Spain’s Golden Investor Visa

The Golden Visa in Spain, also known as the Investment Visa, allows citizens of non-EU countries to obtain a residence permit in Spain through significant economic investments in the country. The program offers flexibility and many benefits, including the right to live and work in Spain, free movement in the Schengen area and the possibility of obtaining citizenship.

What does the golden visa of Spain give?

The Golden investor visa in Spain provides many advantages for investors and their families, but also has certain disadvantages, the main of which is the high threshold for investment entry. Let’s consider what the golden visa of Spain gives:

Advantages:

• Investor’s work visa. Spain allows holders of a golden visa the right to live and work in the country without having to obtain a separate work permit. It applies to the main applicant, spouse, children and dependent parents.
• Visa-free travel. Visa holders can travel freely in the Schengen area.
• There are no minimum stay requirements. Spanish State law does not provide for mandatory periods of stay to maintain a visa.
• The path to citizenship. After five years of residence, you can get a permanent residence permit, and after ten years you can apply for citizenship.
• The whole family. The visa is also available for the spouse, children under 18 years of age and parents who are dependent on the applicant.
• The quality of life. Spain is a country with a high standard of living, excellent healthcare and education, and a favorable climate.
• Investment opportunities. A diverse real estate market with opportunities for investment in residential, commercial and industrial real estate.

Disadvantages:

• High down payment. A minimum investment amount of €500,000 for real estate or €2 million for government bonds can be a significant barrier.
• Risks of the real estate market. The Spanish real estate market is subject to fluctuations due to global events such as financial crises. Pandemics also strongly affect prices for the worse, as a significant part of budget revenues depends on tourists. 
• Bureaucracy. The registration process involves significant paperwork, which is why you may need to consult with specialized specialists. 
• Tax consequences. If you stay more than 183 days a year in Spain, visa holders become tax residents. They must pay contributions to the country’s budget, not only received from income within it, but also around the world.
• Maintenance costs. Spain charges taxes for the maintenance of real estate on an annual basis, equal to a percentage of the cadastral value of the property.
• The ban on loans. The initial amount of €500,000 should be free of encumbrances. That is, the investor cannot take it on credit or mortgage — only full payment.

How to get a golden investor visa in Spain

The Golden Investment Visa provides several investment options for obtaining a residence permit. To extend documents obtained through investments in real estate, stocks, bank deposits or government bonds, the key requirement is to preserve investments for a period of five years or more.

Real estate investments

The minimum amount of investment in real estate is €500 thousand. The entire amount must be paid immediately and does not provide for the possibility of obtaining loans and mortgages. We can talk about either one property or several, the main thing is that the total amount should be more than or equal to €500,000. The investor can take out loans and borrowings only in excess of the specified amount. 

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Company shares or bank deposits

Investment of €1 million:

• In shares or shares of Spanish companies engaged in real business activities.
• To investment or venture capital funds registered in Spain.
• In bank deposits in Spanish financial institutions. 

You can also get a golden visa if you invest amounts from €2 million in Spanish government bonds.

Business projects

In this case, there is no fixed minimum investment amount, but the project must be recognized as of general interest to Spain and meet at least one of the following criteria:

• Create a significant number of jobs.
• Have a positive socio-economic impact on the local region.
• Promote scientific or technological innovation.

Features of obtaining a Spanish golden visa for Russians

Since March 2022, Spain has suspended the issuance of golden visas for Russian citizens. New applications for a golden visa in Spain are no longer accepted. This decision was confirmed by the country’s Ministry of Foreign Affairs and applies to all types of investments, including the purchase of real estate, company shares and government bonds. Therefore, the question “how to get a golden visa” is practically irrelevant for Russians.
There are some exceptions, and in some cases a Spanish golden visa is available for Russians. This applies to those who are already in Spain and apply through local immigration services, and not through consulates in Russia. It is also noted that the suspension applies only to new applications, while previously issued visas and their extension remain possible.

