How to Obtain a Resident Visa Through Property Investment in Spain
official newsletter no. 223, articles 62 to 67.n September 2013, following the approval by both Houses of the Spanish Parliament, and the subsequent publication in the Bank of Spain’s Official Gazette, the law allowing non-EU investors to apply for Spanish residency was put into effect. This can be found in the Boletín Oficial del Estado (BOE)
In a nutshell, citizens from countries that are not part of EU and want to invest in Spanish real estate, have the opportunity to enjoy the advantages of this Spanish law, which provides the right of obtaining permanent residence in Spain through the acquisition of residential or commercial properties with value above 500,000 euros and subject to the compliance with additional specific requirements, some of these as detail further down in this post. This is also known as the “Golden Visa”.
Details of the latest amendments of the Spanish law 14/2013, made on Wednesday July 29, 2015 which also relate to the investment in shares, investment funds, time deposits in Spanish financial institutions and real estate development projects can be found in the BOE’s official newsletter no. 180, page 64529 onwards.
In September 2013, the Spanish parliament approved a new law allowing non-EU investors to apply for a Spanish residence permit and by extension for a Schengen visa. The objective of the law is to attract entrepreneurs to Spain and to stimulate foreign investment in Spanish real estate, public debt, and job creation.
This new law allows non-EU investors to qualify for the highly coveted so-called Golden Visas. In short, this allows non-EU nationals to attain qualified residency permits in return for investing in Spanish real estate (and other assets), leading to permanent residency in Spain provided that certain conditions are fulfilled.
Every visa scheme is different and its roadmap depends on each client’s individual needs, objectives and family profile.
It is critical to obtain the good quality advice right from the start in order to avoid costly mistakes.
Benefits of the Golden Visa
- Allows circulating freely and without restrictions in the ‘Schengen area’.
- Stay in one European country throughout the whole year without the need to exit and re-enter.
- Does not entail a minimum period of residence in Spain of 183 days for its renovation (the beneficiary can keep his tax address out of Spain).
- Obtaining permanent residence permit in Spain for the investor, his spouse and children under the age of 18. Dependent adults due to health reasons can also request the visa.
- Possibility of creating a business base for entrepreneurs and investors.
Key points to obtain permanent residence permit in Spain
- Minimum investment amount in real estate in Spain is 500,000 Euros of own capital. Should invested sum exceed the said base, the difference can be financed though a mortgage loan.
- The invested amount could be spent in one or more residential or commercial properties.
- Once the acquisition process is completed per the above, and for the investor to apply for residency, proof of the investment(s) and ownership must be provided with a Property Registry filing (certificate). If this certificate is not yet available, then the notarised deeds and an attestation that these have been submitted.
- Proof that the applicants have not been convicted in their home country, and have not entered or illegally resided in Spanish territory.
- Be in possession of a public or private health insurance valid in Spain.
- Have sufficient economic means to cover personal and family living expenses.
- The right to renew the visa and/or residence permit only if the investments are maintained. The granting of the visa is valid for one year with subsequent renewal thereof every 2 years provided the investment remains intact.
Some of the benefits include, among other the freedom to travel and access to education.
A legacy for future generations that, when combined with the right investment, can result in security and, eventually, interesting return on investment.
At BI Property, we advise and support our clients in this process. Our Legal Counsel advisory team has a wealth of experience in dealing with Golden Visa applications as well as with managing the due diligence process for general legal proceedings, residence permits and tax.