The Golden Visa in Spain is a citizenship by investment program (CIP) that was introduced in 2013 under the 14/2003 Entrepreneur’s Law.
Since then, Spain has become one of the European countries with more Golden Visas, according to ElPais. The Countries where the Golden Visa has become more popular are China and Russia. Nevertheless, the number of people from Iran and Venezuela applying for a Golden Visa is growing year after year.
Who can take advantage of Citizenship by Investment in Spain?
The Spanish Golden Visa is designed for all citizens from outside the European Union, who are willing to make an investment that grants them residency in the country. In 2015, the golden visa experienced an easing in the criteria for its concession, and so did the number of individuals that could benefit from it. From 2015 onwards, the investor will be allowed to include the following family members in the Golden Visa Application.
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Spouse of the investor. This takes into account unmarried couples with a “pareja de hecho” certificate in Spain, or those unmarried couples with a child in common.
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Children under 18.
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Children Over 18 if they are financially dependent on the investor.
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Dependent parents or grandparents.
Available investments to obtain the Golden Visa
There are several ways to obtain a Golden Visa, depending on the type and amount invested. Those are the most common paths followed by investors when applying for the Golden Visa.
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Purchase of a property worth more than € 500,000.
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Buying shares of a Spanish Company for a value greater than € 1,000,000.
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Making a bank deposit in a Spanish entity for a value greater than € 1,000,000.
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Possession of Spanish public debt worth 2 or more million euros.
Additional Requirements to Get the Investor Visa.
Apart from the investments, those applying for a Golden Visa in Spain must fulfill the following requirements, before being granted their citizenship.
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Legal Age +18
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Not being a citizen of any country inside the European Union.
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Lack of criminal records in any country.
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Having a full coverage healthcare plan in Spain
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Proof of possession of enough economic means to sustain both the investor and his family.
Documentation Required to Obtain the Citizenship By Investment in Spain
In order to be eligible for the Citizenship by investment program, the investor must be able to justify and provide proof of the investments made in Spanish territory.
Investors will be required to present different documents, depending on the investments made.
Therefore, if the investor has chosen to obtain the Golden Visa by investing in Real Estate in Spain, he/she will be required to present proof of the purchase of the property, using the Certification of Domains and the charges from the Spanish Property Registry.
If the investor is purchasing Spanish shares, he will be required to present a declaration of the investment from the Investment Registry of the Ministry of Economy in case he/she is purchasing participations and a certificate from the financial intermediary registered with the National Securities Market Commission (Comisión de Nacional de Mercado de Valores) for the purchase of shares.
If the investor has chosen to buy Spanish public debt, he/she will be required to present a certificate from the Bank of Spain or the financial institution where the investment was done. In that case, the certificate must clearly show who are the holders of the purchase.
What taxes are investors required to pay within the Golden Visa Scheme?
If the investor has purchased Real Estate in Spain, he/she will be subject to some taxes. Depending on the time that the investors spend in Spain, they will be required to pay certain taxes.
In the case that the investor spends more than 6 months per year in Spain, he/she will be considered a Spanish Resident. Therefore, the investor will be required to pay taxes on worldwide assets and incomes generated in Spain.
In the event that the investor spends less than 6 months per year in Spain, he/she will only be taxed on the initial investment value, and thereafter on the value of his/her assets in Spain.
Golden Visa Renewal in Spain
Once the investor has obtained his citizenship by investment, he will have 2 years to reside legally in the Spanish territory.
Once this temporary period has elapsed, the applicant can request a renewal that will allow him to be a legal resident for an additional 5 years.
In order to be able to renew the visa, the investor will need to prove that he still owns the asset that was subject to the initial investment. The required proof is the same as the one required for the initial application.
There is, though, an additional requirement to the Golden Visa Renewal application, and that is that the investor must have visited Spain at least once a year during the period in question.
Main benefits of the Golden Visa Program in Spain
Preferential treatment is one of the main benefits of gold visas. With the Spanish Golden Visa you get the residence permit faster than anyone else trying to obtain Spanish Citizenship, both for the first immediate grant valid for one year and to process renewals every two years.
In addition, the residence visa derived from the Golden Visa allows free movement through the rest of the 26 European countries of the Schengen area. This freedom of movement is highlighted as one of the main reasons for processing the visa for real estate investment. But there is more: the Golden Visa makes the granting of visas more flexible not only for the person making the investment but also for his spouse and for children under 18, and access to public schools. Newborns in Spain will obtain Spanish passports at the end of the year, without having to meet any other requirements.
Remember that the gold visa is one of the many ways to obtain Spanish nationality. After 10 years residing legally in Spain, the investor will be able to carry out the pertinent procedure, in order to obtain permanent nationality.
About My Spanish Residency
MySpanishResidency is an immigration portal for expats looking to invest in Spain, specialized in Property Investment and Golden Visa in Spain
Please visit https://www.myspanishresidency.com/lawyers-spain/golden-visa/
