The Golden Visa or Residency by Investment in Spain is a permit which allows the holder to live in the country for a certain amount of time, and is granted through the investment of at least €500,000 euros.
If you are interested learning more about this type of visa, we invite you to continue reading the following guide which takes on issues like:
What is the residency by investment, and what are its benefits?
A thorough breakdown of the different investment options available with which you can obtain a temporary residency in Spain
The requirements you must meet and the steps to follow in order to process a Golden Passport in Spain
At the end of this article we have prepared a section of Frequently Asked Questions (FAQ) to clear any doubts you may have about this document.
Update of the law regulating the golden visa in Spain
Last April 8, in a statement made by Pedro Sanchez, the current Prime Minister of Spain, he said that the requirements for acquiring residency in Spain via golden visa would be modified. The change mainly affects the minimum investment amount, which would increase from 500,000 euros to 1,000,000 euros. In addition, the investment cannot be real estate. This has been the preferred investment for investors so far.
This modification of the law 14/203 does not have an application date yet. So you are still in time to apply for residency with the current requirements.
Spain’s Residency by Investment Visa
The Golden Visa or Spain’s Investment Visa is a permit that allows foreigners to both live and work in Spain, under the condition that they invest a significant amount of capital in said country, as well as meeting a number of requirements established by the Spanish Judicial Ordainment.
Who is eligible for Spain’s Golden Visa Program?
Only foreign individuals, who also retain no other residency in a EU country, will be eligible for the Golden Passport in Spain.
Benefits of Spain’s Residency by Investment Visa
The following list of benefits will be available to you once you become a resident by investment in Spain:
Possibility to leave the country: Under other visa types, you are required to remain in country for at least 6 months every year. Otherwise, you may lose your residency or simply become ineligible for renewal. This does not happen with the Golden Visa, since you will be able to stay out of Spain for long periods of time without it affecting you ability to either keep or renew your investor residency.
Residency for family: Your immediate family will also be granted the Spanish residency, which means you can stay together and not have to wait for the mandatory one year period that applies with other visa types.
Spanish nationality: If you are able to hold you residency by investment for a period of 10 years, you will have the chance to apply for the Spanish nationality. (For Spanish American citizens, the period goes down to only two years)
Work permit: In addition to the previous points, the Golden Visa includes an authorization so that, both the investor and any relative in working age, can not only reside in Spain, but also work in this country without the need to go through any kind of additional process with the local authorities.
Duration of the residency permit: As a general rule, all residency authorizations in Spain are initially valid through one year, with renewals valid for two years. However, the golden passport in Spain has an initial duration of two years, with renewals valid for five years.
Spain’s Golden Visa Requirements
Up to this point, it is most likely that you understand that a significant capital investment is the top requirement for obtaining a golden visa in Spain. Nonetheless, there are some additional requirements that you must meet, so let’s cover those right now:
Significant Capital Investment
The main idea is that you are in a position to invest, whether it is in the purchase of property, stocks, investment funds, bank deposits and public debt deeds, or by establishing a start up or company. The minimum investment required is 500 thousand euros, but this amount could shift upwards depending on the investment sector that you choose, but more on that later.
Having no prior illegal stays in Spanish territory
It is possible to apply for the Golden Visa while visiting Spain as a tourist, however, it is very important that you have never been in Spanish territory illegally over a period preceding your application for the investor residency.
Being 18 years of age or older
According to the Spanish Civic Code, the legal age is set on 18 years. From that moment on, all persons are considered to be capable of performing any kind of legal process.
Clear criminal record
This means that you cannot be listed in any of the following countries’ “No Admission” list:
Spain
Austria
Belgium
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Italy
Latvia
Lithuania
Liechtenstein
Luxemburg
Malta
The Netherlands
Norway
Poland
Portugal
Slovakia
Slovenia
Sweden
Switzerland
Private health insurance policy
It is also necessary that you purchase a private medical insurance for you and your family with an insurance company that covers Spain. This policy must remain active throughout the duration of your temporary residency and should provide similar coverages to those offered by the National Health System.
Availability of sufficient fundings
You will have to prove and be in possession of sufficient funds for you and your family’s living expenses in Spain. This is measures by using the Multiple Effect Leasing Public Index (IPREM) which is currently set in 538€ euros. Local legislation indicates that, for subsistence purposes in Spain, the investor must prove to be in possession of a monthly amount (in euros) equal to 400% of the IPREM’s standard, plus 100% of that amount for each family member.
This means that if an investor is living in Spain with his wife and two children, they should retain a monthly amount equal to 700% of the IPREM’s standard (400% for the investor and 300% for the additional family members), giving a current total of 3,766€ euros.
Payment of all applying processing fees
Finally, you will have to cover the corresponding fee of the residency by investment application process, which amounts to 80€ euros per person.
Investment Options for Spain’s Golden Visa
There are three main options you may choose from for your investment in Spain as you go about obtaining your investor visa.
Purchase of real estate
Acquisition of stocks, investment funds, bank deposits, and public debt deeds
Establishment of a company
The first option is buying property in Spain in exchange for citizenship. Said property must have a value of at least 500 thousand euros, before taxes. According to the local legislation, the investor has two different ways to accredit real estate:
A certificate of dominion and loads emitted (certificado de dominio y cargas) by the Property Registry (Registro de la Propiedad) corresponding to the property, one which also includes an electronic validation code that can be verified online.
By presenting the corresponding public deed
Another aspect worth mentioning is that your investment may be spread over one or more properties, the only condition being that the amount invested adds up to a total of 500 thousand euros before the taxes established by the Spanish government. Keep in mind that all purchased properties must be free of all grievances or taxes.
The following options are related to the acquisition of different financial instruments and banking operations.
