Taxes with NLV

I am just starting to investigate the  required taxes on retirement earnings with a NLV.

It seems as though it may be over 30-35%. Has anyone found a way to be in a lower tax bracket?  Thank you!

Can you explain the acronym - NLV?

What country are you moving from and what will be the primary source of your retirement income while living in Spain?

Do you plan to become a Spanish Tax resident?

I am working on my Spanish NLV (non-lucrative visa) as well.  Do I have the option of becoming a Spanish tax resident?   I am moving from the USA.


Non lucrative visa. Moving from US. I've done a lot of research and seems as though taxes on retirement income will be over 35%



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NLV  is a Non Lucrative Visa

you are not allowed to work, but can have a passive income, pension and savings.

There's a tax treaty between US and Spain, you may want to find a tax accountant who is familiar with this agreement and taxation of US expats.

If you are on an NLV, in the first 5 years of the visa you can't leave the country for 183 days of the year.  This amount of time is what is used to determine whether or not you are a Spain tax resident.  So, should you abide by the restrictions of NLV, you will be a tax resident subject to Spain taxes the first 5 years.

After that, your visa can be converted to long term and you could leave Spain for a longer period of time, maybe enough to avoid being a tax resident.  But you would have to leave, implying having a home somewhere.  Or doing a lot of holiday traveling.  I know people who do that.

You will be subject to Spanish income tax when you become a Spanish resident and it is higher than US federal tax. Spain has some of the world's highest income tax rates and has a wealth tax. You will have to file both Spanish and US tax return. You will get credit from you US federal taxes for tax paid in Spain. You will need a US based CPA to prepare your US Tax return and a Spanish accountant to prepare and file your Spanish return. The Spanish tax preparers typically charge three times more than the US equivalent.