By Alexandre Rangel
Moving to another country is one of the most important decisions anyone can make. Knowing the different immigration alternatives is crucial to selecting the right destination to live and invest in.
As the social and political landscape continues to deteriorate worldwide, the interest in securing a legal residence and a second passport continues to rise.
Due to the current turmoil in many countries, foreign nationals are currently more willing to invest in countries where they can move with their families in the near future. Investors are looking to live in countries with a high quality of life without worrying about safety, which is one of the main reasons they explore immigration alternatives. Naturally, each family has its own idea of what quality of life entails, but safety is a common factor investors search for.
During the last few years, Spain has become one of the most sought-after destinations to live and invest in. This influx of foreign investors results from a fast-track path to legal residence through its golden visa program and the high quality of life that the country offers. Additionally, the living costs are very affordable in Spain compared with other European Union (EU) countries offering similar investment programs.
AMONG THE OLDEST PROGRAMS IN EUROPE
The program is one of the oldest in Europe and offers direct access to legal residence in Spain. It was launched 10 years ago to attract foreign capital after the 2013 economic crisis and is part of Law 14/2013 of Sep. 27 that year.
There are different routes to qualify for the legal residence through the Golden Visa Program in Spain:
- Purchase of real estate for at least 500,000 anywhere in Spain.
- Deposit of at least 1 million euro in the investor’s own personal bank account in Spain.
- Acquisition of government bonds for at least 2 million euros or 1 million stock purchase in a Spanish company.
The real estate option is currently the most popular option for foreign nationals. Some keep their properties for personal enjoyment, while others rent them out for profit. Given Spain is one of the most popular tourist destinations in the world, this route is very attractive as it confers an additional benefit besides legal residence.
THE GOLDEN VISA WITH THE SHORTEST PROCESSING TIME
The Spanish Golden Visa Program has the shortest processing time of all investment programs worldwide. By law, the application must be approved or denied within 20 working days and is granted for three years, as stated in the country’s official gazette BOE (Boletín Oficial del Estado, Article #76 of Law 14/2013).
As previously mentioned, due to the political or economic uncertainty in many countries, this established time frame has provided great confidence among applicants who seek to relocate their families to a safer country quickly, as other investor visa programs take years to resolve.
ADVANTAGES OF THE SPANISH GOLDEN VISA PROGRAM
The main benefits that have boosted the number of investor applications for the Spanish visa are summarized as follows:
1. No physical presence requirement
The law does not require living in Spain to maintain and renew the legal residence status. This has been an important factor, considering that many investors are not ready to relocate but want to secure a plan B for the future.
2. No need for consular processing
Investors can apply and obtain their legal residence while visiting Spain. Citizens from 60+ countries, including Latin America and the US, can visit Spain for up to 90 days without a visa. After filing, the administration has 20 working days to approve or deny the application. Thus, foreign nationals can purchase the property, file for residence, and obtain their three-year residence card in a single trip to Spain. The process can be perfectly coordinated with the right legal and real estate teams.
3. Investors keep full control
Investors maintain full control of their investments as no third companies are involved. In the real estate investment option, the investor owns the property completely. If they decide to deposit 1 million euros, all the funds go and are kept in their bank account in Spain. This control over the investment has also provided great confidence to foreign nationals.
4. Children over 18 years
Unmarried children over 18 can also obtain legal residence if they depend financially on the investor. Notably, family members can reside in Spain without the need for the primary investor's physical presence. Thus, investors can keep attending their day-to-day activities abroad, while their relatives can start a new life in Spain.
5. Work authorization and Tax Residency
Principal investors and their family members are allowed to work anywhere in Spain.
Additionally, the legal residence is not tied to a tax residence in Spain. Foreign nationals who spend less than 183 days in Spain are not tax residents.
6. Spanish Citizenship
Investors and their relatives can apply for citizenship after accruing the required legal residence time. The standard residence time to qualify for the Spanish citizenship is 10 years. However, this time can be reduced to two years if foreign nationals come from an Ibero-American country.
Spanish Citizenship for nationals of Ibero-America
Nationals from Ibero-American countries enjoy a significant advantage with the Spanish golden visa. They qualify for citizenship after two years of legal residence. Among the Ibero-American countries are all Spanish- and Portuguese-speaking countries on the American continent. Currently, investors can apply for citizenship if they do not spend more than 90 consecutive days out of Spain. Thus, if the citizens of an Ibero-American country obtain residence through the golden visa program and frequently travel to Spain, they can apply for citizenship in a period as short as two years.
In either case, once citizenship is granted, the foreign national can live and work in any of the 27 countries that are part of the EU.
Living in Spain also offers these additional benefits:
- Low living costs.
- Inexpensive private health insurance (required for the residence application).
- Low annual property taxes.
- Excellent public transportation system.
- Top universities and business schools.
INVESTORS CAN OBTAIN SPAIN’S GOLDEN VISA FASTER AS A BACKUP PLAN
The investment program offered by the Spanish government is an immigration alternative for medium and high net worth individuals seeking a secure backup plan.
The fact that foreign nationals can enter the country and become legal residents in a matter of days while maintaining full control of the investments definitively provides confidence to investors in their decision-making process.
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