Introduction of the Spanish Golden Visa Program
This residency permit or the Golden Visa is a way to get citizenship in Spain. The foreigners who are interested in entering Spain by making a significant capital investment can enter hassle-free. In this case, these individuals have an option to apply for a residency visa or, if applicable, residency for investors. The new Entrepreneurs Law allows them to make an investment in Spain to obtain residency for themselves and their families. The spouses and minor children without being required to remain in Spain for a certain period of time to be able to renew the residency. The maintenance of the investment is the only requirement for renewal, learn more about the Golden Visa Program with Procitizeship.
What does make Spain unique for a South African family?
Spain is a country that is not-so-little, oh-so-pretty and eye-stabbing-beautiful. The country of Spain is undoubtedly one of the best countries of the world thanks to its all round aspect of great food, art, people, culture and architecture. Spain has something beautiful & significant to offer to each and every person who goes to Spain. Like adventure? You have loads! Love food? Every Spanish region has cuisines different from the other! Enjoy relaxing? Spaniards won’t go one day without the siestas! Are you a party-freak? Head to Ibiza for the world’s best parties! In short, there is something for everyone in Spain!
What are the benefits of Spanish citizenship for South Africans?
1. An individual has the opportunity to reside in Spain.
2. The minimum stay required is only one day in Spain in a year with no obligation to live in Spain.
3. Free travel within the Schengen area.
4. An individual is under no obligation to become a Fiscal resident in Spain.
5. An individual has the possibility to become a permanent Spanish resident.
6. Once a Golden Visa is granted to the main family member, children and other family members can also obtain residency with some terms and conditions.
7. An individual may be able to purchase via a non-resident company (terms and conditions apply).
What are the requirements to apply to the Spanish Golden Visa?
1. Residency permit through acquisition of 2 million Euros of public debt.
2. Residency permit through one million Euros in company stocks and shares or bank deposits in financial institutions.
3. Residency permit by purchasing property worth €500,000 free of any encumbrances.
4. Residency permit through some business project.
5. For this residency visa, investment must be made & certified in 60 days prior to the presentation of the application.
6. Those who obtain this residency visa will be able to reside for at least for an year and it can be renewed for two more years when the investment is maintained and if a trip to Spain is completed during the period of residence. To apply for authorization, an individual must be a holder of an investor visa.
7. The documents to be presented include those to certify the investment, shares or property purchase as well as more personal documents like an identity document or passport, medical insurance, criminal record certificate, & proving sufficient economic means for themselves and their whole family during their residency in Spain.
What is the eligibility criterion?
Aside from the investment, the first applicant must be able to prove a monthly income of at least 4 times the I.P.R.E.M. (€532 x 4), including an added €532/additional family member. One is required to have a bank account with enough funds for the duration of your permit. Finally, one is required to have a clean criminal record in the country where you have lived in the last 4 years and private medical insurance, in Spain.
Spain Vs South Africa
- LIVE 18.0 YEARS LONGER
The average life expectancy is 64 years in South Africa while in Spain; the number is almost 82 years i.e. 79 years for men, 85 years for women.
- BE 15.9% LESS LIKELY TO BE OBESE
In South Africa, 28.3% adults are a victim of obesity & in Spain, that number is 23.8% of people.
- MAKE 2.8 TIMES MORE MONEY
South Africa has a GDP/capita of $13,500, while in Spain GDP is $38,300.
- BE 38.0% LESS LIKELY TO BE UNEMPLOYED
In South Africa, 27.6% of adults are unemployed but in Spain, that number is 17.1%.
- BE 96.4% LESS LIKELY TO DIE DURING CHILDBIRTH
In South Africa, approximately 138.0 women per 100,000 births die during labor but in Spain the number is limited to 5.0 women.
- BE 89.4% LESS LIKELY TO DIE DURING INFANCY
In South Africa, 31.0 children die before they reach the age of one. In Spain only 3.3 children do.
- BE 17.6% MORE LIKELY TO HAVE ACCESS TO ELECTRICITY
In South Africa, 85% of the population has electricity access while in Spain, 100% of the population do.