Requirements and conditions for obtaining an investor visa

The requirements for Spanish golden visas ensure that the applicant is financially stable, has a good character and is able to maintain his investments in Spain. Here are the main criteria:

• Age. The applicant must be at least 18 years old.
• Financial stability. The applicant must demonstrate sufficient financial means to support himself and his family members during his stay in Spain.
• No criminal record. A certificate of no criminal record from the country of origin or the countries where the applicant has resided in the last five years.
• Medical insurance. Applicants must have public or private health insurance valid in Spain. She must cover all necessary medical expenses.
• Confirmation of investments. For example, real estate documents, bank statements or business plans are suitable.

Requirements for family members:

• The spouse. Marriage certificate and documents confirming marital relations.
• Children. Birth certificates translated into Spanish and legalized in the jurisdiction of the country. Documents confirming the financial dependence of children over the age of 18.
• Dependents. Documents confirming the financial dependence of a family member on the applicant.
• Workers. A valid employment contract with a Spanish employer.

Documents for applying for a residence permit in Spain for investments

Before applying, it is important to translate the documents into Spanish. Also, documents issued by another country must be legalized or apostilled, that is, recognized by Spain.

To successfully apply for a residence permit in Spain for investments, you must provide the following set of documents:

• A valid passport. A copy of the passport valid for at least one year after the date of application. The copy must be notarized.
• Visa application form. A completed and signed application form. The forms can be obtained at the Spanish Consulate or downloaded from official websites.
• Photo. Two recent photos that meet the requirements for a visa.

Proof of investment:

• Realty. A certificate of ownership and a certificate from the real estate register confirming an investment of at least €500,000.
• Company shares or bank deposits. A bank certificate or statement confirming an investment of at least €1 million.
• Government bonds. A certificate from a financial institution or Bank of Spain confirming the purchase of bonds in the amount of at least €2 million.
• A business project. A business plan, a job creation scheme or other documents confirming the importance of the project for Spain.

Medical insurance

Confirmation of the availability of public or private health insurance valid in Spain and covering all necessary medical expenses.

Certificate of non-criminal record

A certificate issued by the authorities of the country of origin or any other country where the applicant has resided for the last five years.

Confirmation of financial resources

Bank statements or other documents confirming the availability of sufficient financial resources to support the applicant and his family in Spain. A minimum of €30,000 is usually required for the main applicant and additional funds for each family member.

Medical certificate

A certificate issued by a licensed medical professional confirming the absence of diseases that pose a threat to public health.

Documents for family members:

• Passports. Copies of passports of all family members.
• Birth and marriage certificates. Translated into Spanish and legalized or apostilled documents confirming family relations.
• Confirmation of financial dependence. For children over the age of 18 and dependent parents.
• Medical insurance. Confirmation of the availability of health insurance for each family member.
• Certificates of non-criminal record. For family members over the age of 18.

How much does a golden visa cost in Spain

To obtain a golden visa, you must invest at least €500,000 in real estate. This may be one or more real estate objects, and the property encumbered by a mortgage or loan is not offset. 

Investments in shares/deposits from €1 million of Spanish companies or in a deposit account with Spanish financial institutions. It is important that the companies are operating, not fictitious. You can also invest from €2 million in Spanish government bonds. 

Investments in business projects do not have a minimum fixed amount, but they should be significant for the Spanish economy. The significance is determined by meeting at least one of the criteria: job creation; improvement of the socio-economic condition of the local region; promotion of scientific and technological innovations.

Administrative fees:

• A visa application costs about €60–€70 per application.
• Legal and notary services range from €1,000 to €5,000 for services, plus €200–€500 for notarization of documents.
• Fees for registration of real estate in the Land Registry usually amount to 1-2% of the purchase price of the property. If you invest in a business, there may be fees for registering a company with the relevant authorities.
• The cost of a mandatory medical examination ranges from €100 to €300 per person, depending on the service provider.
• The cost of health insurance depends on the provider and coverage, but usually ranges from €500 to €2,000 per year for comprehensive coverage.

Tax obligations for holders of a golden visa

Non-tax residents

If holders of a Golden Visa spend less than 183 days a year in Spain, they are considered non-tax residents. Non-tax residents are taxed only on income earned in Spain. This includes rental income, capital gains from the sale of real estate and other income earned in Spain.

