Golden Visa
Spain Golden Visa – Invest in Spain and Get the Residence Permit.
The Golden Visa for Spain is a residence visa issued to a non-EU national who intends to make a significant investment in the Spanish economy. The visa offers the holder and their family members residency in Spain and visa-free access to the Schengen Zone.
In most cases, Spanish Golden Visas are issued to someone who purchases real estate. However, they are also available to businessmen who invest in a Spanish company, which is why they are referred to as Spain Investor Visas as well.
Who Can Get a Golden Visa for Spain?
To be eligible for a Spanish Golden Visa, you must make one of the following investments:
-Purchase real estate in Spain worth at least €500,000. The real estate can be one single unit or several, with an overall worth no less than €500,000.
-Make an investment in the Spanish public debt of at least €2,000,000.
-Buy shares in a company or make a deposit in a Spanish bank of at least €1,000,000.
-Invest in a new business that will offer employment opportunities, contribute to scientific and/or technological innovation and have a relevant socio-economic impact in the area where the business will be undertaken.
In addition to the investment, you must also fulfil the following requirements:
-You must be of legal age (+18 years old).
-You must have no history of criminal records.
-You must not have been refused a Schengen Visa in the past.
-You must have health insurance in Spain.
How to Apply for a Spain Golden Visa?
If you have made any of the investments listed above, then you can submit a visa application to the nearest Spanish Embassy or Consulate. At the time of application, you must be committed to making the investment.
Application for family members: Your family members have to apply for their own visas to Spain as dependents. They must include documentation which proves family relation, such as birth and marriage certificates.
What Family Members Can Be Included on the Spain Golden Visa?
The family members you can include on the Spain Golden Visa are:
-Your spouse
-Children under the age of 18. If you have any children who are not minors but are nonetheless dependent due to any health or mental conditions, they also classify for the visa.
-Dependent elderly parents.
Your family members will also receive residence permits and be allowed freedom of movement in the Schengen Zone.
How Long is the Golden Visa for Spain Valid?
The Golden Visa which you receive at the Embassy will be valid for one year. During this year, you have to enter Spain and exchange your visa for a Spain residence permit, which will be valid for two years.
The residence permit can then be renewed indefinitely, without any stay requirements, as long as you maintain your investment. You have to travel to Spain each time you need to renew your residence permit.
Can I Get Spanish Citizenship by Investment?
Yes, Spain’s Investor Visa is a pathway to citizenship, as long as you live in Spain for at least 10 years.
Although the process of becoming a resident of Spain through investment is pretty straightforward, to receive a passport, you must live in Spain for at least 6 months out of the year for ten years.
In addition, there are other requirements for obtaining Spanish citizenship, such as knowing the language and having ties to the country. A Spanish passport will give the holder access to the EU job market and visa-free access to over a hundred countries.
Benefits of the Spain Golden Visa.
Spain is part of the European Union, which means Spanish residents can travel visa-free to all Schengen Zone countries for up to three months in a six month period, as can your family members. Other benefits include:
-You do not have to live in Spain to renew the residence permit – but you can if you want to.
-You can work and live in Spain legally.
-You can bring your family members with you (spouse, children, and dependent parents)
-You and your family members will have access to public services such as state health care and schooling.
Documents Required for Spain Golden Visa Application.
When applying for a Spanish Golden Visa, you need the following documents:
-Spain Visa Application Form
-Two passport-size pictures. Make sure they follow picture guidelines for a Spanish visa.
Make sure the passport will be valid for the initial period of time you intend to spend in Spain and has at least two blank pages. You may also need a photocopy of the personal information page of your passport.
-If you are not a citizen of the country where you live: Your residence permit.
-Documents which prove you have sufficient income to support yourself and your family as you live in Spain.
-Police records, proving you have no criminal background. They must be issued within the three months prior to the application.
-Proof of health insurance (private or public) with an insurance company operating in Spain.
-Proof of payment of the visa fee.
-Any additional documents related to your specific case (investment or real estate purchase), as described below.
The documents you submit have to be translated into Spanish (if they are not already) by a certified translator and apostilled.
Requirements for Spain Golden Visa (Real Estate)
If you have purchased a property in Spain, you must prove you have acquired ownership of the property through a certificate issued by the Land Registry within the three months prior to the application.
This certificate must include the purchase amount (no less than €500,000).
Requirements for Spain Investor Visa.
To prove your investment when applying for a Spanish Investor Visa, the following documents have to be submitted:
-Investment in the Spanish Government Debt: A certificate from the Bank of Spain or another financial institution, stating you are the sole owner of the investment for a period of at least five years.
-Investment in stocks or shares in a Spanish company: A statement of the investment from the Spanish Registrar of Investments of the Ministry of Economy and Competitiveness.
-Investment in quoted shares: A certificate of the financial intermediary stating your investment, registered at the Spanish National Stock Market Commission or at the Bank of Spain.
-Investment in a bank deposit: A certificate from the financial institution naming you as the sole owner of the bank deposit.
Is It Possible to Get a Loan to Apply for a Spanish Golden Visa?
No, you cannot apply for a Golden Visa for Spain if you acquire the money via a loan. You must make the initial investment in full, though your own funds and you must be the sole owner of the investment.
However, if you purchase a property worth more than €500,000, then you can use loans and financing to pay for the amount exceeding €500,000.
Is It Possible to Make a Joint Investment to Get a Spain Investment Visa?
