Question
Can you buy a second property and rent out if you are in Spain on a Non lucrative Spain visa?
Answers
These are the answers of Spainguru’s Facebook group members:
“As long as you pay a company to manage it.”
“It is an interesting question. I can see why running an Airbnb would be work. But is it work to sign a three-year rental contract and hire professionals to deal with problems that occur on a case-by-case basis? Is a management company necessary?”
“It’s classed as working. You are “managing” a rental, from which you will be making money from, so whether you manage it from the comfort of your home or use a room as an office, it’s the same.”
“Where is this rule? Can we read it in Spanish? Is managing a share or bond portfolio for oneself also working? You might be right but I’m curious to know what the law is.”
“If someone had a large share portfolio they would be allowed to buy and sell shares they own and get legal, financial, and accounting advice as necessary. Is renting out real estate any different to this?”
“Spanish rules. However, if you were perceived to be trading, you could also fall foul of them.”
“I don’t think renting out a house long-term or buying and selling shares for oneself is something the government would want to prohibit. But one would need to see the wording of the restriction and any court decision or administrative guidance related to it.”
“We were advised if you had shares to have them under £30k this way you don’t have to declare them (anything under 50k euros in any bank)”
“That’s not about the rules of the Non lucrative Spain visa, I think. That’s about needing to disclose assets outside of Spain. I think one doesn’t have to file an overseas asset declaration if the total value of overseas assets is under €50,000. But I’m pretty sure that income tax is payable on all income from overseas and I think CGT on capital gains too.”
“Might need a licence for the house to rent it. Worth checking.”
Conclusion
The discussion among members of Spainguru’s Facebook group reveals a complex scenario for Non lucrative Spain visa holders wishing to invest in a second property to rent out in Spain.
The primary consensus suggests that managing such a property directly could be interpreted as engaging in work, potentially violating the terms of the Non Lucrative Spain Visa. However, employing a management company to handle the property may circumvent this issue.
Yet, questions about the legal framework and comparisons with managing personal investments like shares highlight the need for clear guidance.
Participants also mentioned the importance of understanding Spain’s tax obligations on worldwide income and assets, advising caution and further investigation into licensing and tax implications.
