In this article, we’ll explore significant updates to the Spain non lucrative visa expected to take effect in late 2024. With changes likely to impact renewal timelines, financial requirements, and residency obligations, these new regulations raise questions for current and prospective visa holders. Below, we’ll dive into key insights from an interview with Ainhoa Manero of Sterna Abogados, answering the most common questions about these developments.
Key Changes to the Spain Non-Lucrative Visa
Proposed updates to the Spain non lucrative visa include two main changes: extending the renewal period to four years (from two) and introducing a clarified minimum stay requirement of 183 days. This requirement directly ties visa renewals to Spain’s tax residency rules, impacting applicants’ long-term residency and tax obligations.
1. Renewal Period Extended to Four Years
The new proposal extends the renewal period from two years to four years. This means applicants may potentially need to show proof of financial resources that cover the entire four-year period rather than one or two years, as was previously common. However, this requirement could vary depending on the region, something that happens today.
2. Minimum Stay Requirement of 183 Days
The proposed regulations now specify a minimum stay of 183 days to renew the Spain non-lucrative visa. This ties closely with Spain’s tax residency rule, where individuals who stay over 183 days in Spain in a calendar year are deemed tax residents. The intention is to prevent the previous strategy some visa holders employed: staying for 180 days or fewer to avoid tax residency status while still renewing their visa.
Rationale for the 183-Day Requirement
The 183-day requirement aims to synchronize immigration and tax residency rules, compelling visa holders to either fully commit to Spanish residency (including tax obligations) or opt for alternative permits that may offer greater flexibility. A recent Supreme Court ruling highlighted the need to formalize a minimum stay requirement within the legal framework (the Law), rather than relying on guidelines (the by-law).
When Will the Changes Become Official?
The timeline for these changes remains tentative, though they may be implemented as soon as late 2024. The Spanish government moved swiftly to issue the new regulations, underscoring the urgency of this update. While the immigration offices typically have up to six months to apply new rules, this regulation may take effect within just 20 days of publication. Potential applicants should stay informed to avoid surprises when renewing their visas.
Financial Requirements for Four-Year Renewals
A significant question surrounds the financial proof needed to renew the Spain non-lucrative visa under these new rules. If the regulations take effect as written, applicants would need to demonstrate financial means for the entire four-year renewal period. This means showing substantial funds in savings and/or pensions to support their stay in Spain for this duration.
In practice, immigration offices in different cities may have varying standards for verifying financial proof, with some offices requiring proof for one year and others for the full renewal term (today set at 2 years renewal period).
Given the significant variation, applicants should consult immigration professionals for the most current criteria relevant to their location. You can contact us at info@sternaabogados.com
Impact on Current Visa Holders
For those currently holding a Spain non lucrative visa, adaptation to these new rules may be required immediately. If the regulations become effective by November 2024, visa holders approaching renewal could face new requirements, such as demonstrating four years’ worth of financial resources and proving they have met the 183-day minimum stay.
Tips for Determining Financial Proof Requirements
Ainhoa Manero, Lawyer and Director of Sterna Abogados, advises preparing to show financial resources for the full four-year period, though specific office criteria may vary. Immigration professionals will monitor and gather insights across different offices to assess how these new rules are applied in practice in each region. For applicants, it’s essential to seek guidance based on local standards to avoid complications or denials.
Implications for Long-Term and Permanent Residency
These changes also affect pathways to long-term and permanent residency in Spain. Currently, non-lucrative visa holders can apply for permanent residency after five years, provided they have not spent more than ten months outside Spain in this period. However, failure to meet this requirement might delay eligibility for permanent residency, forcing some visa holders into “extraordinary renewals” rather than transitioning to long-term residency. Under the new rules, these extraordinary renewals may also extend to four years.
Renewal Challenges for Long-Term Residency
For individuals not meeting the residency requirements for permanent status, future renewals may be restricted, potentially requiring applicants to shift to different permits if they are unable to meet the new financial proof or residency standards.
Additional Advice for Spain Non-Lucrative Visa Applicants
Given these uncertainties, visa applicants should evaluate all available residency options. Spain offers multiple residency permits, including the digital nomad visa, which may be an alternative the non-lucrative visa. Exploring these options can be especially helpful for individuals unable to meet the stricter financial or residency requirements.
Conclusion
As Spain moves towards implementing significant changes to the non-lucrative visa, applicants and current visa holders should prepare for new financial and residency standards that align more closely with tax residency rules. This shift underscores the importance of strategic planning and professional guidance to ensure compliance and avoid unintended tax consequences.
In summary, the Spain non-lucrative visa is undergoing a transformation that calls for proactive preparation. By staying informed and exploring all available residency options, applicants can make well-informed decisions as Spain’s immigration landscape evolves.
If you need legal advice, don’t hesitate to contact us at info@sternaabogados.com