Yearly income - Page 2

Good question.  This is still a new process for us Brits and only a relatively small number have gone through the process so far and obtained their visa.

Unless someone who has already obtained their visa has been in a similar position and is prepared to share their financial details (age, size of pension pot and how they presented this as income) then this may be a case where it would be worth paying for definitive advice from a Spanish lawyer who has experience of helping other nationalities to get their visas.

If you do find out then I'm sure that there would be many others on this forum who would be keen to know the answer.

Good luck.

Not sure if you are going through the NLV route currently but the best people to answer this are those at the Spanish consulate - though you might strike it lucky with someone else in the same situation as yours.

Are you over 55 and able to access the SIPP? This is probably key as in principle the entire pot can be accessed albeit with eye watering levels of tax to pay. How far away are you from being able to access the UK state pension? You both look quite young.

Have you taken a tax free lump sum from the pension? If you are not currently a Spanish resident for tax then maybe consider taking out a lump sum. Clearly your pension pot will suffer by not having these funds invested but withdrawals of Eur 34000 a year will attract a fair amount of Spanish tax so swings and roundabouts.

Have you a demonstrated record of taking circa 34k from your SIPP and can the pot sustain this until your state pensions kick in. Likely you'll only need to demonstrate sustainability over the first 5 years of the NLV but who knows how the consulates apply the rules. Its conceivable that the value of the underlying investments in your SIPP could go down in value so if you are tight in terms of valuation today the consulate might see it as a lack of contingency. 

It will be interesting to see how this develops - good luck.

I've taken this extract from the Spanish consulate in Chicago - they have a pdf searchable on the web which covers the NLV for US citizens.

quote - 

5. Proof of adequate liquid financial resources and income: (present all the documents below)  Bank statements of the last 3 months from all your bank accounts (no need to translate)  Social Security Benefits, Private of Public retirement benefit other than the Social Security Administration (Army Veteran, Teacher`s union, etc.) (translated into Spanish)  Proof of sufficient periodic income, including but not limited to: investments, annuities, sabbaticals and any other source of income, providing sufficient funds to live in Spain without working. The minimum income required is 400% of the IPREM (Public Income Index) annually plus the required percentage per each additional family member. For further information about the current IPREM, please follow this link. (translated into Spanish).  If you are not officially retired you cannot present your retirement plan (IRA, 401-K) as a proof. (translated into Spanish)  Last 3 years of complete TAX IRS returns (no need to translate). 

end quote.

The US 401k accounts are similar enough I think to a UK SIPP so the inference is once you are in draw down/ retired you might indeed be able to use it as proof of liquid funds.

http://www.exteriores.gob.es/Consulados/CHICAGO/es/ServiciosConsulares/Serviciosconsularesenchicago/Documents/documentosvisados/nolucrativa.pdf

Below is the link to the UK Spanish consulate's pdf - it makes no reference to SIPP's though given so many in the states have 401k/ IRA accounts that's likely the reason. Very few still have SIPP's in the UK.

http://www.exteriores.gob.es/Consulados/LONDRES/en/Consulado/Documents/RES%20ES-EN.pdf

quote - 

8. Financial means required to cover the living expenses and, where appropriate, those of their family members, for one year, in accordance with the following amounts: - For the support of the main applicant, monthly, 400 % of the IPREM (Indicador Público de Renta de Efectos Múltiples), which in 2021 amounts to 564,90 €, being 2.259,6 € or its legal equivalent in foreign currency. - For the support of each of the family members in charge, monthly, 100% of the IPREM, which in 2021 amounts to 564,90 € or its legal equivalent in foreign currency. The availability of sufficient financial means will be evidenced by the submission of original and stamped documents that verify the perception of a periodic and sufficient income or the holding of an estate that guarantees the perception of that income. If the financial means come from shares or participations in Spanish companies, mixed or foreign companies, based in Spain, applicants shall prove, by certification thereof, that they don’t carry out any work activity in such companies and will submit an affidavit to that effect.

- end quote.

Thanks for the reply Lancelot . That’s really interesting stuff. I’m 56, retired six weeks ago, so have only recently started taking a small amount of  TFC and havent touched the balance pension (yet). I therefore have no pension track record to use as evidence at this point however we are happy enough for now doing the 90/90 days thing for the next couple of years.
I had been wondering how this would work should we want to spend more time in Spain and move there on a more permanent basis. I guess through these forums we will hear of what’s actually required from others in similar situation, having a Sipp rather than a final salary pension to use as evidence , however unfortunately  I won’t be the guinea pig - well not for a year or two anyway until we decide for sure that we’d prefer to be out the UK on a more permanent basis and I fully understand the tax and healthcare implications. Lots to think about ,thanks  again. 

Thanks for this . I’ve just replied to Lancelot explaining I’m not quite ready to be the guinea pig ! Lots to think about , thanks again. 

No free healthcare for pensioners in the states. Once on social security you have Medicare which is deducted from your amount you receive each month usually around 147.00 per month. Most have to then buy an additional supplement to help with prescription medication costs which can easily cost 100.00 additional each month or more. This does not cover all costs either you still are responsible for the amount after social security pays their portion. Im an American married to a Brit living in Spain. As an example had kidney stone surgery in USA after medicare paid their portion still owed over 7,800.00. Healthcare is one of most expensive things currently in the USA. 

Thanks for the info.

Hi Steve

I have just spoken to Newcastle S1 form department and they have told me once you become pensionable age you can still have the S1 form sent to you in Spain and hand it to the social security . It is been agreed with the Eu. 
hope this is helpful

That's correct, Monkey, please see my responses on page 1 of this thread.

Kind regards,

Kim

Thanks for that, I thought that I was correct saying that as a UK pensioner you would still be entitled to the S1, but when the OP Robbie put some doubts in my mind I tried to look up further up to date information but couldn't find anything so assumed that maybe I was wrong. Glad everything is correct, thanks Monkey and Kimmy. 

Steve