For holders of this visa to be eligible for renewal, they must stay in Spain for a minimum of 183 days per year, thus making them a tax resident. As tax residents, they will be taxed on their worldwide income, and the double taxation agreement between the UK and Spain will apply.
Below are some of the tax implications holders of the Non-Lucrative Residence Visa will be affected by:
Personal Income Tax – Model 100
Your worldwide income will be taxed using Model 100 of the Personal Income Tax (IRPF). Any income abroad (such as pensions, rental income, stocks, dividends, etc.) will be subject to taxation. In order to avoid double taxation in Spain and abroad, the double taxation agreement between Spain and the country where your income originates will be applied to you.
Wealth Tax – Form 714
Any global assets and economic rights must be declared through Form 714 for Wealth Tax. The law on Wealth Tax regulates the required cases when the taxpayer should declare:
- When, after calculating your tax amount, an amount is paid.
- When, the value of your assets and rights (without deducting any debts or charges), exceeds two million euros.
Assets Declaration – Form 720
Any all-natural and legal individuals residing in Spain must complete Form 720 to declare any overseas assets and rights that exceed €50,000.
If you do not declare the above in time, the Spanish Tax Agency will use any data from official documents (Non-Lucrative Residence Visa, Social Security Card etc.) and exchanges (electric and gas bills, credit card usage etc.) to demonstrate your tax residence within Spain. If this situation does occur, you will incur your taxes and any further penalties.
According to article 66 of Law 14/2013, holders of the investor visa can apply for a residence authorisation for investors (the so-called Golden Visa). Also, if the investor and his/her family members are regularly in Spain, for example with a previous Non-Lucrative Residence Visa or other short-term stay authorisation, they could apply to hold the Golden Visa for Spanish residency without the need to return to their country of origin for the application process. This is a matter that will always be left to the discretion and study of the competent administrative body.
Any Spanish property purchases made under the Non-Lucrative Residence Visa can be part of the total investment towards a Golden Visa. For example, if a property purchase in Spain of €200,000 is made by a holder of the Non-Lucrative Residence Visa, this can go towards the €500,000 investment needed for the holder to be granted a Spanish Golden Visa. Investments towards the visa will only count if they were made after 28 September 2013.