Non-Lucrative Visa Requirements for Danish Nationals Purchasing New-Build

The Costa del Sol, with its enviable climate, stunning scenery, and vibrant lifestyle, continues to be a magnet for foreign buyers seeking a new life under the Spanish sun. For Danish nationals, the dream of owning a new-build property in this beautiful region of Andalusia, combined with securing a Non-Lucrative Visa (NLV), offers a seamless pathway to residency. This guide from Life in Costa provides an authoritative overview of the NLV requirements, the new-build purchase process, and the associated tax landscape, tailored specifically for Danish citizens.

The Non-Lucrative Visa (NLV): Your Path to Spanish Residency

The Spanish Non-Lucrative Visa (Visa de Residencia No Lucrativa) is designed for non-EU/EEA citizens who wish to reside in Spain without engaging in any professional or work activity. As Denmark is part of the EU, Danish nationals do not require a visa to enter Spain. However, if they intend to reside in Spain for longer than three months, they must register as EU citizens. This guide focuses on the pathway for non-lucrative residency for non-EU citizens, which, while not strictly applicable to Danish citizens for entry, outlines the financial and other requirements that individuals from outside the EU/EEA, including potential non-EU partners of Danish citizens, would need to meet to gain residency. For Danish citizens, the process is simpler, requiring registration at the Central Registry of Foreigners once in Spain to obtain a Green Card/Certificate of Registration as an EU Citizen. Nonetheless, understanding the financial solvency requirements often associated with non-lucrative residency is prudent.

Key Requirements for Non-Lucrative Residency (for comparative understanding)

While Danish nationals, as EU citizens, have the right to reside in Spain, demonstrating sufficient financial means is still a core principle for long-term residency. For non-EU citizens seeking a Non-Lucrative Visa, the Spanish government mandates proof of substantial financial means to support themselves and their dependants without working in Spain. The primary benchmark for this is the Indicador Público de Renta de Efectos Múltiples (IPREM).

• Financial Means: Applicants for a Non-Lucrative Visa must demonstrate financial solvency equivalent to 400% of the IPREM for the main applicant, and an additional 100% of the IPREM for each accompanying family member. For 2026, the monthly IPREM is €600, amounting to €7,200 annually. Therefore, a single applicant would need to prove an annual income or savings of at least €28,800. For an applicant with one dependant, this figure rises to €36,000 per year. These funds should ideally be in a Spanish bank account, though other verifiable assets may be considered.
• Comprehensive Health Insurance: It is mandatory to have private health insurance with no co-payments or deductibles, valid in Spain for the entire duration of the planned stay.
• Clean Criminal Record: Applicants must provide a criminal record certificate issued by the authorities in their country of origin (and any other countries where they have resided for the past five years). This certificate must be legalised and translated into Spanish.
• Medical Certificate: A medical certificate confirming the applicant does not suffer from any diseases that could have serious public health implications, according to international health regulations, is required.
• Proof of Accommodation: Evidence of suitable accommodation in Spain is necessary. A new-build property purchase contract serves as strong proof of this.
• Application Process: For non-EU citizens, the visa application is typically submitted at the Spanish Consulate in their country of residence. For Danish nationals, once in Spain, registration as an EU citizen at the local Oficina de Extranjería (Foreigners’ Office) is the primary step for residency.

Investing in New-Build on the Costa del Sol

The Costa del Sol offers a wealth of new-build (obra nueva) developments, providing modern amenities, contemporary designs, and often excellent energy efficiency. Developments we recommend are located in prime areas, offering high-quality finishes and access to desirable facilities.

