Spain Golden Visa Through Investment

The concept of the "Golden Visa" appeared in Spain's legislative documents in 2013. This term might be misleading for foreigners, as it has nothing in common with a traditional visa. There are distinctions between a residence visa and a residence card. The first allows you to apply for a residence permit (residency). If the resident fails to do so within a year, the legal right is irrevocably lost.

Why do wealthy citizens of non-EU countries choose Spain for relocation? After all, the "golden" residence permit in this country is much more expensive than, for example, in Cyprus, Malta, or Greece, and the scope of rights and freedoms granted is the same across all EU countries. Experts from the immigration center “Garant.in” provide answers to the most important questions.

Advantages of Spain Golden Visa

Before discussing the details of this program, let's consider what the Golden Visa of the Kingdom of Spain offers its holder. There are many benefits, but our compatriots value the following the most:

• A foreigner who obtains a Golden Visa in Spain has the right to obtain residency for their spouse and family members: children and parents if they are dependents. Notably, the spouse can also be a civil partner—a rare exception among other European programs.
• With the Golden Visa (GV), you can travel freely across Schengen countries and many other states (a total of 187 countries).
• Having a GV means you are not required to become a tax resident of Spain.
• There is no mandatory requirement to spend a specific amount of time in the country.
• The main applicant and all their family members are allowed to work in Spain.
• The holder of Spain’s Golden Visa and their family can benefit from European-level healthcare, are protected by the democratic legal system of the EU, and can live and relax in this sunny Mediterranean country.

Finally, it's important to note that holding a GV allows a foreigner to apply for full Spanish citizenship later officially!

Conditions and Requirements for Applicants

An investor must:

• Be of legal age;
• Provide evidence of the legal origin of the invested capital;
• Have no criminal record or legal issues, particularly concerning financial fraud;
• Earn a stable income sufficient to support the family;
• Have no entry restrictions to EU and Schengen countries;
• Obtain health insurance.

Knowledge of the state language is not mandatory when applying for residency through investment.

The "Golden Visa" can be obtained in a short period—3-6 months.

Important!

The deal can be completed remotely without coming to the country. A Spanish lawyer is authorized to handle all matters. Additionally, the GV does not require mandatory residence in Spain.

Investment as a Way to Obtain Residency

Migration law outlines four main directions for attracting investments. A rather high entry threshold for the program through real estate purchase is set in Spain. It is at least €500,000. The country’s actively developing construction sector positively affects the value of residential properties. It is important to note that the property can be used for commercial purposes. In that case, the main criterion for choosing the property will not be its cost but its potential profitability. Investment returns should drive market analysis, so you can later use the right to sell and not lose or multiply the invested money. However, if you don’t plan to engage in business, intermediary firms can help you choose the most convenient living option.

What Investments Are Needed to Obtain Spain's Golden Visa?

The program provides applicants with several investment options for obtaining the GV.

Real Estate Investments

This is the most popular method, accounting for about 94% of all the money received by Spanish authorities under the GV program. The minimum investment is €500,000, and the money can be invested in one property or several. The total value must meet the specified amount.

You can use mortgage money to purchase the property, but you cannot get a mortgage in Spain. Moreover, if the applicant owns a company, they can invest in the purchase using their business funds rather than their funds.

It is crucial to determine the purpose of the real estate purchase at the early stages. Spanish tax residents must pay a property or luxury tax, depending on the property's value. If the residential area is considered a financial asset of a legal entity, there is no need to pay the personal property tax. Concerning business taxation, many nuances in Spanish law allow small entrepreneurs to operate successfully using "non-cash" transactions. Starting your own business with an investment of €1 million is another way to obtain the "golden visa." Continuing the topic of real estate purchase, it should be noted that with the proper combination of these two investment mechanisms, an investor can gain additional benefits. If your profession allows you to practice in Spain (sometimes after accreditation), then this option is quite promising. For example, the office could be on the ground floor of the purchased building, with living quarters above. You need to consider the demand for services in a particular area. If you are investing in your own business, another condition will be the creation of five jobs.

Important!

Immediately after obtaining the Golden Visa, its holder has the right to sell the property. However, by the time the visa is renewed (within a year), the investor must again have proof of ownership of property worth half a million euros.

We advise you to pay attention to one point. The ease of obtaining Spain’s Golden Visa attracts many scammers, which annoys EU officials in Brussels. Moreover, the Kingdom's authorities are also not thrilled with the situation. The local press notes that the program has become a simple buy-sell operation for real estate in prestigious regions of the country, often with money of dubious origin. The state’s economy does not benefit significantly from this scheme.

There are increasing calls to raise the minimum price threshold or even completely abandon this option, issuing GVs only using other allowable program options. Some changes may be officially announced this year.

Golden Visa for a Deposit or Stock Purchase

The amount here is higher than in the previous case—€1 million. This money must be deposited in a Spanish bank or used to purchase shares in Spanish state companies. Participation in the work of local investment funds of various orientations is also allowed. When renewing the GV, the investor's funds should not have been withdrawn from circulation.

Golden Visa for the Purchase of Government Bonds

This is the least troublesome way for an investor but also the most expensive. It involves acquiring Spanish government bonds with a term of at least five years and an amount of €2 million.

Golden Visa as a result of a Business Project

This path is rarely chosen by investors. The applicant must present their business plan to the Spanish authorities, which should include:

• Creating new jobs for citizens of the country;
• Implementing new technologies;
• Making a useful contribution to the economic situation of a particular region.

If the relevant authorities find the plan interesting and promising, it may also become a basis for issuing a GV.

Golden Visa Obtained. What's Next?

Upon receiving a GV, the investor is granted a one-year residence permit. After this period (or earlier if desired), they can apply for a two-year residence permit. The main condition for renewal is maintaining the necessary investments. Naturally, there should be no serious issues with following the laws of the Kingdom. Another simple condition is to enter Spain at least once a year, regardless of the length of stay.

The application is submitted to the Ministry of Foreign Affairs and must be reviewed within 20 working days. Obtaining Spain's Golden Visa is one of the most popular services requested by clients at our immigration center “GARANT.” We are ready to provide all necessary assistance and support to the client at all stages of the process.

Can You Start a Business in Spain with a “Golden” Residence Permit?

Can you open a business in Spain with a “Golden” residence permit?

Yes, this visa allows you to open your own business in the country. The investor must submit a business plan proving the company’s activities' benefits to the country's economy.

The advantage of a businessman holding a "golden" visa is that they can conduct business throughout Spain. A special requirement: the company cannot be registered in an offshore zone. The company must be profitable, provide jobs for Spanish citizens, and pay taxes. The holder-businessman must be the actual owner of the company, not just on paper, and must personally handle all staffing and organizational matters.

Is It Necessary to Become a Tax Resident?

This status is optional for a business owner. However, in this case, the company’s manager must be a Spanish taxpayer. If the holder of the “golden visa” wants to become the company’s manager, they must become a tax resident and reside in Spain for at least six months a year.