Nestled in the southwestern corner of Europe, Spain stands out as a premier tourist destination, celebrated for its rich history, stunning landscapes, and vibrant culture. Beyond its allure for leisure seekers, Spain boasts a robust economy, a welcoming atmosphere, and a high quality of life, making it an attractive hub for investors. The country offers a dynamic business environment, perfect for those looking to immerse themselves in a life filled with passion, adventure, and boundless opportunities.
For individuals wishing to make Spain their home, the Spanish Golden Visa residency program, established in 2003, presents a pathway to residency through investment and other options. Those who obtain a Golden Visa can enjoy the freedom to travel within the Schengen Area, reside in Spain, and access various benefits typically available to citizens, including healthcare and public education.
Key Benefits of the Spain Golden Visa
Acquiring a Spanish Golden Visa through investment opens up a wealth of advantages similar to those enjoyed by citizens, including unrestricted travel and diverse business opportunities. With various pathways to residency, each option comes with its own specific benefits and requirements, allowing flexibility for staying in the country, visiting the Schengen Area, and accessing public services.
Visa-Free Travel to the Schengen Area
Holders of a Spanish Golden Visa can travel freely within the Schengen Area for varying durations without jeopardizing their residency, depending on their specific residency program. As of December 2023, the Schengen Area includes 25 EU member states, along with visa-free access to Iceland, Liechtenstein, Norway, Switzerland, and microstates like Andorra, Monaco, and San Marino. Additionally, some neighboring countries, such as Morocco and Montenegro, offer visa waivers for certain nationals holding a valid long-term resident card.
Pathway to Spanish Citizenship
After residing in Spain for 10 years, holders of permanent residency can apply for citizenship. This process involves passing a cultural and language test, granting them the same rights as other EU citizens. Notably, a shortened residency requirement of just 2 years applies to nationals from Latin America, the Philippines, Equatorial Guinea, and individuals of Sephardic Jewish descent.
Family Residency
The Golden Visa program also facilitates residency for immediate family members, including spouses and dependent children. Depending on the specific residency program, you may be able to include dependent parents as well. Additionally, descendants over 18 years old can apply for residency if they are single and financially dependent.
Access to Civil Services
Permanent residents in Spain benefit from access to state healthcare and can enroll their children in public schools, ensuring a high quality of life for families.
Multiple Investment Options
Spain provides a range of investment avenues for residency. Options include purchasing a non-profit residential property for personal use, investing in property or businesses that create jobs, or making a financial investment in a Spanish mutual fund or bank deposit. This diversity allows prospective residents to choose the investment that best suits their needs and goals.
Permanent Residence
Permanent residence can be accessed after 5 years of effective residence in Spain for any type of residence permit.
Requirement and Eligibility for Obtaining a Spain Golden Visa
Investment Amount
For a Golden Visa that grants permanent residency, a minimum of EUR 500,000 has to be made in real estate property. In the case of financial assets (bank deposit, company shares or mutual funds), the minimum amount is EUR 1 million.
Family Members
Husbands, espouse and civil partners of any gender are eligible as family members. Minor children are eligible too, as are children above 18 years, as long as they are single and financially dependent on the main applicant. Evidence of financial solvency must be submitted, depending on the number of dependent family members.
Spain Residence by Investment Programs
Golden Visa Investor Residency
The Golden Visa program of Spain introduced in 2015 requires purchasing a EUR 500,000 residential property, depositing EUR 1,000,000 in a bank, or purchasing EUR 1,000,000 worth of shares from a Spanish company.
The Spanish Golden Visa grants a three-year residency visa that can be extended for five-year periods and opens up the opportunity to apply for citizenship. No effective residence is required for investor residence, regardless of its asset class. The application can be submitted either in Spain or abroad.
Non-Profit Residency
Those who plan on working in Spain and purchasing property to live in can apply for the non-profit residency program. A regular income or liquid assets of around 24,000 € per year for the main applicant and 7,000 € per year for each dependent will be required. A place of residence in Spain, either purchased or rented is usually required too. The application can only be submitted abroad at the corresponding Spanish embassy or consulate.
Residency is first granted for one year, then two years twice, and every five years thereafter. Families are granted residency but the main resident must reside in the country for at least half the year or will lose residency, along with the family.
Entrepreneur Residency
While no specific minimum investment amount is specified, a business plan has to be approved by the ENISA within a month. The plan must show potential job creation, and a sustainable future and provide you with EUR 1,200 a month with an additional EUR 600 for every family member. This program requires you to spend at least half the year in Spain and doing so will make you eligible to be taxed as a resident. You will have complete freedom to purchase property - residential or for an investment.
Receiving Process
Secure a trusted partner, compile essential documents, apply, invest, and receive.
Obtaining residency through investment in Spain is relatively straightforward when done with the right agency. The process can take anywhere from a month to three months depending on the residency route chosen and how quickly the investment goes through. For a complete in-depth guide to acquiring a Spanish Golden Visa, speak with a consulting agency.
Preliminary Due Diligence
The first course of action you want to take is to familiarize yourself with the Spanish residency programs through investment. The minimum amount is EUR 500,000 so it is important to get a good idea of where you want to put your money. An agent can offer helpful insight as to what investments best fit your needs.
Registration and Notary
To begin acquiring real estate and conducting investments, you first have to register in Spain as a foreigner. This can be done abroad and requires notarizing your documents, opening a bank account, and providing proof of finances.
Final Application Process
After the investment is finalized, you and your family have a few options to receive residency. An appointment can be made at a consulate, which may take up to a month, to submit the application. This method gives applicants a one-year visa which can be turned into a three-year visa afterwards.
If you and your family go to Spain to submit the final application at the Ministry of Migration, the 3-year visa will automatically follow once the application is approved.
Once approved, passport photos and biometrics are submitted, and you will be a resident of Spain.
FAQ
How much do I need to invest for a Spanish Golden Visa?
To qualify for a Spanish Golden Visa through investment, you must invest at least €500,000 in real estate. Depending on your needs, you might also consider alternative options like an entrepreneurial visa or a digital nomad visa, which have more flexible requirements.
Do I need to live in Spain to obtain a Golden Visa?
No, you do not need to reside in Spain to maintain your Golden Visa. However, other types of residency, such as digital nomad, entrepreneur, or non-profit visas, do require actual residence for renewal.
What benefits does Spanish residency through investment offer?
Obtaining residency through investment provides several advantages, including:
The right to live, work, and study in Spain
Access to public healthcare and education
Visa-free travel within the Schengen Area
Eligibility to apply for Spanish citizenship after 10 years (or just 2 years for certain nationalities)
How is taxation handled for Spanish residency?
Having Spanish residency does not automatically make you a tax resident. Generally, you become a tax resident if you stay in Spain for 183 days or more in a year. Investors are taxed on their Spanish assets through the Non-Resident Annual Tax Return at a rate of 24% on their annual income. If the property is not rented, a “fictitious rent” tax may apply, calculated at 1-2% of the property’s cadastral value.
For those intending to live in Spain, tax liabilities can often be reduced through local corporate structures, registration in low-tax jurisdictions (like Andorra or Gibraltar), or by applying the “Beckham Rule,” which offers a tax cap for expatriates for six years. It’s advisable to create a tailored international tax strategy in these cases.
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Giulio Cinisi
Managing Partner
SOLUNA HK LIMITED
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