The Spanish residence permit program or “golden visa” is Spain’s law which aims to stimulate foreign investors to invest in the country. It means that any foreign investor who meets the requirements and invests at least € 500.000 in real estate, is offered a quick and easy way to obtain a Spanish residence permit.
What are the main benefits?
Getting a Spanish residence permit offers various benefits. Generally speaking, a lot of red tape is cleared away. Some of the important benefits for real estate owners are:
- Entry into Spain and the other 26 countries of the EU (Schengen zone).
- You only have to visit Spain once a year in order to maintain the permit and even then staying for extended periods is not necessary.
- The permit can easily be renewed every two years.
- You obtain the right to work as an entrepreneur or employee once you’ve been granted the 2 years permit.
- Your spouse and children under 18 can apply for residency as well.
How long does it take?
The Spanish investors’ residence permit has been designed to clear the way for non-EU investors. Therefore, obtaining a golden visa in Spain is taken care of relatively quickly. The visa residence will be solved in 10 working days, after which you can either immediately apply for the 2 years Spanish residence permit or wait until the 1 year visa is expired in order to apply for it. The 2 years residence permit application has to be presented in an Immigration Office in Madrid and the process takes 20 days.
What about taxes?
When you buy real estate and obtain the Spanish residence permit, you will of course be liable to some tax. Which ones and how much depends on how much time you spend in Spain during the year. If you stay in Spain for over 6 months, you’re counted as a Spanish resident and your worldwide assets and income will be taxed in Spain. If you’re in the country for a less amount of time, you only pay taxes on the initial purchase of your real estate and thereafter on the value of your assets in Spain.
