Investment alternatives

You must make one of the following investments out of your own funds / cash / equity:

• €500,000 on Spanish real estate (to be discontinued)
• €2 million on Spanish Treasury bonds
• €1 million on Spanish company shares
• €1 million in investment funds constituted
• €1 million in bank deposits in Spanish financial institutions
• A ‘major’ business investment which fulfils at least one of the following conditions: i) Meaningful job creation, ii) significant socioeconomic impact in the area where the investment takes place, iii) technological or scientific impact

How it works with a property investment

The first step is to buy a property worth €500,000 or more in Spain, and sign the title deeds before a notary. For the purposes of Residence applications, the investment value that counts is the purchase price recorded on the deeds.

The purchase may be done in person, or through a POA arranged before a notary in Spain or any member-state of the Hague Conference. Alternatively, a POA may be arranged through a Spanish consulate or embassy anywhere in the world. If the purchase is made in person, the subject needs to be legally in Spain (under a temporary/tourist visa or any other legal status according to the requirements established for each nationality). 

Once the property has been acquired, you can apply for the Residence Permit, which lasts 2 years before the Unit for Large Companies and Strategic Economic Sectors, and you must be legally in Spain at the moment of the application.

This permit may be renewed for unlimited additional 5 years periods, as long as the investment still in place.

Spanish 'Golden Visa' FAQ

The investment for a ‘Golden Visa’ in Spain

How much do I have to invest?

At least €500,000 of your own money, net of any mortgage financing. 

Can I use a mortgage?

Yes, but only for the excess above €500,000 that must be financed out of your own pocket.

Is it retroactive?

Only for investments made after the 28th of September 2013.

Do I have to invest €500,000 all at once?

No, you can spread the investment out over time, but, you can only apply for the Residence Visa once you have invested €500,000 or more of your own funds. Therefore, for example, if you spend €300,000 on a property today and €200,000 on another property in a year’s time, you will then be able to apply for the Residence Permit. 

Are transaction costs like taxes included in the investment threshold of €500,000?

The short answer is no, meaning you have to spend €500,000 not including tax and expenses. 

What taxes and transactions costs will I have to pay?

It depends on the type of property and where it is located. Generally speaking you pay VAT on new properties and a transfer tax (ITP) on resale properties. You will also have to pay stamp duty, notary, and registry fees. See our guide to transaction costs for more information.

Do I have to buy one property worth €500,000 or more, or can I buy several properties with a combined value of €500,000 or more?

You can buy several properties costing less than €500,000, so long as their combined value is €500,000 or more.

Can I rent out the property I buy?

Yes, this new law places no restrictions on legal property use.

What kind of property do I need to buy?

You can buy commercial property, residential property, or land. In other words, any type of property investment is valid.

Can I sell the property?

Yes, you can sell the property, but you have to re-invest €500,000 in another Spanish property if you want to renew your Residence Permit.

What should I invest in?

Spanish real estate prices have fallen for several years, but not all investments are equally good. Don’t let the Residence Permit distract you from investing wisely. Focus on quality investments offered by professionals with good reputations.

The Residence Permit

How long is the Residence Permit granted for?

The initial Residence Permit is granted for 2 years. After that, assuming the investor still complies with all other requirements, a 5-year permit can be obtained, and renewed indefinitely every 5 years. The investor only has to visit Spain once before each permit expires to request a renewal. 

Can I lose the Residence Permit?

Yes, if you liquidate your investment in Spain, or fail to meet one of the investor requirements.

How long do I have to spend in Spain?

You only have to visit Spain once to get or renew the Residence Permit. There is no minimum stay requirement, and you do not have to become a fiscal resident. 

Can I get a Spanish passport?

Although they can be renewed indefinitely, these 2-year and subsequent 5-year Residence Permits are not the same as a right to permanent Residence or a Spanish passport. However, these Permits can lead to long-term Spanish Residence status after 5 years of continuous residence, and citizenship after 10 years of continuous residence, assuming all the other conditions of applying for long-term residence status or citizenship are fulfilled.

Does this replace other ways to get Residence?

No, it does not. Existing permits and procedures are still valid. This law is specifically tailored to attract affluent non-EU investors, and helps cut red tape.

Can I include my family in my application?

Yes, you can get additional permits for your spouse or person with an analogous relationship and children under 18 years  or those of legal age who, being financially dependent on the holder, have not formed a family unit for themselves.  You can also get additional permits for your parents in your charge.

Can I travel visa-free in Europe?

You can travel without a visa for 90 days out of every 180 days within the Schengen area, but you will still need a visa to enter EU countries outside the Schengen area like the UK.

Can I work in Spain with this Residence permit?

Yes,  you can reside and work in Spain during the validity of the permit.

Do I need health insurance cover for Spain even if I’m never there

Yes, it does not matter how little time you plan to spend in Spain, you must have health insurance cover valid in Spain. 

What kind of health insurance should I have in Spain?

If you are a citizen of a Member State of the European Union, the European Economic Area or Switzerland and entitled to coverage under the social security system of your country, then you can apply to the European health Insurance Card (EHIC), which can be obtained from the public health authorities of your home country.

If you are a citizen of a country outside the European Economic Area or Switzerland, then you must find out whether there exists a mutual health provision agreement between the Social Security system of your country and Spain.

If you do not fall into any of the above categories or cannot give proof of the document issued by the relevant national authority of your country, then prior to departure, you must take out private medical insurance to cover the whole stay in Spain.

However, if you have a labor contract in Spain, you will have the national health cover automatically. 

Can my children go to a state school in Spain?

Yes, in fact in Spain it is mandatory the scholarship for children under 16.  

Tax Implications

Once I have a Residence Permit, what are my tax obligations in Spain?

If you spend less than 183 days a year in Spain, you can avoid fiscal Residence, meaning you do not have to pay income tax in Spain, or declare your worldwide assets. The option to avoid fiscal Residence is one of the big attractions of this new law. However, you still have to pay certain taxes related to owning property in Spain, such as rental income tax and municipal taxes.

The Application Process

How long does it take?

20 working days for Residence Permits.

Do I need an NIE number (Spanish Identity Number for Foreigners)?

Yes, you need an NIE number to buy a property in Spain. You can get this in person in Spain, or your lawyer can get it for you with a POA.

Can I purchase through a company registered outside Spain?

Yes, so long as the company is not based in a tax haven, and you can demonstrate control of the company.

Do I have to come to Spain?

The real estate can be acquired without visiting Spain though a POA. However, in order to apply for the Residence Permit, you have to visit Spain (check the latest rules with a lawyer). 

Disclaimer

This guide has been compiled in good faith using data from publicly available sources. While every effort has been made to ensure the accuracy and reliability of the information provided, the author makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information contained in this guide for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

The author shall not be held responsible or liable for any errors, omissions, or inaccuracies in the information provided, nor for any actions taken in reliance thereon. The information contained in this guide is subject to change without notice.

This guide is intended for informational purposes only and does not constitute professional advice. Readers are encouraged to conduct their own research and seek the guidance of qualified professionals before making any investment or business decisions based on the information provided in this report.

By using this guide, you acknowledge and agree that the author shall not be liable for any loss or damage of any kind, including but not limited to direct, indirect, incidental, punitive, and consequential damages, arising out of or in connection with the use of this guide.