The Legal Stuff I need to know regarding the Golden Visa Program in Spain AvaLaw, January 2017.
Index: Chapter Page 1. Introduction 3 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. What is the Golden Visa and what are the requirements to obtain it? 4 How much does the Golden visa really cost me? 4 What is the difference between the Golden Visa and other Spanish residency permits? 5 For how long can I stay in Spain on my Golden Visa, and can it be extended upon expiry? 5 Is there a limit to the number of times that I can extend the Golden Visa? 5 Can the Golden Visa be used to become a long-term resident or a citizen? 6 Does the Golden Visa make it easier to visit other European countries? 6 Do I have to stay for a minimum of time in Spain in order not to lose my visa? 6 Can I work in Spain with my Golden Visa? 6 Can I bring my family into Spain on a Golden Visa? 7 If I hire AvaLaw to organize the Golden Visa for me, what does the service consist of and what is required from my side? 7 Team of AvaLaw at your service 10 Testimonials 11
1. AvaLaw is a law and business consulting firm specialized, among other matters, in assisting international investors, of all sizes, complete successful investments in real estate and businesses in Spain. Many of our clients have invested in Spain to obtain the so called Golden Visa, a residency and work permit given to non-eu citizens in return for making an investment of a certain size. The personnel in our immigration group are among the most experienced in Spain regarding the Golden Visa program. We have assisted clients from dozens of different countries on a wide range of immigration matters. Even if nationalities differ on account of their individual characteristics and circumstances, there are a number of questions that most applicants will ask. This guide is intended to provide answers to these most common of questions regarding the Golden Visa. Julia Fredriksson & David Lopez, the immigration specialists of AvaLaw The Legal Stuff I need to know regarding the Golden Visa Program in Spain 3
2. What is the Golden Visa and what are the requirements to obtain it? The Golden Visa is a residency permit that gives the holder the right to stay and work in Spain. The basic requirement is that the interested applicant makes an investment in Spain, the most common investment being the purchase of at least 500.000 euros in real estate. If you plan to purchase real estate, you ll find lots of useful information in our guide, The Legal Stuff I need to know when buying a property in Spain. As for real estate investments, any type of real estate will qualify (residential, commercial, vacant land, parking spaces, etc.). As well, the investment may consist of several smaller investments and, once the total of 500.000 euros has been reached, qualification for the Golden Visa is ascertained. The Golden Visa can also be granted on the basis of an investment in a Spanish company or financial products. In these cases, the minimum investment is 1.000.000 euros. 3. How much does the Golden visa really cost me? The minimum investment requirements are net investment amounts. In other words, in addition to the minimum euro amounts, you will need to pay transactional costs associated with the acquisition or investment. In the case of a real estate investment, these costs consist of the following: Property transfer tax ( ITP ): 6% - 10%, depending on the autonomous community. Stamp duty ( AJD ): 0% - 1.5%, depending on the type of property and the autonomous community. Notaries, Registries and Banking fees, Legal fees & miscellaneous costs: In total, approximately 2% of the purchase price. Therefore, in practice, in the most expensive autonomous communities, the applicant seeking a Golden Visa through investment in real estate should anticipate having approximately 570.000 euros to satisfy the investment hurdle. 4
4. What is the difference between the Golden Visa and other Spanish residency permits? 5. The Golden Visa differs radically from traditional Spanish residency permits in a number of aspects: a) The renewal of a Golden Visa does not require a minimum annual stay in Spain. b) The Golden Visa has an easier and faster application procedure. If the minimum investment is made and the applicant does not have a criminal record, the visa is practically always granted provided the application has been properly prepared and submitted. c) The Golden Visa includes a working permit, the holder is automatically granted the right to work in Spain along with the right to reside in Spain. d) The Golden Visa allows the investor to bring along his or her immediate family. For how long can I stay in Spain on my Golden Visa, and can it be extended upon expiry? The Legal Stuff I need to know regarding the Golden Visa Program in Spain The initial investor s residency permit is valid for two years and can be extended upon expiry for periods of five years, as long as you maintain the minimum level of investment. 6. Is there a limit to the number of times that I can extend the Golden Visa? No, there is no limit to the number of times that the Golden Visa can be extended, but it is necessary to maintain the minimum investment at all times. A holder of a Golden Visa, however, is allowed to switch between types of investments, for example, from one property to another or from an investment in real estate to the holding of the minimum amount in a bank deposit. 5
