Los Angeles, USA

·

Dubai, UAE

·

Cebu, PH

REQUEST A CALLBACK +1 (310) 929-6221

Spain Golden Visa Guide – EU Residency by Investment

Mark Damsgaard

Mark Damsgaard

Founder of Global Residence Index

Last updated: February 15, 2024

Spain Golden Visa Guide – EU Residency by Investment

Obtaining the freedom to live and work in a European Union country is a dream for many, and the Spain Golden Visa paves the way for just that. It offers the prospect of long-term EU residence and even the path to citizenship. 

Here at Global Residence Index, I am proud to say that we’ve honed the process of simplifying visa applications, guiding our clients seamlessly toward their European Union dream residence. With a decade of experience in the investment migration industry, our company consistently offers advisory services and solutions to high-net-worth individuals worldwide.

In this article, we’ll dive into the process of securing the Spain Golden Visa and provide the necessary details for you to use as a guide moving forward.

So how can obtaining Spanish residence enhance your global mobility by diversifying your asset portfolio into a new country and continent? There are several benefits to participating in the Spanish Golden Visa residence program. Some might consider diversifying risk, while others look at the program to enhance an offshore asset portfolio.

Spanish Golden Visa Intro

Spain introduced its Golden Visa program in September 2013. This program allows foreign investors and their families to obtain residency in Spain by making certain qualifying investments, such as real estate. 

Spain has been a popular choice among non-EU nationals (including British citizens) looking to live and invest in Spain and gain access to the European Union.

Spain’s high standard of living and rapidly developing economy make it incredibly enticing. This dynamic combination appeals to families and businesses alike, positioning Spain as a prime choice for future investments.

Investment Routes for Temporary Residence

A snap-shot look at the investment requirements and eligibility for the Golden Visa include: 

  • Investing €500,000 in property (unrestricted). Residency for the acquisition of real estate (RIV); 
  • €2 million in Spanish Government Bonds. Residence for Capital Investors (RIC); or
  • €1 million in shares in Spanish companies. Residency for Capital Investors (RIC).

The most popular option is to acquire real estate in Spain worth at least €500,000. This can be a single property or spread across multiple assets. Applicants who take this route often purchase luxury villas, apartments, hotels, or commercial office space to obtain residence rights. The real estate can produce rental income while fulfilling the minimum investment threshold. An essential piece of information on real estate investment involves taxes. Property transfer fees and taxes on a €500,000 residential property amount to around €50,000 or more, which is non-refundable. Whereas for commercial property investments, the taxes are generally only 1.5% (but it does depend on the location of the property as well).

Investing €1 million or more in Spanish stock or shares in national companies is another path to residency. Funds can be placed with qualifying investment funds supervised by Spain’s financial regulatory body.

For those able to commit €2 million, buying Spanish government bonds for at least five years is an option. Spain issues various types of sovereign debt that promise repayment of the principal plus interest. While not as liquid an investment as the other two options, these low-risk bonds demonstrate the investor’s vested interest in Spain’s economic growth and stability.

Each qualifying investment has a five-year holding period. If investors sell their assets, they cannot renew their residency. 

Eligibility and Dependents

The financial requirements are only part of the eligibility test. Additional criteria for the primary applicant will include: 

  • The primary applicant is over eighteen;
  • No criminal record in the last five years and are not on any sanctioned lists or are a politically connected person (PCP);
  • Private healthcare at the time of application to a minimum of €30,000 cover;
  • Do have existing debt in Spain or considerable bad debts in Europe;
  • Proof of financial solvency from income to live on without working in Spain;
  • No rejections for residence of other countries in Europe, UK, USA, Australia, Canada and New Zealand or from Spain; and
  • Have a clear illness record. 

What does financial solvency require for the primary applicant? 

They need to prove that their offshore earnings will exceed the minimum wage in Spain by four times (400%). According to IPREM, Spain has a minimum wage of €600 per month, thus making the IPREM €2,400 if a Golden Visa applicant is applying alone. Spain further requires an extra €600 per additional dependent. 

The financial solvency requires that a whole year be transferred into their Spanish bank account for residence approval. For an individual this equates to €28,800, while for a family of four will require a transfer of €50,400 in 2023. Each renewal will require the applicant to increase the deposit as IPREM increases. 

Dependents can be included in the primary applicant. First and foremost, a spouse is eligible as long as their marriage or partnership is registered. There are very few requirements for other immediate dependents. 

All children under eighteen years of age are eligible. Any children over eighteen are eligible if they are unmarried and are 100% financially dependent on the primary or spouse. This goes for parents as well. There is no age limit to being included if financial dependency is shown. 
 

Seeking expert immigration guidance?

Navigating through immigration programs can be complex and overwhelming, regardless of the country or program you’re interested in. If you’re struggling to find clear, accurate information, you’re not alone. Our team is here to offer you clarity and reliable advice across a wide range of immigration programs.

By scheduling a consultation, you’ll receive personalized guidance tailored to your unique situation. We’re dedicated to helping you understand the details of various immigration programs, making them more straightforward so you can proceed with confidence.

During our call, we will:

  • Address any specific questions: We’ll answer your questions about the program and the application process, providing you with the clarity you need.
  • Detail every step: We’ll break down each stage of the immigration process, ensuring you know exactly what to expect.
  • Evaluate program suitability: We’ll help you determine if the chosen program is the right fit for you or suggest alternatives that may better align with your goals.
  • Connect you with local professionals: Gain access to our network of recommended local lawyers in the respective country, as well as trusted providers of eligible investment options.

