Thanks for your thoughts,
My starting point was the relevant legislation, but lately I have some concern since some, like you, expressed their doubts. This could off course have to do with the fact its not the most common situation.
The legislation to follow , to the best of my knowledge
http://eur-lex.europa.eu/legal-conte...2A0430%2801%29
I. BASIC PROVISIONS
Article 6
Right of residence for persons not pursuing an economic activity
The right of residence in the territory of a Contracting Party shall be guaranteed to persons not pursuing an economic activity in accordance with the provisions of Annex I relating to non-active people.
FREE MOVEMENT OF PERSONS
I. GENERAL PROVISIONS
Article 2
2. Nationals of the Contracting Parties not pursuing any economic activity in the host State who do not have a right of residence pursuant to other provisions of this Agreement shall, provided they fulfil the preconditions laid down in Chapter V, have a right of residence. That right shall be substantiated through the issue of a residence permit.
V. PERSONS NOT PURSUING AN ECONOMIC ACTIVITY
Article 24
Rules regarding residence
1. A person who is a national of a Contracting Party not pursuing an economic activity in the state of residence and having no right of residence pursuant to other provisions of this Agreement shall receive a residence permit valid for at least five years provided he proves to the competent national authorities that he possesses for himself and the members of his family:
(a) sufficient financial means not to have to apply for social assistance benefits during their stay;
(b) all-risks sickness insurance cover(7).
The Contracting Parties may, if they consider it necessary, require the residence permit to be revalidated at the end of the first two years of residence.
2. Financial means shall be considered sufficient if they exceed the amount below which nationals, having regard to their personal situation and, where appropriate, that of their family, can claim social security benefits. Where that condition cannot be applied, the applicant's financial means shall be regarded as sufficient if they are greater than the level of the minimum social security pension paid by the host state.
3. Persons who have been employed for less than one year in the territory of a Contracting Party may reside there provided they comply with the conditions set out in paragraph 1 of this Article. The unemployment benefits to which they are entitled under national law which is, where appropriate, complemented by the provisions of Annex II, shall be considered to be financial means within the meaning of paragraphs 1(a) and 2 of this Article.
4. A student who does not have a right of residence in the territory of the other Contracting Party on the basis of any other provision of this Agreement shall be issued with a residence permit for a period limited to that of the training or to one year, if the training lasts for more than one year, provided he satisfies the national authority concerned, by means of a statement or, if he chooses, by any other at least equivalent means, that he has sufficient financial means to ensure that neither he, his spouse nor his dependent children will make any claim for social security of the host state during their stay, and provided he is registered in an approved establishment for the purpose of following, as his principal activity, a vocational training course and has all-risks sickness insurance cover. This Agreement does not regulate access to vocational training or maintenance assistance given to the students covered by this Article.
5. A residence permit shall automatically be extended for at least five years provided that the eligibility conditions are still met. Residence permits for students shall be extended annually for a duration equal to the remaining training period.
6. Breaks in residence of less than six consecutive months and absences for the purposes of fulfilling military service obligations shall not affect the validity of the residence permit.
7. A residence permit shall be valid throughout the territory of the issuing state.
8. The right of residence shall obtain for as long as beneficiaries of that right fulfil the conditions laid down in paragraph 1.