What is Spain's “Golden Visa” Program?

Sponsored by Klev&Vera International Law Firm.

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Foreigners that have made a significant investment in Spain can benefit from the special residence permit for investors. It is commonly referred to as the “golden visa program.” It was first introduced in September 2013 with the approval of Act 14/2013, of 27 September, of Support to Entrepreneurs and Their Internationalization.

Since then, this law has become a very popular tool not only for investors from all over the world, but also for many Spanish companies that now have a much faster way to hire highly-qualified persons from abroad, or for multinationals in need of transferring staff to Spain on a temporary basis.

What Investments Qualify?

• Investments in real estate of €500,000 net and above.
• Financial assets (bank deposits, shares, investment funds of €1 million, public debt of €2 million).
• Business projects of special interest to Spain—there is no minimum amount, but you will need to obtain a prior approval from the Directorate of Commerce and to prove that your business will be of “general interest” to the country.

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Main Advantages

• You can rent or lease the properties you own and to generate income.
• Properties can be purchased jointly provided that each of the joint owners invests €500,000.
• Golden visa residency does not require actual residence in Spain. This means you can spend less than 183 days in Spain and continue being a tax resident in your country of usual residence.
• Your family can apply together with you in the same application.
• You and your family will be directly authorized to work or set up a business in Spain without any geographical or sector restriction.

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How to Get It

First you need to complete the purchase process, that is to say, register it in your name in the property registry.

Technically it is possible to request the residency permit just after signing the down payment contract of purchase and sale with payment of a deposit, however, in practice it is rarely done. This is primarily because the residency permit requires that the entire purchase amount be deposited in a Spanish bank, which usually happens just before completing the purchase at a notary public.

If you are outside of Spain, you will need to get an investor’s visa first through the Spanish Consulate of your country of residence. The law says such visas must be issued with priority within 10 working days. Unfortunately, as with many official procedures in Spain, especially in diplomatic missions, it is quite common to encounter delays.

If you are already living in Spain on a different visa or residence permit, you can apply directly for an investor’s residence permit. You need to submit your application online directly to the Large Business and Strategic Groups Unit (Unidad de Grandes Empresas y Colectivos Estratégicos, or UGE), typically through your immigration lawyer.

The UGE must respond within 20 working days, and if they don’t your permit is deemed “approved by administrative silence.” In practice, the UGE usually responds quite fast to such applications, so you can expect to get an answer in a matter of a couple of weeks. After that, you just need to get your residence card, which will be issued for two years, renewable for five.

You can find more information at the official website of the UGE.

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A Look at the Numbers

There was a significant decrease in Golden Visas issued in Spain in 2020, mainly because of the travel restrictions caused by COVID-19. According to some statistics, the number of residence permits obtained by investors was half as many as in 2019. However, these numbers will likely change in 2021 as Spain remains a very attractive place for foreign investment, and there is an accumulated demand among investors waiting for the borders to open to complete their purchase deals.

Brexit will certainly contribute to the increase of applications for Spanish Golden Visas. Spain is a popular place for Brits to purchase a second residence, but now that the UK has left the European Union, new rules apply to Britons seeking to buy property in certain areas. Starting January 1, 2021, UK citizens that did not have Spanish residency before the withdrawal deadline will need to obtain their residence permits under the same rules as other non-EU nationals, and the golden visa is a pretty straight-forward way to do so for those who own a property of significant value.

Decreasing real estate prices in major Spanish cities in 2020-2021 are also a factor that will attract many investors looking to invest in Spain or other European countries with similar programs for investors.

Some professionals working with investors, including real estate agencies and law firms, have requested that the Spanish government decrease the amount of the minimum qualifying investment, in particular, to €250,000 in the real estate sector. However, as of this writing, this seems unlikely to happen.

Anna Klevtsova is managing partner of Klev&Vera with over 18 years of experience in public service and international cooperation projects. Anna leads the corporate and immigration practice, specializing in company formations, investment transactions and immigration strategies. Anna is fluent in English, Russian, Spanish, and also speaks French and Catalan.

Sponsored by Klev&Vera International Law Firm.

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