7. Can the Golden Visa be used to become a long-term resident or a citizen? Yes, if you actually live in Spain permanently with your Golden Visa, your status can become a long-term resident after five years. The main effect is that you do not have to maintain the investment to keep your resident status. There is also the possibility to apply for a change of residency to another EU country. If you live in Spain permanently, you can obtain Spanish citizenship after 10 years. Latin American citizens and those of certain other countries, however, can seek to attain citizenship after two years. The option to apply for citizenship applies only to investors who actually reside in Spain. Investors who come to Spain only occasionally with their Golden Visa are not eligible for citizenship. 8. Does the Golden Visa make it easier to visit other European countries? Yes, a Golden Visa works as a tourist visa for the rest of the countries that belong to the Schengen area. This means that the holder of the Golden Visa has the right to remain in Spain for an unlimited period of time, plus in the rest of the Schengen area for 90 days within each period of 180 days. 9. Do I have to stay for a minimum of time in Spain in order not to lose my visa? No, there is no minimum time period that has to be spent in Spain in order to keep the Golden Visa. If you voluntarily choose to spend more than six months in a year in Spain, however, you will become a tax resident in Spain for that particular year obligating you to declare and pay taxes in Spain on your global income. 10. Can I work in Spain with my Golden Visa? Yes, the Golden Visa automatically confers you and your immediate family members work permits. 6
11. Can I bring my family into Spain on a Golden Visa? 12. Yes, you can bring along your spouse or partner and your children under the age of 18, as well any children over the age of 18 and parents if such persons are economically dependent on the investor. The visas for the family members are identical to the investor s visa and can be obtained at the same time or upon subsequent petition, whichever is more convenient for the applicant. If I hire AvaLaw to organize the Golden Visa for me, what does the service consist of and what is required from my side? It is quite simple, really. The only thing you need to do is to have the funds for the minimum investment readily available, visit Spain a few days to choose the asset you wish to invest in, meet with a Spanish bank accompanied by one of our lawyers, and sign a Power of Attorney so that we can represent you. After this visit, our professionals can handle everything else on your behalf, remotely, under your instruction. Our complete service package consists of assisting you successfully close the transaction to acquire the required investment in Spain, with minimum risk and no surprises during the acquisition process or after it has been completed. The Legal Stuff I need to know regarding the Golden Visa Program in Spain If you buy real-estate, among other things, the following services are included. Recommending you reliable realtors to help you to identify the properties that best meet your investment criteria. Planning and structuring the operation to minimize excessive tax impact and avoid incurring unnecessary costs. Providing know how and contacts while negotiating with any banks in order to get the best possible terms for the necessary banking services and reduce high bank commissions throughout the procedure. Assisting you in fulfilling the legal requirements of the anti-money laundering legislation. Applying for or renewing the obligatory personal identification codes, the so-called NIE numbers. Providing you with legal support in negotiations with the real estate agent and/or the seller. Preparing and performing a thorough due diligence exercise of the potential investment. Calculating the complete total cost of the intended operation including the sales price, taxes, registry fees, notary fees, legal fees, etc. Making a summary of all the recurrent annual or monthly costs that you will incur after completion of the purchase (community fees, taxes, etc.). 7
Drafting the reservation and/or down-payment agreements, if applicable, with the best possible conditions and minimum risks. Making sure that the content of the final public deed of sales drafted by the Notary in Spanish is correct. Making sure that you buy the property free of any charges or liens by canceling any r egistered or non-registered debts of the seller on the property, at the latest, simultaneously with the signing of the final purchase deed. At the closing before the Notary, signing the purchase deed on your behalf (pursuant to a Power of Attorney) or advising you at the signing. Supervising the payment of the required taxes related to the investment, making sure that they are done on time and that all the legal discounts are taken into consideration. Following up on the registration of the property to ensure that it is correctly made