Spanish Golden Visa Guide

GUIDE TO THE SPANISH GOLDEN VISA

BACKGROUND

Golden Visas are immigrant investor schemes that allow individuals to more quickly obtain residence of a country in return for making qualifying investments. They are different from the so-called “Golden Passport" or ”Cash-ForPassport” programs, which offer citizenship by investment. This type of investment-based migration dates back to 1984, when the first such program appeared in the Caribbean region (Saint Kitts and Nevis) and soon thereafter in North America (Canada in 1986, the United States in 1990). The phenomenon is far newer in the European Union, where most programs were established, scaled up, or revamped following the 2007-2009 financial crisis. Some countries have recently decided to end their Golden Visa programs through residential real estate investment, including Portugal and Ireland. The program is still in place in Spain.

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REQUIREMENTS & KEY CHARACTERISTICS

Type of Investment

Acquisition of property or land acquired after 28 September 2013 and with an overall net investment of at least €500,000, excluding taxes. Multiple investments are allowed.

Duration

The Golden Visa has a duration of 1 year and can be renewed. It can also be converted into a Residency Permit, which has an initial duration of 2 years and is renewable for periods of 5 years as long as the investment is maintained.

Minimum Stay

No minimum stay in Spain is required during the first year (Golden Visa) or during the further periods of 2 and 5 years (Residency Permit). The investor is not required to travel to Spain and the extension can be made by a legal representative.

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However, once the Residency Permit is granted the investor must obtain a Spanish ID card and he/she is required to appear in person to activate the ID card.

Renewal

You must visit at least once per year as part of your visa renewal.

Taxation

Neither the Golden visa, nor the Spanish residency, implies that the applicant will have to pay taxes in Spain. Only investors who reside in Spain for more than 183 days per year are subject to tax on their worldwide income, which is not the case in Portugal. For non-resident individuals, the country charges a 24% tax on income derived in Spain, such as rental income.

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BENEFITS

Mobility

The Golden Visa/Residency Permit allows unrestricted travel within the Schengen Area. The holder of the Golden Visa/Residency Permit has the right to remain in Spain for an unlimited period and in the rest of the Schengen Area for 3 months within a period of 6 months, during the period in which the Golden Visa/Residency Permit is valid.

Family & Employment

The investors’ dependents (spouse, or person with a similar relationship; children under 18 years, and over 18 years if economically dependent; and other dependent ascendants) can also obtain the Golden Visa/Residency Permit, thus enabling the entire family to benefit from the scheme. The validity of the dependents´ residency permits will be subjected to the status of the one granted to the applicant.

The investor and the beneficiary family members are entitled to work in Spain.

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Acquisition of Spanish Citizenship

The Golden Visa/Residency Permit does not automatically entitle the investor to Spanish citizenship, but he/she can obtain either permanent residency (independent from the investment) or citizenship if he/she proves effective residence (more than 183 days per year) during the legal period (5 years for permanent residency and 10 years for citizenship).

Nationals from one of Spain’s former colonies in Central and South America, the Caribbean or the Philippines can gain citizenship within two years, provided they meet other requirements.

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APPLICATION PROCESS

Documentation required for the application of the Spanish Golden visa

• Two copies of the Spanish national visa application form

• Two recent color photographs

• Ordinary passport with at least one year of validity

• Identity document from the country of origin

• Criminal record certificate with The Hague apostille and official sworn translation

• Insurance document with at least one year of validity granted by an insurance company accredited in Spain

• Proof of sufficient economic resources during the period of residence in Spain

• Property Registration Certificate

• Notarial contract of sale proving the investment value

• N.I.E.

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Who Can Submit the Documentation

Any legal representative can submit the documentation.

Timing

Golden Visa applications are processed by the Consulates and granted within 10 days of filing. The Residency Permit applications are processed electronically and granted within a maximum time limit of 20 days from filing.