About the Residence Permit in Spain by Investment

 

High-net-worth individuals have the opportunity to obtain Spanish residence permits through various investment avenues in the country's economy.

 

There are six primary investment options available:

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1. Invest €500,000 in Real Estate: This can be in residential or commercial properties. This option is highly popular, allowing investors to buy one or more properties for personal use or rental.

2. Deposit €1,000,000 in a Spanish Bank: This requires placing a substantial deposit in a Spanish financial institution.

3. Invest €1,000,000 in Spanish Company Shares: Purchasing shares in local companies is another pathway to residency.

4. Invest €1,000,000 in Investment or Venture Funds: This involves investing in certified investment or venture capital funds operating within Spain.

5. Purchase €2,000,000 in Government Bonds: Investing in Spanish government bonds is a secure option for residency.

6. Establish and Invest in a Spanish Business: This requires opening a business in Spain and investing according to an approved business plan.

 

While purchasing real estate is the most common choice, allowing investors to either reside in or rent out their properties, residence permit holders are not obligated to live in Spain. However, to renew the residence permit, maintaining the initial investment is crucial.

 

Regarding the return of the initial investment:

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1. Selling the Investment: Residence permit holders may sell their investment property or close their deposit account at any time. However, doing so will result in the revocation of their residence permit.

2. After Obtaining Permanent Residency: Once you have lived in Spain for five years, you are eligible to apply for permanent residency. As a permanent resident, you can divest your investment or close your deposit account while retaining your residency status.

 

Requirements for Residence Permit Applicants

 

To be eligible for a Spanish residence permit through investment, applicants must meet the following criteria:

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• Age Requirement: Applicants must be at least 18 years old.

• Legal Income: They must have a proven legal income source, sufficient to support themselves and their dependents.

• Clean Background: Applicants should have no criminal records, no previous visa denials, and no outstanding debts in Spain.

• Source of Investment Funds: The funds used for the investment must have been legally obtained and transferred from outside Spain.

• Health Insurance: Applicants must have valid health insurance coverage.

 

Eligibility also extends to certain family members, under these conditions:

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• Spouse: The spouse of the investor, provided the marriage is officially registered.

• Children Under 18: All minor children of the investor.

• Dependent Adult Children: Children over 18 who are financially dependent on the investor, are unmarried, and are not employed.

• Dependent Parents: Parents of any age who are financially reliant on the main applicant.

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Applicant’s Expenses

 

An investor has the option to purchase either a single property or multiple properties in Spain, which can be residential or commercial. The total investment amount required for eligibility for a residence permit remains the same regardless of the number of family members included in the application:

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• Real Estate Purchase: A minimum investment of €500,000 is required. This amount is fixed and does not vary with the number of family members applying for the residence permit alongside the investor.

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The costs associated with purchasing property in Spain include:

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• Purchase Tax: For new buildings, the tax comprises 10% VAT and 1.5% stamp duty. For resale properties, the property transfer tax ranges from 6% to 10%. For commercial properties, the tax can be up to 25%.

• Notary Fee: This typically ranges from €600 to €1,000.

• Registration Fee: The cost for property registration is between €400 and €650.

• Health Insurance: The annual cost of health insurance is over €1,000 per person.

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Timeframe for Processing

 

The process of acquiring a Spanish residence permit through investment generally spans approximately 5 months. This duration includes the necessary stages from initial investment to the final issuance of residency documents. Designed for efficiency, this timeline encompasses property selection and purchase (for real estate investors), preparation and submission of documentation, and the final approval and issuance of the residence permit, offering a streamlined pathway for investors seeking residency in Spain.

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Step-by-Step Procedure for Obtaining a Spain Residence Permit by Investment

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1. Preliminary Check Process: Our compliance procedure begins with a comprehensive Due Diligence check, conducted by a certified Anti-Money Laundering Compliance Officer. This crucial step aims to identify potential issues that could jeopardize the residency application. Completing this preliminary Due Diligence is mandatory; our company does not engage with investors until this is accomplished. The check, typically completed within one business day, requires only the investor's passport. All information gathered about our clients remains confidential and is exclusively used to prepare necessary documents for the residency-by-investment program.

2. Buying Real Estate in Spain: Our team of real estate specialists assists investors in selecting and acquiring properties. We ensure that the properties we recommend are free from third-party legal claims and verify the credibility of developers and sellers. Investors have the option to personally inspect the properties during a visit to Spain or remotely via photographs and videos. In Spain, our attorney, appointed by a proxy prepared by our Legal Department, represents the investor. This includes obtaining an individual taxpayer number for the investor, a prerequisite for purchasing real estate in Spain. Our lawyers meticulously review the terms of the sale and purchase agreement to safeguard the investor's interests. Once the documents are prepared, either the investor or their proxy-appointed attorney signs the agreement, with a lawyer from our company overseeing the transaction. Following the deal's closure, we ensure the registration of the sale and purchase agreement with the Spanish Land Registry, and the investor receives the title deed.

3. Document Preparation: Concurrent with the real estate purchase, we prepare the residency application documents. The investor is responsible for gathering the necessary documents as advised by our lawyers and securing a medical insurance policy. Our legal team handles the application forms, document translation, notarization, and assists with fee and tax payments. The residency permit application is submitted online on behalf of the investor. Physical presence in Spain is required during this phase; the investor can enter the country on a Schengen visa. Post-application, the investor and their family members, included in the application, must submit their fingerprints at a local police station, accompanied by our lawyers.

4. Receiving Residence Permit Cards: Residence permit applications are typically processed within 20 days. Upon approval, our lawyers guide the investor and their family members through the process of collecting their residence permit cards at the police station.

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Dual Citizenship in Spain

 

Dual citizenship in Spain is a topic that often raises questions, especially among those considering residency or naturalization in the country. Spain has specific rules regarding dual citizenship, which vary based on the individual's country of origin and the manner in which Spanish citizenship is obtained. In general, Spain does not widely allow dual citizenship for those who become Spanish citizens through naturalization.