The Golden Visa is a Spanish government law, which can be beneficial for non-EU citizens who want to invest in Spain. Spain launched the Golden Visa programme in 2013 to make the Spanish economy more competitive, increase motivation for foreign direct investment, strengthen foreign trade and promote local job creation.
Changes to the law in 2015 created additional incentives and made it easier and faster to obtain visas and work permits for Spain. Spain’s Golden Visa programme is now one of the most attractive programmes for non-EU investors.
How to obtain the Golden Visa
To obtain the Golden Visa, you must be prepared to make significant investments in Spain. The visa can be obtained by spending at least €500,000 on real estate in Spain, investing at least €1 million in a Spanish company, investment fund or venture capital fund, or investing at least €2 million in Spanish government bonds.
The applicant must prove that he/she has no criminal record and that he/she has the financial means to support him/herself or his/her family (2,130 euros per month plus 530 euros for each family member). Once the visa is issued, an investor can buy and sell real estate as long as he or she meets an investment threshold of 500,000 euros.
Investors are no longer obliged to invest more than individuals. Instead, they can buy real estate in Spain, either directly or indirectly through a registered company, as long as the investor still owns the majority of the shares and the company’s address is not in a tax haven.
This means that if they find investment partners, they can secure a visa for Spain by investing much less than 500,000 euros.
Advantages of the Golden Visa
Although there are several types of visas for travelling to Spain, the Golden Visa is particularly attractive as it grants residence permits to the investor’s immediate family members. Since 2015, applicants can apply for family reunification not only with spouses but also with partners in a cohabitation similar to marriage.
The programme also covers economically dependent children of the investor, including adult children, and their parents. The residence permit also allows for obtaining a work permit in Spain. Successful applicants initially receive an annual visa.
The applicant can then apply for a residence permit which is valid for two years and can be extended for five years at a time. When applying for or renewing a residence permit, the applicant does not have to appear in person; it is sufficient for a representative to appear before the authorities.
The visa does not require a minimum length of stay for renewal. This is attractive for investors who wish to take advantage of Spanish residency and at the same time travel to any other European country. All these facilities are aimed at attracting as many investors as possible to Spain.
Investors can therefore either remain in Spain or transfer their tax residence to a third country. If the residence is established in Spain, applicants can apply for Spanish citizenship after ten years of permanent residence (they must spend at least 183 days a year in the country).
Golden Visa Statistics
According to the latest data from the Secretary of State for Trade, Golden Visa statistics have improved considerably since its introduction. Compared to 2014, the number of investors who received the Golden Visa has quadrupled to 2,236.
The majority benefited from the special residence permit through the purchase of the real estate, other applicants through capital investments and the rest through business start-ups. The total investment amounts to €2.157 billion and exceeds the investments made in 2014 by a factor of three.
Of this amount, €1,554 million is for the acquisition of real estate or land, €495 million for businesses that have created almost 2,000 new jobs and €108 million for financial assets.
If you have any questions on this subject, please contact our tax advisors in Barcelona for entrepreneurs and startup consultancy.
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