Many of you will not have heard of Golden Visas, which were introduced by Spain in September 2013 to aid the then ailing property market. A Golden Visa is when a Non EU person can obtain a Residency permit in exchange for investing in Spanish property (and other assets).
This can develop into permanent residency if certain conditions are fulfilled. The Law (the Entrepreneurs Law) introduced residency permits and Visas for non-EU investors.
Program Overview
The Spanish Golden Visa program offers a real estate investment route to gaining residency in Spain. The program in Spain has been in operation since the introduction of the Law Act 14/2013, from 27th September 2013. The golden visa program in Spain is flexible in terms of the family options it offers, however it is restrictive when it comes to the route to citizenship. Government fees are low and the process is relatively quick. It is ideal for residency but less so for those requiring a second passport.
Investment to get Golden Visa
An investment of €500,000 is required in real estate in Spain. The property, either residential or commercial, can be rented for income. Any number of properties can combine to make up the €500,000 minimum investment. Joint buyers can combine investments into one property. The property can be mortgaged for any investment exceeding the minimum (i.e. anything above €500,000).
Process to get Golden Visa
The applicant needs to have committed to the investment prior to applying for the visa. An application can be made once a contract for sale has been signed and prior to completion of the sale at the notary. However the funds must be ready for investment in a bank account in Spain. The application for the residency visa then normally takes approximately 10 – 15 days. It is issued for two years, if applied for in Spain, and can then be renewed for a further five years provided the investment is maintained.
Once a property has been selected Comaskey can help with this), the Spanish Solutions can then take care of the application process, conveyancing and legal work for the property. A typical application involves initial discussion with Comaskey Sales Team followed by a 3 or 4 working days visit to Spain to view properties, meet with our lawyers and open a bank account. The golden visa application after this point can be made within Spain or at a consulate outside of Spain.
Pre-visit Stage – Many of the trusted local estate agents can of course help plan applicant’s visit but, should it be required, they will need to obtain a Schengen visitor visa by themselves to visit Spain. They could also advise on the most appropriate areas and real estate investments to suit the applicant’s needs. Lifestyle, rental, intended usage, capital growth, business and travel needs can play a part in this.
Visit Stage – During applicant’s visit to Spain they will essentially need to do 3 things: 1) Visit and view properties with us and our trusted partners; 2) Meet with lawyers and grant a Power of Attorney (POA); 3) Open a bank account. Naturally Spanish Solutions and our representatives will take care of all arrangements and accompany the applicant. We have built a network of trusted partners including banks, developers, agents and lawyers to help ensure a smooth process for the applicant’s visit and property investment.
Post Visit Stage – On returning home the applicant will need to make a transfer of deposit to secure the property if this was not done during their visit. Completion of the property typically takes two to three months. Your lawyer (with POA) can undertake this in full in applicant’s absence.
The requirements for the investor visa are:
1. Minimum investment of €500,000
2. Clean criminal record
3. No previous refusal of entry or visa to the EU
4. Sufficient, private medical insurance (in case they decide to stay in Spain)
5. Bank statements to prove sufficient income
On completion of the property purchase the lawyer will then process applicant’s visa application. Typically this takes a further 10 working days before issue.
Requirements
In addition to the real estate investment, as stated above, applicants will need a clear criminal record, private medical insurance and sufficient economic means to cover any stay in Spain. Also applicants must not have previously been refused visas or entry into the Schengen zone. Applicants satisfying such criteria are granted the Golden Visa in Spain.
Fees
Naturally, applicants should be aware of any lawyer fees for the processing of the Golden Visa, which would vary depending on family make up and situation. In addition a government processing fee applies of 60 Euros.
Buying real estate in Spain attracts certain taxes, stamp duty and fees. I would recommend investors budget for around 11-12% in total, the main element being VAT (IVA). In addition there are conveyancing fees, typically around 1.0% of the property purchase price.
Family
Qualifying family members include spouse and all children under 18. Children 18 and over and parents can also qualify but only if dependent.
Taxes
Investors will only be taxed on their worldwide income if they are resident in Spain for over 183 days in any year. For those non-resident individuals tax is charged at 24.75% on income derived in the country, such as rental income. This can be reduced with expenses. Capital gains tax applies to any profit on the sale of a property. It starts at 24% rising to 27% for gains over €50,000. There are allowances and deductions that can be made. Annual property taxes are payable to the local authority, typically €200 – €400 per year for an apartment.
Living and Working
Applicants deciding to live full time in Spain will require private medical insurance. However families will have access to all public services including state medical care and schooling. State schooling follows the Spanish curriculum but there are many English international schools also.
Travel
The Spanish residence permit gained through the Golden Visa allows freedom of travel throughout the EU Schengen zone.
Spanish Citizenship and Passport
Permanent Residency can be gained after five years in Spain provided the applicant has lived in the country for more than six months each year. Citizenship in Spain can be applied for after 10 years. However applicants will need to have been resident throughout that period in order to gain citizenship and a Spanish passport. Once applicants have either permanent residency or citizenship, they are free to dispose of their investment as further Golden Visa renewals are not necessary.
The benefits of having a golden visa
Applicants gain the right to live in Spain with the Golden Visa although there is no requirement to do this. There is no minimum stay requirement. With the residency card all family members will have freedom to travel to and throughout the EU Schengen visa zone with ease and without further visa applications. Gaining a passport in Spain is a long process and requires the applicant to live in the country. However, eventual passport holders gain European residency, meaning the ability to live, work, study and travel freely anywhere within the European Union.
Summary
The application process is relatively fast and the government fees are low. The process is very straightforward. However the key to the Spanish golden visa programme is that it is a very restrictive route to gaining citizenship and a second passport. In Spain, applicants must live in the country to gain citizenship.
4 Comments
Terry Markham
Hello,
I wish to come to Spain with my family to live permanently. How do i get a Golden visa?
We are Canadian, and have no immediate contact with Europe.
What do i need to do next?
Is it easy to get a Golden visa in Spain, if we invest appropriately?
We like the idea of living somewhere with warm summers.
Thanks,
Terry.