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Spanish “Gold” residence visa now law in Spain

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The bill giving residency permits to property investors from outside the EU has been published in the official gazette (B.O.E) and is now law.

The law has been approved by Parliament, signed by the King, and published in the official gazette, called the Boletin Official del Estado (BOE), which means it is now in force.

Publication in the official gazette reduces any uncertainty for foreign investors. They can now be sure of qualified Spanish residency if they meet the criteria of the investment.

Everything you need to know about the new law offering qualified Spanish residency in return for investing in Spanish real estate (the so-called “Golden Visa” law), and how to use a property investment to get Spanish residency as a non-EU national:

The objective of the law is to stimulate foreign investment in Spanish real estate, public debt, and job creation. It is also intended to stimulate demand for Spanish property.

This law enables non-EU nationals to get qualified residency permits in return for investing in Spanish real estate (and other assets), leading to permanent residency in Spain if certain conditions are fulfilled. The key points of the draft law are summarised below.

Spanish residency, and the ability to travel freely in Europe as a consequence, will be a major attraction for many non-EU investors. Added to which, Spanish property prices have crashed into bargain territory, creating some excellent investment opportunities. It’s an attractive combination of residency and bargain prices for investors from outside the EU.

Property Investment and Spanish Residency Law Explained

This section explains the (draft) law the enables non-EU nationals to get qualified Spanish residency in return for investing in Spanish real estate, and other assets.

By Antonio Berdonces, Lawyer & British Honorary Consul in Murcia

The bill aimed at entrepreneurs and supporting measures for the internationalization of the Spanish economy (Proyecto de Ley de apoyo a los emprendedores y su internacionalización) has now been made law in Spain.

This law is intended to stimulate foreign investment in Spanish real estate, public debt, and job creation.

According to EU rules on visas and the Schengen Implementing Convention Agreement, the entry and residence in Spain of non-EU citizens shall be authorised for economic reasons.

The spouse and children under 18, (or older disabled children) may also apply for permits at the same time or after the principal applicant.

Types of residency permits under the draft law

Here’s how it works:

Residence visa for investors (year 1)

The first step for investors will be to apply for an investment visa that allows them to live in Spain for at least one year. There is no obligation to spend a minimum amount of time in Spain in this period.

This visa will be authorised in Diplomatic Missions and Consular Spanish Offices and can be issued for one, two or multiple entries into Spain.

These visa applications shall be processed and notification sent within 10 working days, except in case of applicants subject to prior consultation.

Residence authorisation for investors (years 2 to 5 or more)

Once an investment has been made, and after the first year, investors can apply for authorisation to live in Spain for two years, renewable for another two years after that (and on), so long as the investment threshold of €500,000 is maintained (see below).

There is no limit to the amount of times this two-year residency can be renewed.

Properties can be bought and sold during this period, so long as the investment threshold is maintained.

There is no obligation to spend a minimum amount of time in Spain, so investors can remain tax resident outside of Spain, whilst benefiting from Spanish residency and the freedom of unlimited travel and stays in the EU.

Processing and granting the residence will be done by the Spanish Ministry of Foreign Affairs.

Applications will be responded to within 20 working days from the submission of the application. If there is no answer in this period, the application shall be considered as accepted.

Long-term residence and Spanish nationality (Year 5 onwards, optional)

After five years of continuous residence, investors can apply for permanent residence in Spain.

Likewise, after ten years of residence, Spanish nationality can be requested. In such cases, an effective justification of at least six months of residence must be provided, (unless due cause exists).

Property Investment

Investment threshold
The investment threshold for real estate is €500,000 or more per investor.

To apply for residency, proof of the investment(s) must be provided with a Property Registry filing (certificate). If this certificate is not yet available, then the notarised deeds and proof that the deeds have been submitted to the Property Registry must be provided.

The investment can be comprised of:

  • One or several properties.
  • Of a residential, touristic, rural, commercial or industrial nature
  • Rural land, developed land, buildings under construction, or decrepit buildings

Financing
Investors must use at least €500,000 of their own funds, which must come from transparent sources that comply with existing legislation on money laundering and so on. Above that threshold there is no limit to debt financing, for instance with a mortgage in Spain.

Use Restrictions
There are no restrictions on property use. Investors can use the property in anyway that is legal according to planning permission, zoning laws, and so on.

Company Ownership
You can make the investment through a company so long as it is not based in a tax haven and you have control of the company.

Other Investments

  • Other investments that also qualify for residency:
  • Two million Euros in Spanish government bonds.
  • One million Euros in stocks or shares of Spanish companies, or bank deposits in Spanish banks.

Other administrative requirements

  • Not to have entered or stayed illegally in Spain, or been refused entry into any Schengen countries
  • 18 years or older
  • No criminal record
  • Not listed as undesirable in Spain
  • Public or private health insurance valid in Spain
  • Economic resources to support the applicant and dependents
  • Authorisation or visa processing fee.

30th September 2013.

Reproduced with kind permission of Mark Stücklin of Spanishpropertyinsight.