- BE 49.3% MORE LIKELY TO HAVE INTERNET ACCESS
In South Africa, 54.0% people have internet access and in Spain, about 80.6% do.
- SPEND 27.1% LESS ON EDUCATION
South Africa spends 5.9% of its total GDP on education and Spain spends 4.3% of total GDP on education.
- SEE 77.4% MORE COASTLINE
South Africa has a total of 2,798 km of coastline while Spain is the ‘Queen’ here too with 4,964 km coastline!
Investment in Real Estate
Residency permit by purchasing property worth €500,000 free of any encumbrances
Frequently Asked Questions
1. What is it the Golden Visa Program?
The ‘golden visa’ is Spain’s law which aims to stimulate foreign investors to invest in the country. It means that any foreign investor, who meets the requirements and invests a sum of € 500.000 in real estate, is offered a quick & easy way to obtain a Spanish residence permit.
2. Is it permanent?
Yes, eventually it becomes permanent. Getting a PR is a step by step process, although it has been massively simplified with the coming of the new law. If you plan on investing, the first step is to get a residence visa which is valid for a maximum one year. After obtaining this, the second step is to apply for 2 years residence permit. This permit that can be renewed every two years, provided your investment is still in place. If you have spent at least 6 months in Spain every year, after 5 years you can apply for a permanent residence of 5 years & after 10 years you can go on to apply for Spanish nationality.
3. Why does the Spanish Golden Visa program attract so many international investors?
The ‘golden visa’ for Spain aims at non-EU investors. If you live outside EU, a Spanish residence permit is an easy way to get free travel rights within EU subsequently the Schengen zone without having to spend many days actually residing in Spain.
4. What are the main benefits?
Some important benefits for real estate owners are here:
Entry into Spain & other 26 countries of EU (Schengen zone)
You only have to visit Spain once a year in order to maintain the permit, and then staying for extended periods isn’t necessary.
The permit can easily be renewed after every two (2) years.
You obtain the right to work as an entrepreneur/employee after you receive the 2 years permit.
Your spouse and children under 18 can apply for residency as well.
5. What taxes the new citizens have to pay?
When you buy real estate & obtain Spanish residence permit, you will be liable to some tax. The type of tax & amount depends on how much time you spend in Spain during the year. If you stay in Spain for around 6 months, you are counted as a Spanish resident. All your assets worldwide and income will be taxed in Spain. If you are in the country for a less amount of time, you pay taxes on initial purchase of real estate and thereafter on the value of your assets in Spain.
6. How long does it take?
The Spanish investor’s residence permit has been designed to clear the way for non-EU investors. Obtaining a golden visa in Spain is taken care of quickly. Visa residence will be solved in 10 working days, after you can immediately apply for the 2 years Spanish residence permit or wait until the 1 year visa is expired in order to apply for it.
The 2 years residence permit application has to be presented in an Immigration Office in Madrid and the process takes about 20 days.
7. What is the Spain’s “Golden Visa” minimum investment amount?
The minimum investment amount in Spanish real estate is set by the Spanish Government at €500,000. The investment cannot be financed through a loan/mortgage – it must be a total cash investment. Further, the investment should have been made after September 29, 2013 as it is the date on which the law became effective. Real estate purchases prior to this date can’t be applied.
Alternatively, investors may select to create a business project in Spain, recognized as being of “general interest”, or invest in a minimum of €2.000.000 (two million Euros) in Government bonds, or transfer to Spain at one million Euro in company shares or bank deposits.
8. What type of real estate can I invest in Spain?
You are free to select whichever property you wish to purchase, commercial, residential or land. The investment can be in one property or a portfolio of multiple properties as long as the minimum investment is met.
9. Will I be able to work through Golden Visa?
The Golden Visa authorizes to live & work in Spain. This results from the Fourth Additional Provision of the Law that gives the right to live and work in Spain.
10. Am I allowed to travel to the United States with my Spanish passport?
The Spanish passport allows traveling to the United States under the visa waiver program.