Non-Lucrative Visa for Swedes: Proof of Accommodation with New-Build Purchase

Introduction to the Non-Lucrative Visa and New-Build Property

For Swedish citizens aspiring to relocate to the beautiful Costa del Sol in Andalusia, Spain, the Non-Lucrative Visa (NLV) offers a pathway to residency. This visa is specifically designed for individuals who wish to reside in Spain without engaging in economic activity, relying instead on their own financial means. A crucial component of the NLV application is demonstrating suitable accommodation, and purchasing a new-build property provides a robust and clear form of proof.

This guide from Life in Costa focuses on how acquiring a new-build property, whether off-plan or already completed, can fulfil the accommodation requirement for the Spanish NLV, alongside detailing the associated legal, financial, and tax considerations for foreign buyers in the areas we cover.

Understanding the Spanish Non-Lucrative Visa (NLV)

The Spanish Non-Lucrative Visa (Visado de Residencia No Lucrativa) allows non-EU citizens, including those from Sweden, to reside in Spain, provided they can prove sufficient financial means to support themselves and any dependents, and possess private health insurance. It is important to note that this visa explicitly prohibits any form of employment or professional activity in Spain, including remote work for foreign companies.

Key Requirements for the NLV

• Proof of Sufficient Financial Means: Applicants must demonstrate stable and regular income or savings. For a single applicant, the minimum required amount is generally equivalent to 400% of Spain’s Public Multiple Effects Income Indicator (IPREM) annually. For instance, in recent years, this has translated to approximately €28,800 per year for the main applicant. An additional 100% of the IPREM (around €7,200 annually) is required for each dependent included in the application. These funds must be verifiable and consistent.
• Private Health Insurance: A comprehensive private health insurance policy from an insurer authorised to operate in Spain is mandatory. The policy must cover all risks usually covered by the Spanish public health system, without co-payments or waiting periods.
• Medical Certificate: A certificate confirming that the applicant does not suffer from any diseases that could have serious public health implications, according to the International Health Regulations of 2005.
• Criminal Record Certificate: A clean criminal record certificate from the countries where the applicant has resided for the past five years.
• Valid Passport: A passport valid for at least one year with at least two blank pages, not issued more than 10 years ago.
• Proof of Accommodation: This is where your new-build property purchase becomes highly relevant.

The NIE Number: Your First Essential Step in Spain

Before you can purchase a property or undertake almost any significant financial or legal transaction in Spain, you will need a Número de Identificación de Extranjero (NIE). This is a unique tax identification number for foreigners and is mandatory for activities such as opening a bank account, signing contracts, and paying taxes.

How to Obtain Your NIE

There are several ways to apply for an NIE:

1. In Spain: You can apply in person at a local Oficina de Extranjería (Foreigners’ Office) or a police station handling NIE applications. Appointments (cita previa) are typically required and can be booked online.
2. From Abroad: Applications can be made through the Spanish Consulate in your home country, such as the Spanish Embassy in Stockholm.
3. Via a Legal Representative: A lawyer or gestor can apply on your behalf with a notarised power of attorney.

Securing Your New-Build Property on the Costa del Sol

The process of acquiring a new-build property, especially off-plan, differs from purchasing a resale home. The developments we recommend on the Costa del Sol offer modern designs and amenities, often providing a streamlined buying experience.

Simplified New-Build Purchase Process

• Reservation Agreement: This is the initial step, where you pay a small deposit to reserve the property and take it off the market.
• Private Purchase Contract (PPC): Once legal checks are complete, you’ll sign a PPC, outlining the terms, payment schedule (for off-plan), and completion date. Further payments are typically made during the construction phase.
• Public Deed (Escritura de Compraventa): Upon completion of the property, you will sign the Public Deed before a Notary Public. This document legally transfers ownership of the property to you.
• Property Registration: After signing the Public Deed, the property is registered in your name at the Spanish Land Registry (Registro de la Propiedad).

Proof of Accommodation for Your NLV Application with a New-Build Property

A new-build property purchase offers compelling evidence of accommodation for your NLV application. The specific documents you provide will depend on whether the property is completed or still under construction (off-plan).

