Although the golden visa is granted for a considerable investment in real estate, bank deposits, funds, etc., this blog post will focus solely on real estate. As the real estate market has become considerably more expensive in Valencia during the past few years, for many buyers, it means paying even above 500K to acquire their future home, especially if they wish to own a property larger than 150m2 in one of the most desirable areas of the Valencian capital.

As many foreign buyers end up spending above the set minimum for investment in real estate, taking advantage of the Investor’s visa/permit is a great opportunity. While other EU countries have already restricted or stopped granting Golden Visa based on investment in real estate, Spain’s scheme, although questioned, is still in place, and this may be the best time to follow your dream of living by the Mediterranean Sea in one of the most attractive Spanish cities – Valencia.

What is the Golden Visa – in more precise legal terms called the Investor’s visa/permit?

The Golden Visa in Spain, also known as the residence visa/permit for investors, is a temporary residence permit granted to individuals outside from the European Union (EU), European Economic Area (EEA), and Switzerland and their families upon the acquisition of real estate valued equal to or greater than 500,000 euros in Spain. This visa is regulated by the Entrepreneurs Law 14/2013, created to support entrepreneurs and internationalization efforts.

There is a difference between the visa and the actual Investor’s permit – the Investor’s visa is granted for 1 year for applicants outside Spain applying via Spanish consulates, and the Investor’s permit is granted for 3 years for applicants filing directly from Spain. In this blog post, we will look into obtaining the resident’s permit when applying from Spain.

Benefits of the golden visa:

•  Speedy issuance of residency permit – once filed, the permit is issued within 20 calendar days;
• Low government and renewal fees – for the initial residence permit application, currently, the government fee is 73.26 euros per applicant;
• Complete freedom in choosing real estate options – the investment can be made in commercial, residential, and other types of properties, and it is also accepted if the investment is in multiple properties, as long as the total amount of investment reaches 500K;
• Visa-free travel throughout the EU Schengen zone;
• Application can be submitted while in Spain;
• No mandatory minimum stay of 6 months per year in Spain, allowing flexibility in tax residency – in Spain, a natural person becomes a tax resident if they spend more than 183 days in Spanish territory in the same calendar year. As the only requirement for golden visa renewal is to have entered Spanish territory at least for a day each year during the validity of the permit, the investor can choose how much time to spend in Spanish territory (and that eventually can affect their tax situation);
• Work permits for the applicant and their family;
• Extended validity of 3 years, longer than many other permits – for example, the non-lucrative permit is valid for a year and is subject to renewal for another two years;
• The entire family can benefit from all the advantages of this type of permit (not only spouses and underage children but also for parents over 65 and children over 18 – in the last two cases, financial dependency should be demonstrated);

The requirements:

You must be a resident of a country outside the European Union. You must not forget that it is intended for investors from outside Europe.

Be over 18 years of age.

Have no criminal record – although the applicant has to provide a clear criminal report from the countries where they have lived for the past 5 years, this doesn’t mean the report can reflect some records that are older than 5 years. Spanish law is very strict in this sense – no criminal records at all.

Have private medical insurance in Spain – Coverage has to be comprehensive, including General Medicine, Accidents, Emergencies, Hospitalization, Surgeries, Specialists, Preventive Care, etc., with no co-payments and no deductibles. If you want to read more detailed information about private insurance in Spain, here is one of our blog posts. If you consider changing the insurance provider or want to set up a new policy, we collaborate with an independent insurance broker based in Valencia – via their English online insurance platform Insbrok.

Not be in an irregular situation in Spanish territory – be careful with this one, as non-EU citizens can stay up to 90 days with their tourist permit. Finding the right property and completing the purchase process can take longer than that, so it’s wise to consider obtaining another permit if you plan to purchase a property and stay. For example, a student visa (if you plan to learn Spanish by attending Spanish school), or a non-lucrative visa (this type of visa should be obtained before entering Spain), etc. Once you complete the purchase, you can easily change the type of permit.

Demonstrate that you have sufficient financial means to live in Spain and support your family – as set by current regulations, the applicant has to provide proof of a minimum of 400% of the monthly IPREM* and for each additional family member a further 100% of the monthly IPREM. For 2024, the IPREM is 600.00 euros a month. Therefore, the minimum per month is 2400.00 euros for the main applicant plus 600.00 euros for each family member.

*IPREM – in Spanish – El Indicador Público de Renta de Efectos Múltiples, is a reference index that is used in Spain when dealing with public administration.

Buying a property in Spain for a value greater than 500,000 euros;

Pay the corresponding fee for processing the residence permit;

Provide additional documents showing the family links and dependency (for parents over 65 and children over 18) – reissued marriage certificate, birth certificate for minors, etc. All documents have to be legalized with a sworn translation to Spanish provided.

Golden Visa timing

The applicant has to get several things right – the paperwork (some documents have to be very recent – like the criminal background check cannot be older than 3 months before the filing date) and they have to be legalized and translated accordingly.

Completing the purchase – even if the property search is intense, it can take up to several months to close before the notary.

The application is filed online with a condition that the applicant has to be in Spanish territory; otherwise, it has to be filed via the Spanish Consulate in the country of residency of the applicant.

Once filed for the investor’s permit, the application is reviewed within 20 calendar days. After that, the applicants have to do the fingerprints and obtain the actual residence cards (TIE – tarjeta de identidad del extranjero), which will take around a month from the day of the appointment.

What future brings to Golden Visa?

There have been discussions about the future of the “golden visa” in Spain. Especially, it was a hot topic in March 2023, but the law is still in place. Nevertheless, if we look at the general feel in Europe – several countries like Ireland, Portugal, Greece have either raised the minimal investment amount or even stopped granting residency based on investment in real estate.

In such tense real estate markets as in the biggest Spanish cities, as well as the rise of the real estate cost and lack of housing for locals, it would be only logical if at some point Spain followed the example of other EU countries and possibly could introduce more restrictive legislation by raising the minimal amount of investment or applying geographical limitations.

As property finders in Valencia, we encourage the ones that are considering taking the golden visa route, not to postpone and proceed already, as this route may be subject to changes in the relatively near future.

For more information on how we can help with finding the right property in Valencia and process the golden visa on your behalf, do not hesitate to reach out to us. Our team takes care of the whole process, including obtaining the investor’s residence permit.

Tell us more about your plans!