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Welcome to the ultimate guide to the Golden Visa Spain program, a popular investment residency option in Europe. With a minimum investment of €500,000 in Spanish real estate, you and your family can unlock a wide range of benefits, including the opportunity to obtain a valuable second citizenship that grants you the freedom to live, work, study, do business, and retire anywhere in Europe. In this comprehensive guide, we will delve into the details of the Golden Visa Spain program, exploring its advantages and disadvantages, investment routes, application process, renewal requirements, and more. So let’s dive right in and discover everything you need to know about the Golden Visa Spain program.
What is the Golden Visa Spain Program?
The Golden Visa Spain program was launched in 2013 as a residency by investment initiative aimed at revitalizing the Spanish economy after the financial crisis. Over the years, it has become an attractive option for investors looking to gain residency in Europe. The program has gained significant traction, with the Spanish government approving over 13,000 Golden Visas as of 2021, according to data from the Ministry of Foreign Affairs.
One of the interesting aspects of the Spanish law governing investor residency applications is that all applications must be approved or rejected within a 20-day period. If the decision is not made within this timeframe, the application is considered approved by default, a concept known as ‘tacit assent.’ This advantage of a quick result could be particularly appealing to investors, especially considering the current backlogs with Spain’s main competitor, the Portugal Golden Visa.
Let’s take a closer look at the key details of the Golden Visa Spain program:
Golden Visa Spain In Brief
| Minimum investment threshold | €500,000 (real estate) |
|---|---|
| Timeline to permanent residency in Spain | 5 years |
| Timeline to be eligible for Spanish citizenship | 10 years |
| Minimum stay requirements to maintain residency | None |
| Minimum stay requirements for citizenship | 183 days per year |
| Language requirements for permanent residency | None |
| Language requirements for citizenship | A2 Spanish |
| Dual citizenship allowed? | No |
Benefits of the Golden Visa Spain
Now that we understand the basics of the Golden Visa Spain program, let’s explore the advantages and disadvantages it offers, particularly in terms of its potential as a pathway to EU citizenship.
Benefits of the Spain Golden Visa Program
- Maximum Flexibility: One of the significant benefits of the Golden Visa Spain program is that you do not need to relocate to Spain to maintain your residency rights. This flexibility allows you to live wherever you choose within Europe.
- Fast Approval Timeline: Spanish law stipulates that Golden Visa applications must be decided within 20 days. If the decision is not made within this timeframe, the application is automatically approved. This swift process can be a considerable advantage for investors seeking a quick resolution.
- Travel Europe Freely: With the Golden Visa Spain, you can travel within the Schengen zone without the need for additional visas or permits. This freedom of movement allows you to explore and experience the diverse cultures and landscapes of Europe.
- Education & Healthcare Access: As a Golden Visa holder in Spain, you and your family have the same rights as Spanish citizens when it comes to accessing education and healthcare facilities. This ensures a high standard of education for your children and comprehensive healthcare coverage for your entire family.
- Variety of Investment Options: The Golden Visa Spain program offers a range of investment options, including real estate, investment funds, and investing in Spanish companies. This allows you to choose the investment route that best aligns with your financial goals and preferences.
- Family Inclusion: The Golden Visa Spain program extends its benefits to your entire family. Along with yourself, your spouse or long-term partner, children under 21, and even your parents and parents-in-law can enjoy the unique advantages of living in Spain and the wider EU.
While the Golden Visa Spain program offers numerous benefits, it is essential to consider the potential drawbacks as well.
Disadvantages of the Spain Golden Visa Program
- High Minimum Investment Threshold: The minimum investment required to obtain the Spanish Golden Visa is €500,000. This significant financial commitment may pose a challenge for some investors.
- No Dual Citizenship: Spain does not recognize dual citizenship, meaning that if you acquire a Spanish passport through the Golden Visa program, you will need to relinquish your original passport.
- 10-Year Timeline to Citizenship: The Golden Visa Spain program is not a fast-track route to EU citizenship. To be eligible for Spanish citizenship, you must maintain your residency in Spain for at least 10 years.
- Living in Spain Required for Citizenship: While the Golden Visa Spain allows you to maintain your residency rights without living in Spain, if you aspire to obtain Spanish citizenship, you will need to reside in the country.
- Tax Obligations: To be eligible for Spanish citizenship, you must fulfill tax obligations by paying taxes in Spain each year. This requirement adds another layer of commitment for investors.
- Language and Citizenship Tests: Spanish citizenship requires passing a language test at the A2 level, demonstrating proficiency in Spanish. Additionally, you will be tested on your knowledge of Spanish history, society, and culture.
