What is the Golden Visa Law?

What is the Golden Visa Law?

On the 27th September 2013, the Spanish government introduced the 'Investor's Residency Law' – or 'The Golden Visa Law', as it is popularly nicknamed. The law enables non-EU nationals to attain qualified residency permits in return for investing in Spanish real estate (and other assets), leading to permanent residency in Spain if certain conditions are fulfilled. It is hoped that the legislation will attract entrepreneurs to Spain and inject some much-needed life into the property market by stimulating foreign investment in Spanish real estate, whilst also benefiting the economy by encouraging investment in Spanish businesses and the banking system.

What are the investment criteria?

To apply for a Golden Visa an individual must invest their money in Spain in one of the following ways:

Invest at least €500,000 in Spanish real estate. This sum can be spread over multiple properties and co-ownership is also permitted. There is no restriction on the type of properties that can be bought: property of a residential, touristic, rural, commercial or industrial nature can be bought as a Golden Visa investment, just as rural land, developed land, buildings under construction and decrepit buildings can also represent valid Golden Visa investment opportunities. Equally there is also no restriction on the way that the property is used once bought, as long as the proposed use of the space complies with Spanish law and has been granted the required planning permission.
Make a transfer of at least €1 million into the Spanish banking system or invest the sum in Spanish companies. An investment can be made in any type of business or company.
Create a business venture in Spain that leads to job creation, local economic development or scientific/technological innovation.
Invest in Spanish Debt Bonds of at least €2 million. Major shareholders of companies that invest in Spain may also be entitled to apply for Golden Visas as individuals.

Taxes are not included in the investment threshold: for example, if an individual is looking to achieve a Golden Visa through their investment in Spanish property they must buy a property that is worth at least €500,000 before taxes are applied.

Equally, the law requires the base amount of money to be 'unencumbered': for example, if an investor is looking to invest over €500,000 in a property in Spain they must be able to provide at least €500,000 unassisted by a money lender, although they may take out a loan for any excess to cover the cost of a property.

The investment should be made before applying for a Golden Visa and must be maintained for five years after a residence permit is granted to ensure that the right to reside in Spain is preserved.

¹   Raymundo Larraín Nesbitt, 'Investor Guide to Spain's Golden Visa Law' (November 2013), Spanish Property Insight.

²   'Spain Residence Permit', SpainResidencePermit.com.