The Spain golden visa or investor visa
What is the golden visa in Spain?
The golden visa or investor visa is a residency permit for non-European Union citizens who make a capital investment in Spain.
Which law regulates the Golden Visa?
It is a type of residency permit introduced by the Law 14/2013, of September 27, to support entrepreneurs and their internationalisation, and since its publication, it has generated significant interest among foreign investors. It provides an efficient procedure for obtaining residency that can benefit not only the investor but also their family.
The Entrepreneurs Law has recently been amended by the so-called Startup Act, which introduces some changes to the Golden Visa program and, for the first time, introduces the concept of the Digital Nomad Visa in Spain.
If you want to learn more about the golden visa, we encourage you to keep reading this article, where we will provide you with all the key information to understand its requirements and offer some important tips for a successful application.
Different types of investments for the investor visa application
The Entrepreneurs law establishes different types of capital investments that you can make to obtain the golden visa, which are as follows:
- An investment equal to or greater than 2 million euros in spanish public debt securities.
- Acquisition of shares in spanish companies or deposits in Spanish financial institutions, amounting to 1 million euros or more.
- Investment of 1 million euros in an investment fund, closed-end investment funds, or venture capital funds established in Spain.
- Acquisition of real estate with a value equal to or greater than 500,000 euros. The investor can purchase one or several properties as long as the total value is equal to or exceeds 500,000 euros.
- Establishing a business project in Spain considered to be of general interest to society, meeting one of the following requirements: creating jobs, having a positive socio-economic impact, or contributing to scientific and/or technological innovation.
Among these options, it is undeniable that the most popular and of greatest interest to investors is the purchase of real estate, not only due to the amount of investment required but also because it represents an investment in a robust market like the Spanish real estate market and in a country that offers many attractions in terms of lifestyle and climate.
In the following section, we will provide a detailed analysis of this option.
Detailed analysis of real estate investment: tips for a successful application
What types of real estate can I acquire?
The first thing you need to know is that the law refers to investments in real estate, which means investments in any type of property: homes, garages, storage units, commercial premises, offices, or any property that qualifies as such.
How much should I invest and how many properties should I purchase?
Furthermore, it is established that the minimum investment you must make should be for an amount of at least 500,000 euros, free of any liens. This means that you do not need to buy a single property; you can acquire several as long as the total investment reaches the minimum of 500,000 euros. For example, you can purchase a home and a parking space separately as long as you reach the required amount.
Is it applicable to properties bought years ago?
Lastly, it’s important to know that you can apply for the Golden Visa even if you purchased a property years ago, as long as the purchase took place after the 29th of September 2013, the date the Entrepreneurs law came into effect.
What things should I consider before applying?
From here, the golden visa program raises some questions and issues that are worth clarifying. We encourage you to read the following tips:
- Matrimonial regime: If you plan to purchase property with your spouse, you should consider your marital property regime. If your legal regime is separation of property (applicable in many countries, especially in Anglo-Saxon systems), your investment will need to be at least 1,000,000 euros (i.e., double the required investment). In this case, the recommended option is for one spouse to make the purchase as the investor, so the other can apply for the golden visa as a dependent without the need to double the investment. However, in the case of community property regimes, both spouses can purchase jointly, with one of them applying for the visa as the investor and the other as a dependent.
- Keep in mind that purchase taxes, fees, and other expenses are not considered part of the investment for the golden visa. Therefore, the minimum investment must be reached with the purchase price stated in the deed.
- It is possible to buy a property with a mortgage. If the investment amount is more than 500,000 euros, you can obtain a mortgage for the remaining amount. For example, if your home costs 800,000 euros, you can apply for a mortgage of 300,000 euros.
- You can apply for the golden visa if the buyer is a legal entity, as long as it is domiciled in a territory that is not considered a tax haven according to spanish regulations, and the applicant has the majority of voting rights and the power to appoint and remove the majority of the members of its management body. To prove this, you must request a report from the directorate-general for trade and investment.
- The investment is documented with a certificate of ownership and encumbrances from the property registry. However, if your property is not yet registered, you can request it as long as there is a record of presentation, and you provide a copy of the deed and proof of payment of taxes.
General requirements
The general requirements for the golden visa are as follows:
- Not being irregularly in spanish territory.
- Being over 18 years old.
- Having no criminal record in Spain and in the countries where you have resided during the last two years, for offenses under Spanish law. Additionally, a sworn statement of the absence of criminal records for the last five years must be presented.
- Not being listed as undesirable in the territory of countries with which Spain has signed an agreement to that effect.
- Having public or private health insurance with full medical coverage contracted with an authorized insurance entity to operate in Spain.
- Having sufficient financial resources for yourself and your family members during your period of residency in Spain. You must demonstrate a minimum of 2,400 euros per month for your maintenance. In addition, if you have dependent family members, you must add 600 euros for each of them.
- Paying the fee for processing the authorisation or visa.
Advantages of the golden visa: filling the gap of non-lucrative residency
Why did the non-lucrative residency permit not meet the needs of many non-EU citizens?
The approval of the golden visa or investor visa program in 2013 filled the gap that existed with the non-lucrative residency visa, which initially granted a one-year visa requiring a minimum stay of six months in Spain for renewal, thus establishing fiscal residency in the country.
What innovations does the Golden Visa introduce?
The introduction of the golden visa in our legal system for the first time allows you to obtain a series of significant advantages and rights, including the following:
- The possibility of obtaining a one-year visa if applying from your home country or an initial residency permit for three years if you are in Spain at the time of application (initially granted for two years, but the recent startup act has extended this period), renewable for five-year periods as long as you maintain the investment and enter Spain at least once a year.
- Freedom of movement within the Schengen area countries.
- With your investor residency, you will also receive a work permit.
- You can apply for permits for your family without making a larger investment. This means that along with the investor, your spouse or partner with a similar relationship, minor children, or financially dependent adult children who have not formed their own family unit, and dependent ascendants can accompany you.
- Furthermore, there is no requirement for a minimum residency of 183 days in Spain for permit renewal, so you can maintain your fiscal residency outside of Spain.
All of this, along with the opportunity to enjoy residency in a European country with great appeal, stability, security, and quality of life.
Where to apply for the golden visa
Finally, we would like to explain that you can apply for the Golden Visa in two ways:
- At the spanish consulate in your home country if you are there at the time of application. In this case, you will be granted a one-year visa that allows you to enter Spain, and during its validity or upon its expiration, you can convert it into a three-year residency permit.
- At the Unidad de Grandes Empresas y Colectivos estratégicos (UGE) if you are legally and effectively in Spain at the time of applying for the Golden Visa. In this case, the main advantage is that you will directly obtain your initial residency permit for three years through an expedited process that takes approximately 20 days, without needing to apply at the consulate in your home country. It is crucial that you are not in an irregular stay situation at the time of application, so compliance with the 90-day maximum stay rule in all Schengen countries is essential to avoid your application being denied.
Do you have any question about the Golden Visa application?
Are you planning to get your Golden Visa?
Get in touch with our law firm. At Mael Abogados, we will help you resolve your doubts and assist you in purchasing your property and applying for your investor residency.
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