Since 2013, Spain has had a special regime where foreign (non-EU) investors can obtain (permanent) residency rights: the so-called "Golden Visa" system.
A similar system exists in other countries, including Portugal (though it has been significantly altered and restricted there). The main reason for this favourable arrangement was to attract foreign funds and thereby improve the country's financial and economic situation.
Some Figures
According to the BBC, a total of at least 6,200 Golden Visas were issued in Spain, with about 2,700 to Chinese nationals, 1,150 to Russians, followed by Iranians (200), Americans (179), and Britons (177). Typically, the option used involved the investor needing to invest at least €500,000 in Spanish real estate. Exceptionally (about 6%), the option was chosen to invest €2 million (or more) in government bonds or local companies.
Planned Changes
In May of this year, the Spanish government announced a significant change to the criteria for the Golden Visa, essentially considering the removal of the option to purchase real estate or participate in investment funds to ease the pressure on the local real estate market and allow local citizens to still be able to purchase a home.
There is still no clear view on the final texts or the timing of the new regulations. However, it is certain that they will come, and more clarity is expected by the end of this year.
Therefore, for those who still want to use the "real estate option," it will be necessary to initiate the process in the short term to fully benefit from the current scheme.
It does not appear that the other basic conditions for obtaining a Golden Visa will change significantly, and under that assumption, we outline the general principles below.
Possible Investments
Financial Assets
- €2 million or more in Spanish government bonds
- €1 million or more in the capital or as an investment in Spanish companies with actual business activity
- €1 million or more in Spanish investment funds or venture capital funds
- €1 million or more in bank deposits at a Spanish bank
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Real Estate
- €500,000 (own funds) or more (possibly with a loan) in real estate located in Spain
Project
- A self-developed business project in Spain considering employment, socioeconomic impact, and a contribution to scientific or technological innovation
Visa and Residence Permit
Visa
If the application is made in the country of origin (a diplomatic post outside Spain), a visa is issued for a maximum duration of one year (without this procedure, the usual duration of 90 days for non-residents applies, as elsewhere in the Union).
The procedure is straightforward and generally fast (response within ten days after application with a complete dossier).
Once the visa is issued, the applicant has one month to collect it.
The visa allows unlimited and free travel within the Schengen zone and naturally grants primary access to Spain.
Residence Permit
Based on an application in Spain, a residence permit is issued for three years, renewable every two years thereafter. Importantly, the applicant is not required to stay in Spanish territory for at least 183 days per year.
Here too, the procedure is straightforward and generally fast (response within twenty days after application with a complete dossier).
The applicant is equally entitled, if desired, to maintain his tax residence outside Spain.
Family Members
Both of the aforementioned instruments allow family members to be brought to Spain with the same rights and guarantees.
In any case, this applies to the spouse or legal partner, minor children, and dependent parents.
The only requirements are that the family member has no criminal record, is not illegally present in the Schengen area, and has not previously been refused a visa.
Admission Requirements
In general, the rule (for the main applicant) is that one must be at least 18 years old, not have entered or reside in Spain illegally, have no criminal record, not have been denied entry into the Schengen area, can provide proof of health insurance, and have sufficient financial means.
Naturally, specific requirements also apply depending on the investment choice made.
For investment in financial assets, a certain certificate must be added to the application confirming that "correct" assets were invested in and that legal requirements were met.
For real estate investments, proof of ownership must also be provided prior to the visa or residence application.
Therefore, it is essential always to concretize one's investment intention first and only then proceed to apply for the Golden Visa. This is, of course, to avoid false or incomplete applications that would ultimately not be realized once the residence title is granted.
Nationality
Based on correctly going through the Golden Visa program, it is also possible for third-country nationals to later acquire Spanish nationality, provided that the applicant has effectively had his legal (tax) and continuous residence in Spain.
Specialized Assistance is Necessary
The Golden Visa regime may be clearly outlined on paper, but it remains a formalistic and administrative procedure that requires collecting numerous documents and information and must be done in the correct order, preferably in Spanish.
The assistance of an experienced law firm such as Vanbelle Law Boutique, prominently present in Spain for many years, is essential not only for the residency process but also for accurately assessing the legal, tax, and social security situation of the applicant, his family, and his businesses, and analysing the possibilities for optimization.
If the choice is made to purchase real estate (with or without financing), we also provide all necessary assistance and services as a full-service law firm, both in Spain and in the country of origin, if desired.