Considering the advantages and disadvantages of the Golden Visa Spain program, it is evident that it offers a quick and efficient residency pathway with various benefits. However, the Spanish citizenship timeline and the absence of dual citizenship recognition make it crucial for investors to carefully evaluate their long-term goals before making a decision.
Who Can Apply for the Golden Visa Spain?
To be eligible for the Golden Visa Spain, you must meet the following basic requirements:
- Age: You must be 18 years or older.
- Nationality: You must be a third-country national, meaning you are not a citizen of an EU/EEA country or Switzerland.
- Clean Criminal Record: You must have a clean criminal record with no convictions.
- Investment: You must make a minimum investment of €500,000 in Spain.
- Medical Insurance: You must have full medical insurance coverage for yourself and any dependents.
- Due Diligence Check: You must pass a due diligence check in accordance with international anti-money laundering regulations.
Investment Routes for the Golden Visa Spain
When considering the Golden Visa Spain program, it’s important to note that real estate investment is not the only option available. The Spanish government offers several investment routes that investors can choose from. Let’s explore the various investment routes and their minimum investment thresholds:
Investment Routes for the Golden Visa Spain
- Real Estate: The most common investment route is through real estate. To qualify for the Golden Visa, you must invest a minimum of €500,000 in Spanish real estate.
- Shares in a Spanish Company: Alternatively, you can invest a minimum of €1,000,000 in shares of an existing Spanish company.
- Deposit in a Spanish Bank: Another option is to deposit a minimum of €1,000,000 in a Spanish bank.
- Investment in Spanish Public Debt: If you prefer, you can invest a minimum of €2,000,000 in Spanish public debt.
- Investment in New Business & Job Creation: For investors interested in starting a new business in Spain, there is no fixed minimum investment threshold. However, the investment must create jobs for Spanish citizens.
By offering a range of investment routes, the Golden Visa Spain program accommodates different investment preferences and goals. Investors can choose the route that aligns best with their financial strategies and risk appetite.
Documents Required for the Golden Visa Spain Application
To apply for the Golden Visa Spain, you will need to submit several documents. Here is a list of the essential documents:
- Golden Visa Application Form: Download and complete the Golden Visa application form.
- Passport Photos: Provide two recent passport-sized photos.
- Passports: Submit passports for the main applicant and any dependents.
- Proof of Country of Residence: Provide evidence of your country of residence.
- Health Insurance Policy: Obtain a health insurance policy from a company operating in Spain.
- Criminal Record Certificate: Submit a criminal record certificate, issued no more than 90 days before the application.
- Proof of Sufficient Funds: Provide documentation demonstrating sufficient funds to support yourself and your family during your residence in Spain.
- Proof of Investment: Submit documents proving that the required investment has been made, such as a property deed or a statement of investment (if investing in company shares).
These documents are crucial for ensuring a smooth and successful Golden Visa Spain application process.
Renewing Your Spain Golden Visa
Once you have obtained your initial Golden Visa, it is important to understand the renewal process to maintain your residency rights in Spain. The initial Golden Visa is valid for one year. After that, you will need to apply for a Spanish residence permit, which will be valid for two years. The renewal process occurs every two years thereafter.
To successfully renew your Golden Visa, you must demonstrate that you have maintained your investment at the minimum threshold. Additionally, you will need to submit the following documents:
- Application Form for Renewal: Complete the application form for renewal.
- Certified Copy of Passport: Provide a certified copy of your passport, as well as the passports of all dependents.
- Current Residence Card: Submit a copy of your current residence card.
- Proof of Medical Insurance: Provide proof of valid medical insurance coverage in Spain.
By ensuring that you meet these requirements and submit the necessary documentation, you can secure the renewal of your Golden Visa and continue to enjoy the benefits of residency in Spain.
Costs of the Golden Visa Spain
It is crucial to consider the costs associated with obtaining the Golden Visa Spain, particularly through the real estate route. While the minimum investment threshold is €500,000, there are additional expenses to be aware of. Here is an overview of the typical costs involved:
- Property Taxes and Transaction Costs: In addition to the investment amount, you should budget for property taxes, stamp duty, notary costs, lawyer fees, and registry fees. Properties in new developments are subject to a VAT of 10%. For a resale property, additional costs are estimated to be around €60,000.
- Lawyer Fees: Engaging a lawyer to assist with your Golden Visa application typically costs around €3,500, plus a value-added tax (VAT) of 21%, amounting to approximately €4,250.
These costs are estimates and may vary depending on individual circumstances and specific investments. It is advisable to budget at least 12% on top of your €500,000 investment to account for these additional expenses.
