Lately, many people on the forums have been asking about the non-lucrative visa, especially if it’s really feasible to buy a small property for a little over a hundred thousand euros. I just completed this process last year in the Valencia region. Today, let’s break down the total budget you need, which goes far beyond just the property price itself and is a different path from something like Spain’s E2 Visa.
Core Property Purchase Costs
Buying a property is far more complex than just paying the asking price, especially when it’s part of a non-lucrative residency application; the various taxes and fees are the biggest part. Unlike in many other countries, the transaction costs for resale properties here are not low. Let’s say you find an apartment for €150,000. Here are the additional costs you’ll need to prepare for:
| Cost Item | Approx. Rate/Amount | Notes |
|---|
| Property Transfer Tax (ITP) | 6%-10% of the property price | Rates vary by autonomous community; Valencia is 10%, which is €15,000 |
| Legal Fees | 1% of the property price + VAT (IVA) | Highly recommended. They review contracts and check for debts, helping you avoid pitfalls. |
| Notary Fees | €600 - €1,000 | Set by official rates, relatively fixed. |
| Property Registry Fees | €400 - €800 | Same as above, the fees are quite transparent. |
Roughly speaking, the associated purchase costs amount to about 12% of the property price. This means for a €150,000 property, you need to have at least 150,000 * 1.12 = €168,000 ready upfront. It’s crucial to budget for this amount.
The ‘Soft’ Costs of the Non-Lucrative Visa
Applying for residency and buying a house are two separate processes. The core requirement of the non-lucrative visa is to prove to the Spanish government that: ‘I can support myself and my family without working in Spain.’ This proof mainly consists of two things: sufficient passive income and comprehensive health insurance.
First, the proof of passive income. The official requirement is that the main applicant must have an annual income of 400% of the IPREM (Spain’s Public Multiple Effects Income Indicator). For each additional family member, another 100% of the IPREM is required. Using the 2023 standard (IPREM = €600/month), the proof of funds for a single person for one year is 600 * 12 * 400% = €28,800. For a family of three, it would be 600 * 12 * (400% + 100% + 100%) = €43,200. This money must be held in your bank account as a guarantee.
Second is health insurance. You must purchase a private health insurance policy from a Spanish company that has no co-payments (sin copagos). This insurance isn’t cheap; depending on age, it can cost between €600 and €1,500 per person per year.
Example: A €150,000 Property
Let’s do a complete calculation. Assume you are a single person planning to buy a €150,000 apartment in Valencia and apply for the non-lucrative visa.
Total Financial Planning:
- Property Purchase Costs: €150,000 (price) + €15,000 (tax) + €1,815 (legal) + €800 (notary) + €600 (registry) ≈ €168,215
- Non-Lucrative Visa Funds: €28,800 (proof of funds) + approx. €800 (health insurance)
Therefore, to buy a €150,000 property, the total amount you need to show the authorities and actually spend in the first year is approximately: €168,000 + €29,000 = €197,000. And this doesn’t even include your actual living expenses for the first year after you arrive.
I hope this post helps those of you in the planning stages. The path of buying a small property is viable, but you must have a sufficient budget, especially for the proof of passive income and your first year’s liquid funds. If you have any questions, feel free to leave a comment below for discussion, and I’ll reply when I see them! Wishing everyone success in achieving their dream of living in Spain!
