Question
We are heading to years 4/5 renewal and due to a massive unforeseen change in our finances we wont be able to show the full amount needed for approval.
What I’m looking for is advice on how to raise 20k. We own our own home (no mortgage). Hubby is going to be touchy 70
Is it possible to raise equity? Or short term bridging loan etc.
Answers
These are the answers from Spainguru’s Facebook group members:
“In my opinion, I think a Spain immigration lawyer would have the best advice for you. There is definitely some gray area regarding this. I wouldn’t risk not seeking legal counsel for such a high mile stone with your renewal; you are so close to permanent residency, it not worth the risk of not seeking out the advice of an immigration attorney.”
“Take a loan out with your house as collateral. Deposit funds in the account you will use for the 4/5 renewal. Once approved pay the loan back. There will be some interest to be paid but that is part of the game. Good luck”
“What province are you living in? The amount required to renew varies by Province. In Valencia you only need 1 years funds for year 2/3 or 4/5. In Alicante you need 2 years funds, double. Also regular passive income or funds available by credit card are accepted.”
“In Almeria you only need to show 1 years funds for years 2&3 4&5. Hope this helps”
“100% sure. Yes, a family of 3 need to show funds of €28,800 (main applicant) + €7,200 per dependent to renew for year 4/5. We are immigration lawyers, we have hundreds of Spain Non Lucrative Visa renewals approved in Valencia, 2 this week with one years funds.”
“Property is not a liquid asset and can not be used as proof of funds for the DN.”
“These are the official financial requirements under Real Decreto 1155/2024, published in BOE-A-2024-24099 which came into effect on May 20th, but they have always been there. Availability may be demonstrated by any legally admissible means of proof, including the provision of property titles, certified checks, or credit cards, which must be accompanied by a bank certification certifying the amount available as credit on said card.”
“Don’t forget your pensions count towards the total.”
“Here everyone is going to give you different perspectives but your Spanish bank will be your best shot.”
“If property is in UK you could do a equity release scheme. If property is in Spain I would speak to your Spanish bank as I think you can have a mortgage in Spain up to 75 if you have pensionable income to pay mortgage back.”
“Not a financial advisor…but could you borrow from a credit card? Higher rate, but might just help you through the temporary shortfall.”
“Sale me a stake in your home, kids can pay me back when they sell it plus a small commission fee.”
“I believe, but please check, that you can use credit cards as prove of money. Any chance you have some that total this or can you apply for this amount. Just a thought, but please double check you can do this, I think it’s looked at, accessible money.”
“Could you move in with family or friends for a while and rent out your home to show additional income….. or maybe a temporary move to a caravan or motorhome. My husband just gave another suggestion— increase your pension monthly drawing (if applicable) to show the additional income needed— and put the extra in a savings account to use down the line.”
“Credit cards count, in case you have enough on available balances.”
Conclusion
From the discussion, it is clear that the Spain Non Lucrative Visa renewal process in years 4/5 can present challenges when applicants face a sudden financial shortfall. Requirements vary by province, with some regions requesting funds for two years and others, like Almería or Valencia, generally requiring only one year’s worth of financial proof.
Community members suggested possible ways to meet the requirement, such as equity release, short-term loans, or increasing pension drawdowns. Some also mentioned that credit cards or certified checks can sometimes be used if backed by official bank documentation, though property ownership is generally not considered a liquid asset for proof of funds.
As this renewal stage is close to permanent residency, professional advice from an immigration lawyer and consultation with local banks is strongly recommended. This ensures that applicants fully understand the Spain Non Lucrative Visa renewal requirements and avoid putting their residency at risk.
This article is based on personal opinions from the Spainguru community and is not legal advice.
FAQS
What professional advice is recommended for those nearing their visa renewal to ensure compliance with requirements?
It is strongly recommended to consult with an immigration lawyer and discuss with local banks to fully understand the financial requirements and ensure all proof is valid. This professional guidance can help avoid risks and ensure a smooth renewal process.
Can credit cards be used as proof of funds for the renewal process?
Yes, credit cards can sometimes be used as proof of available funds if the applicant can provide bank certification showing the credit balance. It is important to confirm with the relevant authorities whether this method is acceptable in your region.
How do the financial requirements for renewal vary by province in Spain?
The financial proof required varies by province; for instance, Valencia generally requires proof of one year’s funds for years 2/3 or 4/5, while Alicante requires two years’ worth of funds. It is recommended to verify regional specifics, as some regions may accept alternative proof like passive income or credit card funds.
Does property ownership in the UK or Spain count as proof of funds for the visa renewal?
Property ownership itself is generally not considered a liquid asset or valid proof of funds for the Spain Non Lucrative Visa renewal. However, schemes like property equity release in the UK may be used as part of a financial strategy, but they should be discussed with financial professionals.
What are the options for raising funds for a Spain Non Lucrative Visa renewal when facing a financial shortfall?
Options include taking a short-term loan secured against property, increasing pension payments, borrowing from credit cards if available, or exploring equity release schemes with property in Spain or the UK. It is important to seek professional financial and legal advice to determine the most appropriate option.
