Spain’s non-lucrative visa accepts life annuities: how to prove the 400% IPREM income
Written by Hans Goldstein, licensed insurance agent · CA 4273294Short answer: Spain’s non-lucrative visa requires 400% of IPREM in 2026, €2,400 a month for one person and €3,000 a month for a couple (a spouse adds 100% of IPREM, €600). Spanish consulates list a life annuity that cannot be cashed out as qualifying income. The proof that works: the annuity contract, an insurer letter stating the monthly amount payable “for the lifetime of the annuitant” with no cash value, a few months of payment statements, all apostilled where required and translated into Spanish by a sworn translator.
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Income rules and taxes by country: Norway, Switzerland, Sweden, Italy, Spain, Malta and more, plus how a lifetime annuity fits.
Most people asking me about Spain already know the number. What trips them up is the paperwork: what exactly the consulate wants to see, and how an annuity fits the categories on the checklist. This page is the document side. For the full rules, renewals and tax, start with my Spain non-lucrative visa guide.
The 400% IPREM rule in 2026
The non-lucrative visa is governed by Real Decreto 1155/2024, articles 61 to 64. The money test is tied to IPREM, Spain’s public income index, which has stayed at €600 a month since 2023.
| Household (2026) | Monthly | About USD a month | Yearly |
|---|---|---|---|
| Single applicant (400% IPREM) | €2,400 | $2,808 | €28,800 |
| Couple (applicant plus spouse) | €3,000 | $3,510 | €36,000 |
| Each extra dependent (100% IPREM) | +€600 | +$702 | +€7,200 |
USD figures assume €1 = $1.17. The main applicant shows the household total, and a non-earning spouse applies as a family member in the main applicant’s care. Savings also count, but they must cover the whole permit period each time, €28,800 for one person’s first year and €57,600 for a two-year renewal, so a shrinking balance looks weaker each round.
Why a lifetime annuity reads well to a consulate
A consulate officer is asking one question: will this person have the required income every month without working in Spain? A life-only annuity answers it in one document. The amount is fixed by contract, it is paid for life, and nobody can cash it out. Spanish consulate pages describe qualifying passive income to include a life annuity that is not capitalizable, which is exactly what a life-only single premium immediate annuity is.
Social Security counts too, so most couples I talk with use the annuity only to fill the gap between their benefits and €3,000, plus some headroom.
Why I write about this. My mom is Norwegian, my dad is American, and they’re planning the move from the US to Norway. My mom is the sponsor (the host, or “reference person” in UDI’s words), so Norway’s income test falls on her income, not my dad’s. UDI told us in writing that money in an account does not count as income, and only lifelong income does. Their savings were not the problem; the paperwork wanted a monthly number in the host’s name. The rules in Spain are different, but the problem is the same one many retirees hit: the income test, not the net worth. I’m writing this to help others in the same boat as my parents. Read how we worked through the Norway income requirement.
In the same boat? Let’s run your numbers
See roughly what a lifetime annuity would cost to close your income gap, then get my personal read by email. I can help while you still live in the US.
Estimates use the September 9, 2026 ImmediateAnnuities.com payout survey (life only) and a 15% cushion. Illustrative, not a quote.
The document checklist for annuity income
- The annuity contract, showing owner, annuitant, the monthly amount and the payout option (life only, or joint and survivor).
- An insurer letter on letterhead stating the monthly amount payable “for the lifetime of the annuitant,” that the contract has no cash value and cannot be surrendered or commuted, and the date payments began. Ask for this wording specifically; a generic policy summary is weaker.
- Proof the money arrives: three to six months of bank statements showing the deposits. This is why I suggest starting payments 3 to 12 months before you apply.
- Apostille: US public documents need a Hague apostille from the relevant Secretary of State. For a private insurer letter, the usual route is to have it notarized and then apostilled. Check your consulate’s current instructions, because practice differs between consulates.
- Sworn Spanish translation of each document not in Spanish, by a translator authorized in Spain (traductor jurado).
- Social Security award letter and any pension statements, so the officer can add up the total.
Each consulate (Los Angeles, New York, Chicago and the others) publishes its own checklist and may ask for something extra, such as a notarized statement of means. Download yours before you order documents, and follow it to the letter.
Sizing the annuity to the bar
Using the September 9, 2026 ImmediateAnnuities.com survey (life only, illustrative, not a quote), a single 62-year-old man with no other income needs about $425,000 to $466,000 of premium to produce $2,808 a month; a woman about $441,000 to $482,000. With Social Security already covering most of the bar, the premium falls fast. Because IPREM can rise and the euro moves, I size with 10 to 25% headroom. Run your own figures in the box on this page.