Tax residents

If holders of a Golden Visa spend more than 183 days a year in Spain, they become tax residents whose income is subject to Spanish taxes worldwide. Spain has a progressive income tax system, with rates ranging from 19% to 47% depending on income level.

Income of tax residents may also be subject to the Spanish wealth tax, which applies to assets worldwide. The rates depend on the region, but generally range from 0.2 to 3.5%.

Agreements on the avoidance of double taxation

Spain has double taxation agreements with many countries that help to prevent double taxation of the same income.

Terms of obtaining a Spanish golden visa

Obtaining a golden visa in Spain takes an average of three months after applying. Compared to neighboring Portugal, where the visa processing period is about six months, this is not so much. Here are the deadlines to consider:

• The search and purchase of a property usually takes an average of one to three months.
• Preparation and submission of a visa application: 1-2 weeks.
• The initial processing of documents usually takes about 20 business days.
• The final approval and issuance of a Golden Visa can take up to three months.
• After the expiration of the golden visa, it can be extended for two years, provided that the investment is maintained and the applicant complies with the residence requirements. 
• Holders of a golden visa must have lived in Spain for at least ten years in order to obtain Spanish citizenship through investment.

The procedure for obtaining a golden visa in Spain

The process of obtaining a golden visa is as follows:

1. The choice of investments. Determine the type of investment (real estate, company shares, government bonds, your own company or business projects) and complete the purchase or investment.
2. Preparation of documents. Collect all the necessary documents, including proof of investment, copies of passports, insurance and criminal record certificates. Documents from other countries, such as a birth certificate or marriage certificate, need to be legalized in the Spanish legal field and translated into Spanish.
3. Submitting an application. Fill out the visa application form and submit it and all necessary documents to the Spanish consulate or immigration office.
4. Medical examination. Undergo a mandatory medical examination and receive a medical certificate.
5. Waiting for approval.The application review process usually takes up to three months. The Spanish authorities are checking documents and biographical information.
6. Obtaining a visa. After approval from the consulate or immigration department, a golden resident visa will be obtained.
7. Registration of the place of residence. Within a month of arrival in Spain, apply for a resident card (Tarjeta de Identidad de Extranjero, TIE) at the local immigration office and register at your place of residence in the local municipality.
8. Extension and maintenance. The visa is initially valid for one year and can be extended for two years, provided that the investment is maintained and the residence requirements are met.

Frequently Asked Questions

What is a golden visa?

The program for granting residence permits to investors who do not have Spanish or EU citizenship. The main investment options include the purchase of real estate, investments in shares of Spanish companies, government bonds or the development of a business project. The visa allows you to live and work in Spain, travel through the Schengen area.

How long is the Spanish Golden Visa valid?

The initial Spanish Golden Visa is issued for one year. After that, it can be extended for another two years, followed by a repeat of this procedure every two years, while maintaining investments and fulfilling all conditions.

How quickly are applications for a golden visa processed?

The process of reviewing an application for a golden visa in Spain usually takes up to 20 working days for initial processing and up to 3 months for final approval and issuance of a visa. The procedure for obtaining a golden visa in Spain includes document verification, biographical checks and possible additional requests for information from the applicant.

What are the disadvantages of a Spanish golden visa?

Investor programs in any country are well balanced, and the Spanish program is no exception. But there are also disadvantages: a high initial payment of €500,000; bureaucracy, which may require a legal consultant to deal with; tax deductions from all income in favor of Spain (from tax residents); exposure of the real estate market to serious changes due to international events; regular deductions for the maintenance of property in the amount of part of its value.

How long can I stay in Spain with a golden visa?

There is no mandatory time of residence in the country, however, to obtain permanent residence it is necessary to live in Spain for five years, and for citizenship — ten years.

Do you need to know Spanish to get a Golden Visa?

A golden visa in Spain for the purchase of real estate is issued without knowledge of Spanish. English will be enough. An appropriate specialist may be needed to translate the accompanying documents. The language will be required to pass the citizenship exams.

Do I need to live in Spain after obtaining a residence permit and to extend it in the future?

Accommodation is not necessary to maintain the investor’s residence permit. This is only necessary to obtain permanent residence and citizenship.

Author

Mikhail Konon is a copywriter

I write informative articles about real estate, investments, job search and taxes.

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