SDEditor, Author at Lifestyle Services Spain

Aside from the sunshine and many other perks of living in Spain, British mums can enjoy two special days every year.

Today is mothering Sunday in the UK, and people and families all over the country will be appreciating their mothers and treating them to a special day.

In Spain the equivalent day, ‘el dia del madre’, is on Sunday 5th May, so British mums in Spain can look forward to two days of pampering!

It’s not just British mums in Spain who benefit.  Dad’s do too.

Tuesday 19th March, is ‘el dia del padre’ in Spain.  Spanish Fathers Day.  In the UK this year, Fathers Day is Sunday June the 16th.

And while we’re on it, let’s not forget the kids.

For British kids, Father Christmas comes on Christmas Eve and leaves presents, and for those who don’t know, in Spain the Three Kings bring presents on the 6th January!  (‘dia de los reyes’)

Two Mothers Days, Fathers Day twice and double Christmas!

As if there weren’t already enough reasons to want to live in Spain!

Happy (British) Mothers Day!

Spain’s Digital Nomad Visa and Residency is now more than a year old and has become the second most popular Spanish residency after the Non-Lucrative Visa.  This visa or residency permit allows the holder to live in Spain and work remotely or online.  It can be applied directly in Spain, or via the Spanish Consulate in the country in which you currently reside.

Portugal has ended its Golden Visa residency program for property investors. This announcement came just a week after Ireland terminated of its ‘Golden Visa’ Immigrant Investor Program.

Both countries introduced Golden Visas in 2012, as did Spain, as they struggled to recover from the global financial crisis. The aim was to prevent banking collapse by bringing foreign money into their real estate markets.

According to Forbes, the scheme has brought in €6.8 billion direct investment into Portugal since its launch in 2012, with the most of the money going into real estate. The knock on effect of this has been rents and house prices have soared in a country which is among the poorest in Western Europe, where according to Reuters, more than half of workers earn less than €1,000 per month.

Because Portugal’s ‘Golden Visa’ program didn’t require any minimum time to be spent in Portugal, properties were bought and left empty, or just used for 2 or 3 weeks and rented as holiday lets for the rest of the year. This resulted in distortions in both the rental and sale sectors of the property market.

The increase in properties let short term for holidays, reduced the availability of long-term rents, pushing up prices which became unaffordable to locals. In Lisbon, short-term rentals now account for more than 60% of listed properties. Lisbon is the third costliest rental market in Europe after Milan and Paris. Rents increased by 37% in that city in the fourth quarter of 2022 alone.

The ‘golden visa’ investment entry point became the floor price for properties in many parts of Portugal. Sellers priced their properties for wealthy foreign buyers pushing asking prices way beyond what locals could afford.

Aside from upsetting the ordinary Portuguese, ‘Golden Visa’ schemes like those offered by Portugal, Ireland and Spain are seen as a back door entry for nationals of non-EU countries into the EU and also vehicles for money laundering.

The European Parliament announced in March last year (2022) that citizenship by investment programmes (i.e. Golden Visa Schemes) should be gradually removed. This proposal passed with 595 votes to 12. EU pressure has already forced Malta, Cyprus, Latvia, and Bulgaria to scrap their ‘Golden Visa’ residency initiatives, so it is not surprising that Ireland and Portugal followed suit, and maybe is only a matter of time before Spain follows.

The Spanish left-wing party political party, Más País this month put forward a bill proposing and end to the property option in the country’s Golden Visa residency program.

So Portugal’s shop is closed, but as things stand Spain’s ‘Golden Visa’ Property Investor Residency remains an option (for now) for those who have €500k to invest in a property.

If you’re interested in obtain a Spanish Golden Visa through property investment, the clock is ticking … the time to act is now.

Find out more about Spain’s Golden Visa residency for property investors.

If you’re not a Spanish citizen and want to live in Spain, you have to obtain Spanish residency.  The process that you have to follow to get Spanish residency depends on your nationality, whether you are from an EU country, and if not, what you plan to do whilst you are a Spanish resident.

Nationals of member states of the European Union and Switzerland, as well as other countries party to the agreement on the European Economic Area, have an unconditional right to reside in Spain.  Nationals of countries aside from these, are able to gain residency based on achieving other qualifying conditions.

