The facts about Spanish residency permits for foreign property investors
Last October (2013), we announced ratification by the then King Juan Carlos and the Spanish parliament of the ‘Proyecto de Ley de apoyo a los emprendedores y su internacionalización’ – a new law granting non-EU investors’ permanent residency in Spain. And even though the law has been live since the 30th September 2013, there still seems to be some confusion about how it works and who it affects, so here’s a quick summary.
Let’s start at the beginning. The law is designed to encourage significant capital investment in Spain, by international businesses and individuals in return non-Europeans will have the opportunity to apply for a residency permit. It would be wrong to assume that just anyone can apply for a permit, as there are strict criteria in place to ensure that only those who will directly benefit the economy are accepted. Here are the categories of investment which can be accepted under the scheme:
- A minimum investment of 500,000€ per person in cash. Mortgages and loans can only be accepted if they have been secured to supplement the minimum cash investment, not as part of the 500,000€ minimal investment.
- The 500,000€ investment can be spread across several properties, as long as the amount due raises 500,000€ in revenue.
- Should the property be purchased by a couple, this will not meet the minimum investment criteria of 500,000€ per person and further investigations will be necessary to establish the head of the household’s financial ability to support a spouse / family. Sponsorship may be required.
- Property may be purchased via an investment company only if the company is not incorporated in a tax haven. The person applying for a residency permit must also hold the majority of voting rights and have the authority to appoint members to the company’s board of directors.
Spanish companies or public debt
- 2million euros minimum public debt investment is
- 1million euros minimum investment in Spanish company shares
Public interest projects
- Residency can be applied for within 60 days, for individuals who have invested via a company (not registered in a tax haven and if the applicant majority voting rights and the authority to appoint members to the board of directors). The process is faster than other routes and the visa is valid for 2 years. In some cases the permit can be issued within less than 2 weeks, should the applicant have the relevant paperwork in order, including the Spanish fiscal number (NIE).
Regardless of which investment route is followed, there are strict guidelines that all applicants must meet:
- No criminal record
- Valid private health insurance policies for all family members
- Sufficient funds to support all family members
Renewing the residency permit
Renewals are awarded using the initial application criteria and the investor must have visited Spain at least once within the first 12 months of residency.
Siesta Homes works with a team of legal professionals who can provide assistance with the residency application process. Visit the website www.siestahomes.com to request a call back.
ALHAURÍN, T. +34 952 59 50 42
C/ Gerald Brenan nº 39. Edif Rosa de los Vientos,
Pl. 2 – Ofic. A. 29120 Alhaurín el Grande (Málaga)
MARBELLA, T. +34 952 82 41 12
Avda. Ricardo Soriano nº 34. Edif. Portillo,
Pl. 2 – Ofic. 3. 29601 Marbella (Málaga)