Unlocking EU Residency: Benefits of Golden Visa

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The Spanish government introduced the Golden Visa Spain program in 2013 to entice foreign investment and stimulate the economy. It makes it possible for non-EU nationals to invest significantly in Spain and acquire a legitimate residency visa that may be extended indefinitely. The investment can be in real estate, public debt, shares, bank deposits, or business projects, depending on the amount and requirements.

This article will present relevant and current information on the Golden Visa Spain program, including its advantages, prerequisites, investment possibilities, application requirements, family concerns, and tax implications. You will know for sure whether the Golden Visa Spain is appropriate for you by the end of this article, as well as how to submit a successful application.

Application process

Compared to other residences by investment programs, the Golden Visa Spain application procedure is rather straightforward and quick. Before or after making the investment, you can apply for the Golden Visa Spain, but you must be certain of your commitment and have documentation of your financial resources. You can use one of the following methods to apply for a Golden Visa Spain:

  • Online: You can use the official website of the Spanish Ministry of Foreign Affairs to submit your application and accompanying documentation online. As it enables you to watch the progress of your application and receive notifications online, this is the most practical and advised choice.
  • In person: At any nearby Spanish Embassy or Consulate in your country of residency, you may personally submit your application and supporting documentation. You must schedule an appointment beforehand and adhere to the diplomatic staff’s guidance.
  • If you are already in Spain and have a valid visa or permission, you may submit your application and supporting documents in person at the Large Business and Strategic Groups Unit in Madrid. You must schedule an appointment in advance and adhere to the authorities’ rules.

The documents you need to submit for the Golden Visa Spain include:

  • A completed and signed application form
  • A valid passport and a copy of all pages
  • A recent passport-size photo
  • Proof of investment, such as property deeds, bond certificates, share certificates, bank statements, or business plans
  • Proof of health insurance in Spain, either public or private
  • A certificate of criminal record from your country of origin and any other country where you have resided for more than one year in the last five years
  • A medical certificate stating that you do not suffer from any contagious disease that may pose a threat to public health
  • Proof of sufficient financial resources to support yourself and your family members during your stay in Spain
  • Proof of family relation, such as birth certificates, marriage certificates, or adoption certificates, if you are applying with dependents
  • Payment of the application fee

Members of the family

You are allowed to list your family members as dependents on your application under the Golden Visa Spain program. Your spouse, minor children, and parents who are 65 years old are all eligible to apply for residence permits in Spain and receive the same privileges as you. For your family members, you must provide proof of your kinship, financial dependence, health insurance, and lack of any criminal histories. The terms and length of their residence permits will be the same as yours. They are not subject to any limitations while they travel, work, study, or live in Spain or the Schengen Region. In Spain, they have access to public services and benefits as well. They are unable to make investments or apply for their own Golden Visas for Spain

Tax considerations

Before applying for the Golden Visa Spain, you should consult with a professional tax advisor about the tax implications of becoming a resident in Spain and paying taxes on your worldwide income, assets, and inheritance. The main taxes that may affect you as a Golden Visa Spain holder are:

Income tax: If you spend more than 183 days in Spain in a calendar year or if your primary place of business is in Spain, you must pay income tax in Spain on your worldwide income. Depending on your income type and level, the income tax rates range from 19% to 45%. The Beckham Law, which permits you to pay a flat rate of 24% on your income during the first six years of residence in Spain, is one exemption and deduction that you may qualify for.

Wealth tax: If you are regarded as a Spanish tax resident, you must pay wealth tax in Spain on all of your assets, regardless of where they are located. Depending on your net worth and the area where you live, the wealth tax rates range from 0.2% to 3.5%. A personal allowance of €700,000 and an exemption for your primary house in Spain of €300,000 are two benefits you can be eligible for.

Inheritance tax: If you receive any assets or rights from a deceased person who was a resident of Spain or had assets there, you will be required to pay inheritance tax in Spain. Depending on the size of the inheritance and the degree of kinship to the deceased, the inheritance tax rates range from 7.65% to 34%. However, there are several exclusions and discounts that you can be eligible for, such as a 95% discount for your spouse and kids if they inherit your primary house in Spain.

As you can see, the tax system in Spain is complex and varies depending on many factors. Therefore, it is highly recommended that you seek professional advice before applying for the Golden Visa Spain and plan your investment and residence accordingly.

Conclusion

The Golden Visa Spain is a program that allows non-EU investors and their families to live and work in Spain and enjoy the benefits of being a resident of the European Union by making a large investment in Spain. However, you should also consider the tax implications of becoming a resident in Spain and consult with a professional tax advisor and an investment immigration expert before applying.

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