Non-lucrative residence in Spain: what you need to know

If you are not an EU citizen and want to live in Spain without working here — because you are retired, live off investments, have sufficient savings or simply want to relocate — the non-lucrative residence visa is probably your best option. Since the abolition of the property Golden Visa in April 2025, it is the most direct route for a non-EU national who wants to reside on the Costa Blanca without needing employment or a mandatory minimum investment.

What it is and what it allows

Non-lucrative residence is a permit authorising you to live in Spain for an initial period of one year, renewable up to a total of five years. The fundamental condition: you cannot work in Spain — neither as an employee nor as self-employed. Your income must come from abroad (pensions, foreign rental income, dividends, savings).

The permit includes: right to legally reside in Spain, Schengen access (up to 90-day trips across the rest of the EU), ability to register on the municipal roll (empadronamiento), access to public healthcare after registration (via convenio especial, with a monthly fee), and the option to enrol children in public or private schools.

It does not include: the right to work, automatic access to social benefits, or the Beckham tax reduction (exclusive to the digital nomad visa).

Financial requirements (2025-2026)

The authorities require proof of sufficient financial means to support yourself (and family, if applicable) without working. The reference is the IPREM (Public Income Indicator):

• Individual applicant: 400 % of monthly IPREM × 12 = approximately €28 800/year (≈ €2 400/month).
• Spouse or partner: +100 % monthly IPREM = approx. +€7 200/year.
• Each additional child: +100 % monthly IPREM = approx. +€7 200/year more.

Example: a couple needs to demonstrate ~€36 000/year. A family of four, ~€50 400/year.

How to prove it: bank statements (last 6-12 months), pension certificates, investment property titles, or any combination totalling the required minimum.

Health insurance

Mandatory. The policy must be from an insurer authorised in Spain, with full coverage (equivalent to the National Health System), no co-pay, no significant exclusions and no waiting periods.

Indicative cost: €80 to €200/month per person depending on age and coverage. Over-65s pay more and have fewer options, but specific policies for foreign residents in this bracket exist.

Practical tip: take out the policy before applying for the visa. The consulate requires it as part of the documentation.

Step-by-step application process

Step 1 — Gather documentation

• Form EX-01.
• Valid passport (at least 1 year remaining).
• Criminal record certificate from country of origin and any country of residence in the last 5 years (apostilled, translated into Spanish by a sworn translator).
• Medical certificate confirming no diseases with public health impact.
• Proof of sufficient financial means.
• Private health insurance with full coverage in Spain.
• Proof of accommodation in Spain (rental contract, property deed or booking).

Step 2 — Apply at the consulate

Submit the application in person at the Spanish consulate or embassy in your country of residence. It cannot be done by post or online. Processing time: 1 to 3 months.

Step 3 — Travel to Spain

The initial visa allows entry into Spain and is valid for 90 days. Within that period, apply for the TIE at the foreigners' office or National Police.

Step 4 — Register (empadronamiento)

Enrol on the municipal register. Free and mandatory. Needed for public healthcare access, school enrolment and most administrative procedures.

Step 5 — Settle and live

Your main obligation is to actually reside in Spain. Unlike the Golden Visa (which did not require physical presence), non-lucrative residence requires spending most of your time in the country. At renewal, the authorities verify you have resided at least 183 days per year.

Renewal

• Year 1: initial permit (1 year).
• Years 2-3: first renewal (2 years).
• Years 4-5: second renewal (2 years).
• Year 5+: apply for permanent residence (no work restrictions).

To renew: maintain sufficient means, valid insurance, actual residence (≥ 183 days/year) and no criminal record.

Can you ever work?

Yes, but not on this permit. Options: modify your authorisation to a work permit (with a job offer or business plan), or wait for permanent residence after 5 years (which includes unrestricted work rights).

Can you buy property?

Yes, without restriction. The non-lucrative visa does not require buying property (unlike the abolished Golden Visa) but does not prohibit it. Many holders buy a Costa Blanca flat as investment and home — a natural combination. Owning property strengthens the application (shows ties and resolves the accommodation requirement) but is not mandatory.

Advantages and disadvantages

Advantages

• No mandatory minimum investment.
• Relatively straightforward process.
• Includes direct family members.
• Public healthcare access (via convenio especial).
• Direct route to permanent residence after 5 years.

Disadvantages

• Cannot work in Spain.
• Must actually reside (≥ 183 days/year) — not a 'paper permit'.
• No Beckham tax regime access.
• Taxed as a regular Spanish tax resident if spending 183+ days.
• Private insurance can be expensive, especially over 65.

Frequently asked questions

Can I apply while in Spain as a tourist?

No. The application must be submitted at the Spanish consulate in your country of residence, before travelling.

How long can I be away from Spain?

Regulation requires residing in Spain most of the year. Absences exceeding 6 consecutive months (or 10 cumulative months in the renewal period) can jeopardise renewal. Occasional trips are fine, but residence must be effective.

Is my foreign pension income taxed in Spain?

If you reside 183+ days/year, you are a tax resident and must declare worldwide income in IRPF. Foreign pension income is taxed in Spain, but double-taxation agreements prevent paying twice. State pensions are usually taxed only in the source country; private pensions usually in the country of residence (Spain). Always consult a tax adviser.

Can I bring my parents?

The non-lucrative visa covers spouse/partner and minor children. Ascendants (parents) require a separate family reunification procedure with its own requirements.

Do I need to speak Spanish?

Not for the visa. No language exam in the application or renewals. For Spanish nationality (after 10 years, or 2 for Ibero-Americans), the DELE A2 and CCSE exams are required. On the Costa Blanca, many areas function in English, but learning Spanish greatly enriches the experience.

If you are thinking of settling on the Costa Blanca with a non-lucrative residence, explore our available properties or contact us for a personalised consultation.