Purchase of stocks or public shares in Spanish capital companies with business activities, the amount for this investment must be of, at least, one million euros.
Investment of a million euros or more in risk capital funds or investment funds in Spain. You will have to present a certificate issued by the fund’s management company, and registered at the Stock Market National Commission.
Bank deposits in Spanish financial institutions amounting to a minimum of a million euros alongside a certificate proving that the applicant is the sole holder of said deposits.
Investment of a starting sum of two million euros in Spanish public debt deeds. In order to accredit the investment it will be necessary to present a certificate issued by the Bank of Spain which shows that the applicant is the sole holder of the transaction.
One last alternative is to perform an entrepreneurial investment, in other words, starting up a company in Spain. For this options the law doesn’t have a minimum amount set for new investments, however, it does require that you meet at least one of the following conditions:
Creation of job opportunities.
Performing an investment that has a significant socio-economical impact.
A substantial contribution to either technological or scientific innovation .
For you to validate any entrepreneurial project as a valid investment aimed at obtaining a Golden Visa, you will have to present a favorable report granted by the Economic and Commercial Office.
Application Process for Spain’s Residency by Investment
Let’s take a look at the steps you will have to take tp get the Spanish residency by Investment.
Considerations
You must apply for this visa in person or through a duly accredited representative.
Your application must be presented no more than 90 days in advance.
All payments are non-refundable, even if the visa is cancelled or denied.
Documentation
Make sure you have all the following documents ready before you start your application process:
Document checklist (2 copies)
National Visa Application, filled in caps and signed accordingly (original and copy)
Passport size photo (black and white, formal wear)
Valid passport or travel document (original and copy)
Valid ID card showing your current place of residence (original and copy)
Criminal background certificate, translated into Spanish, no older than 3 months (original and copy)
Bank statement showing sufficient funds to cover your stay in Spain
Health insurance policy issued by a Spanish insurance company, covering for the investor and accompanying relatives
Release Form duly filled and signed
Payment for all applying fees addressed to Spain’s General Consulate. At the moment of this post’s writing, the corresponding charge for Spain’s property visa is 122 euro. You may check the following site for updated information.
Documentation to accredit the investment
Process
The first step is visiting the official website for Spain’s General Consulate for your country
Navigate the website to schedule an appointment for your procedure, through the site you will be able to consult upcoming available dates and times for you to choose from
Show up to your appointment on time and present the documentation mentioned previously
An adviser will receive you and conduct an interview (additional information or documents may be required at this point)
After a period no longer than 20 business days, you will receive a notification regarding your application’s resolution
How to prepare yourself to apply for Spain’s Golden Visa Program
The following are some recommendations that can help your Golden Visa process:
Double-check all the documentation you will present before the Consulate, Embassy, and UGE-CE
Prepare yourself for you interview with the Spanish official, it is crucial that you can explain your investment in a concise manner, as well as your motives for applying for the residency
Secure the health insurance policies for you and your family beforehand, remember they have to be under a Spanish insurance company
Make sure you open an account in a Spanish bank
Renewal for the Spanish Residency by Investment
Once you have obtained the Golden Visa, you will have two years to reside legally in Spanish territory. After that, you will have to go through the renewal process and, to do that, all you have to do is prove that you are still in possession of either property, shares, investment funds, bank deposits, public debt deeds or company in which you initially invested.
Once your renewal goes through, you will have an additional five years to continue living in Spain. once ten years of legal residence have gone by, you will be able to apply for the Spanish nationality.
Other Countries Similar Residency by Investment Programs
By now you know that it is possible to buy a house in Spain, and secure a temporary residency in this country. The only condition needed is that the value of the purchased property matches the minimum amount established by the Spanish authorities.
Real Estate Residency by Investment Law in Spain
The Real Estate Residency by Investment Law in Spain dictates that foreign individuals may reside in Spanish territory once a significant capital investment is made in the country. According to said legislation, a real estate investment is defined as the acquisition of real estate property in Spain with a purchase value amounting to or above 500 thousand euros before taxes, per applicant.
This law also establishes that, in order to be granted the residency by investment visa, the applicant must provide proof of possession of the real estate property through certification via the Property Registry which indicates said property is free of grievances or taxes and that, in addition, includes an electronic verification code for online validation.
Overview of the Spanish Real Estate Market
If you are considering investing in the purchasing of property in Spain, we recommend you analyze the workings of the real estate market in this country:
High value properties are concentrated in large cities and the Mediterranean coast.
According to some experts, prices will rise between 5% and 6% by 2022.
The choice between buying new or used properties can be settled by considering the following:
Newer housing opportunities offer better construction features like open and brightly lit spaces, as well as desirable common areas like parks and pools
On the other hand, older properties are more affordable and tend to be better located
The top 5 most expensive cities to purchase property in Spain are: San Sebastián, Barcelona, Madrid, Bilbao and Palma de Mallorca, while the most affordable ones are Lugo, Soria, Palencia, Ciudad Real and Castellón.
The average price of housings in Spain amounts to 2,500 euros per square meter
Frequently Asked Questions (FAQ)
What is the Golden Visa?
The Golden Visa is a permit that allows foreign individuals to reside and work in Spain. They are granted on the condition that the applicant makes a significant capital investment in the country.
What is the duration of this residency permit?
The residency by investment has an initial duration of two years, with renewals being valid for five years.
How long does it take to get the Golden Visa?
Once you have submitted your application to the appropriate Spanish authorities, the determination should reach you in approximately 20 business days.
Can I bring my family along with this Visa?
Your immediate family (parents and children) will also have the chance to reside in Spain once you have been authorized the residency by investment.
Which taxes will I be subject to as a Spanish resident?
If the total value of your properties in Spain exceeds 700 thousand euros, then you are subject to an estate tax which ranges from 0.2% to 2.5%
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