Golden Visa Residency

In order to successfully apply for a Golden Visa during 2019, the applicant must meet the following requirements:

1. You must be a resident of a country outside the European Union. You must not forget that it is intended for investors from outside Europe.
2. Be over 18 years of age.
3. Have no criminal record.
4. Have a private medical insurance in Spain.
5. Demonstrate that you have sufficient financial means to live in Spain and support your family.
6. Make the corresponding investment which, depending on which one it is, will be of one amount or another. Here you have a list of all possible investments:

• Make an investment in public debtfor an amount equal to or greater than two million euros.
• Make an investment in bank deposits in Spanishentities or in shares of Spanish companies worth more than one million euros.
• Buying real estate in our countryfor a value greater than 500,000 euros.
• Start up a business in Spainthat must meet the following requirements:
  • To create jobs.
  • With an important impact on the country or region at a socioeconomic level.
  • That represents a scientific or technological novelty

We have seen how one of the fundamental requirements to obtain a residence visa for real estate investment is to demonstrate, by means of the corresponding document, that the investment has been made.

The question now is: which documents exactly justify this investment?

If we want to obtain the golden visa through the investment of real estate, we must provide as proof of the purchase of the property the certification of domains and charges of the Land Registry, and the deed of sale of the purchased assets.

In the case of investing in Spanish shares or participations: a declaration of the investment from the Investment Registry of the Ministry of Economy in the case of participations; and a certificate from the financial intermediary registered with the National Securities Market Commission (Comisión de Nacional de Mercado de Valores) for the purchase of shares.

If what we have done is invest in Spanish public debt, we will need a certificate from the Bank of Spain or the financial institution with which we have managed the investment in which we can clearly see how we are the holders of that purchase.

Finally, for investments in bank deposits, you will need the certificate issued by the financial institution with which you have contracted the deal, which states that you are the sole holder of that deposit.

The golden visa is designed for all citizens from outside the European Union who intend to make an investment in Spain as a means to obtain their residency.

The countries in which this residence permit has gained the most popularity are China and Russia, without any doubt.

However, people from Iran, Venezuela, and Lebanon register notorious activity with this visa too.

Their main motivation? They have also found in investing in Spain a place to deposit their money; thus earning the ticket to a visa that largely avoids most of the procedures of the other permits.

Preferential treatment is one of the main benefits of gold visas. With these visas you get the residence permit by the fast track, both for the first immediate grant valid for one year and to process renewals every two years,” explains the lawyer.

In addition, the residence visa derived from the Golden Visa allows free movement through the rest of the 26 European countries of the Schengen area. This freedom of movement is highlighted as one of the main reasons for processing the visa for real estate investment. But there is more: the Golden Visa makes the granting of visas more flexible not only for the person making the investment but also for his spouse and for children under 18, and access to public schools. Newborns in Spain will obtain Spanish passports at the end of the year, without having to meet any other requirements.

The value of the investment in real estate will amount to 500 thousand euros plus taxes (Article 63 b) of Law 14/2013).

In accordance with Article 64 b) of Law 14/2013, “the claimant must certify that he has obtained ownership of the property by means of certification of ownership and charges from the Land Registry corresponding to the property or properties”. The certification may incorporate an electronic verification code for online consultation.

This qualification will include the volume of the acquisition; in any other case, it will be approved by the corresponding public deed.

The real estate investment must be equal or higher than 500 thousand euros plus taxes, but must be included in one or more properties of this type. This has been determined several times by the Spanish Courts. One of the decisions that have explained this point is the following:

“In addition, this derives from the literal wording of Article 63.1.b) of the aforementioned Law 14/2013, which refers to the value of the investment as ‘the purchase of real estate in Spain’, in the plural, which implies that the 500,000.00 euros do not have to have been invested in a single property, but it is also possible that it has been invested in more than one property” (STSJ d).

In order to comply with the real estate investment requirement, not only is it necessary for the property or the sum of the properties (if there are several) to have a valuation of at least 500 thousand Euros plus taxes, but that amount must also be free of charges or encumbrances. However, it should be noted that “the part of the investment that exceeds the necessary amount [500 thousand Euros] may be subject to a fee or tax” (Added by us / Article 64.b of Law 14/2013).

One of the aspects to take into account when applying for the golden visa is that we have to apply the taxes corresponding to the 500 thousand euros of investment. The general rule is that if it is a first transfer, the activity will be subject to the Value Added Tax (VAT). If it is a second or subsequent operation (sale of second-hand property), it will be subject to Transfer Tax (ITP)

The VAT rate or percentage applicable to real estate sales and purchases is 10%. In the case of ITP, the percentage may vary depending on the Autonomous Community in question. In the case of Madrid, for example, it is 6%.

An example of the above will be the following: if the purchase price is 500 thousand euros and the sale is subject to VAT, between the value of the property and the payment of the taxes it would be necessary to pay 550 thousand euros (500 thousand euros + 10% VAT).

Continuing with this assumption, but with the variant that the activity will be subject to ITP, an amount of 530 thousand (500 thousand) euros will have to be paid.

In addition to real estate investment, there are other alternative investments that can help us get our Golden Visa.

One million euros in shares or participations in Spanish capital companies with a current business activity. In accordance with Article 64 a) of Law 14/2013, the type of accreditation of these shares will be different depending on whether they are classified or unclassified shares. The article in question indicates what we transcribe below:

In case of investment in unlisted shares or participations, a copy of the investment declaration made in the Foreign Investment Registry of the Ministry of Economy and Competitiveness shall be submitted.

In the case of investment in listed shares, a certificate from the financial intermediary, duly registered with the National Securities Market Commission or the Bank of Spain, must be presented, stating that the interested party has made the investment for the purposes of this law.