Question
How do you time the selling of your house? Like what if apply for the Spain Non Lucrative Visa and something goes wrong with the paperwork since I know I qualify based on passive income but something else goes wrong?
Answers
These are the answers of Spainguru’s Spanish Non Lucrative Visa group members:
“I’m not applying until house is sold and I can be sure I don’t pay Capital Gains Tax.”
“We put a contingency on visa approval during our selling process. And had to push closing back many times waiting. But, we were never asked about it at the Chicago office. Never 1 question about US mortgage and having one.”
“We’re in the middle of this right now. The house goes on the market in a couple of weeks. Our visa apps have been in process for 2 months. We have much more than enough funds to qualify and meet the other criteria. But super nervous that something will go wrong.”
“We timed it on the safe side and decided to hit an AirBNB if the house sale ran short. As it turned out we closed on the house and drove to the airport. Find out the typical times that your consulate takes and add 2 – 3 weeks for safety and a week or two buffer.”
“As far as capital gains is concerned you only need to be concerned if all the following things apply 1) you move to Spain the same year you sell 2) of that year you live more than 183 days in Spain 3) your house has so much equity in it you can’t offset the gain.”
“Throw caution to the wind. They have 90 days to get it to you if they’re going to. You have 30 days to pick it up. And 90 days to use it once they give it to you. Should be plenty time if your house is in order.”
“I was advised not to move to Spain the year I sell my house. The 183-day rule is not the only test that Spain uses to become a tax resident. I do not want to take any risks. If I cannot sell my house this year, I am going to spend a year in France where Americans pay no taxes.”
“If we don’t sell before we move, we’ll do the closing via zoom. As long as we sell before becoming tax residents in Spain, no capital gains.”
Conclusion
Navigating the timing of selling your house while applying for a Spain Non Lucrative Visa can be complex. Many members recommend ensuring the house is sold before applying, to avoid complications related to capital gains tax and residency.
The consensus is to prepare for potential delays in the visa process by having flexible housing plans, such as renting temporarily. Planning and timing are crucial, with several members suggesting a buffer period after selling the house before moving to Spain to ensure compliance with tax regulations.
Join our community!
Make sure to join our dedicated Spanish Non Lucrative Visa group here
