How to Get Spanish Residency: A Comprehensive Guide
Moving to Spain has become an increasingly popular option for many across the globe. In 2022 alone, over 367,000 people were granted residency permits in Spain, with British and American nationals among the top applicants. Spain continues to draw interest with its Mediterranean lifestyle, rich culture, and favourable tax arrangements for new residents, especially after Brexit.
If you’re thinking of moving to Spain, it’s essential to understand the different residency pathways, financial thresholds, and legal requirements. This article will explore how to get Spanish residency and provide real-world examples of individuals moving from London to Marbella and California to Madrid, with actionable steps to help you.
It is possible to stay in Spain for up to 90 days every six months without needing a long-term visa.
Key Residency Options for Non-EU Nationals
Non-European Union nationals seeking residency in Spain generally apply under one of three key pathways:
Non-Lucrative Visa: This visa allows residency for individuals who can financially support themselves without working in Spain. In 2023, the minimum financial requirement was €27,115 annually (or €2,260 monthly), increasing by €6,778 per additional family member.
Golden Visa: Spain’s Golden Visa is designed for those investing in Spanish property, businesses, or government bonds. The minimum property investment threshold stands at €500,000 .
Entrepreneur Visa: For business owners or entrepreneurs, the Entrepreneur Visa offers a pathway if you can demonstrate a business plan that will benefit the Spanish economy.
The application process may be daunting without professional help. Always work with a Spanish lawyer.
Moving from London to Marbella
Scenario: Sophie, a marketing professional in London, wants to move to Marbella for a quieter lifestyle and remote working. Since she will work remotely for UK-based clients, she opts for the Non-Lucrative Visa.Steps
Sophie Needs to Take:
Financial Requirements: Sophie must prove she has enough savings to meet the economic criteria, which in 2023 is €27,115 per year. For her husband and child joining her, the amount increases to €40,671. She submits her bank statements, investment accounts, and proof of income to show her capacity to support her family without working in Spain.
Health Insurance: Sophie must purchase private health insurance in Spain that provides coverage equivalent to what the Spanish National Health System offers. This policy must be in place for the entire duration of her residency.
Submit Visa Application: Sophie submits her visa application at the Spanish consulate in London, where she includes all required documentation: proof of financial means, health insurance, and criminal background checks.
Residence Permit: Once her visa is approved, Sophie moves to Marbella and applies for a TIE (Tarjeta de Identidad de Extranjero), a residency card, within the first month of arrival.
Moving from California to Madrid
Scenario: John, a tech entrepreneur from California, plans to open a software development company in Madrid. He chooses the Entrepreneur Visa as his pathway to Spanish residency.
Steps John Needs to Take:
Create a Business Plan: John submits a detailed business plan to the Ministry of Economy in Spain, showing how his company will create jobs and contribute to innovation in the local tech industry. His plan is reviewed and approved.
Financial Requirements: John provides proof of sufficient funds to launch and operate his business, along with personal savings to support his family while living in Spain. His required investment capital needs to meet the legal standards for business formation.
Legal and Tax Registration: Once his Entrepreneur Visa is approved, John moves to Madrid and registers his business with the Spanish Tax Agency (Agencia Tributaria) and the Social Security system to ensure compliance with local laws.
Tax Implications for New Spanish Residents
Understanding the tax implications of becoming a Spanish resident is crucial for both Sophie and John. Spain considers anyone who spends more than 183 days in the country in a calendar year as a tax resident. As tax residents, their global income becomes subject to Spanish taxation, including income from foreign sources.
However, Spain has signed Double Taxation Agreements with numerous countries, including the UK and the US, to prevent individuals from being taxed twice on the same income. Sophie will benefit from the UK-Spain tax treaty, while John will take advantage of the US-Spain tax convention, which provides relief for foreign-earned income.
Residency and Property Market Trends
Interest in Spanish residency, primarily through the Golden Visa program, has surged. In 2022, over 6,000 Golden Visas were granted to non-EU citizens, with the majority coming from China, Russia, and the US. Property purchases in Spain, particularly in popular cities like Marbella and Madrid, have experienced a steady increase in foreign investment, with the average property price rising by 5.5% in 2023.
Conclusion
Getting a Spanish residency is an attainable goal, whether you’re moving from the UK, the US, or elsewhere. By understanding the different visa pathways, meeting financial and legal requirements, and being mindful of tax implications, you can make the transition smooth and successful.
For more detailed information, visit the official Spanish immigration website or consult tax professionals familiar with Spanish residency laws to ensure compliance with all requirements.
Frequently Asked Questions (FAQs)
What are the main requirements for obtaining a Non-Lucrative Visa in Spain?
To qualify for a Non-Lucrative Visa, you must demonstrate financial self-sufficiency, with a minimum income of €27,115 annually for one person. You’ll also need private health insurance valid in Spain and proof of no criminal record in your home country.
How long does it take to process a residency application in Spain?
Processing times can vary, but generally, a Non-Lucrative Visa application can take around 1 to 3 months. The Entrepreneur Visa may take longer due to the business plan review process, typically around 3 to 6 months.
Can I work on a Non-Lucrative Visa in Spain?
No, the Non-Lucrative Visa does not permit employment in Spain. It’s designed for those who can financially support themselves without working in the country. If you wish to work, consider applying for a work visa or an Entrepreneur Visa.
What taxes do I need to pay as a resident of Spain?
As a tax resident in Spain, you are subject to taxes on your global income, including earnings from foreign sources. Income tax rates vary from 19% to 47% depending on your income level. It’s advisable to consult with a tax advisor to understand your specific obligations.
Is it possible to change my visa status once in Spain?
Yes, it is possible to change your visa status while residing in Spain. For example, if you initially enter on a Non-Lucrative Visa, you can apply to switch to an Entrepreneur Visa or a work visa if your circumstances change. Consult with an immigration lawyer to navigate the process effectively.