For someone planning to live long term in Spain, temporary Spanish residency is the first step towards getting permanent resident status, which can be applied for after 5 years. Thereafter if someone so wishes, they can apply for Spanish citizenship after completing 10 years of permanent residency in Spain.

British citizens / UK nationals now have to follow the same process as other non-EU national citizens of third countries to get Spanish residency, i.e. first obtain a visa.

The minimum income required for a British Citizen / UK national to obtain a residency visa, is a lot higher than it was to get residency before Brexit.  In most cases a single applicant needs to have at least €28k per year, whereas previously less than €7k income would have been sufficient.

You also have to obtain a police criminal check report, and medical certificates are also required for most visa applications.

The Spanish Non-Lucrative Visa offers residency to British nationals who have the financial means to support themselves without working.  The Spanish Non-Lucrative Visa scheme is therefore ideal if you are retired or have passive income, for example from a portfolio of properties or other investments.  The Spanish Non-Lucrative Visa allows full-time residency in Spain with an expectation of a minimum of 6 months residence maintained.

What does the Spanish Non-Lucrative Visa Offer UK British Nationals?

The Spanish Non-Lucrative Visa gives permission to reside in Spain for up to 5 years, providing ongoing eligibility requirements continue to be met.  The TIE, tarjeta de identidad de extranjero is the residency card that is issued.  The TIE is initially valid for 1 year, and can be renewed twice for 2 years at a time.  When 5 years of full-time residency has been completed, permanent residency can be applied for.

A Visa for Full-Time Living in Spain

The Non-Lucrative Visa is intended for people who want to live in Spain full-time.   Time spent in Spain does not count towards the Schengen limit, so travel in the rest of the Schengen area up to 3 months out of 6 months, is also still possible.

Spouse or legal partner, children under 18 years and dependent ascendants can also obtain residency in Spain under the Non-Lucrative Visa scheme.  This of course providing there are sufficient financial means to support all applicants.

Unlike the ‘Golden Visa‘, there is a minimum amount of time that must be spent in Spain to be able to renew residency, so it may be not ideal for holiday home owners who want to spend more than 3 months in one go in Spain, but typically spend less than 6 months altogether, e.g. 5 months over the winter.

How does a British UK National Apply for a Non-Lucrative Visa & Residency?

British nationals who wish to get a Non-Lucrative Visa, must apply for it at the Spanish Consulate in the UK, or if they reside in another country, through the consulate of that country.  Once the visa has been approved, it’s valid for 90 days from the date of issue.  During this time the holder must travel to Spain and apply for their residency card or TIE tarjeta de identidad de extranjero.  The application for the TIE, must be made within 30 days of arrival in Spain.

Applications for the Non-Lucrative Visa cannot be presented by a legal representative and must be applied for in person.  There is an application fee of £516.

Summary of Non-Lucrative Visa General Requirements

The Non-Lucrative visa applicant must:

● Have a valid passport with at least 1 year before expiry
● Not have entered or stayed illegally in Spanish territory
● Not have been refused entry in any of the 26 Schengen countries
● Have sufficient financial means to cover personal and family living costs (€27,000 for the applicant plus €7,000 for each dependent family member)
● Be 18 years or over, with no criminal record in Spain nor in any countries where they have resided in the previous 5 years
● Have access to public healthcare, or private health insurance with an insurer authorised to operate in Spain

You can read more about the costs and requirements in our article Understanding the Requirements and Costs for British Nationals to Get Spanish Residency

FAQS About the Non-Lucrative Visa for Spanish Residency for British Nationals

CAN INCOME FROM MY BUSINESS OR SELF-EMPLOYED REMOTE WORK BE USED

No, the non-lucrative residency visa does not allow the holder to carry on any business activity whilst in Spain

CAN SAVINGS BE USED INSTEAD OF INCOME?

Savings may be taken into account in lieu of income, or to ‘top up’ a shortfall in the minimum required amount.  Savings must be sufficient to cover the minimum income requirement for the duration of the residency.  E.g. for 5 years residency with savings only requires savings of 5 times €27,000.

WHAT ABOUT TAX RESIDENCE?

