Spain Golden Visa by Investment

Introduction #

Spain is one of the few EU countries that still maintains the Golden Visa in force, making it a great opportunity to always have the doors open to any EU country.

The Golden Visa is the most efficient residency-by-investment program in Spain. This program provides many benefits to non-EU investors, such as obtaining residency permits in a Schengen Area country (EU plus Switzerland, Norway, Iceland, and Liechtenstein) for investors and their families.

The Golden Visa will allow you to travel freely and visa-free within the 27 countries that make up the Schengen Area. It provides the opportunity to be a non-tax resident in Spain, thus living in a non-EU country while maintaining legal residency in Spain and settling and living in any place in Spain.

Most Popular Reason to Apply #

The Spain Investor Visa program is #1 country for Americans in 2024, followed by Chinese, Russians, Venezuelans, Ecuadorians, Brazilians, and Indians. Over 13,000 Golden Visas approved. The biggest motivator for those selecting this type of visa for Spain is no minimum period of residence is required when using the Golden Visa.

After meeting the criteria, if someone applies for Spanish "citizenship by residency," Golden Visa holders with a temporary residence permit must live in Spain for 10 years (minimum 183 days per year). The person can not be absent from the country for more than 6 months continuously in these 10 years. The exception to this rule is only for Ibero-American countries, Andorra, the Philippines, Equatorial Guinea, Portugal, or Sephardic Jews. The stay requirement is that the residency visa holder live in Spain for 2 years and can't be absent from the country for more than 3 months per year.

Benefits of the Spanish Golden Visa #

Many countries have increased their requirements or eliminated Golden Visas across Europe. The application for the Spain Golden Visa is one of the easiest, known for its speed and clarity. Key benefits and advantages include:

• Visa-free travel through the Scheghen Area
• A Safe Haven: 'Plan B' provides ease of mind in times of economic, political instability, and global crisis. The Golden Visa allows you to live, work and do business in Spain
• Family residency plans: Partners/spouse, children under age 18, and legal dependents are guaranteed residency permits
• Access to excellent and more affordable healthcare in the Spain and EU
• Easy renewal: As long as conditions are met, your renewal is easily processed
• EU citizenship eligibility after 10 years of legal residency

Current Options #

Today I want to talk to you about the opportunity to obtain the Golden Visa through the purchase of real estate for an amount equal to or greater than €500,000. This is the most chosen pathway by foreigners who have the Golden Visa in Spain.

There are other products in which you can invest, but the minimum investment amounts range from €1million to €2million, depending on the case:

• Spanish Public Debt Securities - €2million in Spanish public debt securities, or
• Stocks, Shares, Bank Deposits - €1million in shares or equity stakes of Spanish capital companies with a real business activity, or bank deposits in Spanish financial institutions
• Business Investment - €1million in investment funds

I believe it is worth highlighting the idea of depositing €1million in a Spanish bank account. You can apply for the Golden Visa and subsequently use that money to comfortably purchase a property for a price equal to or greater than €500,000 and continue to benefit from the Golden Visa.

If you want to apply for the Golden Visa, you can come to Spain as a tourist and within 90 days of stay or Schengen visa. Then, you can apply while in Spain and the process will be fast-tracked (with a maximum response time of 4 weeks). The application will be online (no need to provide physical documentation), and the initial visa duration will be 3 years (renewable for 5 years).

Recent Announcement on Elimination of the Golden Visa #

Prime Minister of the Spanish Government, Pedro Sánchez, has just announced on April 8th, 2024, that the Spanish Government will eliminate the Golden Visa for real estate investors. Sánchez said the decision was made to make affordable housing a "right instead of a speculative business." He added, "Today, 94 out of 100 such visas are linked to real estate investment...in major cities facing a highly stressed market where it's almost impossible to find decent housing for those who already live, work, and pay their taxes."

The Government has not yet provided information on when this legislative change will occur. In the meantime, everything remains the same. Golden Visa applications for real estate investors are being processed without any impediment, as only a political announcement has been made with no legal effect.

We still do not know how this modification will affect the subsequent renewals of the Golden Visa. We hope to be able to provide this information as soon as possible.

What we know...from the Editor

The government is signaling that the only golden visa category affected is real estate investment/property. Applications are continuing to be accepted for all types of investments. If you are interested in securing a Golden Visa via the real estate investment option, Affordable Mallorca suggests you submit your application as soon as possible. Our immigration lawyer expects all applications accepted into the system for processing will be approved.

Update on Status of Program as of 2nd of June, 2024 #

A month and a half ago, President Pedro Sánchez announced plans to eliminate the Golden Visa for real estate investments. However, no legal changes affecting the Golden Visa have been made yet.

On May 23rd, the government withdrew the “Land Law” proposal, which included the elimination of the Golden Visa for real estate investments, due to lack of parliamentary support.

