Golden Visa in Spain: Your Key to Europe through Investment

What is the golden visa in Spain?

The Golden Visa in Spain, known as Golden Visa or Residence for Investors, is a stay permit created specifically for non-European Union citizens interested in making a substantial investment in Spain, with the objective of moving to and settling in the country.

This initial stay permit entitles you to reside and work in Spain for a period of 3 years, and is renewable every 5 years as long as you keep your initial investment.

This visa is highly demanded by foreigners from all over the world looking to start a new life in Spain. As of 2021, there were 7,425 active visa holders in Spain!

As in other European countries with similar programs, the investment is usually in real estate, although there are other possibilities. In Spain, 3 additional alternatives are offered, which we will detail below.

With an investor visa, you have the freedom to travel throughout the European Union. Even if you apply for the Golden Visa in Spain, you will have the opportunity to explore other European countries.
 

Corresponding law

It is crucial to mention the specific legislation governing the investor residence permit.

This is relevant because it is not the general Alien legislation of Spain, but the Entrepreneur Law 14/2003.

This leads to significant differences.

The distinction between these two laws influences how the application is processed and future renewals. For example, unlike other permits under the Régimen General de Extranjería, you can apply for your investor visa directly in Spain.

There are many other associated advantages. And this is due to the entity in charge of processing your application, which is not the Spanish immigration office.
 

Which entity reviews the applications?

As mentioned, the Spanish Golden Visa is regulated by the Entrepreneurs Law. This legislation includes various residence authorizations established in 2013 to promote talent and investment in the country.

Among them, there is the investor visa, but there are also others such as the Entrepreneur Visa, the Intra-company Transfer Visa and the Highly Qualified Worker Visa.

In order to attract foreign talent and investment, the Spanish Government has simplified the legal process for these applicants, making it more desirable. To ensure this efficiency and speed in the process, a new entity was created to handle each case in a more streamlined manner.

Thus, instead of the local immigration office, your investment visa file will be handled by the UGE. This office is located in Madrid, although applications can be submitted online.

How is the process of obtaining the Spain Golden Visa?

Obtaining a gold visa in Spain is a relatively straightforward and efficient process, especially compared to other Spanish residence permits for non-EU nationals.

The procedures for most residence permits in Spain are usually complex, with a large amount of paperwork and requirements, and often face slow bureaucratic processes. In contrast, the gold visa in Spain is known for its speed and ease, which has contributed to its growing popularity.

Several European countries offer similar options to the Spanish Golden Visa. Each has its own advantages and disadvantages, which will depend on the nature of the investment, the amount to be invested and the specific conditions. However, considering the Spanish real estate market and what Spain offers in general, the Spanish gold visa is often seen as a preferable option.
 

Essential requirements for foreigners investing in Spain

To invest in Spain, foreigners first need to obtain a NIE (Número de Identificación de Extranjero), essential to carry out any legal formalities or economic transactions in the country. This number can be requested from the applicant's country of origin, justifying the intention to invest or purchase property.

It is important to distinguish between the NIE, which is an identification number, and the TIE (Tarjeta de Identidad de Extranjero), which is the residence card that allows living and working in Spain.
 

Who is eligible for the Spanish Golden Visa?

To qualify for the Spanish Golden Visa, an applicant must:

• Not be a citizen of the European Union.
   
• Be of legal age (18 years or older in Spain).
   
• Not have a criminal record, either in Spain or in any other country where he/she has resided in the last 5 years.
   
• Have full health coverage in Spain, either through public or private insurance (travel insurance or insurance from the country of origin are not valid).
   
• Demonstrate sufficient financial means for the maintenance of both the principal investor and his/her family (in case they are also applying for their residence permit).
   
• Make the required investment (either 500,000 euros, 1 million euros or 2 million euros, depending on the option chosen) and provide documentation to prove it.
   

Benefits of the investor visa in Spain

The investor visa in Spain is like a privileged entry to the country. With minimal effort, it offers numerous advantages.

Here are the main benefits of the Spanish investor permit:

• It offers the possibility to live and work in Spain. This visa becomes a pathway to a work permit, allowing you to start your own business or work for someone.
   
• It is the only type of residence permit that grants an initial 3-year authorization to live and work in Spain, unlike others that only offer 1 year.
   
• It requires the holder to visit Spain only once a year, thus avoiding becoming a tax resident and benefiting from tax savings.
   
• Provides freedom of movement within the Schengen area, i.e., in most European Union countries.
   
• Facilitates family reunification in Spain. As an investor, you can apply for residency for your partner and children with a joint application, ideal for families wishing to settle in Spain. For children, they must be under 21 years old, students or economically dependent.
   
• To apply for the Golden Visa, it is not necessary to be physically present in Spain; a representative can be appointed to collect the necessary documentation.
   

Cost and regulations of the gold visa in Spain

To obtain a gold visa in Spain, different types of investments can be made, each with a different minimum. Depending on the investment, the amount required can be 500,000 euros, 1 million euros or 2 million euros.

Investment options are not limited to real estate only.

Options available for the gold visa in Spain include:

• Buying a property worth more than €500,000. If several individuals or investors acquire jointly, the investment is considered individually, unless the marriage is under a community property regime. If the personal contribution does not reach 500,000 euros, the visa cannot be applied for.
   
• Acquiring shares in a Spanish company or depositing more than 1 million euros in a Spanish bank also grants access to this residence permit.
   
