What is the Golden Visa?
The so-called “Golden Visa” is a residence and work permit in Spain from which non-EU citizens who make a significant investment in Spain can benefit, as well as their family members.
What are the advantages of this system?
The beneficiaries of a Golden Visa, both the investors and their family members, will be entitled to reside and work in Spain as well as to move freely within the countries of the Schengen area, without the need to apply for a visa.
What type of investment qualifies for the Golden Visa?
Law 14/2013, which regulates the Golden Visa, establishes that the following investments will be valid for obtaining it:
- Investment for a value equal to or greater than 1 million euros in Spanish public debt.
- Investment for a value equal to or greater than 1 million euros in shares of Spanish companies.
- Investment for a value equal to or greater than 1 million in bank deposits in Spanish financial institutions.
- Investment for a value equal to or greater than 500,000 euros in real estate in Spain.
Which criteria has the Supreme Court changed in connection with the construction of real estate investment?
In its ruling of 30 July 2020, the Spanish Supreme Court, by means of an extensive interpretation of the Law, has established that in the event that the investor, instead of buying a property already built, chooses to build a property on a plot or land, the price of the purchase of the plot or land may be added to the cost of the construction of the property for the calculation of the minimum investment of 500,000 euros.
Previously, the amount invested in the construction works was excluded from the calculation of the investment, considering only the purchase price of the land.
On the basis of this new criterion, Spanish Administration will be opened to consider as a whole initial investment the addition of the amount of funds spent on a prior purchase of a plot of land plus the funds spent, subsequently, on the building of a house on it. This provided that the price of both transactions combined reaches the minimum legal required of 500,000 euros.
We will have to wait for, at least, one further Judgement in the sense, for the Administration to apply automatically the criteria to consider a single initial investment the fact of investing in two stages. However, it is an important improvement as Courts had made a progress towards to accomplish the aim of the legislator to allow foreign citizens to obtain an authorization of residency in Spain having spent in real estate a minimum of 500.000.-€, regardless of having made the investment in one or two stages.
We remain at your disposal for any doubt or question that may arise, and specially, to study your case in particular, to determine if it could comply with the condition of initial investment required by the law to apply for a Golden Visa.
Labour & Immigration
+ 34 933 808 255