How much money do you need for the Spanish Non Lucrative Visa? Can it be in savings or income or both? Find out the answers to these questions, and the questions you’re going to ask next! Skatz and Walter find the truth, just for you.

Prefer to watch the video? Click above. For the conversational facts, carry on reading…

Skatz: How much money do you need for the Non Lucrative visa?

Walter: Well that’s an easy one, anybody can find that in seconds online!

S: They can, but in my experience there are far more questions that emerge the more you look into it. 

W: Like what?

S: Exactly, that’s one of them, what is IPREM?

W: What’s an IPREM?

S: It’s the amount of money the government say you need to live on without asking the state for assistance.

W: How much is it?

S: This year, 2022, it’s €6948,24

W: So that’s what I need?

S: No, because you’re not an EU citizen

W: Because of Brexit

S: Exactly, so for the Non Lucrative Visa, you need four times IPREM per year for a single person

W: That’s €27,792.96!

S: Correct.

W: And that’s each is it?

S: Well, if you’re a couple applying together, you only add one more IPREM to make five times the amount altogether.

W: So that’s €34,741.20

S: And it’s one more IPREM for any other family member

W: So for a family of four it’s 7 x IPREM, which is €48,637.68

S: Yes.

W: So do you have to have all that stashed in a bank account in a lump sum?

S: That’s one way of doing it yes.

W: What’s the other way?

S: It’s called passive income, which means income that’s not from working, because you can’t work on the non lucrative visa.

W: What counts as passive income?

S: It can be a state or private pension, money from investments, or rental income from a property for example.

W: What if I’ve got both savings and passive income?

S: That’s what most people have who apply for the Non Lucrative Visa, so work out the annual amount you get from your pension, say, then combine that with your savings.

W: What’s this I hear about needing twice as much in the bank?

S: The initial residency visa is for one year, but if you want to stay in Spain you’ll need to renew your residency for the following two years (years 2&3), then again for years 4 & 5, so you need twice as much to cover each of those two periods.

W: Do you have to double it up each time so it’s four times as much in years 4&5?

S: No, you just need enough for 2 years each time.

W: So if I’m a single person I’d need €55,585.92 in the bank in savings for the renewal?

S: Yes, and bear in mind that if you’re not retired and don’t have any passive income, you’ll need money to live on as well so that you’ve still got at least that in the bank for when you renew for years 4 & 5.

W: So if I’ve got exactly that in the bank, will I get the visa?

S: What you have to bear in mind is that the officials that decide whether you get the visa, may be concerned if you only just reach the financial requirements, so they’re really looking for you to have it covered and a bit more besides, that way they’ll see that you’re thinking ahead, you’re guarding yourself against emergencies and you’re serious about supporting yourself.

W: And what happens after year 5? Do I have to keep that money there forever?

S: No, after 5 years you can apply for permanent residency, and the financial requirement is less, and you gain the right to work if you want. 

W: Can I leave Spain at all in that 5 years?

S: You can, but only for up to six months in each year, and only for a total of 10 months in the whole 5 years if you want to get permanent residency at the end of it.

W: Do I have to double the amount I’ve got if it’s just passive income?

S: No, because with a pension for example, you’re getting money every month, and two years is twice as many months as one year, so you’re getting twice as much in two years anyway. It’s already doubled up.

W: But what about if I’ve got passive income and savings? Do I still have to double the savings?

S: Yes, but just the savings part, not the passive income. 

W: How do I work out how much do I need?

S: It depends on how much of your income is savings and how much is passive, but think about it like this, if your passive income in years 2 through 5 the same as in year one, and in year one you needed €10k in savings to make up the €28k you need, when you renew you just double the savings part to €20k. 

W: So how much is that in Pounds or Dollars?

S: Very good question, and this is where you need to be thinking ahead even more, because it depends on the exchange rate between the currencies. At the moment, in early July 2022, the exchange rate for the British pound to the Euro is about 1.16, so to get €28k when you exchange, you need about £24k, or $29k.

W: Right, so if I’ve got £24k in my bank now and I’m moving to Spain in a few months, I’ll be alright will I?

S: Well, back in April, you only needed about £23k to make €28k, and then the exchange rate went down so you needed another £1000. If the rate keeps going down, you’ll need even more.

W: Is that what’s going to happen? I want to buy a house there as well.

S: No one knows for sure what the rate is going to be, but the more money you need to exchange, the more you could lose out if it goes down, so it’s really important to sort it out soon. 

W: How do I do that? I haven’t sold my house in the UK yet so I haven’t got all the money and I haven’t got a Spanish bank to transfer it to.

S: It’s okay, there’s still a way to organise it. I’ve got some friends who can help you straight away. All you need to do is get a free account with Smart Currency Exchange and you can speak to your own personal advisor who’ll be able to sort it all out for you.

W: That’s a relief. How do I speak to them?

S: There’s a link to their company HERE. And they support YouTooSpain at no cost to you.

W: It’s a win win!

S: Yeah, any more questions?

W: Yes! If I’m on my first year on my non lucrative visa, can I switch it for a working visa or a self-employment one?

S: That’s a good question, it is possible.

W: How do I do that then?

S: That’s a question for another article. In the meantime there’s loads more information on our YouTube channel on the midweek videos, and on the Saturday live shows with the specialists and on the Monday live money show too!

I’ll see you on the videos then!

Thanks Walter, peace & love.Let’s dance!

Article by Skatz & Walter Ego