The Spain Golden Visa program has long been a popular route for foreign investors seeking residency in Spain. In this article, we’ll break down the latest updates, clarify the most pressing questions surrounding the program, and provide expert insights into how the process works, including what changes may be on the horizon.
Ainhoa Manero, Director of Sterna Abogados, is interviewed by Spainguru about the latest updates on the Spain Golden Visa
What is the Spain Golden Visa?
The Spain Golden Visa, introduced in 2013, allows non-EU nationals to obtain residency in Spain by making a significant investment in the country. Typically, this investment involves purchasing real estate, but other options include deposits in Spanish banks or investments in Spanish companies. The most common route for obtaining the Golden Visa, however, has been through real estate investments amounting to a minimum of €500,000.
Why is the Spain Golden Visa Changing?
Recently, there has been growing interest in the future of the Spain Golden Visa, especially with the government moving to phase out the Real Estate investment part of the program. As of September 2024, the government has already taken significant steps toward this goal, and it is expected that the real estate investment pathway will be phased out by early 2025.
According to immigration expert Ainhoa Manero, the timeline is still unclear, but it is anticipated that the option could be fully eliminated within two to three months.
While this major change is underway, other investment options, such as bank deposits or purchasing shares in Spanish companies, remain available.
What Happens to Current Spain Golden Visa Holders?
One of the main concerns for those who have already obtained the Spain Golden Visa or who are in the process of applying is whether these changes will impact their status. Fortunately, for those who have already secured their visa, the Spanish government has made it clear that they will not be affected.
Current holders will be able to renew their visas under the same conditions—initially granted for three years, followed by renewals for five years.
How Long Does the Spain Golden Visa Application Take?
One of the standout features of the Spain Golden Visa program is its quick processing time. The law mandates that applications must be resolved within 20 days, and, in practice, some cases are approved in as little as 7 to 10 days.
The program includes a clause known as “approval by silence,” which means that if no response is provided within the 20-day window, the visa is automatically approved.
This efficiency makes Spain’s program particularly attractive compared to similar visa schemes in other countries, such as Portugal, where the process can take several months.
Should You Apply Now?
With the phase-out of the real estate investment option fast approaching, those interested in applying for the Spain Golden Visa should act quickly. If you have already made your investment but have not yet applied, updating your documentation and submitting your application as soon as possible is crucial. As long as the application is submitted before the final changes to the law are enacted, applicants will still be eligible under the current rules.
For those who have not yet made their investment, it’s important to consider that real estate purchases can take time due to administrative processes like updating the property registry.
Acting sooner rather than later is key to ensuring eligibility before the changes take effect. Handling your application effectively with expert legal help is also a must, as there is no room for mistakes. Make sure to contact us at info@sternaabogados.com as soon as possible.
Benefits of the Spain Golden Visa
The Spain Golden Visa offers numerous advantages for investors, many of which go beyond simple residency. Some of the primary benefits include:
- No Residency Requirement: Unlike many other visa types, the Spain Golden Visa does not require holders to spend a specific amount of time in Spain. This flexibility allows investors to maintain their tax residency elsewhere if they prefer.
- Work Authorization: Golden Visa holders are permitted to work in Spain, whether for a company or as a business owner. This feature opens up a range of opportunities, including tax planning and corporate structuring.
- Family Inclusion: The visa extends to immediate family members, including spouses and dependent children, who can also receive residency permits and work authorization. This is particularly useful for families with children wishing to study and work in Spain.
- Path to Citizenship: Although the Golden Visa does not automatically lead to citizenship, it allows holders to apply for permanent residency and citizenship after meeting the residency requirements. For those from countries like the United States, Spain offers a fast-track to citizenship after two years of residency.
Investment Options: What Are Your Choices?
Although the real estate investment option may soon be off the table, there are still other ways to obtain the Spain Golden Visa:
- Real Estate Investment: The traditional and most popular option requires a minimum investment of €500,000 in Spanish real estate. This can be one or multiple properties, as long as the total investment meets the threshold.
- Bank Deposit: A less common but still viable option is making a €1 million deposit in a Spanish bank.
- Company Shares: Investors can also purchase €1 million worth of shares in a Spanish company, whether publicly or privately traded.
- Government Bonds: Finally, an option involves investing €2 million in Spanish government bonds. Although rarely used, it remains available.
How Does the Spain Golden Visa Compare to Portugal’s Program?
The Spain Golden Visa is often compared to Portugal’s, but there are key differences. One of the biggest advantages of Spain’s program is its 20-day processing time. In contrast, Portugal’s process can take several months, during which applicants have no guarantees or interim rights.
Additionally, Spain offers a 2 year fast-track to citizenship for residents of former Spanish colonies, including countries in Latin America and the Philippines, after just two years of residency—an option that is not available in Portugal.
Common Pitfalls and How to Avoid Them
When applying for the Spain Golden Visa, there are a few common mistakes that can derail an application:
- Overstaying on a Tourist Visa: Applicants must ensure they are within the legal period of their tourist visa when applying for the Golden Visa. Violating this rule can result in application denial.
- Incorrect Insurance: Applicants are required to have valid private health insurance in Spain, which must meet specific criteria. Choosing the wrong policy can result in delays or rejection.
- Incomplete Property Documentation: If purchasing real estate, ensure that all mortgage-related issues are cleared and that the property is properly registered in your name before submitting your application.
Conclusion
The Spain Golden Visa remains one of the most attractive residency-by-investment programs in Europe, but its future is changing, particularly for real estate investors.
With the real estate option likely to be phased out by early 2025, now is the time for interested applicants to act quickly and ensure they meet the requirements. By working with experienced legal advisors, applicants can navigate the process smoothly, avoid common pitfalls, and secure their Spanish residency.
You may contact us at info@sternaabogados.com .