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22 comments on “Spanish “Gold” residence visa now law in Spain

  1. fiona mathews

    Dear Sir/Madam,
    I have many investors who would like to invest in Spain:-
    Please let us know if we invest 500,000 Euros to gain permanent residence are we allowed to rent the properties out and what is the return we get for our investment. ?
    Do we have to spend 6 months in one go or we can break up the
    6 months period?
    Thanking You.
    Fiona

    • fiona mathews

      Hi Robert,
      Thanks for your prompt reply. I will propose this to my clients
      and will revert back to you regarding their comments.
      Kind Regards
      Fiona

  2. Hi Fiona

    A residence permit will be granted to those non EU nationals who purchase a property above 500.000 Euros, which will allow them to obtain a staggered visa, gaining a full visa after five years (see the article). During this period, they cannot sell their property, but they can change it for another of similar or higher value.

    You can also buy commercial property to gain a visa, as well as investing two million Euros in Spanish government bonds, or one million Euros in stocks or shares of Spanish companies, or bank deposits in Spanish banks.

    Yes, you can rent out the property. It’s return depends entirely upon what you buy, or invest in.

    You do not have to spend any minimum time in Spain. But if you do spend more than 183 days in any given year you will be liable to paying taxes in Spain.

    Regards

    Robert Edwards

  3. ben ayed

    salut , je suis intéressé par loi de 500 milles;mais quand en commence à acheté les biens , est ce que en et obligé de ne pas dépasser les 60 jours d’achat des biens pour les 500 milles , cordialement

    • Merci de nous contacter au LPG Spain.

      Il n’ya pas de limite de temps pour savoir quand vous décidez de faire une demande de visa de résidence d’or, car la loi est rétroactive. Vous pouvez acheter librement une propriété plus de 500.000 Euros, et ensuite demander votre visa.

  4. Mickael

    Hello,

    How about the permanent resident permit? I understood that it is possible to apply after a 5 years but will it be required to stay 183 days to get this permanent residence permit?

    Regards

    • Yes, you are correct. Initially, you apply for 1 year’s temporary residency. Thereafter you can apply for 2 more years and then again for the final 2 years. After 5 year’s residence, you can then apply for a permanent residence permit. Note, that you must maintain ownership of your property during this time. You can however sell the property as long as you purchase another one to the same minimum value of 500.000 Euros.

      There is no time limitation with regard to the number of days that you stay in Spain each year. But if you do spend more than 183 days in any given year you will be liable to filing a tax return as you will be considered as a tax resident in Spain. By remaining out of the country more than 183 days per year you may retain your tax exile status.

      Regards -- Robert Edwards -- LPG Spain.

  5. pedram fanian

    If you get the golden visa by investing in a property, can you have access to the Public (government) Health care system? Or do you need to purchase private insurance?

    • Yes indeed. Once you have obtained your residence visa, you can benefit from the Spanish Social Security health service. Naturally, if you wish to take out private medical insurance, there are also some very good schemes available in Spain.

  6. John Cox

    Hello,I was so happy to find your webste,There is a property in Barcelona that I am very interested in & it is priced just under 500k euros.Is there any legal way around the 500k euros..The property is valued at 475 EU.Would I qualify if I were to purchase this home & invest or jeep 25 EU in a Spansh Bank & would I be entitled to the healthcare system at first? Thank you,John

  7. Sharif

    I have 285,000.000 euros .. Is there a way to get permanent residence? Thanks

    • The law is very clear. The minimum investment is 500.000 Euros. You also have to show means of financial independance as the visa does not allow you to work.

  8. Visados de Oro en España.
    Para obtener información detallada con respecto a la obtención de un visado de oro de residencia en España, no dude en contactar con nosotros para más detalles. Ofrecemos un servicio completo y profesional respaldado por más de 30 años de experiencia en la tramitación de solicitudes de visado en España. En nuestro departamento jurídico, tenemos personal que habla ruso y estamos considerando el empleo de los que hablan chino para hacer frente a los solicitantes de los territorios de habla china.
    Preguntas Y Respuestas: http://www.leadingpropertygroupspain.com/es/2013/10/qa-spanish-golden-residence-visa/
    Contacto: http://www.leadingpropertygroupspain.com/es/contacto/

  9. Golden Residence Visas in Spain.
    For detailed information with regard to obtaining a Golden residence visa in Spain, don’t hesitate to contact us for details. We provide a full and professional service backed by over 30 years of experience dealing with visa applications in Spain.
    In our legal department, we have Russian speaking staff and are considering the employment of those speaking Chinese to cope with applicants from Chinese speaking territories:
    Q&A: http://www.leadingpropertygroupspain.com/en/2013/10/qa-spanish-golden-residence-visa/
    Contact: http://www.leadingpropertygroupspain.com/en/contacto/

  10. Chris uggles

    I’m from the UK and am looking to buy land be work it does this apply to me.?

    • The Spanish Golden Residence visa is targeted at non EU nationals. If you are already a citizen of an EU country you don’t need a visa to travel through the 28 Schengen countries.

  11. Is a golden visa holder entitled to open its own business in Spain?

    • Hi Kelisi
      Once having purchased a property and fullfilled the conditions to obtain a golden visa in Spain, this in itself doesn’t allow you to work in Spain. However, if you wish to start a business venture by investing in Spain, you will be permitted to work as long as you meet the minimum levels of investment for creating such a company and creating employment. Please see another of our articles on the subject: Q&A Spanish Golden Residence Visa: http://www.leadingpropertygroupspain.com/en/2013/10/qa-spanish-golden-residence-visa/

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