Golden Visa Spain After Brexit
In the aftermath of Brexit, many British nationals are seeking ways to regain their EU rights. The Golden Visa Spain program presents an option for British citizens to achieve this. Spain has a significant British expatriate community, making it easy to find fellow Brits and become part of a supportive community. However, it is important to note that Spain’s citizenship timeline and its non-recognition of dual nationality make it less ideal for those aiming for EU citizenship. The 10-year timeline for eligibility, coupled with the requirement to give up the original passport, may pose challenges for British nationals seeking to regain their EU rights through the Golden Visa Spain program.
Golden Visa Spain vs. Portugal: A Comprehensive Comparison
Spain and Portugal are direct competitors in the Golden Visa market, each offering attractive investment residency programs. Let’s compare the Golden Visa Spain program with its counterpart in Portugal to gain a better understanding of their differences and similarities:
Golden Visa Spain vs. Portugal – A Comprehensive Comparison
| Aspect | Spain Golden Visa | Portugal Golden Visa |
|---|---|---|
| Timeline to be eligible for citizenship | 10 years | 5 years |
| Minimum annual stay for citizenship | 183 days | 7 days |
| Tax residency required for citizenship? | Yes | No |
| Special tax program available? | No | Yes, NHR (Non-Habitual Residency) for 10 years |
| Minimum investment threshold | €500,000 | €280,000 (rehabilitation real estate in a low-density area) |
| Typical timeline for issuing residence permit | Around 1 month | Around 9 months |
| Language requirements for citizenship | A2 Spanish | A2 Portuguese |
| Civics exam | Yes | No |
As the comparison reveals, the Portugal Golden Visa program offers a shorter timeline to be eligible for citizenship, a significantly lower annual stay requirement, and a special tax program known as Non-Habitual Residency (NHR). On the other hand, the Golden Visa Spain program allows for a faster approval timeline, granting applicants residency rights within 20 days. Ultimately, the choice between the two programs depends on an individual’s specific preferences, investment goals, and desired timeline for obtaining EU citizenship.
Achieving EU Citizenship with the Golden Visa Spain
Through the Golden Visa Spain program, investors can ultimately obtain Spanish citizenship and an EU passport. However, this process requires fulfilling certain requirements and commitments. To qualify for Spanish citizenship, you must reside in Spain for at least 183 days annually for a minimum of 10 years. Additionally, you will need to become a tax resident in Spain and pay taxes on your worldwide income. Spanish citizenship also entails passing a language test at the A2 level, demonstrating your proficiency in Spanish, and successfully completing a civics exam that assesses your knowledge of Spanish history, society, and culture. By fulfilling these obligations, you can achieve EU citizenship and enjoy the benefits of holding a Spanish passport.
Frequently Asked Questions: Golden Visa Spain
How long can I stay in Spain on a Golden Visa?
The initial Golden Visa in Spain is valid for one year. Afterward, you can apply to convert it into a residency permit, which will be valid for two years. Subsequent renewals occur every two years.
How much does the Golden Visa cost in Spain?
The Golden Visa Spain program requires a minimum investment of €500,000 in real estate.
Can I live in Spain after Brexit?
Yes, British nationals can still live in Spain after Brexit. However, they need to apply for a Spanish residency visa and fulfill all the eligibility requirements, such as having health insurance and a clean criminal record. The Golden Visa Spain and the Non-Lucrative Visa (NLV) are viable options for British citizens who wish to reside in Spain post-Brexit.
Can Brits retire to Spain after Brexit?
Yes, British nationals can retire to Spain after Brexit. To do so, they must meet the eligibility requirements for residency, which may involve applying for the Golden Visa Spain or utilizing another route, such as the non-lucrative visa, which allows retirees to use income from a UK pension.
How long does it take to get a Golden Visa in Spain?
Currently, it takes around 2 to 3 months to obtain the Golden Visa in Spain.
What are the advantages of a Golden Visa in Spain?
The Golden Visa Spain offers several advantages, including maximum flexibility, a fast approval timeline, the ability to travel freely within the Schengen zone, access to education and healthcare facilities on par with Spanish citizens, diverse investment options, and the inclusion of family members in the program.
Can I get residency in Spain if I buy a house?
Yes, investing in Spanish real estate with a minimum value of €500,000 makes you eligible to apply for the Golden Visa Spain, granting you residency in the country.
Can I use a mortgage to get the Spain Golden Visa?
No, the investment must be made in full at the beginning of the process. However, you can use a mortgage to supplement your investment beyond the required minimum threshold.
In conclusion, the Golden Visa Spain program offers investors a pathway to residency in Europe with numerous advantages. While the program has a high minimum investment threshold and a long timeline to citizenship, it provides maximum flexibility, fast approval, freedom of movement within the Schengen zone, and access to education and healthcare on par with Spanish citizens. By carefully considering your long-term goals, investment preferences, and the specific requirements of the program, you can make an informed decision about whether the Golden Visa Spain is the right choice for you.
