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PROPERTY

How to make the most of Spain’s Golden Visa residency scheme

Spain has a Golden Visa scheme for which allows Non-Europeans to be granted a residency permit with an investment of €500K in the country.

Published: 3 February 2020 13:13 CET
Updated: 16 March 2021 13:45 CET
How to make the most of Spain's Golden Visa residency scheme
It's not hard to find properties worth €500K in the glitzy southern town of Marbella. Photo: Claudiu Danaila/Unsplash

What is the Golden Visa Scheme? 

Introduced in September 2013, the law gives foreigners who invest large sums in Spanish property, public debt and projects of general interest the right to reside in Spain.

For property investors, the mininum investment before taxes and changes is €500,000 ($551,000). Once the extra costs are factored in, however, the real cost is closer to €600,000.

While the law doesn’t give people the right to work in Spain, there is one big perk: it gives non-EU citizens access to the entire Schengen area.

READ ALSO: 


Photo: Lucas Fox

How to get a Spanish golden visa

First, you must purchase a Spanish property for €500k or more. Key points to note are:

  • The €500k must be money you bring into the country. Thus if you finance part of your purchase with a Spanish mortgage, you still have to pay the first €500k either in cash, or with a mortgage granted by a non-Spanish bank.

  • Refurbishment costs do not count towards your golden visa. 

  • When you purchase property in Spain, you need to budget an additional 15 percent to cover taxes, legal fees and notary fees. None of these closing costs count towards your golden visa.

  • You can divide the €500k across multiple properties. However, experts do not recommend this if you want to optimize your golden visa property purchase. 

You bought a property – now what?

Obtaining a Spanish golden visa is a two step process.

Step 1

First, you must go to the Spanish Consulate in your home country to obtain the visa. This is a stamp in your passport that allows you to travel to Spain, with multiple entries and exits, for one year. Within this year you must go to Spain and apply for your residency permit. 

To get the visa, you need to show your purchase agreement and your property’s deed to prove that you have made the property investment.

You will also need to show standard immigration documents such as your passport, and proof you do not have a criminal record.

If your spouse is applying for residency with you, your marriage certificate must be submitted. If your children are applying, their birth certificates must be submitted.

Under Spanish law, spouses and dependent children under the age of eighteen years are guaranteed residency permits. For all other family members you must present paperwork proving they are your legal dependents.

Step 2

Next, you must travel to Spain and apply for your residence permit. This needs to be done in person so they can take your fingerprints.

Your initial residence permit is valid for two years. You do not have to reside in Spain during this time, but you do need to return to renew your residence permit in person. Once you apply for your residence permit, it takes about 50 days. Roughly 25 days to complete the application process and 25 days to receive your ID card.

After you have been a legal resident of Spain for five years, you are eligible to apply for permanent residency. Once you have ten years of Spanish residency, you are eligible to apply for Spanish citizenship.

Are there any scenarios under which the immigration authorities will deny renewing your residence permit?

If you sell your property or transfer it into someone else’s name, the immigration authorities will not renew your residence permit.

If you have a criminal record your residence permit will not be renewed.

Finally, if you are not up to date on your Spanish tax payments, you will need to get up to date before your permit is renewed. 

These tips have been provided by Moving2Madrid, a buyer’s agent that focuses exclusively on the Madrid market.   “We help international buyers locate, negotiate and close the deal on apartments in Madrid. We work with renters, buyers and investors. We focus exclusively on an international clientele and speak multiple languages,” explained Mary Clare Bland.

If you want to learn more about how to get a Spanish golden visa for you and your family, here are some frequently asked questions about Spain’s golden visa program. 

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For members

VISAS

EXPLAINED: When you can exchange visas in Spain

There are several different types of visas and residency permits you can get to be able to live and work in Spain, but what happens when your situation changes and you want to exchange your visa for a different one?

Published: 30 April 2024 14:20 CEST
EXPLAINED: When you can exchange visas in Spain

There are many different reasons you may want to exchange the type of visa or residency permit you have. Perhaps you’re on a student visa and have completed your studies, but still want to be able to stay in Spain. Or maybe you’ve been on a one-year non-lucrative visa, but can no longer afford not to work and want to exchange it for one where you’re allowed to work. 

