Spain Golden Visa: benefits and disadvantages of the residence permit

The Spain Golden Visa is a program that allows non-EU investors to get a residence permit for 3 years, subject to extension.

Investments. Applicants choose between six options:

1. Buy real estate for €500,000;

2. Open a deposit in a Spanish bank with a minimum sum of €1,000,000;

3. Purchase shares of Spanish companies for €1,000,000;

4. Purchase units in investment funds for €1,000,000;

5. Purchase government bonds for €2,000,000;

6. Invest in a business — no minimum requirement.

Spain residence permit by investment

Savings. Applicants for Spanish residence by investment demonstrate their financial solvency. They need to confirm an income of €2,400 per month. Additionally, €600 is required for each dependent.

The sum must be demonstrated for a year and a half in advance. Thus, investors confirm savings in the amount of €43,200. The family of two provides €54,000.

Golden Visa pros. Alongside opportunities for permanent residence and citizenship, Spain Golden Visa benefits include the following:

1. Moving with the whole family.

2. Creating a safe haven.

3. Visa-free travel.

4. No residing requirements.

5. No language requirements.

6. Business opportunities.

7. Work opportunities.

8. Access to high quality education and healthcare.

9. Tax benefits.

10. Mild climate.

Golden Visa cons. Except for the high expenses, the cons of the Spain Golden Visa include investment risks, high waiting time for citizenship, renouncing the first passport to obtain Spain citizenship, strict Due Diligence, and high taxes.

1. Permanent residency and pathway to citizenship. The Spain Golden Visa allows its holders to become temporary residents and move to Spain. After 5 years of living in the country, a resident becomes eligible for permanent residence, which is to be held for 5 years too. Then, investors can be granted a Spanish passport.

To qualify for Spanish citizenship, individuals must prove knowledge of the state language and culture. Visa-free access to the United Kingdom, the United States, Japan, Hong Kong, and other locations is one of the advantages of the Spanish passport.

2. Creating a safe haven. A residence permit allows its holders to visit Spain anytime, even if the borders are closed to tourists.

3. Freedom to travel within the Schengen Area. Spanish residents can visit 27 European countries without visas and can spend up to 90 days every six months there. The ease of travel not only saves time but also reduces administrative difficulties typically associated with cross-border movement.

4. Moving with the whole family. The spouse, unmarried children, and dependent parents can become residents of Spain together with the investor.

5. No residing requirements. Main applicants and their family members are not obligated to reside in Spain before or after obtaining residency by investment. It is necessary to visit the country only to extend the residence permit.

This flexibility offers advantages for global entrepreneurs who want to maintain their international lifestyle while benefiting from Spanish market opportunities.

6. Business investment opportunities. A residence permit allows its holders to operate and manage their businesses in Spain without any additional work authorisation. Entrepreneurs are allowed to transfer their businesses from abroad.

Individual cost calculation of the residence permit in Spain

Get the cost calculation

7. Working opportunities. A significant Spain Golden Visa benefit is having access to work anywhere within Spanish territory without any restrictions. This freedom lets residents choose any job across diverse sectors like technology, hospitality, the arts, and more.

8. Access to European healthcare and education. The whole family receives quality medical services in the clinics of the Schengen countries.

Investor’s children can study in an education system with several world-class universities and bilingual schools, both public and private, offering curriculum from different countries.

9. No language requirements. Investors don’t have to prove their Spanish proficiency, provide diplomas, or demonstrate their business experience to invest and get a Golden Visa.

10. Tax benefits. Investors don’t need to become tax residents unless they live in Spain for over 183 days per year. They are only taxed on their income generated within Spain, making it appealing for those seeking a sunny retirement or second home destination.

Investors who spend more than 183 days per year become tax residents and pay taxes on a worldwide income.

Capital gains from selling properties held over two years might have reduced rates depending on individual circumstances.

11. Mild climate. A warm Mediterranean climate dominates most parts of the region, providing pleasant temperatures throughout the entire year-round. Spain is a sunny country, with around 3,000 hours of sunshine every year.

Beach of the Cathedrals on the northwest coast of Spain has been declared a Natural Monument. Its name is derived from its cliff formations

High minimum investment thresholds. Spain has some of the highest investment expenses in comparison with other countries offering residency by investment. The property value must be at least €500,000.

All investments during the Golden Visa validity period are non-refundable until applicants want to maintain investment residency. This means that investors can’t sell any assets obtained without their residency permit being cancelled.

Investment risks. Bank deposits and business investments carry a certain amount of risk. Funds might get stuck if banks face insolvency or businesses go bankrupt because Spain, like the rest of the countries, isn’t immune to economic downturns.

