Frequently Asked Questions
The so-called Spain Golden Visa is a residence permit for non-European Union citizens who invest in real estate in Spain equal to or exceeding 500,000 euros. The Golden Visa initiative was approved by Spain in 2013 and has been adopted by other countries such as Malta, Portugal, and the United Kingdom to attract foreign investors who wish to purchase real estate or other properties. In return, these foreign investors find it easier to obtain a residence permit. Follow the guide provided by the Intercontinental Immigration Editor to learn more about the Spain Golden Visa application: conditions, policies, investment costs, and frequently asked questions!
Spain Golden Visa Application Requirements:
In order to successfully apply for the Spain Golden Visa in 2019, applicants must meet the following requirements:
- You must be a resident of a country outside the European Union. It is important to remember that it is designed for investors from outside Europe.
- Be over 18 years old.
- Have no criminal record.
- Possess private health insurance in Spain.
- Demonstrate sufficient financial means to live in Spain and support your family.
- Make the corresponding investment, the specific amount of which depends on whether it is one type of investment or another. Here, you can list all possible investments:
- Investment in public debt equal to or greater than 2 million euros.
- Investment in bank deposits of Spanish entities or Spanish company stocks worth more than 1 million euros.
- Purchase of real estate in Spain worth more than 500,000 euros.
- Establishment of a business in Spain that must meet the following requirements:
- Creation of jobs.
- Significant impact on the socio-economic level of the country or region.
- Representation of scientific or technological innovation.
Documents Required to Obtain the Spain Golden Visa
As we have seen, one of the basic requirements to obtain the residence permit for real estate investment is to prove that the investment has been made through the appropriate documents.
1. Which documents can prove this investment reasonably?
If we intend to obtain the Spain Golden Visa through real estate investment, we must provide proof of land ownership, proof of registration fees at the Land Registry, and the deed of sale for the purchased property as evidence of the property acquisition.
For investments in Spanish stocks or shares, the following documents are required: a declaration from the Ministry of Economy’s Investment Registry regarding the investment, and a certificate of stock purchase from a financial intermediary registered with the National Securities Market Commission (Comisión Nacional de Mercado de Valores).
If the investment involves Spanish public debt, proof from a Spanish bank or the financial institution managing the investment is required, clearly indicating that you are the holder of the transaction.
Finally, for investments in bank deposits, you will need a certificate issued by the financial institution with which you conducted the transaction, proving that you are the sole holder of the deposit.
2. Who can benefit from this visa?
The Golden Visa is specifically designed for individuals from outside the European Union who intend to make substantial investments in Spain to obtain their residency.
The countries that undoubtedly benefit from obtaining this residency permit include China and Russia.
However, individuals from Iran, Venezuela, and Lebanon have also utilized this visa for various purposes, including engaging in notorious activities.
What is their main motivation? Their primary motivation often revolves around finding a secure place to invest money in Spain, thereby earning a visa that significantly streamlines the application process compared to most other permits.
Benefits of the Spain Golden Visa
One of the main benefits of the Spain Golden Visa is the preferential treatment it offers. With these visas, you can obtain a residence permit through a fast-track process, receiving an initial direct subsidy valid for one year and renewable every two years.
Moreover, the residence permit obtained through the Spain Golden Visa allows you to travel freely throughout the remaining 26 European countries in the Schengen Area. Freedom of movement is a key reason for pursuing a real estate investment visa. However, there are more advantages: the Spain Golden Visa makes the issuance of the visa more flexible not only for the investor but also for their spouse and children under 18, as well as for those obtaining visas to attend public schools. Newborns in Spain will acquire Spanish citizenship at the end of the year without any additional requirements.
Spain Golden Visa Taxes
When you purchase real estate and obtain a residence permit in Spain, you will certainly need to pay some taxes. The types and amounts depend on the time you spend in Spain during the year. If you stay in Spain for more than 6 months, you will be considered a Spanish resident, and your global assets and income will be subject to taxation in Spain. If your stay in the country is shorter, you only need to pay taxes initially when buying real estate and then on the value of assets in Spain.
2. How much time does it take to obtain the Spain Golden Visa?
After submitting all documents to the authority, it may take about 20 days to make a decision.
Upon receiving this resolution and obtaining a favorable result, we have one month to apply for the visa at the Spanish consulate in the investor’s home country. By then, we will need to travel to Spain as we will be required to present the approved Golden Visa application.
The next steps involve obtaining the TIE (Tarjeta de Identidad de Extranjero) and attending any police station for fingerprinting. There is also no time to waste as we have only one month.
If you don’t want to spend time on all these tedious procedures, let us take care of it for you! Contact us to obtain your Spain Golden Visa: from start to finish. You just need to sign!
3. How long is the duration of the residence permit?
Once an investor obtains the Spain Golden Visa, they will have a legal residence period of 2 years within the territory of Spain.
After this initial temporary period, the applicant can apply for a renewal, allowing them to legally reside for an additional 5 years.
To carry out this renewal process, the concerned individual must demonstrate ongoing ownership of the assets chosen for investment, whether it be real estate, shares, or public debt.
Additionally, you must have visited Spain at least once during each year.
It’s important to note that the Spain Golden Visa is one of the various ways to acquire Spanish nationality. After legally residing in Spain for 10 years, investors will be eligible to execute the relevant procedures.
