Spanish Residency and Citizenship: 20 Questions — Asked and Answered (Part 1)

In this post, I will be answering 20 frequently asked questions sent to me via email and posted as comments on my YouTube videos. I’ve compiled over 40 questions so this would part 1. And part 2 will come next week so stay tuned!

Before we start, there will be acronyms that I will use repeatedly. For reference, here’s what they mean:

• NLV – Non-Lucrative Visa
• DNV – Digital Nomad Visa
• NIE – Número de Identidad de Extranjero
• TIE – Tarjeta de Identidad de Extranjero

1. What was the reason for the rejection of my NLV application?

The main reason for my visa rejection as per the resolution document was the funds in my bank account. I had enough based on the requirements but my mistake was I had a lump sum transferred to my bank account from an international bank account, within the same year I applied for the visa, which I think the consulate saw but I can’t confirm it. It’s always best to have the funds that you will use for your visa application to be in your bank account for a year minimum, the longer the better.

2. What are the top 3 reasons for NLV/DNV rejection?

• Insufficient financial means — bank statements showing inconsistent balances, unclear sources of income (e.g., irregular deposits or transfer of lump sum amount to meet the requirement)
• Incomplete or incorrect documentation — documents not translated in Spanish, validity is beyond 6 months, or obvious discrepancies between the provided information and supporting documents can trigger a denial
• Health insurance issues — insufficient coverage, or using a travel insurance, or getting an insurance from a company not accredited in Spain

3. Why did I not bother appealing my NLV application?

Appealing my NLV application would take time, approximately a year, and I would need to hire a lawyer for that. So it would be an expensive appeal without the guarantee of a positive resolution. Also, in that moment, I really wanted to leave sooner than later so I looked for other ways and chose to apply for Croatia Digital Nomad Visa. 6 weeks after getting my NLV rejection, I got approved for Croatia DNV.

4. How much money/income is required for the NLV and DNV?

For NLV, €30,000 per year. If you’re going to renew your visa, you will need €60,000 because renewal is for 2 years which means you will need to show that you can support yourself without needing to work for another 2 years. In essence, you will need to have €100,000 to cover 3 years of living in Spain. If you have passive income like real estate rentals or pension, you can include this in your application.

For DNV, the minimum monthly income you need to show is €3,500—this is according to my laywer. The income requirement when you searched online is lower, around €2,700, but showing a higher income increases your chances of getting approved especially if you’re applying in cities that have a high cost of living like Madrid or Barcelona.

5. Am I eligible to apply for citizenship after 2 years under Student Visa?

No, time spent in Spain on a student visa does not count towards the residency requirements for Spanish citizenship. However, you can transition from a student visa to another residency status, like a work visa sponsored by an employer or through pareja de hecho, and the time spent with the new residency status might then count towards the residency requirement. Once you’ve completed 2 years of legal residency (if you’re from the Philippines, Andorra, Portugal, Equatorial Guinea, or Ibero-American countries), you’d be eligible for citizenship by residency.

6. Am I eligible to apply for citizenship after 2 years under NLV and DNV?

Yes, time spent under these 2 long-term/residency visas make you eligible for Spanish citizenship after just 2 years. This applies for nationals of Ibero-American countries, Andorra, the Philippines, Equatorial Guinea, and Portugal.

7. Where do I get the NIE?

If applying outside Spain, contact Spanish consulate in your country for this and they will provide the link & instructions on how to proceed.

If applying within Spain, like for DNV or pareja de hecho, your NIE is already included in your resolution document.

8. Can I work under the NLV in Spain?

What is Non-Lucrative Visa? It’s a visa allowing an individual to reside in Spain without carrying out any gainful (work or professional) activity, provided that the applicant has sufficient and guaranteed means to live on. This visa does not constitute a work permit. 

However, income from passive sources are allowed, such as: 

• Dividends from investments
• Pension payments
• Income from real estate rentals
• And other similar sources of passive income

9. If applying for DNV, can my income come from multiple sources?

Yes, your income can come from multiple sources, not just one. The income must be proven to be regular and sufficient, and can include various streams like remote work contracts, investment dividends, rental income, or pensions. 

10. Can I go to Spain on a tourist visa and look for a work there?

No, you cannot enter Spain on a tourist visa and then seek employment. A tourist visa, like the Schengen Visa, is specifically designed for tourism, family visits, or short-term stays for personal purposes. It does not permit you to work in Spain. To work in Spain, you need a work and residence visa, which you must apply for before entering the country from your country of origin.

11. Can I switch from tourist visa to a residence permit while in Spain?

Yes, you can do so through pareja de hecho (civil union) or DNV.