Non-lucrative residency is intended for people that want to live in Spain for 6 months or more.  If the minimum amount of time has not been spent in Spain, the residency renewal may be turned down.  The 183 day rule is the starting measure for determining tax residency.  You are deemed to be a Spanish tax resident if you spend 183 days or more in Spain during any one calendar year.  You would also be deemed to have change your country of habitual residence, and therefore fiscal residence if for example you spent 180 days in Spain, 120 in the UK and the other 65 in another, or other countries.

DOES THE NON-LUCRATIVE VISA OFFER PERMANENT RESIDENCY?

Non-lucrative residency can lead to permanent residency in Spain.  To obtain permanent residency the holder of the visa must prove effective residence, (maximum of 10 months out of Spain), throughout a qualifying period of 5 years.

HOW LONG DOES IT TAKE TO GET A NON-LUCRATIVE VISA AND TIE?

The Spanish Consulates in the UK give a timescale of 3 months.  From our experience over the last 2 years, we have found they typically take 3 to 6 weeks from date of submission to be approved.  However take twice as long over the summer months, and if applications have queries raised or additional information requested, then they will also of course take longer.

If you need more information or advice about getting a Non-Lucrative Visa for residency in Spain, or would like to employ the services of a professional company that specialises in Spanish residency visas, we’ll be glad to assist.  Please get in touch.

Get A Free Spanish Residency Visa Assessment

Phone/WhatsApp (+34) 951 77 55 44 / (+44) 033 000 10 777

The Spanish ‘Golden’ Visa for Property Investors offers residency to individuals who make a real estate investment in Spain of €500,000 or more.  The Golden Visa scheme has been in existence since September 2013 when legislation for the ‘residency by investment scheme’ was passed.  The aim being to attract foreign investors at a time when the economy of Spain was not in a very good place.  Since it’s inception, over 25,000 foreign investors have benefited from the scheme.

The main nationalities benefiting have been Chinese, Russian and US.  However now that the UK is no longer in the EU, Spain can expect to receive, if it’s not doing so already, significant numbers of Golden Visa applications from British Nationals who wish to enjoy their holiday residence, without the 90 day Schengen limitation.

What does the Spanish Golden Visa Offer UK British Nationals?

The Spanish Golden Visa is valid for 1 year.  During this time the holder of the visa can apply for permission to reside in Spain and get a residency card, better known as a TIE, tarjeta de identidad de extranjero .  Golden Visa residency permission is granted for 3 years at a time and is renewable indefinitely providing the minimum level of investment and other eligibility requirements are maintained.

A Visa for Residence, Work, Travel & Part Time Living in Spain

Golden Visa Residency allows holder and their family to remain in Spain for an unlimited period of time.   Time spent in Spain does not count towards the Schengen limit, so travel in the rest of the Schengen area up to 3 months out of 6 months, is also still possible.

Spouse or legal partner, children under 21 years who live in the household, and dependent ascendants can also obtain residency under the Golden Visa scheme.  So the entire family can benefit. The investor and family members can also work or run a business in Spain if they so wish.

Unlike the Non-Lucrative and other types of residency, there is no minimum amount of time that must be spent in Spain to keep residency.  This makes the Golden Visa ideal for British ‘swallows’, owners of second homes, who want to spend the winter months in Spain, typically around a couple of months at the end of the year, and 3 months at the beginning of the year before the summer.

How does a British UK National Apply for a Property Investor Golden Visa?

The Golden Visa holder is not required to travel to Spain to apply for the visa, and the visa is the only one where the application can be made by a representative.  The application can be made via the Spanish Consulate in the UK, in which case a visa is issued, or if the applicant is already in Spain, the residency permission can be applied for directly through the Ministry for Work and Social Economy.  Once residency permission is granted the investor has to travel to apply in person for the TIE, so for this stage in the process you have to be in Spain.

You must be legally present in Spain to apply directly for residency permission under the Golden Visa Scheme, (without the need to first obtain a visa).  If you are able to apply directly for residency, you do not need to apply for a visa via the Spanish Consulate.

Summary of Property Investor Golden Visa General Requirements

The applicant must:

• Have a valid passport with at least 1 year before expiry
• Not have entered or stayed illegally in Spanish territory
• Not have been refused entry in any of the 26 Schengen countries
• Have sufficient financial means to cover personal and family living costs (€28,000 for the applicant plus €7,000 for each family member)
• Be 18 years or over, with no criminal record in Spain nor in the countries where they have resided in the previous 5 years
• Have public or private health insurance with an insurer authorised to operate in Spain
• Have purchased property in Spain (after September 2013) amounting to an overall net investment of €500,000 or more
• Provide certificate from the land registry to prove the investment.