The New-Build Purchase Process

Purchasing a new-build property in Spain involves several key stages:

1. Reservation Agreement: This initial step secures the property and typically involves a small deposit.
2. Private Purchase Contract (Contrato de Compraventa): Signed between the buyer and developer, this legally binding document outlines the terms, conditions, payment schedule, and completion date.
3. Completion at Notary (Escritura Pública de Compraventa): The final stage involves signing the Public Deed of Sale before a Spanish Notary, transferring ownership of the property. At this point, the remaining balance and all associated taxes and fees are paid.
4. NIE Number (Número de Identificación de Extranjero): Essential for any financial transaction in Spain, including property purchase. Danish nationals can apply for an NIE at a Spanish Consulate in Denmark or directly in Spain at a police station with a foreign residents’ department.
5. Spanish Bank Account: Opening a Spanish bank account is crucial for managing payments related to the property purchase and ongoing expenses.

Taxes Associated with New-Build Property Purchase

When purchasing a new-build property in Andalusia, buyers should factor in several taxes and associated costs:

• Value Added Tax (IVA – Impuesto sobre el Valor Añadido): For new-build properties, the IVA rate in Spain, including Andalusia, is generally 10% of the purchase price. This is paid directly to the developer at each payment stage.
• Stamp Duty (AJD – Impuesto sobre Actos Jurídicos Documentados): This tax applies to new-build property purchases and is paid on the public deed. In Andalusia, the general AJD rate is 1.2% of the property’s declared value.
• Other Purchase Costs:
  • Notary Fees: These are regulated by the state and typically range from 0.2% to 0.5% of the property value, generally between €600 and €1,500.
  • Property Registry Fees: Also regulated, these usually amount to 0.1% to 0.25% of the property value, with costs ranging from €300 to €700.
  • Legal Fees: It is highly recommended to engage independent legal representation, with fees typically around 1% of the purchase price (plus IVA).
  • Gestoría Fees: If a gestoría (administrative agency) is used to handle post-completion paperwork and tax submissions, their fees typically range from €300 to €600.
  • Mortgage Costs: If financing is required, additional costs may include valuation fees (€300-600) and potential bank opening commissions. Spanish banks typically offer Loan-to-Value (LTV) ratios of up to 70% for non-resident buyers.

In total, buyers should anticipate additional costs and taxes of approximately 10-15% of the new-build property price.

Ongoing Property Ownership and Residency Taxes

Once you own a property and reside in Spain, you will be subject to various annual taxes:

• Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes) / Modelo 210: If you spend less than 183 days a year in Spain and are not considered a tax resident, you will be liable for IRNR. This applies to both actual rental income generated from the property and imputed income for properties not rented out. For EU/EEA citizens, the general tax rate on rental income is 19%. Once you obtain residency and spend more than 183 days in Spain, you will become a tax resident and pay Income Tax for Individuals (IRPF) on your worldwide income. The Modelo 210 is the form used to declare IRNR.
• Property Tax (IBI – Impuesto sobre Bienes Inmuebles): This is a municipal tax based on the cadastral value of the property. The rate varies depending on the municipality but typically ranges from 0.4% to 1.1% of the cadastral value.
• Wealth Tax (Impuesto sobre el Patrimonio): In Andalusia, a significant change in recent years has seen the Wealth Tax bonified at 100% for residents, effectively meaning most residents do not pay this tax. However, it is crucial to note the Impuesto Temporal de Solidaridad de las Grandes Fortunas (Temporary Solidarity Tax on Great Fortunes), introduced by the state, which may apply to net wealth exceeding €3 million, overriding regional bonuses in some cases. The general minimum exempt amount for Wealth Tax is €700,000, with an additional exemption of up to €300,000 for the primary residence.

Relocation and Integration

Beyond the legal and financial aspects, settling in on the Costa del Sol involves practical steps:

• Registering on the Padrón Municipal: This involves registering with your local town hall, which is necessary for accessing local services and often for administrative procedures.
• Driving Licence: Danish citizens can use their Danish driving licence in Spain. However, if you become a tax resident, it is advisable to exchange it for a Spanish one.

Life in Costa is dedicated to helping you navigate the complexities of property purchase and relocation. The developments we recommend are carefully selected to ensure high quality and value, making your transition to life on the Costa del Sol as smooth as possible.