Investors may come across fake agents promising guaranteed returns or speedy application processes. Immigrant Invest is a licensed agent that carries out Due Diligence checks to reduce the risk of rejection to 1%.

Termination might be sudden and unexpected. The Spanish government can end the Golden Visa program without warning.

Strict Due Diligence check. The eligibility criteria for visa applicants often include stringent background checks and screening processes. Even minor offences might pose obstacles during application review by Spanish authorities. Investors might face delays during processing time, or the entire application can even be rejected outright.

Tax implications. If a foreigner spends more than 183 days per year within Spanish territory, they become a tax resident. Global income will be taxed by Spanish authorities.

When one decides to move tax residency away from Spain after being a tax resident for more than 10 years, the Spanish Tax Office might present residents with an exit bill. This applies if certain thresholds in asset value or capital gains are exceeded.

Political instability. An incoming government may not view foreign investments favourably or decide that the real estate market needs to decline due to high prices driven by overseas investors.

In times of unrest or uncertainty, property values can fluctuate wildly, plunging dramatically. This impacts those who chose the purchase of real estate as the path to a Spanish residence permit.

High waiting time for citizenship. It takes 10 years to become eligible for a Spanish passport. The applicant needs to live permanently in the country without leaving it for more than 6 months a year. Besides, it is obligatory to pass two exams:

• DELE to confirm A2 level in Spanish;

• CCSE to prove knowledge of Spanish culture and legal life.

Renouncing first citizenship. To become a Spanish citizen, investors have to give up their first passport. Only foreigners from France, Portugal, Andorra, the Philippines, Equatorial Guinea, and a number of Latin American countries are allowed to keep their citizenship after obtaining a Spanish one.

Investors over 18 with a legal income can qualify for a Spain residence permit. They must have health insurance, no criminal record, and no debt in Spain. All the investment money must be earned outside of Spain.

Spouses in an officially registered marriage or unregistered partnership can be included in the application. Same-sex couples are included.

Children of no age limit can receive residence permits in Spain too. Those over 18 must be unmarried, have no children, be financially dependent on the investor, or be in the investor’s custody due to mental or physical characteristics.

Parents of no age limit and financially dependent on any of the spouses are also eligible for the Spain Golden Visa.

Examples of real estate eligible for the Spain Golden Visa

Spain, Villajoyosa

€280,000 — €751,000

Apartments and penthouse near sea

48 m² — 144 m²

1—3

1—3

Spain, Benidorm

€545,000 — €1,690,000

Apartments on the sea coast

60 m² — 175 m²

1

1

Spain, Benidorm

€350,000 — €540,000

Apartments with sea and mountain view

73 m² — 191 m²

2

2

Investors submit a package of documents alongside the Spain Golden Visa application. The essentials include the following:

1. A valid passport issued within the last ten years.

2. A certificate of no criminal record from the countries where the applicant has lived in the past five years.

3. Health insurance from a company licensed to work in Spain.

4. Proof of investment: for example, a certificate from the Land Registry.

5. Documents proving that the applicant has a sufficient income and a stable financial position.

6. Documents proving kinship and financial dependence of family members on the investor.

7. Filled-out government forms.

8. Passport-size photos.

Personal documents must be translated into Spanish by a translator licensed by the Ministry of Foreign Affairs. All copies must be notarized and apostilled. Additional documents might be required.

The initial duration of the Spain Golden Visa is 3 years. It is renewable for 5 years if the investment is maintained.

Investors can apply for permanent residency after 5 years of living in Spain. After this period, investors can apply for permanent residency in Spain. To obtain the status, foreigners must live in the country for at least six months a year, confirm their integration into the local economy and social life, pay taxes regularly, and have a good reputation.

1. The Spain Golden Visa is a program that allows non-EU investors to get a residence permit.

2. Investment options include buying real estate, opening a deposit, purchasing shares in Spanish companies, units in investment funds or government bonds, and business investment.

3. The minimum investment sum is €500,000.

4. Spanish citizenship can be granted after 10 years of residing in the country. However, it will require renouncing the original passport.

5. Investors can include their family members in the application, such as spouses, parents, and children.

6. Benefits of the Spain Golden Visa are creating a safe haven for the whole family; visa-free travel to the Schengen Area; no residency or language requirements; business and work opportunities; access to high quality education and healthcare; tax benefits; and a mild climate.

7. Disadvantages of the Spain Golden Visa include high expenses, investment risks, high waiting time for citizenship and renouncing the first passport, required clean criminal record, tax implications, and political instability.