Spain has recently been heralded as the best destination in the world for expats. Spain’s Golden Visa program, also known as Spain’s investor visa, was initiated in 2013 and is issued to non-EU nationals. If you’re an American investor who is seeking a pathway to residency in Spain and visa-free access to the Schengen area, Spain’s golden visa is worth considering. The program aims to attract foreign investment, bolster the economy, and offer investors and their families an opportunity for a new life in Spain. In this article, we explore the eligibility requirements for a Golden Visa, the different investment options, and other features of the program.
- Spain’s Golden Visa program benefits
- Eligibility criteria for a Golden Visa in Spain
- How to apply for Spain’s Golden Visa program
- How long is Spain’s Golden Visa valid for?
- Does the Golden visa offer a path to citizenship?
- Can you apply for Spain’s Golden Visa with a loan
- Joint investment to obtain a Golden Visa
- Maintaining the Golden Visa
- Tax obligations for Golden Visa holders in Spain
Spain’s Golden Visa program benefits
Spain’s Golden Visa program is notable for its straightforward application process, diverse investment options, and the inclusion of family members. It enables visa-free entry to the Schengen region comprising of 27 European countries where official passport checks and various border controls have been removed at their shared borders. Beyond the allure of exploring European culture for a few years, the Spanish Golden Visa also serves as a pathway to Spanish permanent residency and citizenship, id desired. Other benefits of the Spanish Golden Visa program include:
Residence permit renewal flexibility: No mandatory residence in Spain for permit renewal; flexibility to reside or not.
Legal work and residency: Granted legal permission to work and live in Spain under the Golden Visa program.
Inclusive family benefits: Opportunity to bring family members, including spouse, children, and dependent parents.
Access to public services: Participants and their families can access to public services, such as state healthcare and schooling.
Eligibility criteria for a Golden Visa in Spain
To qualify for Spain’s Golden Visa, individuals must opt for one of the following investment avenues:
Real estate investment:
- Purchase real estate in Spain valued at a minimum of €500,000.
- The investment can consist of a single property or multiple units, as long as the combined worth is not less than €500,000.
Public debt investment:
- Invest a minimum of €2,000,000 in the Spanish public debt.
Financial investments:
- Acquire shares in a company or deposit a minimum of €1,000,000 in a Spanish bank.
New business investment:
- Invest in a new business that fosters employment opportunities, contributes to scientific and/or technological innovation, and has a significant socio-economic impact in the designated area.
Beyond the chosen investment, applicants must meet additional criteria:
Age requirement: Applicants must be of legal age, i.e., 18 years or older.
Clean criminal record: A criminal record may disqualify applicants from the Golden Visa program.
Schengen visa approval: Applicants must not have been denied a Schengen Visa in the past.
Health Insurance: It is mandatory for applicants to have health insurance coverage in Spain.
To ensure that you meet both the investment and eligibility criteria, always seek professional guidance, including to understand the Spanish and US tax implications and how your investment fits within a wider financial and investment plan that will meet your goals. Seek professionals with experience in investment immigration.
How to apply for Spain’s Golden Visa program
Once you’ve committed to one of the specified investments for Spain’s Golden Visa, you can initiate the application process at any Spanish Embassy or Consulate. Although the investment doesn’t need to be finalized at this stage, your commitment is crucial. While physical presence in Spain is not mandatory for the application, a pre-visit is recommended for exploring investment options, opening a bank account, and meeting legal requirements. This pre-visit can be done independently or with professional assistance.
You can grant Power of Attorney to your lawyer, enabling them to submit your Spanish Golden Visa application and secure the required deposit on your behalf, streamlining the process. Family members, if included, must apply for their visas as dependents, providing necessary documentation of family relations. The family members you can include on Spain’s Golden Visa are children under the age of 18, your spouse, and any other dependants such as elderly parents. Whether you apply independently or with professional guidance, a strategic approach ensures a smooth path toward securing Spain’s Golden Visa and residency.
When applying for a Spain Golden Visa, you’ll need to submit the following documents to support your application:
- The completed Spanish long-stay visa application form.
- Two recent passport photos.
- A valid passport issued within the last 10 years.