Permitted Investments for Obtaining the Spain Golden Visa
The requirements for obtaining the Spain Golden Visa are stipulated in Articles 62, 63, and 64 of Law 14/2013.
There are a total of 8, although in fact, the most relevant is the capital expenditure, ‘all the information submitted to the file will be assessed without any factor in itself being a substitute for the assessment of the concession’ (Standard 1.1. applies to Law 14/2013). In other words, compliance with one condition cannot replace compliance with other conditions. That is why each one must be fulfilled.
Significant investment.
The most important condition refers to the fact of making a significant monetary investment, which can be carried out in six different ways according to Article 63.2 of Law 14/2013. One is through real estate investment, another is through investment in real estate (including four types of assets), and finally, it is an investment in a general company project.
Real estate investment
The value of real estate investment is 500,000 euros plus taxes (Article 63b of Law 14/2013).
According to Article 64b of Law 14/2013, ‘the claimant must prove that they have acquired ownership of the property through ownership certificates and one or more expenses related to it from the Land Registry.’ This certification can include electronic verification codes for online consultation. The qualification will include the amount acquired; in other cases, it will be approved by the corresponding public deed.
In real estate investment, it must be equal to or greater than 500,000 euros, plus taxes, but it must be included in one or more properties of this type. Spanish courts have made multiple rulings on this matter. One of the decisions explaining this point is as follows:
Furthermore, this stems from the literal wording of Article 63.1.b) of Law 14/2013 mentioned above, where the investment value is referred to as ‘acquiring real estate in Spain,’ in plural form, indicating that 500,000.00 euros do not necessarily have to be invested in a single property, but it is also possible that the investment has been made in more than one property” (STSJd).
To meet the requirements of real estate investment, not only must the valuation of the property or the sum of properties (if multiple) be at least 500,000 euros (tax included), but this amount must also be free and unencumbered. However, it should be noted that ‘the investment portion exceeding the required amount [500,000 euros] may be subject to certain fees or taxes’ (added by us/Article 64.b of Law 14/2013).
The taxes payable for the Spain Golden Visa when purchasing real estate
One of the considerations when applying for the Spain Golden Visa is that we must apply the corresponding taxes to the 500,000 euros investment. The general rule is that if it is the first transfer, the activity will be subject to Value Added Tax (VAT). If it is the second or subsequent operation (sale of second-hand property), Transfer Tax (ITP) will be required to be paid.
The applicable Value Added Tax (VAT) rate or percentage for real estate transactions is 10%. As for Transfer Tax (ITP), the percentage may vary depending on the autonomous community in question. For example, in Madrid, it is 6%.
In the example above, if the purchase price is 500,000 euros and Value Added Tax (VAT) is applicable on the sale, the amount to be paid between the property value and the tax is 550,000 euros (500,000 euros + 10% VAT).
Continuing with this assumption, if the transaction is subject to Transfer Tax (ITP), then the amount to be paid would be 530,000 euros (500,000 euros + 6% ITP).
Frequently Asked Questions about Spain Golden Visa
4. What is the Spain Golden Visa?
The Spain Golden Visa program is a new residence-focused investment visa program established by the Spanish government in 2013. The target audience for this program is non-European Union foreigners who wish to make a capital expenditure or actual spending of at least 500,000 euros on property. Eligible applicants and their direct family members will be granted a residence visa, and they may be eligible for permanent residency and Spanish citizenship.
You need to make an investment of at least 500,000 euros to qualify for the Spain Golden Visa.
To qualify for the Spain Golden Visa, you need to make an investment in at least one of the following options:
- Real Estate Assets (500,000 euros)
- Stocks or Bank Deposits (1 million euros)
- Government Bonds (2 million euros)
- Joint ventures with companies in Spain are considered to have general economic interest.
5. How long does the Golden Visa in Spain last?
This is a two-step process. First, you need to comply with the requirements of the Spanish investor visa to receive the visa provided by the Spanish consulate or embassy. It allows you to travel to Spain multiple times within one year. During this year, it is expected that you will fly to Spain and personally apply for a residence permit.
6. How much does it cost to obtain a Spanish Golden Visa?
This depends on your investment choice. To obtain the Spanish real estate visa, you need to purchase real estate with a minimum value of 500,000 euros. You can invest in multiple properties. Another option is to deposit at least 1,000,000 euros in a bank or purchase 1,000,000 euros worth of shares in a Spanish company. Ultimately, you will have the option to contribute to government bonds worth 2,000,000 euros.
7. What documents are required for the Spanish Golden Visa application?
You will need to provide documents that include evidence of your investment.
For real estate, you will be required to present property registration certificates and real estate purchase deeds.
For unlisted stocks and equity, submit the acquisition declaration to the Investment Registry of the Ministry of Economy and Competitiveness.
For listed stocks, provide brokerage statements registered with the National Securities Market Commission (CNMV) or Spanish Bank.
For public debt, present proof from financial institutions or Spanish banks, confirming that the applicant is the sole owner of the investment, with a minimum term of 5 years.
For bank deposits, provide a financial institution certificate indicating that the applicant is the sole owner of the bank deposit.
For business projects, a favorable report on the business and entrepreneurial activity in Spain must be submitted before applying for the visa or permit.