Question
“We are planning on moving to Spain but I heard a rumor you had to be debt free. We will have all credit cards and that sort of debt paid off but, if that is true, does it include student loans? Absolutely no way I can pay those off.”
Answers
These are the answers of Spainguru’s Facebook group members:
“So far as I am aware, only the Los Angeles consulate asks about debt, and they are only asking about mortgages.”
“I had the same question and my lawyer told me that student loans (at least federal ones, I can’t speak on private) have no impact because they are tied to the US government and not a private company.
‘Can you imagine if we prevented people with student loans from coming, no one would be approved’ were basically his exact words. I think it also depends on the consulate you apply at, I was going through Los Angeles, which I was told is the strictest.”
“Neither my wife nor I were asked about debt. My wife has considerable student debt; yet, we’ve been here nearly 5 years.”
“That rumor is incorrect. While it’s generally advisable to have your finances in order when moving to a new country, being completely debt-free is not a strict requirement for obtaining a visa or residence permit in Spain.
Student loans are typically not a major concern when applying for a Spanish visa or residence permit. The authorities are primarily interested in your ability to support yourself financially in Spain. This usually involves demonstrating sufficient funds to cover your living expenses.”
“We had a mortgage, vehicle payment and US taxes still owed and we were approved for NLV Sept 2.”
“That’s wrong. Some consulates want to see you have no mortgage.”
“I was not asked about debt. This may vary by consulate/BLS office and whether the specific agent you’re speaking to got their coffee that morning.”
“I am here on a Digital Nomad Visa, when I applied I had student loans, they don’t ask about it nor is a credit report required for the application so there’s really no way they would know about it.”
“A few years back the only consulate looking into your debt was the Los Angeles one. They even wanted your mortgage to be paid off before they approved your retirement NLV visa. Things may have changed in the last 4 years though.”
“The consulates do not pull your credit report. Divulge NOTHING except your income and what you pay for car insurance.”
“When we went through the process this past Spring (via Chicago) no questions were asked about debt: consumer, education, medical, mortgage, car loans, or otherwise.”
“Depends on your consulate. I believe the LA consulate says no debt. Not sure how this is being interpreted. Other consulates make no mention of debt. I wouldn’t worry about a student loan debt.”
Conclusion
The concern about needing to be debt-free before moving to Spain appears to be largely unfounded.
While specific consulates, like the one in Los Angeles, may inquire about certain types of debt such as mortgages, generally, student loans and other personal debts do not disqualify potential expatriates from obtaining Spanish visas.
It’s important to have your finances in order, but complete freedom from debt is not a strict prerequisite for moving to Spain.
