Spain’s Golden Visa program is arguably the best in the world. This article explains how to get a Spanish Golden Visa via property investment.
The complete guide to Spain’s Golden Visa
Have you thought about emigrating to Europe, but don’t know if you have sufficient savings to sustain yourself without working? Or perhaps you don’t want to throw yourself into a situation where your immigration status is uncertain? If so, Spain’s Golden Visa could be a good solution for you. It is arguable the best Golden Visa scheme in Europe. Keep reading to learn everything you need to know about the process.
Golden Visa basics
In 2013 Spain implemented the Ley de Emprenedores. It gives Spanish residency to people that invest a sufficient amount in the country or that start a business in Spain. If they start a business in Spain, it must create sufficient jobs and/or be in an industry that is considered of strategic interest to Spain (technology, aerospace, renewable resources and biotech are the main ones). If they wish to obtain Spanish residency via investment, the threshold is relatively low: One can invest 500k€ in Spanish real estate and obtain a Golden Visa.
Where does one apply for a Golden Visa?
If you are outside Spain, you apply at the Spanish Consulate in your country. If you are inside Spain, you apply digitally. If you have a Spanish NIE you can get a digital certificate that will allow you to apply. If you don’t have a NIE, you need to ask a Spanish friend that you trust to help you. Or you can find a lawyer or gestor (a person that helps people pay taxes and navigate the Spanish bureaucracy) and have them help you.
What kind of paperwork is required?
You need to fill out an application for you and each member of your family. You will need to provide:
- The purchase agreement
- The deed to the property
- Proof of private health insurance (around 60€ per month in Spain)
- Proof you don’t have a criminal record.
How long does the Spanish Golden Visa last and who can apply?
The initial visa, which is just a stamp in your passport, lasts for a year. After that, you receive a Spanish residence permit that lasts for two years. After five years you are eligible for permanent residency (two years if you are from a country that is a former Spanish colony). This renewal is valid for five years. You can continue renewing it every five years as long as you own properties in Spain. You do not have to reside in Spain in order to be allowed to renew your residency permit. After 10 years of holding Spanish residency, you are eligible for a Spanish passport.
Anyone that invests 500k€ or more in Spanish property can apply. If your residence permit is approved, your immediate family, your partner and your parents are also eligible for Spanish residency.
How long does it take to get a Golden Visa approved?
Officially it takes twenty working days for the authorities to process your application and notify you of the outcome. If it is not process in twenty working days, you are automatically granted approval. This is called “approval by administrative silence” and it does happen. This was particularly true during covid and even in late 2022 as the bureaucracy continues to work its way through the backlog created by covid.
What if I want to leave Spain after I am granted residency?
Not to worry- the Spanish Golden Visa grants you complete freedom of movement in the Schengen Area. You can continue renewing your long term residence permit every five years as long as you own properties in Spain. You do not have to reside in Spain in order to be allowed to renew your residency permit.
What is considered sufficient investment to obtain a Golden Visa?
If you wish to apply for a Spanish Golden Visa via investment, there are a number of options. We will discuss the most practical, efficacious route, which is through Spanish real estate investment.
Real estate investment (500,000€)
In 2022, Madrid real estate has increased an average of 10%. across neighborhoods. Thus, owning and renting Madrid real estate is a very good business proposition. Why? Because it is a stable, low risk business that is consistently growing and expanding and is a significant asset for the property owner.
The investment threshold for investing in Spanish real estate is much lower than that for other investment types included in the Golden Visa program. Here are the other investments that qualify for a Golden Visa:
- Public debt: 2 million euros
- Public and private equity: 1 million euros
- Banks deposits or money market vehicles: 1 million euros
Can I invest in real estate in any part of Spain to get a Golden Visa?
Yes! You can buy property in any part of Spain to be eligible for a Spanish visa. You can also combine two or more properties to reach the 500,000€ threshold. However, it’s important to note that if you use a mortgage to finance part of your Spanish property purchase, that amount is only applicable if your mortgage is from an international bank. Amounts used to finance a property purchase via a mortgage from a Spanish bank don’t count towards the Golden Visa investment threshold. Refurbishment investment also does not count towards the Golden Visa investment threshold.
Do I have to pay taxes on my Spanish property purchase?
Yes, you do. However, if you set up a Spanish company and use that as a vehicle for your property investment, you can save up to 50% on your Spanish taxes.
Have there been any changes to Spain’s Golden Visa program?
No, there have not. Spain’s Golden Visa program is unique among the others in Europe. In 2012-2013, the following countries introduced Golden Visa programs via property purchase: Spain, Portugal, Malta, Greece and Cyprus. The program in Cyprus was eliminated due to improper regulation and government corruption. Malta greatly increased its investment threshold. Malta and Greece introduced very tight due diligence laws to counter money laundering. Greece is doubling the golden visa investment threshold in Central Athens, the Athenian Riviera, the most desirable northern suburbs of Athens, the city of Thessaloniki and the islands Mykonos and Santorini, effective May 1, 2023. As of March 30, 2023, Portugal was working to terminate its Golden Visa program. To learn more about these changes, read: Changes to European Golden Visa Programs.