12. Can I switch from DNV to local work?

Yes, but the process is complicated. You will need a lawyer to help you through the process. If your employer is generous, maybe they can take care of it for you.

13. How will they know if I’m still working for a non-Spanish company while in Spain on DNV? Do they verify with my employer?

The Spanish immigration authorities primarily rely on self-reporting and documentation provided by the applicant to determine compliance with the digital nomad visa (DNV) requirements. While they don’t typically directly verify with employers, they will require evidence that the applicant is working for a non-Spanish company and is not engaging in other forms of employment or professional activity in Spain.

It’s important to note that only 20% of your remote work income can come from Spanish companies or clients.

14. What if I lose my remote job while living in Spain under DNV? What do I do?

If you lose your remote job while in Spain on a DNV, your primary concern is maintaining your visa eligibility by securing another remote job or freelance clients within a short timeframe (approx. 30 days).

If you manage to get another job, then you will need to inform the UGE (Unidad de Grandes Empresas) of this as soon as possible, otherwise, your visa could be revoked or you risk getting rejected when renewal time comes.

15. What are the tax obligations as a resident on a NLV or DNV?

If you reside in Spain for more than 183 days, you automatically become a tax resident, which means you’re obligated to pay taxes on your worldwide income. This includes any income generated inside and outside Spain, such as salaries, rental income, pensions, or capital gains. Spain employs a progressive tax system for personal income, with rates ranging from 19% to 47% depending on income levels. It’s crucial to maintain detailed records of your income to accurately complete your Spanish tax return.

Another option is the Beckham law but there are a few exceptions to this so consult with a tax advisor for clarity.

16. Do I have to declare income tax?

Yes, and it should be done annually and the deadline is normally at the end of June. If you’re an employee of a local company in Spain, your IRPF (Impuesto sobre la Renta de las Personas Físicas) is automatically deducted from your payslip but you still have to declare annually.

17. Is it necessary to register as autónomo when I move to Spain under DNV?

As per my lawyer, yes, if you are working as a self-employed individual or freelancer, you will need to register as an autónomo and pay Spanish Social Security contributions.

Once you’re an autonómo (freelancer/self-employed), you are eligible to enjoy the 15% tax rate for the first 2 years then it can be progressive from 19% to 47% depending on your income.

18. Should I register as an autónomo or setup a Sociedad Limitada?

The decision of whether to register as an “autónomo” (self-employed individual) or set up a “Sociedad Limitada” (SL) in Spain depends on your specific circumstances and goals. If you are starting small, working solo, and not planning rapid expansion, the “autónomo” structure is generally simpler and more suitable. However, if you plan to scale your business, attract investments, or hire employees, the SL structure might be more advantageous.

If you plan to live in Spain indefinitely, setting up an SL is a better option mainly because of tax obligations. In general, a Spanish Limited Company (Sociedad Limitada or SL) tends to have a lower tax rate than an autónomo (self-employed individual) at higher income levels. While autónomos pay personal income tax (IRPF) on their business profits, which can range from 19% to 47% depending on their earnings, SLs pay a fixed-rate corporate tax of 25% (with a reduced rate of 15% for the first year for new companies).

If you are interested to know more, here’s a post I’ve written about this specific topic.

19. What should I do once my visa application is approved?

• Apartment hunting
• Registering in the municipal register of residents of the city (Empadronamiento) — to register your home address
• Getting your TIE (tarjeta de identidad de extranjero) — this is primarily your residence card/ID
• Opening a Spanish bank account
• Getting a Digital Certificate (a crucial tool in Spain, particularly for interacting with public administrations and other entities online)
• Registering as autónomo (depending on your situation and visa type)
• Getting a social security number (if you register as autónomo)
• Request for TSI (tarjeta sanitaria individual) — health card that will give you access to public healthcare — you qualify once you start contributing to Seguridad Social
• Driver’s license exchange (optional)

20. If I’m still in the planning stage of moving to Spain, what would be the best approach?

This is my advice – Learn Spanish as early as now. If you have funds at least 3x the financial requirement, apply for NLV. If you’re a remote worker or freelancer, apply for DNV. If you don’t have funds or remote job, upskill and start finding remote jobs that would meet the income requirements.

I wouldn’t recommend a student visa unless you really want to study because there is no guarantee that you will find a job and an employer that will sponsor your work visa once you’ve graduated. And living here in Spain under a work visa is stressful because you are tied to your employment. If you lose your lob, you residency is also at risk.

If you have questions or need further clarifications, feel free to email them to me so I can include those in the 2nd part. ¡Hasta luego!