It’s a dream for many to retire abroad, most likely somewhere sunny with a good standard of living and plenty of culture. These are some of the main reasons why Spain is such as popular destination for pensioners.
As a result to Brexit it’s become a lot more difficult for Brits to retire in Spain, but it is still possible if you meet certain requirements. In fact, Spain is still a top destination for British pensioners to retire to.
As third-country nationals, Americans also have to meet the same conditions and apply for the same visa.
The same applies to any other non-EU national, whether they're from Canada, China, India, New Zealand or Australia.
Now that the Spanish government have announced that they are officially cancelling the golden visa as of April 2025, the only option left for non-EU retirees is the Non-Lucrative Visa or NLV.
The golden visa granted non-EU nationals and their direct family members residency in Spain when they bought property worth €500,000, or invested €1 million in shares in Spanish companies, €2 million in government bonds, or transferred €1 million to a Spanish bank account.
It was one of Spain’s best residency options for those who could afford it, but as of April 3rd 2025 this will no longer be available to apply for. Technically it is still possible to apply, but it would be a huge rush to find a property worth €500,000+ in Spain, carry out the purchase and apply for the golden visa in the next three months.
The other Spanish visas available to non-EU citizens are mostly for those who work, such as the Digital Nomad Visa, with the exception of a student visa.
Thankfully, the Non-Lucrative Visa is still one of the best options for retirees who can prove they have sufficient savings or a certain amount of passive income each month.
READ ALSO: What are the pros and cons of Spain's non-lucrative visa?
Financial requirements
The main requirement is that you need to prove you have 400 times the IPREM which for 2024 is €2,400 per month (this figure may be updated soon for 2025 so stay tuned).
As mentioned above, this should be in savings or passive income, so it could include your pension, money from a property you rent out back in your home country, interest from bank accounts etc.
The main point is that you can’t work on this visa, but for retirees, this shouldn’t be a problem.
The NLV also allows you to bring direct family members with you. It mostly applies to those who are financially dependent on you. For this, you have to prove that you have an extra 100 percent of the IPREM for each family member, which for 2025 is €600 per month.
READ ALSO: What financial proof can I show for Spain's non-lucrative visa?
Renewal and path to citizenship
It’s initially granted for the period of one year, but can be renewed for a further two years and another two years after that. If you intend to live in Spain, long term, after these five years are up you can apply for a permanent residency card which is valid for 10 years.
At this point, you can renew it for another 10 years or even apply for Spanish citizenship.
The main caveat are the finances. Because you need to renew your NLV visa for two years instead of one you'll need prove you have passive income or savings for both those years at once. That means 800 times the IPREM.
This works out at €57,600 for the two years, not including the extra 200 percent (100 percent per year) of the IPREM for each dependent family member.
For just a single person for example renewing the NLV for four years, you would have to prove €115,200 in available funds.
READ ALSO: What taxes do foreign pensioners in Spain pay?
Taxes
As the NLV is a residency visa and you’ll most likely be living in Spain for more than 183 days per year, you will also be considered a tax resident.
This means you will be taxed on your worldwide income, so any income that you earn passively on the NLV, as well as your pension.
Pensions and passive income in Spain are subject to progressive tax rates ranging from 19 up to 47 percent, depending on how much you earn from it.
The current rates in 2025 are:
- Up to €12,450: 19 percent
- €12,451 – €20,200: 24 percent
- €20,201 – €35,200: 30 percent
- €35,201 – €60,000: 37 percent
- €60,001 – €300,000: 45 percent
- Over €300,000: 47 percent
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