Even if you make a joint investment or purchase, each individual investment has to meet the minimum requirements. As such, if you decide to purchase a property, each person involved has to pay €500,000 to be eligible for the Golden Visa. It is not possible to split the investment into smaller amounts, as you would not be eligible for the Golden Visa residency.
Spanish income tax for non-residents who do not rent out their property in Spain (standard declaration)
Spanish name: Impuesto de la renta de no residentes, declaración ordinaria (IRNR)
Description: You pay this version of income tax in Spain if the following conditions apply: 1) You do not reside in Spain, 2) You own property in Spain, 3) The property is exclusively for personal use and you do not rent it out, 4) You have no other source of taxable income in Spain. Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax.
Tax base and rate:
Tax base: 2% of the cadastral value of the property (found on the IBI receipt), or 1.1% if the cadastral value has been revised since 1st January 1994. Tax rate 2016: Residents of EU, Iceland and Norway 19%, all others 24%.
Form: Use general section 210-A and indicate income type 02.
Dates: Presented before the 30th June each year. For example you have from 1st January to 30th June 2006 to declare tax on income during 2005.
Example:
Cadastral value of property = 200,000 Euros
Base = 2,200 Euros
Tax = 19% x 2,200 Euros = 418 Euros
Spanish wealth tax for non-residents (Patrimonio) with property in Spain.
Spanish name: Impuesto sobre el Patrimonio (Patrimonio)
This tax was eliminated as from 01/01/2008, then reintroduced in September 2011 for the years 2011 & 2012, then extended to 2013, with several important changes and other issues that are explained in depth in the section on the Spanish Patrimonio wealth tax.
Description: Everyone who owns property in Spain (residents and nonresidents alike) has to pay an annual wealth tax based on the net value of their assets in Spain after permitted deductions, such as mortgages. This tax is collected by regional governments.
Tax base and rate:
The tax is based on the net value of your property (less mortgage, if any) or another value deemed appropriate by the tax authorities, with a tax-free allowance of €700,000. The tax rate works on a sliding scale with marginal rates starting at 0.2% and rising to 2.5%.
Form: 714
Dates:
Presented in June for the previous calendar year.
Example:
Depends upon the autonomous region where your property is located. No wealth-tax to pay in most regions if the net value of your property does not exceed €700,000
Spanish income tax for non-residents who do not rent out their property in Spain, combined with the wealth tax.
Spanish name: Impuesto de la renta de no residentes, y Patrimonio (IRNR y Patrimonio)
Note: See changes to the ‘patrimonio’ wealth tax above. Until the wealth tax situation is clarified it is hard to say if this form will be brought back. But it is likely that, for most non-residents, the form 210
Description: Under certain conditions non-residents can pay the two taxes mentioned above (IRNR and Patrimonio) in the same declaration and using the same form. Therefore this is not an extra tax, just a more convenient way of paying the two taxes previously mentioned. To present these taxes together in the same form you have to meet the following conditions: 1) You do not reside in Spain 2) you only own one property in Spain, and 3) this property is exclusively for personal use and is not rented out.
Tax base and rate: The tax is based on the net value of your property (less mortgage, if any) or another value deemed appropriate by the tax authorities, with a tax-free allowance of €700,000. The tax rate works on a sliding scale with marginal rates starting at 0.2% and rising to 2.5%.
Dates: Presented any time during the following calendar year, deadline 31 December. So you present in 2021 for taxes in 2020.
Spanish income tax for non-residents who rent out their property in Spain.
Spanish name: Impuesto de la renta de no residentes, declaración ordinaria (IRNR)
Description: If you 1) do not reside in Spain 2) own property in Spain and 3) rent out your property, you have to pay income tax on the rent instead of the imputed tax described above. (If you rent out your property to a Spanish company the company will deduct tax at source and pay it to the tax authorities. Under these circumstances a nonresident is not obliged to present the forms 210 or 215.)
Tax base and rate: The tax base is the net rent, deductions of expenses allowed (since 01/01/2010), and the Tax rate in 2016: Residents of EU, Iceland and Norway 19%, all others 24%
Form: 210 (use general section 210-A and indicating income type 01) or 215
Dates: 210 = Monthly, one month after rent is due
215 = Quarterly, in the first 20 days of the month following the end of the quarter.
Example:
Annual net rental income of 20,000 Euros
Tax @19% = €3,800
Spanish property tax notes.
Cadastral value.
The cadastral value (valor catastral) is the rateable value of a property as determined by the municipal government. The cadastral value is usually much lower than the market value of the property. The cadastral value of a property is identified on municipal property tax receipts (IBI).
Before to start to look for a property it is necessary to make sure you can open a bank account in Spain.
Mandatory documents to open a bank account in Spain for non-residents:
Specifically, the following documents are obligatory when opening an account in Spain for non-residents:
-NIF (for EU residents), or Passport
-Non-Resident Certification (Certificado de No residente in Spanish)
The certificate of Non-resident is an official document that must be requested at a Police Station, or at the consulate of your country. It takes approximately 10 to 12 days and only a passport is required for the application. Some banks can offer to get this document for you against the payment of a fee.
-Additional documents to open a bank account in Spain for Non-Residents:
-Depending on the bank, they may request a series of documents in addition to those described above:
-Letter of recommendation from the corresponding bank in your country.
-Payroll or certificate of employment status
-Document to verify your address (recent bank statement, or bill for direct debit service dated no more than 3 months)
-Proof of income
Note that in order for the documents to be acceptable, they must be translated into Spanish by a sworn official translator (traductor Jurado).