- Proof of your country of residence.
- Comprehensive proof of investment, including documents detailing the type, amount, and origin of your invested funds.
For residency visas for acquisition of real estate:
- Certification containing information on the dominion and taxes of the Land Registry corresponding to the purchased property.
For residency visas for capital investors:
- Copy of the statement of investment in the Registrar of Foreign Investments (Ministry of Economy and Competitiveness) for unlisted or company shares.
- Certificate from a financial intermediary, duly registered with the National Commission of the Stock Market or the Bank of Spain for investment in listed shares.
- Certificate from the financial institution or the Bank of Spain for investments in government bonds.
- If the investment is a bank deposit, include a certificate from the financial institution.
Additional documents:
- Police Clearance: demonstrating no criminal record Original, photocopy, and translated, issued within the last 90 days.
- Proof of sufficient economic funds to support yourself and dependents in Spain.
- Spanish medical insurance from an authorized provider
- Medical certificate confirming the absence of any disease posing risks to public health.
How long is Spain’s Golden Visa valid for?
The initial Golden Visa is valid for one year. Within this period, you must enter Spain to exchange it for a residence permit, which will be valid for the subsequent two years. This residence permit can be indefinitely renewed, without specific stay requirements, as long as you maintain your investment. Each renewal necessitates a visit to Spain.
For those planning to establish permanent residency in Spain, the option becomes available after five years of continuous residency, with a requirement of at least six months spent in the country each year.
Does the Golden Visa offer a path to citizenship?
Spain’s Investor Visa offers a route to citizenship, contingent on a residency period of at least 10 years. While obtaining residency through investment is a relatively straightforward process, getting a Spanish passport entails living in Spain for a minimum of 6 months annually over a decade.
Moreover, meeting additional conditions is essential for securing Spanish citizenship, including language proficiency and establishing ties to the country. The Spanish passport, ranked 1st in the world in January 2024 according to VisaGuide’s Passport Index, provides access to the EU job market but also offers visa-free access to over 160 countries.
Can you apply for Spain’s Golden Visa with a loan?
Unfortunately, it is not possible to apply for a Spanish Golden Visa using borrowed funds. The initial investment must be made in full through personal funds, and the investor must be the sole owner of the investment. However, if the property purchased exceeds €500,000, loans and financing can be utilized for the amount exceeding this threshold.
Joint investment for Spain’s Golden Visa
While joint investments or purchases are allowed, each individual’s investment must meet the minimum requirements independently. In the case of property acquisition, each person involved must contribute €500,000 to qualify for the Golden Visa.
Maintaining the Golden Visa
The Golden Visa rules stipulate that you have to maintaining your investment in Spain for the duration of your residency. While there is no residency requirement under the rules in terms of a minimum time spent in Spain each year, if you wish to obtain permanent residency after 5 years, which won’t need renewing, you must spend at least 6 months a year in Spain for each of the preceding 5 years.
Tax obligations for Golden Visa holders in Spain
Spanish Golden Visa holders may become liable to file Spanish taxes. If you spend more than six months in Spain in a calendar year, you are classified as a tax resident and are liable for taxation on your global income. If you spend less than 6 months in Spain in a year on the other hand, just income generated within Spain, such as from salaries, investments, property rentals, and business activities, is subject to Spanish taxation. Additional taxes may apply based on individual circumstances, notably the Spanish Wealth Tax.
US citizens and Green Card Holders who are resident in Spain are also liable to file US taxes reporting their worldwide income every year, and also to report their Spanish financial accounts and assets to Uncle Sam. To avoid double taxation, it’s necessary to claim tax credits and other exemptions when you file. Always seek financial and tax advice relating to both your investments and the tax implications of moving to Spain as an expat.
In conclusion, Spain’s Golden Visa program is a compelling pathway for international investors seeking residency, potential citizenship in one of the most attractive European countries. However, American investors should approach the Golden Visa program with careful consideration of the legal and financial implications, always seeking professional guidance. For those who wish to however, Spain’s Golden Visa is a golden opportunity to embrace a new experience as a resident in Europe.
If you have any questions about financial planning or investing as an American living in the EU, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.