Question
Can you apply for a Spain Non Lucrative Visa (NLV) before selling your house? It’s worth approximately €340,000, so financially we would meet the requirements.
Answers
These are the answers of Spainguru’s Facebook group members:
“Unfortunately, the funds need to be readily available in the bank.”
“If your house is the basis for proving your financial means, then no. You need liquid assets to demonstrate that you can support yourself.”
“It depends on whether you own the property outright or still have a mortgage.”
“Property is not considered liquid. You must have the required amount in savings, a pension, or passive income.”
“You can apply for the visa before selling your house if you also have the required funds as savings or income. But you cannot use the house sale proceeds until you physically have the money.”
“If you sell your house in the same tax year you move to Spain, you may be liable for capital gains tax (CGT). Spain does not have the same CGT exemptions as the US, so check with a Spanish tax consultant.”
“If you will not make a profit on the sale, then CGT should not apply.”
“If you are in Spain for more than 183 days in the same tax year as your home sale, you could owe around 23% tax on the profit. Consider moving in late July or August to avoid Spanish tax residency that year.”
“Would a home equity loan work to show proof of funds that you can pay off after you sell it?”
“Be aware of the tax implications of moving to Spain; you will likely pay more in taxes.”
“Not necessarily true that you will always pay more in taxes. It depends on individual circumstances.”
Conclusion
For those applying for a Spain Non Lucrative Visa, the key requirement is that the funds must be readily available in a liquid form, such as:
- Cash savings
- Pensions
- Passive income sources
Key Takeaways:
- Property is NOT considered liquid – You cannot rely on the value of your home for the visa application unless the money is already in your account.
- Selling your house before applying is often recommended – This ensures that you meet the financial requirements without delays.
- Capital Gains Tax (CGT) may apply – If you sell your home in the same tax year you move to Spain and become tax resident (more than 183 days), you may owe up to 23% on the profit.
- Consider timing your move – Some applicants sell their home later in the year (July/August) to avoid being Spanish tax residents in the same year.
- Alternative funding options – Some wonder if a home equity loan could be used to show proof of funds, but this would need confirmation from the consulate handling the visa application.
- Consult a tax expert – Spanish tax laws can be complex, so professional advice is strongly recommended.
If you already have sufficient savings or passive income, you can apply before selling your house. However, if your home sale is the primary source of your financial proof, then you must sell first before applying for the Spain Non Lucrative Visa.
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Make sure to join our dedicated Spanish Non Lucrative Visa group here!
