If you are thinking of moving to Spain, and you live outside of the European Union ( a non EU citizen), you will need to apply for the correct residency visa. The non-profit residence visa (known as the Ex-01) will be the best option for the vast majority of retirees, depending on your circumstances.
If you have an income of € 30,000 per year or more, retirees can live very comfortably in Spain, and enjoy their retirement without worry.
What is the Spanish non-profit residence visa?
The non-profit residence visa allows people without a job to reside in Spain. You can request it while you’re still in the UK, as long as you can provide all the necessary documentation.
What documentation do I need for the Spanish non-profit residence visa?
- You must provide proof that your income level is at least £2,000 per month. In most applications for this type of visa, your pensioner’s certificate and a bank statement should be sufficient proof.
- Private health insurance in place with a Spanish insurer.
- Health certificate that states that you do not suffer from any illnesses or diseases that could have serious public health repercussions.
- Demonstrate that you don’t have a criminal record.
- Prove that you have no “irregular” situation in Spain that could hinder your application (this does not apply to 99% of applicants – if you’re in doubt, talk to your solicitor).
- Pay the procedure fee.
Keep in mind that you must provide original documents and translations into Spanish. You can get help with this here.
What are the benefits of the Spanish non-profit residence visa?
The non-profit residence visa will allow you to live legally in Spain for one year. Once that period ends, you can renew the permit for another two years, and then another two years after that (as long as you still meet the initial requirements each time).
After 5 years of living in Spain, you can apply for permanent residence.
What about tax?
The Spanish non-profit residence visa will immediately make you a tax resident in Spain, so you will be required to pay tax, just like any other Spanish resident. This means you will have to pay:
- Income tax or “IRPF”. Please note that you will have to pay taxes on ALL of your income (not just income obtained in Spain). Income tax is currently between 19% and 45%, depending on your income.
- Capital gains tax. This is between 19 and 23% of the profit you make from selling assets, such as property.
- Wealth tax or “IP”. You will pay between 0.2 to 2.5% on assets valued at more than €700,000.
Don’t forget that there are other taxes you will need to pay in Spain too, such as council tax, tax on motor vehicles etc
If you need any help with this or would like to discuss your options, please do not hesitate to contact us.
Original article by Kyero.com