Spain’s ‘Golden Visa’ – the finer points of property investment explained

If you’re interested in the ‘Golden Visa’ scheme for non-EU buyers of Spanish property, then we’ve now got all the information you’ve been waiting to hear. So for answers to all the most frequently asked questions and more besides, then just read on…

Colloquially referred to as the ‘Golden Visa’, Spain’s Ley de Apoyo a los Emprendedores y la Internationalización – which roughly translates as the Law Supporting Entrepreneurs and Internationalisation – has now been in force for a little over a month and, as you would expect, is already creating a huge amount of interest among the non-EU nationals for whom it has been introduced.

Running to 96 pages, the Bill approved by Royal Decree 14/2013 naturally contains a lot of stipulations but is actually also quite flexible.

Miguel Manzanares, one of VIVA’s recommended panel of independent lawyers, explains some of the finer points regarding property investment covered by this new legislation:

Requirements:

• Minimum Spanish real estate investment of €500,000 per person
• Possession of private Spanish medical insurance
• If you will be residing full-time in Spain and have school-age children, you will have to fund their private education
• Proof of being able to support family and properties owned in Spain
• A clean criminal record

Questions & Answers

Q: If I buy multiple properties, for example, one costing €250,000; another costing €150,000; and a third one priced at €100,000, would I be eligible to apply for Spanish residence?

A: Yes, as the total value of the property investment amounts to €500,000 you would be eligible to apply for a Spanish residency permit.

Q: If I take out a mortgage of €250,000 to buy a property priced at €750,000, would I qualify for Spanish residence?

A: Yes, so long as the first €500,000 is mortgage-free, you would qualify for Spanish residence.

Q: Would my wife and I be eligible for Spanish residence if we buy a property costing €700,000?

A: No, not in this case as each of you would only have made an investment of €350,000 (50 per cent). However, so long as the head of the household can provide proof of being able to support the rest of the family through a Letter of Sponsorship, residency for the other members of the family can be obtained.

Q: I’m buying off-plan. The private contract has been signed and I’ve paid €550,000 for the property, does that make me eligible for a residency permit?

A: No, not until you are in possession of the Title Deeds and the Land Registry Certificate proving your ownership of the property.

Q: Supposing I buy a plot of land for €300,000 and construction is underway, meaning that my investment to date amounts to €700,000 – would I qualify for residence?

A: No, because there is no Title Deed of Declaration of a New Building and the amount paid for the plot is insufficient to meet the minimum investment requirement of €500,000.

Q: If I invest in Spanish real estate through a non-resident company, would I be entitled to a residency permit?

A: Yes, it is possible, providing that the person making the application holds majority voting rights, is entitled to appoint the majority of the members of the Board of Directors and that the company is not incorporated within a tax haven jurisdiction.

Q: So in that case, would I also have to be the Company Administrator?

A: No, not as long as the conditions mentioned above apply.

Q: Is there a deadline for residency permit applications?

A: In the case of those investing in real estate, there is no deadline.

Q: I purchased a property in Spain in 2012, can I still apply for Spanish residency?

A: In principle, yes, as there is no time limit and the interpretation is considered retroactive.

Q: How long is the residency permit valid for?

A: In principle, the first residency visa is valid for one year. Thereafter, renewals are valid for two years at a time, provided that the investment threshold of €500,000 is maintained.

In addition to acquiring real estate assets, non-EU nationals can now also:

• Invest a minimum of €2 million in Spanish sovereign debt
• Invest a minimum of €1 million in shares in private Spanish companies
• Deposit a minimum of €1 million in a Spanish bank
• Invest in projects considered to be of public interest or start a business that will create employment

If you’ve got a question or want more information about Spain’s ‘Golden Visa’, just email the VIVA Customer Services team at [email protected], and if they don’t have the answer they’ll be only too happy to put you in touch with one of our recommended panel of independent lawyers.