Spain has long been a dream destination for those looking to enjoy a relaxed Mediterranean lifestyle, pleasant climate, and rich cultural heritage. If you are considering making the move but are unsure about the financial requirements, you may be pleased to learn that living in Spain is easier than you think. With a well-planned combination of pension income and savings, you can successfully meet the financial criteria for Spain’s non-lucrative visa and begin your journey to a new life in the sun.
The non-lucrative visa is a popular option for non-EU citizens who wish to live in Spain without engaging in any professional or commercial activity. This visa is particularly attractive to retirees and those with sufficient passive income to support themselves without working in Spain.
A key requirement for this visa is proving that you have the financial means to sustain yourself while residing in Spain. Many prospective residents worry that these financial thresholds may be difficult to meet, but in reality, a combination of pension income and savings can often fulfil the necessary criteria.
To be eligible for the non-lucrative visa, applicants must demonstrate sufficient financial means that meet or exceed the required financial threshold. As of 2024, this amount is based on Spain’s IPREM (Indicador Público de Renta de Efectos Múltiples), an economic benchmark used for various legal and financial matters.
Currently, the minimum financial requirement is 400% of the IPREM per year for the primary applicant. This equates to approximately €28,800 per year (or €2,400 per month). If you are applying with dependents (such as a spouse or children), an additional €7,200 per year (or €600 per month) is required for each dependent.
These figures may seem high at first glance, but many applicants successfully meet these requirements through a mix of pension income and personal savings.
For many retirees, a pension serves as a reliable source of passive income that can help fulfil the non-lucrative visa’s financial criteria. If your pension provides a monthly income of at least €2,400, you will already satisfy the primary financial requirement without needing to rely on savings.
However, if your pension income falls short of this amount, don’t worry. Spain’s visa authorities allow applicants to supplement their pension with savings to meet the required threshold.
If your monthly pension does not reach the necessary €2,400, you can compensate for the shortfall by demonstrating sufficient savings. Spanish immigration authorities typically look for applicants to have enough funds in liquid assets (such as bank accounts or investment portfolios) to sustain their cost of living in Spain.
For example: If your pension income is €1,500 per month, you would have a shortfall of €900 per month. To cover this, you should demonstrate savings of at least €10,800 to comply with the minimum financial requirements for the first year of your non-lucrative visa.
It’s important to note that the non-lucrative visa is initially granted for one year. After this period, you are required to renew for two more years, followed by another two-year period after that. Finally, having completed these five years of continuous residence in Spain under this visa, you can apply for permanent residency.
Each renewal requires you to once again demonstrate that you meet the financial requirements for the duration of the period you’re applying for. This means for a two-year renewal, you must prove you have the income and/or savings to sustain yourself for two full years.
Let’s take the example of a retired couple, both receiving pensions of €1,300 per month (a combined monthly income of €2,600).
The financial requirement for the couple to apply for the non-lucrative visa is €28,800 + €7,200 = €36,000 per year (or €3,000/month).
Their combined annual pension income is €2,600 x 12 = €31,200, which means they would need to demonstrate they have €4,800 in savings to meet the financial requirements to obtain the non-lucrative visa.
Subsequent Renewals:
After that initial year, they would be required to renew their visa for two consecutive periods of two years.
Therefore, the couple must demonstrate income and/or savings to cover €72,000 (€36,000 x 2).
Over two years, their pension income would amount to €2,600 x 24 = €62,400.
This leaves a shortfall of €9,600, which is what they would need to have in their bank account in savings to meet the minimum requirement to renew for two more years.
Total Savings Required:
As the maximum period you are required to renew for is two years, this couple could basically leave 9,600€ in a bank account, which combined with their pension income of €2,600 per month between them, would satisfy the minimum financial means criteria of the non-lucrative visa throughout the five-year period before they become eligible to apply for permanent residency in Spain.
This example illustrates how a couple with modest pensions, complemented by a manageable amount of savings, can satisfy the financial requirements and allow a couple to enjoy life in Spain with peace of mind.
For many prospective expats, the financial requirements of the non-lucrative visa may initially seem daunting. However, by combining pension income with savings, most applicants find that they can comfortably meet the financial criteria necessary to obtain residency in Spain.
If you are dreaming of a new life in Spain, don’t let financial concerns hold you back. With proper planning and a clear understanding of the visa’s requirements, you can soon be enjoying the sun, culture, and relaxed lifestyle that Spain has to offer.
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