The Golden Visa in Spain was launched in 2013, since then 5000 investors have have snapped up properties in Spain for Golden Visa by investing atleast half a million euros. We have compiled some important questions and answers on the GV scheme in Spain by investing in property.
What is the Legal basis for establishing Spain GV program?
The Law 14/2013 of 27 September establishes residence authorization for investors golden visa in Spain for property investments exceeding 500,000 euros..
Is the Spain GV closing soon?
Spain decided to close down the real estate pathway for Golden visa on 9 May 2024 (although a legislative proposal initiated on 14 May 2024 is still pending), even though a bill had already been proposed in February 2023. It is certain that Golden visa program will not be closing but only real estate route.
Note: You can apply to buy real estate for golden visa at this time of writing.
What are the conditions for Spain GV?
The Conditions to secure a golden visa for property investment, as per Ministry Guidelines are as follows:
- Acquisition of property in Spain with an investment of value or more than 500,000 euros for each applicant. Have acquired ownership of property by certification domain and loads of property registry. Certificate or domain certificates and loads of property registry that corresponds to the real estate or and must be dated within the 90 days prior to the presentation of the application.
- Must not have a schengen visa refusal.
- Clean criminal record.
- NO encumbrance of the property.
- Financial Assets or Real Estate is made through a Legal Entity domiciled in a territory that is not considered a tax haven according to Spanish regulations..
What documents are required?
• For visa: The electronic verification code for your online consultation, including the amount of the purchase. The public deed. if at the time of filing the visa registration of the property is located in handling, will suffice presentation of certification stating in effect on the seat of presentation of the document procurement, accompanied by supporting documentation from paying taxes.
• Residence permit: Certificate or domain certificates and loads of property registry that corresponds to the real estate or and must be dated within the 90 days prior to the presentation of the application.
What are the validity of visas?
Note visas are valid for 1 year and Residence permits have validity of 2 years, with unlimited extensions as long as you hold the investment.
What countries are in Spain tax haven list?
The EU has designated these 16 countries as tax haven, which is also applicable to Spain. As a consequence of this, investments for property originating from these countries through a legal entity do not qualify for golden visa in Spain.
American Samoa
Antigua and Barbuda
Anguilla
Bahamas
Belize
Fiji
Guam
Palau
Panama
Russia
Samoa
Seychelles
Trinidad and Tobago
Turks and Caicos Islands
US Virgin Islands
Vanuatu
What are the conditions if sale not registered?
• if it has not been formalized the purchase: Letter Of Intent collateralized in compliance by means of downpayment and/or other means admitted into law, formalized in public deed.
• the letter of intent with warranty.
• certificate of a financial entity established in Spain where it was found that the applicant has a bank deposit unavailable with the quantity required for the acquisition, including charges and taxes.
What are the applicable property taxes?
VAT – 10% (new sales)
Property transfer tax – 10%
What are the residence conditions for property investors?
You have to visit Spain only once in a year to keep your residence permit from expiring. This exception is granted only for property investors.
What are the tax consequences?
You will become tax resident in Spain if you don’t spend 183 days in Spain. Not obliged to file a tax return in Spain as a tax resident in Spain.
If you become tax resident, you will pay
Income Tax: 19 to 45%.
Corporate income tax: 25%
How do I file for Permanent residence?
After 5 years if you live in Spain without interruption.
Can I work as Golden visa holder?
Yes, you can work in Spain under this permit.
What are the processing times?
The processing times is super fast, usually a decision is made by authorities is within 10 days and in some cases 20-30 days.
How do I file for Citizenship in Spain?
The first condition is you have to keep extending your residence permit 5 times for 10 years, after you that you can file. The 10 year condition is less for Ibero American nations.
Where are the best locations to buy property in Spain?
Britons, Americans, Germans, Chinese have been snapping up properties in Spain.
- Great cities to buy for foreigners are Valencia, Barcelona, Alicante, Malaga, Madrid, Andalucia, Tenerife, Canary Islands, Balearic Islands.
- Costa del Sol region has stunning beaches and breathtaking views with over 300 days of sunshine every year is extremely popular with expats and foreigners. Malaga is top choice.
- Popular vacation spots are Mallorca and Ibiza.
Where do I submit the application?
The application forms for visa and residence authorisation are separate. If you apply from outside Spain/Schengen territory, you must chose the visa route and apply at Embassy of Spain (Consulate).
If you can visit Spain using Schengen visa or residence permit, you have to visit the General directorate of Trade and investment.
A Spanish lawyer can act as proxy and will file application on your behalf.
Download visa application – Download pdf
Residence application – Download pdf
How to obtain Land Registry extract?
Real Estate is identified in the Land Registry Offices of Spain, by means of the name of the Municipality, the Land Registry Office and Registry Section and the Land Registry Property Number.
The Land Registry Extract is issued (and invoiced) by the competent Land Registry Office of the territory where the property is located, and is priced at 9.02 Euros plus VAT (21%) for each individual property. VAT applies in all cases according to article 70 of the VAT act, as this service is rendered over real estate located in Spain.
The time to obtain the Land Registry Extract and the translation will take typically three working days, although it may take up to a week
What is Nota simple?
A nota simple is a report from the Property Registry that describes the property. Information about the property usually includes:
• whether the property has debts, usually for mortgages or unpaid taxes.
• the current owner
• the boundaries
• the total square meters of the land, and of the house if there is one.
• how the land has been classified: rústico, urbano, or urbanizable.
• the rights that others may have on the property, such as public paths/roads, water or sewage lines.
In Spain, debts may be tied to a property rather than to the owner of the property.