in in your name. Contracting utilities or changing the existing contracts into your name and informing all of the correspondent authorities, entities (including the community of neighbors) and companies about the change of the ownership. Providing any other necessary legal advice to close the purchase successful. The actual Golden Visa services consist of the following: Analyzing your specific case and providing advice to make sure that you will fulfill the requirements to qualify for a Golden visa when the time comes for application. Providing you with updated information regarding the process, necessary documents and the general requirements. Advising you on how to maximize the number of family members who are eligible to get the Golden Visa based on your investment. Finding alternative ways of access to residency permits for any family members excluded from the Golden Visa. Coordinating your real-estate investment with your residency application to make sure that the purchase deed fulfills all the requirements to get the Golden Visa and that the procedures are coordinated time-wise so that the Golden Visa can be applied for at the optimum point within the investment process. Recommend, taking into account your origin, current situation and future plans, the best avenue to apply for the Golden Visa in order to optimize timing and save you from unnecessary travel and other costs, for example: Applying for an investor s visa first and then the residency permit versu the residency permit directly. Applying in Spain versus applying in the country of citizenship versus applying in the country of residence. Guide you through the process of obtaining and legalizing and translating the necessary documents from your country of origin, to make them officially valid in Spain. 8
Find the most suitable and cost-efficient alternatives for the compulsory health insurance; or in case you have insurance, evaluate the subject coverage to ensure that it is sufficient to qualify for the Golden Visa. Prepare the application and attach all of the necessary forms and documents, and coordinating the submission procedure with the Spanish consulate in the country of origin (if applicable), as well with the relevant local authorities in Spain. Submit the application in Spain on your behalf. Follow up on the application process and provide any other necessary legal and practical advice until a decision has been notified to the applicant. Acting as your representative for notification purposes to ensure that all communications from the immigration authorities are received and acted upon in a timely manner. Advise you on where, when and how to get the Foreigner s Identity Card, which will be your ID card in Spain. Providing you with useful information and tips regarding how you can smoothen and speed up the process from the granting of the Golden Visa to the obtaining of a permanent residency or citizenship, as may be relevant in your particular case. The Legal Stuff I need to know regarding the Golden Visa Program in Spain 9
13. Team of AvaLaw at your service Among other professionals at AvaLaw, we are at your service: Julia Frederikson julia@avalaw.es +34 618 278 627 If you can t explain it simply, you don t understand it well enough. Albert Einstein David Lopez david@avalaw.es +34 618 278 627 Raisa Venermo raisa@avalaw.es +34 667 558 094 II ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel. Maya Angelou The person who says it cannot be done should not interrupt the person who is doing it Chinese Proverb Lourdes Santisteban lourdes@avalaw.es +34 646 527 710 Efficiency is doing things right; effectiveness is doing the right things Peter Drucker Roser Coll roser@avalaw.es +34 619 250 931 Do or do not, there is no try Master Yoda, Star Wars On our website www.avalaw.es, you ll find more information of us in form of presentations, videos and client interviews. Please always check the updates and latest information by contacting us at: info@avalaw.es or by calling to +34 932 553 107 10
14. We would definitely recommend AvaLaw to other clients! Below we have collected some of the testimonials from our clients: AvaLaw provides us that assurance, that work effectiveness and that confidence that our clients are constantly demanding from us Ramon Riera European President of FIABCI I have been very happy with the services concerning wills, inheritance, tax, etc Sheelagh Ratliff Owner of a rural hotel in Menorca Before I became the Off-Counsel of Hotel Sector at AvaLaw, I was their client regarding my own real-estate investment. AvaLaw has been a key partner to the success of my company in Spain Matthew Coe US Attorney-at-law, Investor The Legal Stuff I need to know regarding the Golden Visa Program in Spain AvaLaw is a very professional team and we would, at any time, recommend them to any of our partners Jacob Munch Entrepreneur I have been very impressed with the way they right away have been able to grasp the needs and the objectives of my business Robert Strom Owusu Entrepreneur With AvaLaw I have found exactly what I was looking for B.K. Dutch investment banker 11
AvaLaw, Enero 2017 Barcelona Balearics Madrid Alicante Marbella www.avalaw.es tel. +34 932 553 107 info@avalaw.es