Read on to find out which visas are possible to exchange and which are not. 

Student Visa to Digital Nomad Visa 

The simple answer is yes, it is possible to exchange your student visa for the new Digital Nomad Visa (DNV) that first became available last year. This will, however, depend on your individual circumstances and what job you plan on doing.

Firstly, in order to apply for DNV you must either have a degree from the field you want to work remotely in or have three years’ work experience in that industry. If you’ve just finished your studies this could be possible, but if you were studying something different, it could prove difficult.

If you are an older student, you could definitely have three years’ work experience in the industry you want to work in or you may have gained the experience working part-time in Spain while on your student visa.

Secondly, you must make sure you have worked for the company that hired you for a remote role for a minimum of three months before you apply for the DNV. The main caveat is that the company has to be registered outside of Spain as you are not eligible for the DNV if more than 20 percent of your income comes from inside Spain. This means that you will have to secure a remote job in another country while still on your student visa, making sure that you stick to the 30 hours a week you’re allowed to work.

Non-Lucrative Visa to Work Permit or Self-Employed

Being in Spain on the Non-Lucrative Visa or NLV can prove to be expensive because you’re not allowed to work, but have to prove you have a significant amount of savings or passive income. If you want to stay in Spain, beyond the initial year, you may be considering a different residency permit. Luckily, you can exchange it for a work permit or self-employed permit in a process called residence modification.

During your last few months on the non-lucrative visa, you are able to apply for jobs in Spain, which may give you the possibility of being granted a work permit. There are many prerequisites, including having lived in Spain for a year and being offered a pre-employment contract.

You could also decide to become self-employed at set up your own business. In order to do this you will need to meet the requirements that current legislation requires for opening and operating your chosen business. You will also need to sign up to the autónomo system, pay your own social security fees and submit your taxes five times a year.

READ ALSO: Should I change my non-lucrative visa for another residency permit in Spain?

Student Visa to Work Permit or Self-Employed

If you’re living in Spain on a student visa, then it’s relatively straightforward to exchange it for a work permit or become self-employed, if you want to be able to stay longer. The main requirement is that you have to have lived in Spain for three consecutive years, before you exchange it. This means, it’s really only possible for those who are doing a long-term course, such as a degree at a Spanish university. If you’re simply here for a year doing a language course, then it won’t be possible.

If you have been here for three years on a student visa, you have two options – the first is to find a job and become an employee by getting a work permit and the second is to become self-employed. If you opt for the first, the easiest way is to get a job offer and apply for the permit that way. Because you’ve already had a student visa and been here three years, it will be easier for companies to hire you as they won’t have to prove that there isn’t anyone from Spain or the EU that can do it first or that they have a shortage of professionals who can carry it out.

If you want to exchange it for a self-employment permit, you will have to present a business plan in order to get approval and prove you have the correct qualifications and experience to carry it out. If approved, then you will typically sign up to the autónomo system.

Student Visa to Entrepreneur Visa

Student visas are the easiest visas to modify in Spain, meaning you have many different options to exchange them if you want to stay longer. The Entrepreneur Visa – Visado de Emprendedor is another option that will allow you to stay for a period of three years (with the option of exchanging or extending). It is, however, slightly more complicated to exchange to than simply getting a work permit or becoming self-employed.

The Entrepreneur Visa is especially for those who want to set up a business considered to be innovative with a special economic interest for Spain. Unlike becoming just an autónomo, you must agree to be able to create employment opportunities for locals in the future. You could also in theory exchange your NLV for an entrepreneur visa too, provided you can prove that you haven’t done any work while you’ve been living in Spain for the year on your NLV.

Non-Lucrative Visa to Digital Nomad Visa

Unfortunately, this exchange is not possible. The main issue is that you’re not allowed to work while on a NLV and the requisites of the DNV are that you must have worked for the company that hired you for a remote role (or your clients if you’re self-employed) for a minimum of three months before you apply.

If this is the case then you’ll be admitting that you were working while on your NLV, which could get you into trouble. This means will have violated the terms of your visa and will be highly unlikely to be granted another one. You may also face penalties and fines, depending on your circumstances.

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