ARTICLE
16 April 2024

Spain Golden Visa By Real Estate Investment

Highworth

Contributor

Highworth
Under the current Spain Golden Visa program, the criteria are:
Spain Immigration
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Under the current Spain Golden Visa program, the criteria are:

  • The applicant must be at least eighteen years old.
  • The applicant shall not have citizenship of any European Union country;
  • The applicant shall have clear criminal record in Spain or in previous countries of residence
    within the last five years;
  • The applicant shall not have visa refusals for Schengen, the United Kingdom, or the United
    States;
  • The applicant shall not have any issues with other immigration programs in Spain;
  • The applicant shall have a medical insurance from a company certified to operate in Spain;
  • The applicant shall proceed with the payment of processing or other fees for visa
    processing;
  • The applicant shall have sufficient financial means for oneself and any family members
    during the period of residence in Spain.

Kindly note that there are two ways to apply for the golden visa in Spain:

  1. At the nearest Spanish Embassy where you live.
  2. Directly in Spain if you are here with a tourist visa or any other type of residency.

Real estate investment from €500.000

  • The investor can acquire both residential and commercial real estate, one or several
    properties. Properties that are pledged or purchased on credit or mortgage do not qualify
    for the program.
  • The investor can sell the property and free up capital after five years without compromising
    their resident status.
  • The investor has the right to lease both residential and commercial real estate owned, in
    order to generate rental income.

Additional information concerning the real estate in Spain and taxes:

  • In addition to the property's purchase price, the buyer must pay a registration fee, which
    ranges from 0.5% to 2% of the property's value. Value Added Tax (VAT) must also be paid:
    when purchasing a residential property for the first time, the rate is only 10%, while for
    commercial properties or land, the rate is 21%.
  • There is also a stamp duty of 1.5% of the property's value.
  • If the purchase of a commercial property is made by a company, that is, a legal entity, VAT
    can be refunded within one month after payment.
  • Purchasing a property on the secondary market entails paying a property transfer tax. The
    rate depends on the region and can reach up to 10%.
  • Property owners pay an annual property tax (Impuesto sobre Bienes Inmuebles, IBI). The
    rate is the same for residents and non-residents and ranges from 0.4% to 1.1% of the
    cadastral value, depending on the location and type of property.
  • In addition to this, each Spanish municipality imposes a separate service tax (for utilities,
    waste disposal, etc.), which amounts to several hundred euros per year.
  • Those who rent out their property are subject to a special income tax (Impuesto sobre la
    Renta de las Personas Físicas, IRPF) – 24% of the income.

Main benefits of obtaining a Golden Visa in Spain:

  • Visa-free travel to all 27 Schengen Zone countries
  • The Spanish resident card allows for free movement across all European countries without
    the need for prior visa arrangements or border control.
  • EU residency allows for official employment within the EU for the investor and their family,
    as well as obtaining an EU driver's license and insurance policy.
  • There are no requirements for a minimum stay in the country.
  • Fast processing time of up to 6 months for the application.
  • Opportunity to generate rental income from real estate.
  • Possibility to live, study, and work permanently in Spain.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
16 April 2024

Spain Golden Visa By Real Estate Investment

Spain Immigration

Contributor

Highworth
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