The Golden Visa in Spain grants its holder and family members the right of residence and work without the need for continued residence in Spain.
Spanish law regulates several cases of investments that give rise to the right to apply for the Golden Visa. The most common one in Spain is investment in real estate.
Golden Visa and investment in real estate in Spain
If opting for this investment method, in order to obtain a visa or residence permit as an investor, the applicant must purchase one or more properties in Spain that add up to a total value of 500,000 euros or more, after taxes and charges (that is, mortgages cannot form part of the 500,000 euros).
The investment process requires following a series of steps: you must locate the property, formalize the purchase agreement or sale contract, formalize the notarial sale, pay taxes, register the property in the Property Registry, etc.
When complying with these steps, it is important to bear in mind that, in general, the investment must be formalized before making the request.
Can financing be obtained for the purchase of the real estate?
Yes, the applicant for the Golden Visa can obtain financing to acquire the real estate, but in order to apply for the permit they must prove that they have made an unleveraged investment (with their own funds) of at least €500,000. This means that you can finance the part of the purchase price that exceeds €500,000.
This is indicated by the regulations: "The applicant must prove that they have an investment in real estate of 500,000 euros after charges and free of any encumbrance. Any part of the investment that exceeds the amount required may be subject to a charge or encumbrance."
Ways to provide proof of investment in real estate | Golden Visa
As we detail in this other post (Types of permits for the Golden Visa), there are two different types of permits that grant the holder the right to reside and work in Spain: the residence visa for investors and the residence permit. The party concerned must request one or the other depending on their situation and the place where they are.
Based on the fact that there are two types of permits, the requirements to be fulfilled in order to obtain one permit or the other vary according to each case.
Visa: ways to provide proof of the acquisition of real estate property
For the residence visa for investors to be granted, the applicant must meet the following requirements:
The investor concerned must prove that they have acquired ownership of the real estate by means of domain certification and charges by the Property Registry corresponding to the property or real estate.
This certification must include the amount of the acquisition; otherwise, it must be proven by providing the corresponding public deed.
What happens if, at the time of the Golden Visa application, the acquisition of the real estate is in the process of being registered with the Property Registry? In this case, it is sufficient to present the aforementioned certification in which the entry concerning the submission of the acquisition document is in force, accompanied by documentation proving the payment of the corresponding taxes.
What happens if the purchase of the property has not yet been formalized?
If the foreign person concerned has not formalized the purchase of the property or properties but there is a pre-contract with guarantee for its fulfillment by means of security, they must submit the pre-contract together with a certificate from a financial entity established in Spain stating that the applicant has an unavailable bank deposit with the amount necessary for the acquisition of the indicated property or properties, including charges and taxes, and complying with the pre-contract.
In this case, the amount of the deposit may only be used for the final purchase of the property or properties indicated in the pre-contract with guarantee.
If opting for this method, the concerned party will receive a residence visa for investors with a maximum duration of six months.
Subsequently, if the actual purchase of the property or properties is proven, the party concerned may apply for a residence visa for investors for a period of one year or directly for a residence permit for investors.
Residence permit for investors: how to provide proof of the investment
If the applicant for a residence permit due to investment in real estate holds a valid residence visa for investors or is within 90 calendar days of the expiry of the visa, they must prove, in addition to compliance with the general requirements for stay or residence, the following specific requirements:
- The applicant must demonstrate that the investor is the owner of the property or real estate for the minimum amount required (that is, 500,000 euros after charges and free of encumbrances).
- To prove this, the applicant must provide the certificate or certificates of ownership and charges by the Property Registry corresponding to the property or properties.
- This certificate must be dated within the 90 days prior to the submission of the application.
What if the applicant for the Golden Visa is in possession of a six-month residency visa for investors?
In this case, the party concerned must demonstrate that they have effectively acquired the property/properties by means of the corresponding documentation.
What happens if the applicant for authorization does not have a visa?
If the investor concerned applies for a residence permit for investors while legally in Spain and is not the holder of a residence visa for investors, they must comply with the general requirements for the stay or residence and, in addition, prove a significant capital investment has been made via the acquisition of the property or properties.
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