Switched to non-lucrative after my company refused the DNV paperwork
i actually disagree that the NLV is a good backup for someone who wants to work. if you get caught working remotely on a non-lucrative visa you can get deported and banned from the schengen zone. the government is not stupid and they do check bank movements. if they see regular transfers from a company in the US or UK and you are on an NLV you are going to have a very bad time with immigration. i would have just pushed harder for the DNV or found a different job.
it is not that easy to just find a new job that allows remote work from spain though. the market is absolute trash right now. most people would rather take the risk or just live off savings than lose the chance to live here. as long as he isn't getting a monthly paycheck it is hard for them to prove anything.
you honestly made the right call for your mental health. i tried to get my UK company to sign that social security form for months and they eventually just stopped answering my emails about it. the DNV is a great idea on paper but the actual implementation for people with full time jobs is a total mess right now. enjoy the sabbatical in alicante. honestly, having a year off at the beach sounds better than stressing over HR paperwork anyway.
it is crazy how much more difficult it got this year. companies are all terrified of the permanent establishment thing like it is the plague. even the big law firms here in valencia are telling people to just go the NLV route if they have the cash saved up.
it is a shame you had to give up the DNV because of HR. spain really needs to simplify the process for employee contracts if they actually want nomads to come here. the social security stuff is a nightmare for any company that doesn't already have a spanish entity. enjoy the costa blanca though. the weather in alicante is unbeatable during the winter months when the rest of europe is freezing.
be careful with the modelo 720. since you are now a standard tax resident you have to declare all your assets outside of spain if they are over 50k euros. the fines used to be insane but even now they are still a headache. a lot of people moving to alicante on an NLV forget that part and get hit with huge fees a couple years later. talk to a proper gestor who specializes in international tax, not just a residency agency.
I did the same thing. The DNV is great on paper but many corporate legal teams are terrified of the tax implications for the company. Better to be here on an NLV than not here at all.
Exactly. If you have the savings, the NLV is much faster. I got mine approved in three weeks while my friend has been waiting four months for a DNV response. enjoy the beach in Alicante, it's the best weather in Spain.
Wait, if you are on an NLV you literally cannot work. Are you sure you're okay with that? Hacienda isn't stupid and if they see remote income coming into a Spanish bank account they will flag it.
The IPREM went up again so the savings requirement is getting pretty high. I think it is around 30k now for the main applicant. I am stuck waiting for the UGE to approve my DNV even though my company signed everything. The backlog is crazy.
are you sure about the beckham law thing? i thought even with an NLV you might be able to qualify if you meet specific niche criteria, but maybe i am wrong. either way, being a standard tax resident in spain on investment income isn't always the worst thing if you have the right exemptions. just make sure your agency actually knows the 2025 IPREM numbers because they went up again and some lawyers are still quoting 2024 rates.
my company in the US did the exact same thing. they were fine with it until their legal department saw the certificate of coverage requirement. they basically told me i could stay in the states or quit. i'm currently looking at the NLV too but the cost of private health insurance in alicante for a family of four is making me second guess things. which agency did you end up using? i need someone who actually picks up the phone.
i did the same thing in malaga last year. the tax hit is definitely the biggest pill to swallow. you lose that 24 percent flat rate and suddenly you are looking at the progressive scales which can get up to 45 percent or higher depending on what you are making. it is a huge difference. do you have a plan for when the year is up? you can usually modify the NLV to a work permit after the first year if you find a local job or if your company changes their mind.
the problem with modifying is you still have to wait that full year. for a lot of people that is too long to go without a salary. plus you have to prove you haven't been working remotely in secret which the government is starting to crack down on. Just be careful with your linkedin during the sabbatical.