The main target of this measure is to facilitate foreign investments in Spain for non-European citizens, by means of an agile and flexible system directed to those who are considered INVESTORS in their legal concept, ENTREPRENEURS, HIGHLY QUALIFIED PROFESSIONALS, or EMPLOYEES who receive internal job transfers.
Let’s see how to get the Golden Visa
CAPITAL INVESTMENTS
Invest 500,000 Euros or more in Real Estate
Invest 2 million Euros or more in Spanish Treasury Bonds
Invest 1 million Euros or more in shares of Spanish companies
Deposit 1 million Euros or more in Spanish bank accounts
OTHER TYPES OF INVESTMENTS
MAJOR BUSINESS INVESTMENT
HIGHLY QUALIFIED PROFESSIONALS/RESEARCHERS
TRANSFER WITHIN THE SAME COMPANY
Major business investment must fulfil at least one of the following requirements:
➢ creation of job positions as a direct result of the investment
➢ significant socioeconomic impact to the area
➢ contribution to the scientific and/or technological innovation
- Non-EU national (art 61)
- The investor applicant must be of legal age (18-years-old or over)
- The investor must not hold a criminal record whether in Spain or in the previous five years where he has resided
The Difference between Investor Residency Visas and Residency Permits
In addition to the general requirements set out in art 62 which are common to both types, applicants must also meet those stipulated in articles 63 (Investor Residency Visas specific) and article 66 (Investor Residency Permits specific).
This law distinguishes two types of permits:
RESIDENCY VISAS (art 63): on following the requirements (see below) one qualifies for a residency visa which entitles an investor to reside in Spain for up to one year (art 65).
RESIDENCY PERMITS (art 66): however, if an investor wishes to stay longer he must qualify additionally for what is known as a residency permit. This permit entitles an investor to live for up to two years in Spain and is renewable providing the requirements are still met (art 67). This permit will be granted on the following twenty days of having applied for it. It can be granted by the Administrative Silence Rule (ASR) in case of non-reply by the Authorities. This path leads eventually to Spanish citizenship.
In both cases the investment needs to be maintained during the validity of the Residency Visa or Permit. Spanish Authorities may carry out routine checks to verify this is still the case.
Investor Residency Visas
One may obtain a residency visa on investing in any of the following asset classes in compliance article 63.2:
- Investing at least €2,000,000 in Spanish Treasury bonds.
- Investing at least €1,000,000 in shares of publicly trading Spanish companies or non-trading ones.
- Depositing at least €1,000,000 in Spanish bank accounts.
- Acquisition of real estate located within Spanish territory of at least €500,000 per applicant.
- A ‘major’ business investment which fulfils at least one of the following three conditions:
- Meaningful job creation as a direct result of the investment.
- Significant socioeconomic impact in the geographical location where the activity will be carried out.
- Technological or scientific impact.
Residency Permits
To obtain a residency permit one must comply with the following (art 66):
- Comply with the requirements laid out in art 63 (see above for more details).
- Hold a valid investor’s residency visa or one that is not overdue by more than 90 days from the expiration date.
- Have travelled to Spain at least once during the validity of the visa stay (you must be able to support this claim with evidence).
- Provide legal support to uphold the investments made in art 63.2.a) (see above for details) have been held during the mandatory minimum legal period required by law. Depending on the first three cases different legal documents will be required to support this claim.
- Having complied and be up to date with all Social Security and Tax related obligations.
Can I request a mortgage for €500,000 invested in Spanish real estate?
The mortgage can only be requested for the excess above €500,000. The law only requires that the first €500,000 is unencumbered – meaning the equity threshold must be free. The excess can be financed through a mortgage loan if necessary. REMEMBER: THE FIRST HALF MILLION EUROS MUST BE MORTGAGE-FREE, an investor is supposed to have the financial means to come up with these funds unassisted by a lender, whether national or foreign.
Do I need to spend more than 6 months in Spain in order to qualify for residency?
This law targets individuals who will normally reside elsewhere. It only requires that the investor travels to Spain at least once during the validity of the visa. Therefore, residing for at least 6 months is not necessary for the Golden Visa applicant. However, in order to obtain either permanent residency (independent from the investment) or citizenship, the investor needs to prove effective residence (more than 183 days per year) during the legal period (5 years in case of permanent residency and 10 years in case of citizenship).
Can I obtain permanent residency and/or Spanish citizenship through this law?
Does this law prevents applying for permanent residency in already existing procedures?
No it doesn’t. Existing permits and procedures are still valid. This law is specifically tailored for affluent non-EU investors.
Is this law retroactive?
No, unfortunately the investments of €500,000 made prior the law came into force on the 28th of September 2013 do not qualify.
Golden Visa for the investor only?
Even if the law specifically requires that each applicant makes an investment, a husband/wife and children under the age of 18 can be included under the same application (art 62.4).
Are taxes included in the investment threshold?
No, the investment itself must be of at least €500,000. So if the investment is a property for €460,000 plus 10% VAT for a total of €506,000 the applicable VAT of €46,0000 would not count towards the €500,000 threshold and the application would be turned down.
Does Golden Visa allow unrestricted access to European Union countries?
Spanish Residence Permit holders can enjoy free movement within the Schengen area but with a time limit of 3 months per each 6 month period. Currently, the Schengen area consists of 26 European countries (of which 22 are EU states): Belgium, Czech Republic, Denmark, Germany, Estonia, Greece, Spain, France, Italy, Latvia, Lithuania, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Slovenia, Slovakia, Finland and Sweden, along with Iceland, Liechtenstein, Norway and Switzerland.
Bulgaria, Croatia, Cyprus, Ireland, Romania and the United Kingdom are EU states that are not, or not yet, part of the Schengen area.
Where to apply?
Through Spanish embassies and consulates. Contact us and we will take care about everything for you.
Spain’s struggling economy with recent property prices crash which are currently recovering very quickly offer unique investment opportunities for those savvy investors with the appetite to profit from irrational rock-bottom prices.
Spain’s housing market has clearly turned the corner in 2013. The Government has been busy approving the necessary legal amendments advised by the Troika to help pave its way out of the recession on the road to recovery. As evidence of such a recovery we have witnessed a spectacular stock rebound across the board, led by foreign capital, which has driven blue-chip Spanish shares to former highs.
In the real economy, a revival of the property market followed and does continue over the next years fuelled by foreign capital profiting from Spain’s (still) ridiculously low real estate prices. It will surely take longer than a stock rebound but it will eventually happen.
Spanish residency and the ability to travel freely in the European Schengen area together with such a great investment opportunity is surely an attractive combination for many non-EU investors.
There are surely many more questions and doubts that each of you can have. It is obviously highly advisable to get personal advise as ,even if the process seems very easy and straightforward, making sure that all the requirements are correctly fulfilled will allow you to get your Golden Visa together with possibly a new home in Spain stress free and without any complications.
