What is the Investor’s Residency Law?Last September, the Spanish government introduced the ‘Investment Residency Law’, or, as it is commonly referred to, ‘The Golden Visa Law’. The purpose of this law is to enable non-EU nationals to obtain legal residency permits as a thank you for investing in Spanish real estate, with the option to become a permanent resident with the fulfilment of other criteria. The Spanish government hopes that this will attract real estate investors to Spain and breathe some life into the deflated property market, whilst simultaneously benefitting the economy by also drawing investment towards Spanish businesses and banks.
What do you need to do to apply?Currently, an applicant needs to meet one of the following 4 criteria in order to be considered for a Golden Visa:
- A €500,000 investment in Spanish real estate. This sum does not have to be invested in just one property, many investors choose to spread this sum over 2 or 3 different investments. There are also no restrictions on the type or location of the property, as long as it is located in Spain. Buildings currently under construction are again, perfectly viable investments under the new scheme, as long as the proposed building has required planning permission.
- A transfer of €1 million into the Spanish banking system or an investment of the same amount in any type of Spanish business or company legally registered with the relevant authorities.
- Creation of a Spanish business venture that leads to at least one of job creation, local economic development or scientific and technological innovation.
- A minimum €2 million investment in Spanish debt bonds. This is currently the least popular option.
Other Conditions to be Aware of.
- Applicants must be non-EU nationals
- The investor must be over 18 years of age
- The investor must not possess a criminal record, whether it be in Spain or the investor’s country of origin
- The investor must not already be in Spain illegally
- Access to medical insurance (private or public) is required
- The investor must have sufficient financial means to support both his/herself and his/her family whilst in Spain. This is unlikely to be an issue due to the required monetary investment
- The relevant application fee must be paid