Following our webinar in November 2023 about applying for the Golden Visa in Spain (also known as the Investor Permit), below are the questions that were submitted by the audience who attended the event. So, these are some frequently asked questions about the Spanish Golden Visa.
On the question of the 500,000 euros, does that have to be, can that be mortgaged or not?
Well, the 500,000 euros is the required amount for the investment. If you do have a mortgage, as long as it’s over and above the 500,000, that’s fine. So imagine you bought a 700,000 euro property and had a 200,000 euro mortgage, that’s fine too. And multiple properties, it doesn’t have to be just one property, it can be multiple.
There are rumours that the Golden Visa might be got rid of. What's the latest on that?
Earlier on in the year some political parties were rattling the cage in the government because, trying to scrap it, but I’ve not had anything since then. There’s been a quite a focus on clients who were thinking about it, and they’ve committed now, just in case something did happen. You realise, in Portugal, there’s been scrapping of the golden visa for real estate purchases since 7 October 2023.
A lot of people have rushed to try and do it and we do have a lot of clients that want to get it all finalised. They’ve bought a property and they’re thinking maybe in a few years’ time they might do it, but they’ve committed to it now. There’s no obligation to live in Spain with this visa/permit, so it’s quite convenient to have it there in any event.
About the different asset classes to meet the 500,000 euros threshold. Can I combine stock market investments with real estate?
Officials will only permit you to stick with one category, so either the 500,000 euros in the real estate or the other kind of investments. The other investments are 2 million euros in Spanish debt, public debt, and you can invest 1 million euros in shares or holdings, investment funds or venture capital funds and bank deposits. You’ll have to stick with one or the other.
Will I become Spanish tax resident by default if I get the Golden Visa?
If you choose to relocate and you did spend more than 183 days during the Spanish tax year, you will become a Spanish tax resident. But you can limit the time in Spain and not commit to that tax status. But bear in mind, you have the 90 day rule. You have to be tax resident somewhere, so if you’re not tax resident in your country of origin any more, it’s probably going to end in Spanish tax residency.
Are there any restrictions on work with the Golden Visa?
No, you’ll be able to register for self-employment or employment, there are no restrictions. The same goes for family members; they are able to work in Spain too.
If I own a property in Spain that is now worth more than 500,000 euros, but I paid less than that when I bought it, do I qualify?
No, the criteria is on the property purchase price. So a villa that you bought for 400,000 Euros now valued half a million won’t come under the criteria. You would need to invest a further 100,000 euros in that case. So current market value does not come into it.
How many days must I spend in Spain each year to keep the visa?
Basically, you need to show at least one trip a year to Spain. Preferably with a Spanish entry passport stamp when entering the Schengen area and then a Spanish exit stamp.
If you entry into Spain is via another Schengen first e.g. France, then the minute they get to Spain, the advice is to keep all receipts, spend the first night in a hotel if you can and get an invoice. The more proof we can get in Spain, and in Spanish the better. Otherwise, we need to start translating other documents.
But you need to do at least one trip per annual period of the permit you have been granted.
Does the Golden Visa convey unlimited access and time across the whole Schengen area?
Absolutely. There’s no 90-day rule. But remember your tax status. You have to be tax resident somewhere. If you’ve spent three months in Spain, three months in the country of origin, three months in France or Germany, you need to have really complied with the tax requirements of the one country where you choose to be a tax resident.
Most people will be tax resident in their country of origin, but you will need spend the required number of days in that country to maintain that tax status.