FAQS About the Property Investor Golden Visa

CAN THE INVESTMENT BE MADE USING A COMPANY

Yes, the investment can be made through a company or other legal entity provided:

i) The company or legal entity is not located in a tax haven.

ii) The applicant has the majority of the voting rights in the company and is fit enough to appoint and dismiss the majority of the company directors.

ARE THEIR RESTRICTIONS ON THE USE OF THE PROPERTY?

There is no restriction to the use of the property by the investor.  They can live in it or rent it out.  Commercial property is also a qualifying investment under the Property Investor Golden Visa Scheme.  If the property is sold, then the investor and any beneficiary family members lose the right of residence.

WHAT ABOUT TAX RESIDENCE?

As the investor is not required to stay a minimum time in Spain, tax domicile is not affected unless they make Spain their country of habitual residence, i.e. the country in which they spend the majority of their time.  The starting measure for this is the 183 day rule.  You are deemed to be a Spanish tax resident if you spend 183 days or more in Spain during any one calendar year.  Spain would also be deemed to be your country of fiscal residence if for example you spent 180 days in Spain, 120 in the UK and the other 65 in another or other countries.

DOES THE GOLDEN VISA OFFER PERMANENT RESIDENCY?

Golden Visa residency can lead to permanent residency in Spain, independent from the investment.  To obtain permanent residency the holder of the visa must prove effective residence (more than 183 days per year) throughout a qualifying period of 5 years.

HOW LONG DOES IT TAKE TO GET A GOLDEN VISA AND OR RESIDENCY PERMISSION?

The Golden Visa applications processed by the Consulate is granted within 10 days of submission. The residency permission applications are processed electronically and granted within a maximum time limit of 20 days from submission.

If you need more information or advice about getting Golden Visa residency in Spain, or would like to employ the services of a professional company that specialises in Spanish residency visa, we’ll be glad to assist, so please get in touch.

Get A Free Spanish Residency Visa Assessment

To get an appointment to submit a Non-Lucrative Visa application at the Spanish Consulate in London, you must first send a request by email.

Attached to your request you must provide a sworn translation to Spanish of your Police Certificate (ACRO report).

Need help getting sworn translations?   Click here

Requesting an appointment to apply for Non-Lucrative Visa at the Spanish Consulate in London

Importing a high value car from the UK in Spain post Brexit, now comes with added costs.  As the UK is no longer in the EU and the standard process to import and register a UK car in Spain now involves customs.

This means on top of the registration tax which in most cases will be 17% of the vehicle value, 10% customs duty and 21% VAT will apply, unless you can find away around it.

Paying nearly £50k to register a £100k motor is simply not a consideration.  There are however various ways these huge costs can be avoided, bringing the cost of importing and registering high value cars in Spain down to a few thousand Euros, rather than tens of thousands.

Christmas Eve marked the moment the UK finally reached a Brexit agreement with the EU, full details of which have now been published.  The so called ‘Free Trade Agreement: a new economic and social partnership with the United Kingdom’, is of most interest to UK nationals living in Spain and other EU countries, those planning to and those with other interests such as business or a holiday home.

The agreement covers not just trade in goods and services, but also a broad range of other areas such as, tax transparency, air and road transport, energy and sustainability, fisheries, data protection, and social security coordination.

Notable points for UK nationals in Spain or other EU countries in the agreement are that:

• It provides for zero tariffs and zero quotas on all goods that comply with the appropriate rules of origin.
• On transport, the agreement provides for continued and sustainable air, road, rail and maritime connectivity, though market access falls below what the Single Market offers. It includes provisions to ensure that competition between EU and UK operators takes place on a level playing field, so that passenger rights, workers’ rights and transport safety are not undermined.
• On social security coordination, the agreement aims at ensuring a number of rights of EU citizens and UK nationals. This concerns EU citizens working in, travelling or moving to the UK and to UK nationals working in, travelling or moving to the EU after 1st January 2021.

This agreement at least brings closure to the uncertainty that has been hanging for so long, and is good news in part for many British Nationals in Spain.