However, the next day, on May 24th, a new proposal from the leftist-ecologist party was published. This proposal aims to eliminate the Golden Visa for both real estate and investment fund contributions.

Under this new proposal, the Golden Visa would still be obtainable through the following investments:

• A bank deposit of 1 million euros.
• Purchase of shares in a Spanish company worth 1 million euros.
• Purchase of public debt worth 2 million euros.
• Execution of a business project considered to be of general interest (no minimum investment required).

At the end of June, the Spanish government will decide whether to support this legislative initiative, which will then proceed to the Parliament for amendments and voting.

The Spain Golden Visa Program is Still OPEN

In the meantime, and until any reform is approved, it is still possible to apply for the Golden Visa through real estate purchases worth 500,000 euros or more, or investment in funds worth 1 million euros.

Foreigners who have recently purchased a property or plan to do so over the summer can apply for the Golden Visa.

Additionally, foreigners who have bought property since 2013 with a mortgage, but have now fully or partially paid off an amount that, when combined with their initial investment, equals or exceeds 500,000 euros, may now meet the requirements to apply for the Golden Visa.

Golden Visa through a business project with no minimum investment

Obtaining the Golden Visa through a business project is very appealing, as it does not require a minimum investment. This means that one could secure a Golden Visa even with an amount lower than that needed for the Golden Visa through real estate investment (e.g., investing 250-300k).

The business project must be of general interest to the Spanish economy and meet some of the following requirements:

• Creation of jobs.
• Investing with significant socioeconomic impact in the geographical area where the investment will be made.
• Making a relevant contribution to technological and scientific innovation.

If the Golden Visa through real estate investment is eventually eliminated, this residence permit could become one of the most attractive options for foreigners who wish to invest in Spain and obtain the Golden Visa.

Considerations for Real Estate Golden Visa #

You should know that you cannot purchase a €500,000 property with a mortgage, although you can buy a more expensive property, contribute the first €500,000 in cash, and pay the rest with a mortgage. It is also important to note that if you are married, the marital property regime may affect the calculation of the investment made even if you buy solely in your name and not jointly with your spouse. I am able to provide details based on your personal circumstances.

Renewal Options if Golden Visa Program is Eliminated #

If it is not possible to renew under the Golden Visa scheme, there are two options:

1. invest in another product to continue benefiting from the Golden Visa program or
2. switch to a Non-Lucrative Visa (NLV). In this case, it is not necessary to apply for the NLV from the country of origin; it can be done from Spain.

The NLV allows them to live in Spain without working for a period of one year (renewable). It is also possible to switch from a Golden Visa to a residence and work permit (either as a self-employed or an employee), which would allow them to live and work in Spain.

Once you have completed five years of legal and continuous residence (3 years with the Golden Visa + 2 years with the NLV or work permit), you can apply for a long-term residence card.

It is also possible to switch from a GV to a Digital Nomad Visa.

Alternatives to Golden Visa #

There are other options to live in Spain without needing to invest €500,000 in real estate.

For example, you have these two options:

• If you are retired or do not need to work but receive periodic income or have savings, you can obtain a non-lucrative visa. You cannot work in Spain or remotely, but you will have a one-year (renewable) residence permit to live in Spain and move around the EU.
• If you can work remotely for a company or in your own business, you can directly apply for a digital nomad visa in Spain for three years duration. The same procedural rules as for the Golden Visa apply, so we still recommend applying directly for the visa in Spain.

I am able to provide better guidance to you once I know your individual circumstances. Please contact me directly at My Direct Email and I will respond as soon as possible.

Further Resources - Suggestions from Our Editor #

For tax information for non-resident property owners, you will have a tax consequence both in Spain and your home country. If you have a property or wish to purchase another property, check out >> Taxes for Non-Spanish Tax Residents With Properties in Spain.

If you are an American, Affordable Mallorca has an article on Taxes in Spain for Americans.

Our Affordable Mallorca team has created a comprehensive guide on investing in Spain. For a deep look at the investment opportunities, here is an article on A Guide to Investing in Spain.

To explore your options, book an appointment with Bryan Giménez with Izeta Abogados today.

Conclusion #

As you can see, investing in Spain is a great opportunity to get the Golden Visa and always have the doors open to any EU country.

There are several possibilities and many details to consider that could jeopardize obtaining the Golden Visa. For this reason, we recommend seeking legal advice before investing in Spain to obtain the Golden Visa. If you are interested in obtaining the Golden Visa or if you are in the process of buying a property or preparing the application, we recommend not delaying the process to take advantage of the current Golden Visa regime.

If you are interested in applying for the Golden Visa or any other type of visa and have questions about the aspects to consider, you can contact me at the email address [email protected] or by phone at +34 655 316 904. For more, click here to visit my law firm's website >> Izeta Abogados

Sources

• Personal and Professional Experience