Services for investors
The real estate market in Spain is recovering after years of severe price drops. The improvement is mainly thanks to foreign property investors, buying on the coast and in big cities such as Madrid or Barcelona. The Spanish housing market now offers quality investments at lower prices, so this represents a great opportunity for investors.
In 2013 Spain introduced Ley de Apoyo a los Emprendedores y su Internacionalización 14/2013 (Law in support of Entrepreneurs and their Internationalisation). This law was introduced to offer residency permits in return for an investment of €500,000 or more into Spanish real estate. This law has the goal of attracting non-European foreigners property investors. It allows investors to visa-free travel inside the Schengen area of the European Union for a great period of time: 90 out of every 180 days.
Recently, in July of 2015, the Spanish Government passed an amendment to the Law in order to make it easier and faster to obatain the Residence Permit.
- Could everybody invest in Spain to get the visa?
- Which are the benefits of hiring JAUSAS?
- Which are the main requirements to invest?
- Be legally in Spain in the moment of the application
- Be 18 years or older
- Have no criminal record
- Never have entered Spain illegally, nor been refused entrance into any Schengen country
- Have valid health insurance cover in Spain for you and your family living with you
- Have enough financial means to support you and your family, meaning proof of €26,400 on deposit for you, and €6,600 for each family member
- Have paid the application fee
- Tailored evaluation of each individual candidate’s personal situation to assess visa and residence options and requirements
- Preparation of Visa Master File application
- Real Estate transaction Due Diligence and execution
- In some instances, possibility of legally representing the client in Spain to minimize travel and costs (through granting of power of attorney)
- Availability of Chinese speaking lawyers by email, telephone or videoconference
- Constant communication throughout every step of the process
- Purchase one or more properties with a total cost of at least €500,000
- €2 million investment in Spanish Treasury bonds
- €1 million investment on Spanish company shares
- €1 million investment on Spanish funds constituted
- €1 million in bank deposits in Spanish financial institutions
- A ‘major’ business investment which fulfils at least one of the following conditions: i) Meaningful job creation, ii) significant socioeconomic impact in the area where the investment takes place, iii) technological or scientific impact
The property purchase could be done in person, or through a POA arranged before a notary in Spain or at any member-state of the Hague Conference (in China it should be in Hong Kong). A POA could also be obtained at a Spanish consulate or embassy anywhere in the world, including China.
You would need to get an ordinary 90-day visa to visit Spain in order to buy in person. This will enable you to travel to Spain in order to find a property. Then you will also have to get an NIE identity number, open a bank account, and purchase the property signing the deeds before notary while in Spain.
At the moment the investment is done, and the deeds signed before notary, you should have to apply for a 1-year Residence Visa through the Spanish embassy or consulate at your home country.
Once you get the Residence Visa, you will only have to come to Spain once during the year in order to enable the 2-year Residence Permit, but you won’t have to follow any minimum-stay requirement.
Many of JAUSAS clients ask how long does it take to get the residence visa. Here is the visa application process that all the clients can choose to entry Spain.
If you get a 2-year Residence Permit you can renew it every two years endlessly. There is no minimum stay requirement, but before every renewal you are obliged to visit Spain at least once.
It is quite common that the Spanish authorities carry out regular inspections in order to certify you still meet all the requirements, this might happen to you as well.
You must invest at least €500,000 of your own money, net of any kind of mortgage financing.
Are transaction costs comprised in the investment of €500,000?
Not at all. You will always have to spend a minimum of €500,000, not including tax and expenses.
What taxes and transactions costs will you have to pay?
It depends on the type of property and where it is located. You pay VAT on new properties and a transfer tax (ITP) on resale properties. You will also have to pay several fees such as stamp duty, notary, and registry fees. You can obtain more information on our guide to transaction costs.
Can you use a mortgage?
Yes, but you can only profit from it for the excess amount above €500,000 that must be financed out of your own means.
Is this investment retroactive?
Not at all. Prior to the 28th of September 2013 any investment made will not qualify for this purpose.
What kind of property do you need to buy?
You could buy any kind of commercial property, residential property, or land.
Can you rent out your property?
There are no restrictions on property use, so owners are free to rent out their properties within the terms set out by the national rental law
Can you sell the property?
Yes, you can sell the property but you will lose your Residence Permit unless you buy another property with a minimum value of €500,000
The initial Residence Permit has a validity of two years, renewable indefinitely every 5 years.
How long do you have to spend in Spain?
There is no minimum stay requirement for you, and for that reason you are not obliged to be a fiscal resident. You only have to visit Spain at least once to get or renew your Residence Permit.
Can your family be included in your application?
Yes. You can get additional permits for your spouse or person with an analogous affective relationship, children who are minors or those of legal age who, being financially dependet on you, have not formed a family unit for themselves and the parents in your charge. They could apply for permits at the same time as you or do it later.
Could you get a Spanish passport?
By any means the Residence Permit gives you rights to permanent residency or to get a Spanish passport. But after 5 years of regular and continued residence, it can lead to long-term Spanish residency. It could also lead you towards the citizenship after 10 years.
Can you travel visa-free in Europe?
You can travel without a visa for 90 days out of every 180 days within the Schengen area, that is comprised of 26 European countries that have abolished passport and any other type of border control at their borders. Some countries such as United Kingdom and Ireland do not form part of the Schengen area, so you will need a visa to enter these countries.
Could you lose the Residence Permit?
Yes. You will lose your Residence Permit if you do not maintain all of the investor requirements or if you decide to end your investment in Spain.
Do you also need a TIE?
Yes. In order to maintain your Residence Permit to live in Spain you also need the TIE (the Foreigner Identification Card in spanish means Tarjeta de Identidad de Extranjero).
Residence Permit replaces other options to get Permit to stay in Spain?
No, it doesn’t replace them. Existing permits and procedures stay as before. This law is constituted in order to attract non-EU investors with financial means.
Can you work in Spain with this residence permit?
Yes, the law allows you and your family to reside and work in Spain.
If you spend less than 183 days a year in Spain you can avoid fiscal residency. You don’t have to pay any income tax in the country, nor declare your worldwide assets. Avoiding fiscal residency is a possibility materialized in this law.But you will have to pay taxes associated to owning property in Spain, like rental income tax or municipal taxes linked to your property.