Couples: put the income where the rule wants it
Spain looks at the main applicant, who must show 400% of IPREM for himself or herself plus 100% for the spouse. So the annuity should normally be owned by and pay the main applicant. If you want the income to continue after the first death, a joint and survivor payout keeps it going. A surviving spouse living alone needs only the single figure, €2,400, which is 80% of the couple figure, so a joint payout that continues at 80% or more still clears the bar.
Where the money lands
Keep a US bank account open for the annuity deposits. It is simple for the insurer, and the statements are easy for a consulate to read. Once you are in Spain you can move money to a Spanish account as you need it. Two notes. First, since January 1, 2026 a US citizen with a residence address outside the US cannot opt out of federal withholding on annuity payments (Treas. Reg. 31.3405(e)-1), even if the money goes to a US account; that withholding is a prepayment you settle on your Form 1040, not an extra tax. Second, a US annuity is a domestic contract for US purposes: it is not a PFIC and not reported on FBAR or Form 8938, which keeps your US filing simpler than holding foreign funds would.
Common mistakes I see
- A period-certain annuity. A 10-year or 20-year payout is not lifetime income and invites questions. Use life only, or life with a refund feature only if the letter can still state no cash value.
- A deferred annuity still growing. A MYGA or deferred annuity that has not started paying is savings, not income.
- Buying after you move. US insurers generally require a US address at issue. Buy while you are still a US resident.
- Forgetting renewals. The first permit lasts one year; renewals look at your means again. An annuity simply keeps paying.
After you arrive: tax in one paragraph
Spain taxes only a slice of each life annuity payment, 24% if payments start at 60 to 65 and 8% from 70 (Ley 35/2006 art. 25.3.a.2º). The annuity does stay in Spain’s wealth tax base at the insurer’s reserve, which matters only above the €700,000 allowance per person. Details in Spain wealth tax and annuities.
The trade-off, once: an annuity is irreversible, pays a level dollar amount unless you buy an increasing payout, and leaves you with currency risk against the euro. In exchange you get the cleanest proof of income the consulate can see, and it repeats itself at every renewal.
Married? Make the income outlive either of you. In Spain the main applicant shows the income and the spouse joins as a family member, so the annuity sits with the main applicant. If a single-life annuity is on one spouse and that spouse dies first, the payments stop, and the surviving spouse may have to show income of their own at the next renewal. A joint and survivor annuity, which keeps paying until the second death, or a separate annuity on each spouse closes that gap. Joint and survivor pays less per dollar than single life, so ask for both quotes and compare.
Experts we point readers to
- MySpainVisa (Lucia Lagunas Reyes): Spain non-lucrative visa applications
- Spain Made Simple (Mark Eastwood): a practical guide to retiring to Spain
- Bright!Tax (Katelynn Minott, CPA): US expat tax filing; retire-in-Spain visas, healthcare and taxes
We link to these because their guides are among the most useful we found. We receive nothing for listing them and are not affiliated. All experts by country.
Frequently asked questions
Free annuity gap analysis for Spain. Tell me your ages, your Social Security or pension, and whether you are single or a couple. I will show how far your income is from the Spain requirement and what a lifetime annuity would cost to fill the gap, in the sponsor’s or main applicant’s name where that matters.
Related reading
- Moving abroad on a fixed income: hub
- Norway: income requirement and my parents' move
- Spain non-lucrative visa 2026: the full guide
- Spain wealth tax and annuities
- Spain vs Portugal vs Italy for American retirees
- Using an annuity to meet a visa income requirement
- Immediate annuity calculator
Sources
- Consulate General of Spain in Los Angeles: non-lucrative residence visa
- Consulate General of Spain in New York: non-lucrative residence visa
- Real Decreto 1155/2024, Reglamento de extranjeria (arts. 61 to 64)
- Ley 31/2022, Presupuestos Generales del Estado 2023 (IPREM)
- Ley 35/2006 del IRPF (art. 25.3, life annuities)
- ImmediateAnnuities.com: immediate annuity rates by age (survey of September 9, 2026)
Goldstein & Co. LLC dba Goldstein Insurance Services · Hans Goldstein, licensed insurance agent, CA lic. #4273294 · NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com
Education, not tax, legal or immigration advice. Rules, thresholds and exchange rates change; confirm with the consulate or immigration authority and a local tax adviser before you act, and get answers in writing. Hans Goldstein is a licensed insurance agent (CA 4273294) and can only offer annuities to residents of states where he is licensed. Annuity payments are guaranteed by the issuing insurer’s claims-paying ability, not by any government. Payout figures are illustrations from a published survey, not quotes. Immediate annuities are generally irrevocable.