Spanish Residence Investor Guide & FAQ
Spanish Residence Investor Guide & FAQ
Spanish Residence Permits for Property Investors
Your passport to European Residence and visa-free travel.
Spain introduced in 2013 a new law to attract property investors from outside the European Union by offering Residence permits in return for an investment of €500,000 or more in Spanish real estate.
Popularly known as the “Golden Visa” law, but officially called the Ley de Apoyo a los Emprendedores y su Internacionalización 14/2013 (Law in support of Entrepreneurs and their Internationalisation), the law also entitles investors to visa-free travel in the Schengen area of the European Union for 90 out of every 180 days.
Recently, in July of 2015, the Spanish Government passed an amendment to the Law in order to make it easier and faster to obtain the Residence Permit
Jausas and Duvan Duvan explain this law, and answers frequently asked questions.
The Importance of Legal Advice
Should I hire a lawyer?
Yes. When making a big investment in a foreign country you need the best legal advice you can get. You should hire a qualified lawyer at a reputable law firm that can deliver the service you need to invest without taking unnecessary risks, and offer you a long-term service to maintain your Residence Permit.
Some property companies offer a cheap, or even free, legal service for buying property and obtaining a Residence Permit. Is this good value?
If the legal service is cheap, or even free, it is usually a bad sign. It suggests the legal service is either poor quality, or being paid for by your property company out of inflated commissions on the property you are buying, which is asking for trouble. With such an important investment you need a qualified lawyer who you can be sure is looking after you, and has no conflict of interests. Cheap or free legal services are a false economy that increases your risks whilst driving up your costs in the long run. Don’t take the risk.
(visit www.jausaslawfirmspain.com for reliable legal services in Spain)
To take advantage of this new law and get the Residence Permit in Spain you must meet the following conditions:
● Not be subject to an alert issued for the purposes of refusing entry in the territorial space of countries with which Spain has signed an agreement in this regard.
The investment can also be made through a company, so long as the company is not based in a tax haven, and you can demonstrate a controlling stake in it (direct or indirect control over the voting rights and the power to name and remove the majority of board members).
One application can cover Residence permits for your immediate family members, that is spouse or person with an analogous affective relationship, children who are minors or those of legal age who, being financially dependent on the holder, have not formed a family unit for themselves and the parents in their charge) if required.
You must make one of the following investments out of your own funds:
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 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 in 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 Residence Permit FAQ
How much do I have to invest?
Can I use a mortgage?
Is it retroactive?
Do I have to invest €500,000 all at once?
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?
What taxes and transactions costs will I have to pay?
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?
Can I rent out the property I buy?
What kind of property do I need to buy?
Can I sell the property?
What should I invest in?
The Residence Permit
How long is the Residence Permit granted for?
Can I lose the Residence Permit?
How long do I have to spend in Spain?
Can I get a Spanish passport?
This is a 2-year Residence Permit, not the right to permanent Residence or a Spanish passport. However, it can lead to long-term Spanish Residence after 5 years of continuous residence, and citizenship after 10 years.
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.
Once I have a Residence Permit, what are my tax obligations in Spain?
The Application Process
How long does it take?
Do I need an NIE number (Spanish Identify Number for Foreigners)?
Can I purchase through a company registered outside Spain?
Do I have to come to Spain?
Jausas are a leading Spanish law firm with an international staff who can speak your language. To avoid unnecessary risks and false economies get in touch with Jausas to invest in Spain and get your “Golden Visa”.
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