Is the Non-Lucrative Visa (NLV) Your Path to Spain? Pros and Cons

If you’re considering relocating to Spain, particularly for retirement or a long-term stay, the Non-Lucrative Visa (NLV) might be your best option.

The Non-Lucrative Visa is designed for individuals who can support themselves financially without the need to work in Spain. Often referred to as a “retirement visa,” this visa is popular among retirees and those looking to enjoy an extended stay in Spain without engaging in employment. Many people have successfully applied for and renewed this visa, benefiting from a process that has become more streamlined over time.

But is this visa the right choice for you? Let’s explore the advantages and disadvantages of the NLV.

Advantages of the Spanish NLV

1. Simplicity and Accessibility The NLV is often the most straightforward visa option. Unlike other visas that require higher financial thresholds (like the digital nomad visa), detailed business plans (self-employment visa), or significant property investments (such as the golden visa), the NLV has relatively fewer requirements, making it an attractive choice for many.
2. Lower Financial Threshold Compared to Other Countries To qualify, you need to demonstrate a passive income of at least €28,800 annually for a single person or €36,000 for a married couple in 2024. These requirements are lower compared to similar visas in other European countries, such as Cyprus, which requires €50,000 per person, or Italy’s Elective Residency visa, which demands €38,000 annually.
3. Possibility of Transitioning to Another Visa After residing in Spain for a year, some NLV holders choose to convert their visa to a self-employment (autonomo) visa. This allows them to start working in Spain, making the NLV a potential stepping stone rather than a final destination. This process, known as residence modification, is easier once you have established yourself in Spain.
4. Freedom to Travel Within the Schengen Area As an NLV holder, you can travel freely within the Schengen Zone, which includes neighboring countries like France and Portugal. This is particularly advantageous for those who may have property or family in other European Union countries.
5. Pathway to Permanent Residency The NLV offers a clear route to permanent residency. After renewing your visa twice (for two years each time), you become eligible to apply for permanent residency after five years. However, you must ensure you meet the residency requirements, including not being outside Spain for more than 183 days per year and maintaining the necessary financial resources.

Disadvantages of the Spanish NLV

1. Prohibition on Employment The most significant limitation of the NLV is that it prohibits you from working in Spain. While you must prove you have ceased working, some find it challenging to resist new job opportunities or ventures that arise once settled in Spain. However, as mentioned, there is a possibility to modify your residence status if needed.
2. Extensive Paperwork and Associated Costs Applying for the NLV involves a considerable amount of documentation, much of which must be translated into Spanish and apostilled. Over the five years leading up to permanent residency, you will need to submit three applications. While professional assistance is recommended (typically costing around €350 per person per application), the total cost, including legalisation and translation, can amount to approximately €1,000 per application.
3. Planning and Timing Requirements You must apply for the NLV before arriving in Spain, which requires careful planning. The application process typically takes about three months, and you’ll need to attend an in-person appointment to finalize the process. Be aware that some of your documents may expire if the process takes too long, so timing is crucial.
4. Healthcare Requirements for Those Under Pension Age If you haven’t yet reached the state pension age, you’ll need to obtain private health insurance from a recognized Spanish provider. Once you do reach pension age, you may qualify for public healthcare coverage based on bilateral agreements between Spain and your home country. Until then, however, maintaining private health insurance is mandatory.
5. Tax Residency in Spain Unlike the golden visa, the NLV requires you to become a tax resident in Spain, as you will spend more than 183 days per year in the country. This means you will be subject to Spanish taxes on your worldwide income, which may include income from investments or rental properties outside Spain. This tax obligation is a significant consideration for many potential applicants.

In conclusion, while the NLV offers a relatively straightforward pathway to long-term residency in Spain, it’s essential to carefully consider both the benefits and the limitations before deciding if this is the right visa for you.