad Visa, the Spanish consulates direct teleworkers to that type of visa, since it would be more beneficial financially to the visa applicant anyway.
What are the main advantages?
The obvious one is residency at a hopefully lower tax regime than the country of origin. In addition, you can include family members in the NLV without a separate application. But perhaps the most popular aspect is that you can freely move around the Schengen area without having to apply to different countries for a visa. Another advantage that can be applicable is that it can more easily be converted to a working visa, subject to length of time stayed (normally more than 10 years), and it can help with application for citizenship.
For the exact amounts and more information on the NLV, see our detailed article on the Non-lucrative visa.
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