Spain Golden Visa 2024: Residency by Investment

 

The Spain Golden Visa 2024 program, was originally introduced in 2013, is a residency-by-investment scheme that allows non-EU nationals to obtain Spanish residency by making a significant investment in the country. This program is particularly attractive for investors looking to gain access to the European Union and enjoy the benefits of living in Spain.

To qualify for the Spanish Golden Visa, applicants must make one of the following investments:

1. Real Estate Investment: Purchase real estate property in Spain with a minimum value of €500,000. This can be a single property or a portfolio of properties, and it can be residential, commercial, or a combination of both.
2. Capital Investment: Invest at least €1,000,000 in Spanish bank deposits, shares, or investment funds.
3. Business Investment: Invest €1,000,000 in a new or existing business that creates jobs, contributes to technological or scientific innovation, or has a significant socio-economic impact.
4. Government Bonds: Purchase €2,000,000 worth of Spanish government bonds.
5. Project Development: Undertake a significant project of public interest that creates employment, has a significant economic impact in the region, or contributes to scientific or technological innovation.

Once you have obtained your golden visa you will need to pay attention to the cost of living in Spain to manage your budget.

The Golden visa is the alternative visa to the non-lucrative visa and the Digitial Nomad visa.

 

Golden Visa Real Estate Investment option was abolished in 2024

The Golden Visa program was discontinued in 2024 for several reasons, primarily socio-economic and political factors.

1. Housing Market Impact: Under Prime Minister Pedro Sánchez, the Spanish government cited the program’s contribution to real estate price speculation. The influx of wealthy foreign investors buying properties, especially in major cities like Madrid, Barcelona, and Malaga, has significantly increased property prices. This surge has made housing increasingly unaffordable for local residents, exacerbating housing shortages and inequality​ (POLITICO)​​ (A Place in the Sun)​.
2. Speculative Model: This has been criticised for creating a speculative real estate investment model. By focusing on attracting high-value property investments, it has prioritised financial inflows over sustainable housing policies, leading to social discontent and economic imbalance. Sánchez emphasised the need for a housing model that ensures accessibility and fairness for everyday citizens rather than one that caters predominantly to wealthy investors​ (POLITICO)​.
3. European Union Concerns: The European Commission has urged member states to reconsider or abolish their visa schemes, citing security risks such as money laundering and tax evasion. The geopolitical context, especially in light of the Russian invasion of Ukraine, has heightened these concerns, pushing Spain to align with broader EU directives to enhance security and reduce potential abuses of such programs​ (POLITICO)​.
4. Broader Trend in the EU: Spain’s decision is part of a wider trend within the EU. Several other countries, including Ireland, Portugal, and Greece, have either ended or significantly tightened their golden visa programs. This collective movement aims to mitigate these schemes’ negative socio-economic impacts and security risks ​ (A Place in the Sun)​.

For expats and those planning to move to Spain, alternative visa options and investment pathways may still be available. Still, they will likely require different forms of engagement and compliance with new regulatory frameworks.

For more detailed insights and updates, you can view Politico

Eligibility Requirements

To be eligible, applicants must meet the following criteria:

• Be a non-EU, non-EEA, and non-Swiss citizen.
• Be at least 18 years old.
• Have no criminal record in Spain or in the countries where they have resided in the last five years.
• Have sufficient financial resources to support themselves and their family members during their stay in Spain.
• Have valid health insurance coverage in Spain.
• Make one of the qualifying investments listed above.

Benefits

This offers several attractive benefits for investors and their families:

1. Residency for the Whole Family: This covers the main applicant, their spouse, children under 18, and dependent parents. Adult children who are financially dependent and unmarried can also be included.
2. Freedom of Movement: Golden Visa holders can travel freely within the Schengen Zone for up to 90 days within any 180-day period.
3. No Minimum Stay Requirement: Unlike other residency programs, the Spanish Golden Visa does not require you to live in Spain for a minimum period to maintain the visa. This flexibility is ideal for those who want to retain their primary residence in another country.
4. Pathway to Permanent Residency and Citizenship: You can apply for permanent residency after five years of continuous residency. After ten years, they can apply for Spanish citizenship, subject to fulfilling certain requirements, such as language proficiency and integration into Spanish society.
5. Access to High-Quality Healthcare and Education: Golden Visa holders can enjoy Spain’s excellent public healthcare system and access a wide range of educational options for their children.

Renewal process

Here are the key points regarding the renewal process:

1. Initial Visa:
   • Valid for one year. During this period, the investor must finalise the investment if it was not completed before the visa application.
2. First Renewal:
   • After the initial year, the visa can be renewed for an additional two years. To qualify for this renewal, the investor must prove that the investment is still in place and meet other residency requirements, such as health insurance and sufficient financial resources.
3. Subsequent Renewals:
   • The visa can be renewed every two years if the investment is maintained. There is no limit to the number of renewals, allowing the investor to continue living in Spain as long as the conditions are met.
4. Permanent Residency and Citizenship:
   • After five years of continuous residency, the investor can apply for permanent residency. Permanent residency does not require the investor to maintain the original qualifying investment. After ten years of residency, the investor can apply for Spanish citizenship.

For more details, refer to sources like Spain’s Ministry of Foreign Affairs.

Application Process & Requirements

The process involves several steps:

1. Choose the Investment: Decide which type of investment you will make (real estate, capital, business, government bonds, or project development).
2. Make the Investment: Complete the investment process and gather all necessary documentation, such as proof of purchase or investment agreements.
3. Prepare Documentation: Collect the required documents, including passport copies, proof of financial means, health insurance, criminal record certificates, and proof of investment.
4. Submit the Application: Apply for the Golden Visa at the Spanish consulate in your home country or Spain. Submit all required documentation and pay the application fee.
5. Processing and Approval: The Spanish authorities will process the application, which typically takes 20 working days. If approved, you will receive your residency permit.

Taxation

Spain charges tax on your worldwide income. This means you will need to get a tax ID and submit Spanish tax returns each year. You may also need to speak with a property tax specialist if you still have buy-to-let properties in the UK, as you may still want to file tax returns to HMRC.

 

Q&A About the Spanish Golden Visa

• What is the Spanish Golden Visa? The residency program allows non-EU nationals to obtain legal residency in Spain through investment. It’s particularly appealing for those seeking residency rights in an EU country.
• How much do I need to invest to qualify ? You need to make a minimum investment of €500,000 in Spanish real estate. Other investment options include €1,000,000 in Spanish public debt or significant business investments that create jobs.
• What are the main benefits? The key benefits include the right to live and work in Spain, visa-free travel within the Schengen Zone, and the possibility of family reunification. It can also set a path toward permanent residency and citizenship.
• Can my family also gain residency? This allows the main investor to include family members in the application, including a spouse or registered partner, dependent children, and dependent parents.
• How long does the Spanish Golden Visa allow me to stay in Spain? Initially, the Visa is granted for one year, which can be extended for two successive periods of two years each. After five years, you can apply for long-term residency and eventually citizenship after ten years, provided other conditions are met.