 

 

Step-by-Step Golden Visa Process

Obtaining a Spanish Golden Visa is a straightforward process.

First, select your preferred investment route. Will you purchase real estate, invest in a business, or park your funds in a Spanish bank? Our team of experts at Global Residence Index will assess your options and provide guidance based on your goals. We take pride in our bespoke approach to each client.

A lawyer with power of attorney for the applicant will obtain a taxpayer number, open a bank account for the investor, and prepare the investment documents. Then, the investment component will be exercised to allow for submission of the Golden Visa application. 

Next, with support from our legal team, submit your Schengen Visa application. We’ll ensure your paperwork is meticulously prepared to avoid any delays. Top-quality case management is arguably the most important service that a client can receive. 

After submission, it’s time to visit Spain and provide biometric data as part of the approval process. The next step is to arrange your appointment at the consulate and the logistics of submitting a complete case file. Usually, this step takes around one to two months, depending on the availability of appointments. 

The final step is waiting for the results as the authorities review your application. Although there is a stipulation for a response within twenty days, approval typically takes one to three months.

Once approved, it’s time to collect your Golden Visa and unlock the privileges it grants.

Unrestricted Path to Permanent Residence and Citizenship

The residence permit will be for one year if requested from abroad and for two years if it is requested in Spain. Once this period has elapsed, the beneficiary may apply for the renewal of the Visa, which, once obtained, will result in a further five years of residence permit.

In order for the renewal to be approved, two main requirements must be met:

  • Proof that the investment for which the Visa was obtained is still valid; and
  • Having been in Spain at least once during that year.

To have unrestricted permanent residence, the investors must remain in Spain continuously for five years. This is approximately 300 days per year, which will trigger the investor to become a tax resident in Spain. They can, however, sell their Golden Visa assets and maintain permanent residence. 

After ten years of continuous residence, an investor is eligible for citizenship. Spain does have a fast-track naturalization process for certain nationalities. Citizenship is attainable after just one year of residence if married to a Spanish citizen.

Additionally, applicants from any Ibero-American country, Portugal, Philippines, and Equatorial Guinea, can apply for citizenship after just two years of residence. The Golden Visa residence is a quick and easy route to citizenship for these citizens under fast-track naturalization. 

The continuous residence rule has recently been challenged in the Spanish courts, as tax residence is no longer a requirement for continuous residence. The Supreme Court has ruled that the provision in the Immigration Law regarding the cancellation of temporary residence permits based on absences exceeding six months in one year is no longer valid. 

In theory, this allows more flexible residence, leading to the ten-year eligibility for citizenship. However, citizenship applications are not only reliant on time. There are several other criteria which are factored into approval.  

Pros and Cons of Long-Term Spanish Residence

Spain is one of the most visited countries in the world and hosts hundreds of thousands of expats, making the Iberian country their home. The Spanish Golden Visa has many benefits, including traveling throughout the Schengen area for 90 days in 180 days on your Spanish ID. Residence holders do not have to obtain a Schengen visa.

Investors in Spain’s Golden Visa will have access to banking and other financial instruments in Europe. Dependents can enjoy education and health care as local residents. 

A few potential negatives include that investors and their dependents cannot work on the Golden Visa. They need to obtain a different residence permit to work in the country. Becoming a tax resident can lead to taxing income in the high forty percent. However, expats have the option to register for Beckhams Law. Beckhams Law allows a taxpayer’s first €600,000 to be taxed at 24%. Anything income above €600,000 is taxed at 47%

Ultimately, the Spanish Golden Visa is an incredible investment opportunity and program that can provide long-term, flexible residence in a European Union country.

Frequently Asked Questions 

What is the minimum investment requirement?

The minimum real estate investment is €500,000, while for bank deposits or shares in Spanish companies, the minimum outlay must be €1,000,000. If the investment is made in public debt, it must be at least €2,000,000.

What are the physical presence requirements?

With the Golden Visa, staying in the territory is not obligated. You will only have to travel to Spain to renew your permit. There are different requirements for unrestricted permanent residence and citizenship. 

Can I apply for a loan to obtain the Spanish Golden Visa?

No, that is not possible. To apply for the Golden Visa, you must make the initial investment from your funds. However, we do have real estate management partners in Spain that will offer you an upfront guaranteed yield on commercial rental property, effectively giving you the same benefit as a loan would.

Can I rent my property for rental income if I purchase real estate? 

Yes, you can rent out your property. However, there are tax implications to consider for the income earned from real estate in Spain.

Can I become a citizen of Spain if I hold the Golden Visa?

After ten years of continuous residence, a Golden Visa resident can apply for citizenship. You can apply for citizenship after two years if you are from a Latin American country, Portugal, the Philippines, or other former Spanish colonies.

Need help?

Navigating through golden visa & citizenship by investment programs can be complex and overwhelming, regardless of the country or program you’re interested in. If you’re struggling to find clear, accurate information, you’re not alone. Our team is here to offer you clarity and reliable advice across a wide range of immigration programs.

By scheduling a consultation, you’ll receive personalized guidance tailored to your unique situation. We’re dedicated to helping you understand the details of various immigration programs, making them more straightforward so you can proceed with confidence.

GET PERSONALIZED GUIDANCE

During our call, we will:

Here is what to expect from a call with our advisory team:

1

We’ll answer your questions about the program and the application process, providing you with the clarity you need.

2

We’ll break down each stage of the immigration process, ensuring you know exactly what to expect.

3

We’ll help you determine if the chosen program is the right fit for you or suggest alternatives that may better align with your goals.

4

Gain access to our network of recommended local lawyers, as well as providers of eligible investment options.