For Completed New-Build Properties

If your new-build property is already completed and the Public Deed (Escritura de Compraventa) has been signed, this serves as definitive proof of ownership and accommodation. You would typically provide:

• A copy of the Public Deed (Escritura de Compraventa).
• A recent Nota Simple from the Land Registry. The Nota Simple is an official extract detailing the property’s description, current ownership, and any charges or liens against it. It verifies that the property is registered in your name and is free from significant encumbrances.

For Off-Plan New-Build Properties

Even if your new-build property is still under construction, you can use the purchase as proof of accommodation. In this scenario, the Spanish consulate will typically require:

• The Private Purchase Contract (PPC) you have signed with the developer. This contract legally binds you to the purchase of the property.
• Proof of payments made towards the property, demonstrating your commitment to the acquisition.
• A bank guarantee from the developer, ensuring your payments are protected in case of construction delays or non-completion.
• A Nota Simple for the land on which the development is being built, indicating the developer’s ownership and the project’s legal status.
• The building licence and other relevant permits for the development.

The Nota Simple is a critical document in both cases, as it provides verifiable, official information about the property’s legal standing and ownership.

Taxes and Costs Associated with a New-Build Purchase in Andalusia

When purchasing a new-build property on the Costa del Sol, it’s essential to factor in additional costs beyond the advertised price. These typically amount to approximately 10-14% of the purchase price, depending on the specific property and legal fees.

Main Taxes

1. IVA (Impuesto sobre el Valor Añadido – Value Added Tax): For new-build residential properties sold directly by the developer, the IVA rate is 10% of the purchase price. This applies to the home itself, up to two garage spaces, and storage rooms included in the same purchase deed.
2. AJD (Actos Jurídicos Documentados – Stamp Duty): This tax applies to public deeds that are registered in the Land Registry. In Andalusia, the general AJD rate for new-build properties is currently 1.2% of the purchase price.

Other Purchase Costs

• Notary Fees: These are regulated fees for the public deed of sale. They typically range from 0.2% to 0.5% of the purchase price, on a sliding scale.
• Land Registry Fees: Fees for registering the property in your name at the Land Registry, usually between 0.2% and 0.5% of the purchase price.
• Legal Fees: It is highly recommended to engage an independent lawyer to represent your interests. Legal fees are typically around 1% of the purchase price, plus IVA.

Ongoing Property Ownership Taxes for Non-Residents

Once you own a property in Spain as a non-resident, there are annual taxes you will be liable for.

• IBI (Impuesto sobre Bienes Inmuebles – Municipal Property Tax): This is an annual local tax paid to the town hall where the property is located. It is calculated based on the cadastral value (valor catastral) of the property, which is an administrative value often lower than the market value. The tax rate varies by municipality, typically ranging from 0.4% to 1.1% for urban properties.
• IRNR (Impuesto sobre la Renta de No Residentes – Non-Resident Income Tax / Modelo 210): Non-resident property owners must declare imputed income tax (renta imputada) annually using Modelo 210, even if the property is not rented out. This is because the Spanish tax authorities consider that merely owning a property implies a potential income. If the property is rented out, you will declare the actual rental income. For EU/EEA citizens, the tax rate on imputed income is generally 19%, while for other non-residents it is 24%.

Relocation to the Costa del Sol

Once your NLV is approved and your new-build property is secured, the Costa del Sol offers an exceptional lifestyle. From the vibrant culture and Mediterranean climate to the stunning developments we recommend, you will find a welcoming community.

Remember to notify the local authorities of your arrival and register with the local town hall (Ayuntamiento) once you are settled. This process, known as ‘empadronamiento’, is important for accessing local services.

Conclusion

For Swedish citizens, obtaining a Non-Lucrative Visa to reside in Spain is a well-defined process, and purchasing a new-build property on the Costa del Sol serves as excellent, tangible proof of accommodation. Understanding the specific requirements for the NLV, the new-build purchase process, and the associated tax obligations is paramount for a smooth transition. The developments we recommend provide not only modern homes but also the foundation for a new life in sunny Andalusia.