• Investing in Spanish public debt for a value of 2 million euros or more.
   
• Investing in a business project in Spain that generates employment, promotes the scientific/technological advancement of the country or has a positive socioeconomic impact.

Apart from the investment, there will be other associated costs, such as taxes, which are unavoidable in almost all transactions in society, including the purchase of real estate.

Criteria for applying for an investor visa

Before proceeding with the investor visa application, it is crucial to have all the documents certifying the investments made ready.

It is important to note that you cannot start the application process without having previously completed the investment.

At the time of application, it is essential to already be recognized as an investor.
 

Required Documentation

A key aspect of achieving residency through investment is to prove, with proper documentation, that the investment has been made.

The question is, what exactly are the documents that validate such investment?

Let's see what they are, depending on the investment option chosen:

• Real estate investment: prove the acquisition of the property with a certificate from the Land Registry, showing the name of the owner, its percentage of ownership and the purchase value. This document will allow the CGU to determine if the investment meets the minimum visa requirements and if a mortgage was used for the purchase.
   
• Investment in Spanish shares: Submit an investment statement from the Investment Registry of the Ministry of Economy for shareholdings; and a certificate from the financial intermediary registered with the National Securities Market Commission for the purchase of shares.
   
• Investment in Spanish public debt: Submit a certificate from the Bank of Spain or the entity that managed the investment. This document must confirm that the applicant is the purchaser responsible for the investment.
   
• Investment in bank deposits: Provide a certificate issued by the financial institution that carried out the transaction, specifying that the applicant is the sole depositor.
   

Process to Obtain the Golden Visa in Spain

As detailed above, it is important to remember that this visa is specifically for investors. Therefore, the first step before applying for the visa is to complete the investment.

After acquiring the property or making the investment, it is necessary to validate the investment.

Documents proving the investment can be submitted from your home country or from Spain. Generally, within 20 days, you will receive an answer about the validation of the investment, which can be positive or negative. In case of being positive, you will have to proceed with the processing of the Residence Permit for Investors within a period of one month.
 

How to apply for the Residence Permit for Investors?

There are two methods to apply for this permit.

The first method is to apply for the Golden Visa from your home country:

• Do it through the Spanish consulate or embassy in your country. You can consult the list of embassies and consulates here.
   
• If the application is accepted, you will be granted a 1 year visa (or 6 months in case of acquiring a property with an earnest money contract) to live and work in Spain.
   
• With this initial visa, you will be able to travel to Spain.
   
• In Spain, you must apply for a residence authorization after that first year (you can convert your 1-year visa into a residence authorization), and you will be fingerprinted for the TIE (Tarjeta de Identidad de Extranjero), which grants you a 3-year residence permit.

The second method is to apply directly in Spain:

• Enter Spain as a tourist (depending on your country of origin, you may need a tourist visa).
   
• Apply for it through the UGE (Unidad de Grandes Empresas y Grupos Estratégicos), which can be managed online.
   
• If the application is accepted, you must apply for your TIE or residence card. After taking your fingerprints at a police station, you will be granted a 3-year residence permit.
   
• As mentioned above, after the first 3 years with the residence card, you can renew it for an additional 5 years. And after living in Spain for 5 consecutive years, you meet the requirements to apply for permanent residency.

How long can you stay in Spain with a golden visa?

With a golden visa obtained at the Spanish consulate, you will have a 1 year visa.

If you applied for it while already in Spain, you will obtain a 3-year residency card, renewable for another 5 years.

To renew, it is crucial to prove that you still own the investment asset and that you have visited Spain at least once a year.

Therefore, maintaining and renewing your residency is a relatively straightforward process.

Eventually, if you are interested, you can opt for Spanish nationality by investment. After 10 years of legal residence in Spain and owning the asset, you can apply for citizenship.

For more information (as there are significant exceptions that may allow you to obtain it in less than 10 years), you can consult about obtaining Spanish nationality here.

Tax Consequences of Golden Visa in Spain

This issue is crucial. When you obtain residency in Spain, you inevitably incur tax obligations.

But what taxes apply and how much?

The answer varies according to individual circumstances, but we will address the most typical scenario.

Since the Golden Visa permit does not require a stay in Spain longer than six months for renewal, it is common for holders of this visa to only visit Spain once or twice a year. This generally classifies them as non-residents for tax purposes, which directly influences the taxes they must pay.

The key issue is whether or not they rent their property in Spain during their absence:

• If they rent it out, they will have to pay Non-Resident Income Tax on the income obtained from the rental. For non-EU citizens, the tax rate is 24% and is declared quarterly.
   
• If the property is not rented and remains vacant, they must pay (annually) 24% of the cadastral value of the property, which is multiplied by 2% or 1.1% depending on whether the cadastral value has been revised or not in the last 10 years.
   
• Additionally, if the total value of their properties in Spain (adding all of them together) exceeds 700,000 euros (although this threshold may vary depending on the region), they will also be subject to Wealth Tax, the rates of which vary between 0.2% and 2.5%.
   

Get now the investor's permit in Spain

At TA Lawyers, we are committed to ensuring that this journey is smooth and enjoyable for you. Our team of experienced immigration and real estate lawyers will guide you through every step of the process, including property acquisition. We handle your entire application meticulously, ensuring a favorable outcome and avoiding costly setbacks.

If you have any questions, or if you need a lawyer specialized in gold visas, do not hesitate to contact us. We are always ready to help you.