Let’s clarify doubts on the Golden Visa

On September 28, 2013, the new support law for Entrepreneurs and Internalization came into force in Spain. The law presupposes the granting of special documents allowing entrepreneurs to reside in the country. Much information on this topic has already appeared on Internet and press, although some of it contains contradictory information that simply confuses and disorients whom is interested.

Here we offer the answers to the most frequent questions of our clients about the granting of the so-called Golden Visa and / or the residence for those who invest money in real estate in Spain.

What is the Golden Visa?

The Golden Visa is the common and informal name of the residence visa for investors in Spain. It is a special document created by the new law to support foreign investors.

Who can apply for the Golden Visa?

It can be applied by any non-EU foreign (not belonging to the European Union) who wishes to invest in the real estate sector in Spain for at least 500,000 Euros without including taxes in the act. The property must be free of charges, this means, external financing cannot be used (mortgage, loan, etc.). The origin of the capital for the purchase has to come from outside of Spain.

Does the purchase have to be made exclusively with own funds?

To apply for the Golden Visa, it is necessary to buy real estate properties in Spain for a minimum value of 500,000 Euros. Any amount above the indicated price may come from external financing. For example, if a property costs 800,000 Euros, 500,000 Euros have to be paid with own funds, while the remaining 300,000 Euros can be paid with mortgage assistance.

Where is the investor visa requested?

The Golden Visa is requested at the Consulate of Spain and in the country of the applicant.

What documents must be presented for the Golden Visa in Spain?

1. Two copies of a national visa application form from Spain. (Visa Type D, Code RIV).
2. Two recent color photographs, with a white background, 3.5 х 4.5 cm.
3. Ordinary passport and must be valid at least one year plus pictures of all the pages.
4. Identity card of the country of origin and copy of it.
5. Criminal record certificate of the Hague Apostille and official sworn translation.
6. Insurance document being valid at least one year granted by an insurance company accredited in Spain.
7. Verification of having sufficient economic resources during the period of residence in Spain. The law does not indicate any minimum amount to have in the account, for that there is a formula applied to foreigners who opt for non-profit residence. It is 400% IPREM for one month for the applicant, this means, not less than 25,560.48 Euros per year. In addition, 100% of IPREM for one month for each family member, this means, not less than 6,390.13 Euros for the spouse and each son / daughter under age, the amounts indicated are the minimum. It is preferable to have the amounts in a bank in Spain, although it is not mandatory.
8. Certificate of Land Registry with electronic verification code granted not earlier than 90 days before presenting the documents.
9. Original purchase/ sale contract by the Notary proving the investment in real estate for a minimum value of 500,000 Euros free of liens and encumbrances.
10. N.I.E.

Do I have to present the documents personally or can another person do so with an authorization?

The law does not obligate the applicant to present the documents personally. An accredited person can do it for the applicant.

What is the difference between the investor visa and the long-term ordinary visa?

The period of validity of the investor visa is one year. The privilege of the Investor Visa among the Tourist Visa consists on the fact that the days of staying in Spain during the year are not limited (that is, there is no restriction of the right to be in Spain only up to 90 days every six months) .

During what period of time do I have to enter Spain when obtaining the investor visa?

The investor visa does not oblige the applicant to enter Spain during the first 90 days from the moment of delivery of the document. You can arrive in Spain at any time during the term of the visa.

Do I have to request a T.I.E. when arriving in Spain?

With the Golden Visa, you can reside in Spain for one year without having to request a T.I.E. (foreigner’s identity card). It is enough to have the Investor Visa in the passport.

Can my family request the documents together with me?

The official spouse (including unmarried couples), parents and children of the real estate investor can apply for the visa and residence of investors together with him or her. The validity of these documents will depend on what is most important: the maintenance of the validity of the visa or the residence of the same investor. That is, upon expiration of the visa or residence of the investor, the visas or residences of the members of their family will expire equally.

Can my adult children request the documents together with me?

According to the latest amendment to the law, children of legal age of investors can request documents only if they depend on their parents and have not yet created their own families.

Having obtained the visa or residence of investors, do I become a taxpayer in Spain?

Neither the investor visa nor the residence of investors automatically makes him a taxpayer in Spain. To be considered a taxpayer, it is necessary to be in the country at least 183 days a year. None of these documents obliges you to be a certain period of time in Spain.

Is it possible to obtain long-term residency and Spanish citizenship later?

If you wish, it is possible to present the documents for long-term residence after the first  5 years, and 10 years later you can apply for Spanish citizenship. However, it is important to realize that, in this case, the periods of absence in the territory of Spain in total must equal no more than 10 months for every 5 years. So, there are two options:

1) If you do not want to become a taxpayer and do not wish to apply for long-term residence and Spanish citizenship: you can request and extend the residence of investors and be in Spain less than 183 days a year.

2) If your first objective is to move to Spain to live permanently: you can obtain the Golden Visa, pay fees, prolong it, after spending 5 years obtain a long-term residence and after 10 years obtain Spanish citizenship.

Does the object of purchase have to be just a residential property, or, for example, an office or land?

The phrase “real estate in Spain” is understood in the broad sense by the new law. It includes: residential properties, commercial objects, land, parking, offices, even factory facilities. They can be new buildings, second hand, under construction, in addition to land inside or outside the city.

Is only one property or several properties considered an investment object?

One or more objects with a minimum value of 500,000 Euros in total without fees are considered an investment.

Can you formalize a purchase for a company and also obtain a visa or residence for investors?

Investments in real estate can be made in the name of a company. The legal address of this company cannot be registered in the so-called “Tax-havens countries “. To apply for the visa or residence of investors, the applicant must have controlling interests.

Can I rent the properties acquired in Spain?

Yes, you can rent the properties purchased in Spain.

If I buy real estate for the price indicated before the publication of the law, can I apply for a visa or investor residence?

Unfortunately, the law does not have retroactive effect, so the properties acquired in Spain before the publication of the law (September 28, 2013) will not be considered investments that give the right to obtain the Golden Visa.

If I bought a property for a price lower than the one indicated below before the publication of the law and after its publication I bought property (s) for the price that was missing, can I apply for the visa or the residence of investors?

In this case, the Consulate of Spain denies the Golden Visa, arguing it for insufficient volume of investments. As mentioned before, the law does not have retroactive effect and the properties acquired in Spain before September 28, 2013 are not considered investments granting the right to obtain the visa or the residence for investors.